Basic Policy on Distribution of Profits

Fuji Seal Internationl (the Company) has adopted a policy of aiming to steadily and continuously increase dividends per share, while maintaining, in principle, an approach based on a consolidated dividend payout ratio of 30%. Meanwhile, in recent years, changes in the business environment, progress with global expansion, geopolitical risks, and other factors have increased the likelihood that profit will fluctuate significantly due to temporary or non-recurring factors.
In light of these conditions, to prevent dividend levels from being significantly affected by short-term and temporary profit fluctuations and to provide stable and continuous dividends based on earnings power in its core business, the Company has revised its basic policy concerning profit allocation as follows.

1. (1)Invest in continued growth (technology development, human resource development, capital expenditures, M&A).
2. (2)Target 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 changes in the business environment.
3. (3)Adjust for any impacts if profit fluctuates significantly due to temporary or non-recurring factors.
4. (4)Build a stable financial base prepared for emergencies and flexibly acquire and dispose of treasury shares.

In the fiscal year ended March 31, 2026, the management environment surrounding the Fuji Seal Group remained uncertain due to factors such as changes in international conditions, including trade policies in various countries, fluctuations in raw material prices, and continued inflation. In this environment, profit far surpassed the initial forecast and reached a new record high, due to that the Group has been advancing in each region.
In consideration of its basic policy concerning profit allocation and business performance for the fiscal year under review, the Board of Directors resolved at a meeting held on May 21, 2026, to pay a year-end dividend of ¥46 per share for the fiscal year ended March 31, 2026.
The Group thus pays an annual dividend of ¥81 per share for the fiscal year ended March 31, 2026, which includes the already paid interim dividend (¥35 per share), for a consolidated dividend payout ratio of 20.9%. This is due to the exclusion of one-time extraordinary income and other items regarding the overseas subsidiary Fuji Seal Switzerland AG from the source of dividends, as the Group intends to use these items to invest in growth to achieve FSG.30. Excluding this impact, the dividend payout ratio would be 30.2%.