(As of December 31, 2009)

Under the Company’s Articles of Incorporation, the Board of Directors is responsible for determining appropriations of retained earnings. The Board of Directors, in the course of exercising this authority, seeks to pay dividends equivalent to around 35% of consolidated annual net income, while targeting minimum cash dividends of ¥20.00 per share in principle and emphasizing long-term dividend stability. For the time being, the Company will pay cash dividends twice a year. In principle, annual dividends are broken down into an interim dividend of ¥10.00 per share and a year-end dividend of ¥10.00 or an amount that brings total annual dividends to the equivalent of 35% of consolidated annual net income (whichever is higher).
     Following this policy, the Board of Directors, at its meeting held on February 12, 2010, decided to pay a year-end cash dividend of ¥10.00 per share, representing the minimum amount determined by its year-end dividend policy. Payment of those dividends will commence on March 12. After accounting for the ¥10.00 interim dividend already paid in September 2009, this will bring total annual dividends to ¥20.00 per share, equivalent to 11.5 times consolidated net income.
     While emphasizing increases in net income, the Company also focuses on share buybacks as a way to expedite improvements in return on equity (ROE). Decisions on share buybacks are based on the Group’s market environment, consolidated earnings power, and financial stability, and buybacks are limited in scope so as not to impede its growth strategies.
     In the year under review, the Company bought back 500,000 shares based on resolution of the Board of Directors, amounting to ¥877 million. Accordingly, total shareholder return—the sum of shares bought back and total cash dividend payments—was equivalent to 23.5 times consolidated net income.