Notice of Revision of Shareholder Return Policy

Reasons for Revising the Shareholder Return Policy

Sanyo Chemical Industries, Ltd. positions profit sharing with shareholders as a key issue while enhancing the group's earnings power and strengthening its corporate foundation. Based on the Medium-term Management Plan 2030, the company promotes growth strategies, structural reforms, and management foundation strengthening. To realize management that is conscious of capital costs and stock prices, it has reviewed cash allocation, secured internal reserves necessary for growth investments, and changed its policy to improve the stability, continuity, and predictability of shareholder returns.

Details of the Revision and Implementation Timing

Regarding dividends, the company will primarily implement a progressive dividend policy, based on an annual dividend of 170 yen 00 sen per share for the fiscal year ending March 2026, aiming for a total return ratio of 40% or more. This will strengthen the previous policy of targeting a total return ratio of 30% or more, allowing flexible and agile shareholder returns including share buybacks. The revision will be applied starting with the interim dividend for the fiscal year 2026 (ending March 2027).