Basic Policies for Allocation of Earnings

The dividend policy of the Company is to link dividend payments to business performance and earnings on an ongoing basis. Its basic policy for returning profits to shareholders is to maintain a payout ratio of around 35% based on consolidated net income.

TEL will effectively use internal capital reserves to raise corporate value through earnings growth and provides returns directly to shareholders by concentrating investment in high-growth areas and linking dividend payments to business performance and earnings.

For FY2013 ending March 31, 2014, the above dividend policy will remain unchanged, and in addition to performance-based policies, TEL takes account of the Group financial conditions, global financial and economic trends, and plans to pay a total dividend of 50 yen per share (a 25-yen interim dividend and 25-yen year-end dividend) as a special measure on shareholder returns, significantly surpassing the 35% target payout ratio.

Cash Dividends per Share

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20 yen memorial dividend of 50th anniversary is included in the FY2013 (interim 10 yen, year-end 10 yen).