Capital Allocation Policy

Capital Allocation Policy for Sustainable Growth

Our capital allocation policy is positioned as the "foundation" for evolving our competitive advantages and business expansion without interruption. With our corporate philosophy of "ensuring the company's continuity" in mind,
we prioritize investments in areas directly linked to further corporate growth, focusing on maximizing added value.
Furthermore, when considering capital efficiency, our basic approach is not to aim for short-term improvements in indicators, but to expand business performance through medium- to long-term growth investments, thereby improving capital efficiency as a result.

Investment for Further Growth

Regarding investments for medium- to long-term growth, we will consider any opportunities that promise such growth without setting a predetermined budget, so as not to exclude any possibilities.

1. Investment in New Product Development and Strengthening of Business Foundations
   Our top priority is investment aimed at our business growth and strengthening our business model. Specifically, this includes new product development, expansion of overseas business, strengthening of our direct sales system, business foundation, and production and shipping systems.
2. Strategic M&A to Accelerate Growth
   We will consider any projects for M&A that are expected to increase our added value as investment targets, regardless of timing or monetary scale.

Investment in Human Capital

Based on the recognition that "people are the foundation for creating added value," we will continue to invest in strengthening recruitment and human resource development. We will actively promote investment in human capital that will lead to the creation and enhancement of future added value.

Payment of Dividends and Acquisition of Treasury Stock

We will continuously pay stable dividends.
We will acquire treasury stock flexibly in accordance with the business environment.