Notice Regarding Dividend of Surplus

Dividend Details and Policy

DISCO Corporation has resolved a dividend of surplus with the record date of March 31, 2026. The dividend policy targets a payout ratio of 25% of consolidated semiannual net income, maintaining a stable dividend of 10 yen per half-year (20 yen annually). Furthermore, if the cash and deposit balance at fiscal year-end exceeds the planned necessary funds, one-third of the excess amount will be added as a dividend. The current year-end dividend of 376 yen per share includes 184 yen based on consolidated second-half net income plus an additional one-third of the excess cash and deposits (192 yen).

Impact on Shareholders and Future Outlook

The annual dividend totals 505 yen, consisting of an interim dividend of 129 yen and a year-end dividend of 376 yen, representing a substantial increase from 289 yen in the previous fiscal year. Although there is a possibility of revising the stable dividend of 20 yen if consolidated net losses occur for three consecutive terms, a stable return of profits is planned at present. This dividend proposal will be submitted at the 87th Annual General Meeting of Shareholders scheduled for June 24, 2026.