Basic Strategy for Capital Policy

The Company considers sustained growth necessary to enhance shareholder value over the medium to long term, and has established a basic policy of maintaining shareholders' equity at an appropriate level in order to build a sound financial foundation that allows for investment in growth and tolerance for risk.

The Company considers return on equity (ROE) to be one of its key management indicators, discloses its target for this metric, and strives to return profits to shareholders by making effective use of shareholders' equity while comprehensively taking into account its financial soundness and other factors.

The Company considers the return of profits to shareholders to be an important management issue and has established a basic policy of continuing to pay stable dividends while securing the internal reserves necessary for future business development and strengthening management structure, and applies the higher of a 40% payout ratio or an 8% DOE (dividend on equity) as the standard for dividends.