Returning earnings to shareholders is one of the highest priorities at Hanwa. Our basic policy is to pay dividends that reflect performance in each fiscal year. Dividends also take into consideration the need to retain earnings to build a stronger base for future business operations as well as the return on equity and dividend payout ratio.

Our basic policy is to pay interim and year-end dividends in each fiscal year. The board of directors determines the interim dividend and the year-end dividend requires the approval of shareholders.

Retained surplus is used to achieve further gains in corporate value. For this purpose, Hanwa makes effective use of retained surplus to strengthen the operating base and fund growth of established businesses and the development of new businesses.

For the fiscal year that ended in March 2011, Hanwa paid a year-end dividend of ¥6 per share from retained earnings. Although there was an extraordinary loss, this dividend was paid in accordance with the importance the company places on the stable distribution of earnings to shareholders and based on earnings in the fiscal year that were generally in line with expectations. Along with the interim dividend of ¥6 per share, this results in a dividend of ¥12 per share applicable to fiscal 2010.

For fiscal 2011, which is the year ending in March 2012, assuming that we achieve our goals for operating results, we plan to pay a dividend of ¥12 per share, the sum of interim and year-end dividends of ¥6 per share each.