Basic Policy on Distribution of Profits

The Group believes that returning profits to shareholders as much as possible and maintaining a stable distribution of dividends, while taking into account various factors of the situation, is a key aspect of its basic dividend policy, as well as preserving profits as retained earnings for future business deployment and reinforcement of management structure. In principle, the Group pays twice a year as an interim dividend and a year-end dividend. On the first year of Macnica Fuji Electronics Holdings, Inc.'s establishment, the Group will pay once annually as a year-end dividend, though the Group includes a provision in its Articles of Incorporation, which stipulates that it may, by the resolution of the Board of Directors, distribute an interim dividend as permitted in Article 454, Paragraph 5 of the Companies Act.