Shareholder Returns

Dividend 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 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.

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.

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