Notice Regarding Dividend of Surplus

Overview of Dividends

Toennec Corporation has decided on a year-end dividend of 48 yen per share for the record date of March 31, 2026, which is scheduled to become effective on June 26, 2026. Together with the interim dividend of 28 yen, the annual dividend will total 76 yen per share. The total dividend amount is 4,455 million yen, an increase from 2,784 million yen in the previous fiscal year. The dividend is funded from retained earnings, with a basic policy of payout based on consolidated payout ratio target of 40% reflecting business performance.

Shareholder Return Policy and Impact of Stock Split

The company emphasizes a balance between investment in growth strategies and shareholder returns for sustainable growth and enhancing corporate value. On October 1, 2024, the company conducted a 5-for-1 stock split. The previous fiscal year’s dividend figures are stated based on the pre-split amounts. Converted to post-split basis, the previous year’s annual dividend was 50 yen. The current increase in dividends is expected to strengthen shareholder returns.