Notice Regarding Dividend of Surplus (Dividend Increase)

Overview of Dividend

At the Board of Directors meeting held on April 28, 2026, Kandenko Co., Ltd. resolved to pay a dividend of surplus (dividend increase) with a record date of March 31, 2026. The year-end dividend was set at ¥79 per share, representing an increase from the previous forecast of ¥75. As a result, the total annual dividend for the fiscal year ending March 2026 will be ¥124 per share, combining the interim dividend of ¥45, which is a ¥42 increase from the previous year’s ¥82. The total dividend amount will be ¥15,722 million, funded by retained earnings. The effective date is scheduled for June 29, 2026.

Shareholder Return Policy and Future Outlook

The company’s basic policy is to continue stable dividends with two payments annually, interim and year-end, targeting a payout ratio of approximately 40% as set forth in the medium-term management plan spanning FY2024 to FY2026. This dividend increase reflects considerations of the fiscal year 2026 performance and the medium-term management plan objectives, demonstrating the company’s stance to maintain stable dividends going forward. This dividend will be proposed at the Annual General Meeting of Shareholders scheduled for June 26, 2026.