Action to Implement Management that is Conscious of the Cost of Capital and the Stock Price

May 13, 2026

1. Analysis of current situation

   	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
   ＲＯＥ	11.8%	10.7%	23.7%	21.1%	5.5%	13.5％	21.1％
   Dividend per share	JPY 38.00	JPY 37.00	JPY 96.00	JPY 104.00	JPY 31.00	JPY 89.00	JPY 148.00 Note
   Dividend payout ratio	30.9%	30.6%	30.1%	30.1%	30.9%	34.3％	30.1％ Note
   Total return ratio	53.3%	30.6%	37.4%	39.6%	64.7%	81.6％	51.1％ Note
   Capital ratio	72.3%	71.5%	69.8%	72.9%	74.6%	74.0％	73.6％
   PBR	1.29	1.27	1.25	1.11	1.34	1.02	2.93

   Note : The year-end dividend for the fiscal year 2025 is scheduled to be submitted for approval at the 71st Ordinary General Meeting of Shareholders scheduled to be held on June 25, 2026. Details are as follows.

   Through the "Yamaichi Electronics Group 5th Medium-Term Management Plan (for the fiscal year ending March 2027 to the fiscal year ending March 2029)" disclosed on May 13, 2026, Yamaichi Electronics announced the following three items as key aspects of its "Capital Policy for the Period Covered by the New Medium-Term Management Plan."

   1. Targeting ROE of at least 18%

      Result: Under the previous medium-term management plan, we targeted ROE of at least 10%. Although ROE temporarily fell below 10% in fiscal 2023 due to sluggish conditions in the semiconductor market, it remained at or above 10% from fiscal 2016 through fiscal 2025, excluding fiscal 2023.

   2. Adopting a progressive dividend policy based on a consolidated dividend payout ratio of 30%

      Result: The ratio has remained at 30% or higher since fiscal 2018.

      Note: This means that the annual dividend per share will be maintained at or increased from the previous fiscal year's level. Under our progressive dividend policy, the ordinary dividend per share serves as the minimum level, and special dividends or other temporary return measures are not assumed as part of this policy.

   3. Enhancing returns of excess capital

   As a means of enhancing returns of excess capital, if surplus funds remain after business investment, growth investment, and ordinary dividend payments, we will aim for a high total return ratio by implementing flexible share repurchases or special dividends.

   For more details concerning our shareholder return policy, please refer to our website.

   Link to the website

   • Notice Regarding Changes to Shareholder Return Policy

2. Future actions

   Guided by the "Yamaichi Electronics Group Medium-Term Management Plan (FY2026-FY2028)" disclosed on May 13, 2026, we will identify priority issues through backcasting from a five-year and ten-year perspective and aim to achieve continuous growth. From a medium- to long-term perspective, we will address management issues by strengthening our growth foundation from both business and organizational aspects, while also working to enhance non-financial value through the strengthening of human capital, the promotion of sustainability initiatives, and the reinforcement of governance. At the same time, by steadily executing growth investments and improving capital efficiency, we will enhance corporate value from both financial and non-financial perspectives and aim to achieve sustainable growth.

   For more details concerning our medium-term management plan, please refer to our website.

   Link to the website

   • Yamaichi Electronics Group Medium-Term Management Plan