Change in Dividends Per Share
(Including Special Commemorative Dividend)

Note: The year-end dividend for FY2014 included a special dividend of ¥2.00.

         The year-end dividend for FY2016 include a commemorative dividend of ¥1.00.

Share Buybacks

Shareholder Return Policy

The Takara Group appropriates profits in accordance with a medium-to-long-term perspective. By strengthening the entire Group’s business foundations and realizing earnings growth, the Group aims to maximize corporate value and shareholder return.

The Group uses cash flows from operations to replenish internal reserves in preparation for strengthening business foundations and investment in growth strategies, among others. At the same time, with regard to the shareholder return, the Group’s basic policy is to continue to maintain stable dividends while also effecting returns taking into account elements relating to operating performance.

Specifically, the Group’s policy consists of increasing dividends according to the level of consolidated operating income aiming for a payout ratio of approximately 30%, “deemed dividend payout,” signifying total dividends vs. operating income after taxes (=consolidated operating income x (1-effective tax rate)). We also aim to achieve an ROE in the high six per cent range by flexibly acquiring treasury stock, selling cross shareholdings and allocating the proceeds to growth investment and returns to shareholders as circumstances permit.

The Group will use internal funds to maintain its financial position in order to strengthen the management foundation and business profitability of Group companies and to undertake normal investments in existing businesses. In addition, the Group will invest actively in important strategies for income growth as well as endeavor to increase the corporate value of the Group as a whole.