Notice Regarding Occurrence of Extraordinary Loss and Revision of Full-Year Consolidated Earnings Guidance and Dividend Forecast (Dividend Increase)

Regarding Revision of Earnings Forecast

United Arrows Ltd. expects to record an extraordinary loss of 1,000 million yen as a subsidiary reorganization loss due to the transfer of all shares of consolidated subsidiary COEN Co., Ltd. On the other hand, corporate tax burden will decrease as stock valuation losses and doubtful account provisions previously not deductible for tax purposes will be recognized as expenses this term. As a result, net income attributable to owners of the parent is projected to exceed the previous forecast by 11.0% to 5,643 million yen. Net sales are forecasted at 164,235 million yen, 0.9% below the previous forecast, operating income is maintained at 9,000 million yen, and ordinary income is expected to increase 0.7% to 9,100 million yen.

Regarding Revision of Dividend Forecast (Dividend Increase)

The company positions maximizing shareholder value as a management priority and follows a basic policy of stable and progressive dividends with a target dividend payout ratio of over 40%. Based on this revision of earnings forecast, the year-end dividend per share is increased by 8 yen from the initial forecast to 62 yen, and combined with the interim dividend of 20 yen, the annual dividend amounts to 82 yen, up 19 yen from the previous year. The appropriation of surplus for dividends will be submitted to the 37th Annual General Meeting of Shareholders.