Shareholder Returns

Shareholder Return Policy

Simplex Holdings (hereafter referred to as the Company) believes that prioritizing investments for growth that helps strengthen its business foundation will contribute to achieving profit growth and improving its corporate value in a sustainable manner while maintaining its financial soundness based on its strong cashflow-generating capability. In addition, the Company is committed to pursuing a management approach mindful of capital efficiency and has therefore set an ROE target as one of its KPIs. The Company is also aware that providing shareholder returns, which helps increase capital efficiency, is a key measure in capital allocation. Based on this belief, the Company seeks to enhance shareholder returns by paying dividends as a fundamental measure, comprehensively considering trends in business performance, ROE level, opportunities of investments for growth, and other factors.

Specifically, the Company has set a dividend policy of stably and sustainably increasing dividend per share through profit growth, with a target dividend payout ratio of 40% on a consolidated basis.

The Company’s Articles of Incorporation stipulate that it may pay an interim dividend. However, the Company currently has a policy of paying dividends from surplus once a year as a year-end dividend. The Company’s Articles of Incorporation also stipulate that the Board of Directors is the decision-making body for the distribution of dividends from surplus pursuant to the provisions of Article 459, Paragraph 1 of the Companies Act, except as otherwise provided by laws and regulations.

The Company also intends to buy back its own shares flexibly as part of its shareholder return policy that helps increase capital efficiency, by considering market environment including stock prices on top of the aforementioned considerations to determine dividends.

Dividend Status

Dividends per share have been calculated on the assumption that a 100-for-1 stock split of ordinary shares effective on July 10, 2021, and a 4-for-1 stock split of ordinary shares effective on December 1, 2025, were both conducted at the beginning of the fiscal year ended March 31, 2022.

In calculating the dividend payout ratio and ROE, the impact of the share repurchase resolved at the Board of Directors’ meeting held on January 29, 2026 has not been taken into account. After reflecting the impact of the share repurchase, the dividend payout ratio for the fiscal year ending March 31, 2026 is expected to be approximately 42.3 percent, and ROE is expected to be approximately 19.4 percent.

Beginning with the fiscal year ended March 31, 2024, the Company has raised its target consolidated dividend payout ratio from 30 percent to 40 percent.