Basic Policy on Distribution of Profits

Fuji Seal aims to realize a sustainable and circular society that brings peace and happiness to all through packaging, and to raise corporate value. It positions continual increase of profit returns, while achieving close communications with shareholders and returning profits to shareholders based on consolidated results to be the most important management issue.

The Company’s view on profit allocation is as follows.

1. ①Invest in continued growth (technology development, human resource development, capital expenditures, M&A)
2. ②While targeting a consolidated dividend payout ratio of 30% in principle, referring to DOE ratio and variation of business environment comprehensibly, also increase the dividend per share in a stable and sustained manner
3. ③Build a stable financial base prepared for emergencies and flexibly acquire and dispose of treasury stock (increase capital efficiency)

In the fiscal year ended March 31, 2023, the management environment encompassing the Fuji Seal Group remained challenging due to the continuation of surging raw materials and other prices and accelerated inflation in Europe and the Americas. In this climate, the Group accounted for the tax effects associated with a resolution it had passed on the dissolution and liquidation of Fuji Seal Switzerland AG, which is a consolidated subsidiary of the Company. As a result, net income was above the level of the business performance forecast announced on May 11, 2022.

At the Board of Directors meeting held on May 19, 2023, the Company decided to pay a year-end dividend for the fiscal year ended March 31, 2023 of ¥18 per share, after taking into consideration the financial results for the fiscal year under review and its profit allocation policy of stable dividends. The Company paid an annual dividend of ¥35 per share for the fiscal year ended March 31, 2023, which included the already paid interim dividend (¥17 per share), for a consolidated dividend payout ratio of 27.9%.

In the fiscal year ending March 31, 2024, the Group plans to pay an annual dividend of ¥55 per share based on the new basic policies above.