Basic Policy on Distribution of Profits

Fuji Seal (the Company) will contribute to realizing a circular, sustainable society that brings peace and happiness to all through packaging and aims to raise corporate value. We consider returning profits to shareholders based on the Company's consolidated performance for each fiscal year, along with providing a sustained and stable return of profits, to be our most important management priority.

As such, the Company's basic policy on profit allocation is as follows.

1. ①Invest in continued growth (technology development, human resource development, capital expenditures, M&A)
2. ②Target a consolidated dividend payout ratio of 30% in principle, while aiming for a stable and sustained increase in dividend per share, considering a comprehensive range of factors such as the level of DOE and changes in the business environment
3. ③Build a stable financial base prepared for emergencies and acquire and dispose of treasury shares

In the fiscal year ended March 31, 2025, the management environment surrounding the Fuji Seal Group remained uncertain due to ongoing geopolitical tensions around the world, despite the easing of inflation in the Americas and the gradual recovery in the Japanese economy. In this environment, profit reached a record high due to the contribution of ongoing measures to improve profitability in each region.

In consideration of its approach to profit allocation and business performance for the fiscal year under review, the Board of Directors resolved at a meeting held on May 22, 2025, to pay a year-end dividend of ¥38 per share for the fiscal year ended March 31, 2025. The Group will thus pay an annual dividend of ¥68 per share for the fiscal year ended March 31, 2025, which includes the already paid interim dividend (¥30 per share), for a consolidated dividend payout ratio of 30.2%.

In the fiscal year ending March 31, 2026, the Company plans to pay an annual dividend of ¥71 per share. As a result, the Group expects to achieve a consolidated dividend payout ratio of 22.0% for the fiscal year ending March 31, 2026. This is due to the exclusion of Fuji Seal Switzerland AG from the source of dividends, as we anticipate a temporary impact mainly reflecting foreign exchange gains due to the liquidation procedure of Fuji Seal Switzerland AG, which is expected to generate gains or losses on completion of the liquidation. Excluding this impact, the dividend payout ratio would be 30.2%.