Nisshin OilliO : Announcement of Dividend on Retained Earnings (Dividend Increase)

Note: This document is a translation of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

May 10, 2024

To whom it may concern,

The Nisshin OilliO Group, Ltd.

Takahisa Kuno, Representative Director and

President

Securities code: 2602; Prime Market of TSE

Inquiries: Arata Kobayashi, Director and Senior

Managing Officer

Phone: [phone]

Announcement of Dividend on Retained Earnings (Dividend Increase)

The Nisshin OilliO Group, Ltd. hereby announces that the Board of Directors has resolved at a meeting held on May 10, 2024, to distribute dividends from surplus with a record date of March 31, 2024, as detailed below. This matter is scheduled to be presented at the 152nd Ordinary General Meeting of Shareholders to be held on June 27, 2024.

1. Details of the dividends

		Amount of dividend			Latest dividend forecast			Previous term payout
		resolved			(announced on
						(FY ended March 2023)
		(FY ended March 2024)			February 9, 2024)
Dividend record date		March 31, 2024		March 31, 2024		March 31, 2023
Dividend per share		110.00 yen		90.00 yen		75.00 yen
Total amount of dividends		3,583 million yen		－		2,443 million yen
Effective date		June 28, 2024		－		June 26, 2023
Source of dividend		Retained earnings		－		Retained earnings

2. Reasons

We acknowledge that returning profits to shareholders is a key management priority.

In the Value Up+ medium-term management plan, we have set the performance target for our return on equity (ROE) at 8% or higher. To achieve this, we are committed to pursuing growth and enhancing our return on capital (ROC) through proactive investments. Additionally, we have set an ROE target of 10% for fiscal 2030. To ensure that the benefits of increased ROC, resulting from profit growth, are returned to shareholders, we consider the consolidated payout ratio to be a crucial performance indicator. Therefore, we will distribute the above dividends toward a consolidated dividend payout ratio of 40% for fiscal 2024, the final year of Value Up+.

After reviewing the year-end dividend based on the above policy and considering the consolidated business results, we have decided to raise dividends per share by 20 yen, from the most recent forecast (announced on February 9, 2024) to 110 yen. Consequently, this will bring the total annual dividend to 170 yen per share, including the interim dividend of 60 yen per share.

(Reference) Breakdown of the annual dividend

				Dividends per share (yen)
	Dividend record date	End of Q2		End of fiscal year		Total
	Fiscal year under review	60.00		110.00		170.00
	(FY ended March 2024)
	Previous term	45.00		75.00		120.00
	(FY ended March 2023)