SHAREHOLDER RETURN

Basic Policy of Shareholder Return

The Company recognizes profit return to shareholders as an important management issue and its basic policy is to target a consolidated payout ratio of 45-50%, considering capital needs for investments in business growth and improving internal reserves for strengthening the business foundation.In cases where extraordinary income or losses are expected, the payout ratio is calculated excluding such extraordinary items.
The Company’s dividends of surplus are paid twice a year as an interim dividend and year-end dividend as a basic policy, and the body for making decisions regarding these dividends of surplus is the Board of Directors for interim dividends and the shareholder meeting for year-end dividends. The Company’s Articles of Incorporation stipulate that it may pay an interim dividend with October 31 every year as a record date by a resolution of the Board of Directors.

Regarding the Temporary Change in Dividend Policy for the Four Fiscal Years from the Fiscal Year Ending April 2026 to the Fiscal Year Ending April 2029

In addition to the current basic policy about shareholder returns, we have decided to introduce a progressive dividend and a profit-linked additional dividend.

(Progressive Dividend)
Raccoon will introduce the progressive dividend whereby the annual dividend for the applicable periods will not be less than 22 yen per share regardless of the level of our net income attributable to owners of parent.
*The progressive dividend refers to a dividend policy measure that, in principle, avoids decreasing dividends and instead maintains or increases them.

(Profit-Linked Additional Dividend)
While we aim for a consolidated dividend payout ratio of 45% to 50% under Raccoon’s basic policy about shareholder returns, we will introduce a profit-linked additional dividend whereby the surplus of our profit over a specified amount for the applicable periods will be distributed by increasing the dividend payout ratio in stages. As a result, the composition of the total amount of our dividend will be the sum of amounts calculated at multiple dividend payout ratios.

Method for calculation of the dividend when the profit-linked additional dividend is introduced
The total amount of the dividend is the sum of the amounts (1), (2) and (3) below:
(1) An amount calculated by applying a consolidated dividend payout ratio of 45% to 50% to our net income up to 1.2 billion yen for the period (*)
(2) An amount calculated by applying a consolidated dividend payout ratio of approximately 60% to the portion of our net income exceeding 1.2 billion yen up to 1.5 billion yen for the period (*)
(3) An amount calculated by applying a consolidated dividend payout ratio of approximately 70% to the portion of our net income exceeding 1.5 billion yen for the period (*)
*Note: Net income attributable to owners of parent for the period