Dividend payments for 2012, and policy on shareholder returns Our dividend payment policy is based on the principle of providing shareholders with a stable rate of returns on their investment. In determining the amount of dividend to be paid, we keep in mind the importance of maintaining a sound financial position, while at the same time taking into account the Group’s business performance over the past several years and the need to set aside adequate funds for future capital investment plans and to pay R&D expenses. On this basis, we aim to maintain a stable annual dividend of \8 per share. Regarding the allocation of profits for the 2012 business year, although the Group’s profits posted a decline, viewed from a medium-term perspective our profit level is high, and we have therefore decided to pay a term-end per-share dividend of \5, for an annual dividend of \10 per share. Business performance prospects for 2013 Regarding the business outlook over the near future, there is an expectation of improved business results, particularly among export-oriented companies. This comes against the background of the advent of the new LDP administration at the end of last year, as well as the rectification of the yen’s excessively high exchange rate due to the subsequent monetary relaxation measures taken by the Bank of Japan. On the other hand, there are no signs of a strong recovery by economies worldwide, particularly in Europe, and with the weaker yen likely to exert a negative effect in the form of higher prices of fuel and raw materials, we expect business conditions to remain difficult. In these circumstances, at the Toagosei Group we will continue our efforts to secure adequate earnings through steps to expand sales of high value-added products, as well as cost-cutting measures. We project sales, operating income, and net income for 2013 at roughly the same level as in 2012. Further growth through collaborative expertise Toagosei Co., Ltd. 9