Notice of DOE Target Increase (from 4% or more to '5% or more')

At a Board of Directors meeting held today, our company decided to raise the DOE (Dividend on Equity) target, one of the management goals (KPIs) of our long-term vision 'Ichigo 2030', from the previous '4% or more' to a new '5% or more'. The long-term vision 'Ichigo 2030' was announced on April 17, 2019, and revised (new items established and strengthened) on April 15, 2024. Following the increase in the DOE target to '5% or more', the dividend forecast for the fiscal year ending February 2027 is 15.5 yen, an increase of 4 yen (+35%) from the 11.5 yen dividend forecast for the fiscal year ending February 2026. By raising the DOE target and implementing a progressive dividend policy, we aim to achieve a higher and more stable dividend policy. The reason for the DOE target increase is that our company, as a 'Sustainable Infrastructure Company' aiming to realize a sustainable society, is working to maximize shareholder value by further expanding business superiority through strategic business development with a view to the future. Under this policy, we have set management goals (KPIs) in our long-term vision 'Ichigo 2030' and aim to build a new, highly sustainable and stable revenue base that is less affected by real estate market conditions, by leveraging the core competencies cultivated through our 'Shin-chiku' business, in addition to the continuous growth of existing businesses. As a result of these efforts, our net income for the fiscal year ending February 2026 updated its record high, and we expect to update the record high for the fiscal year ending February 2027 as well. In addition to this increase in profit and the steady accumulation of recurring revenue, we will strengthen shareholder returns and aim for further improvement in medium- to long-term shareholder value by raising the DOE target, which is set in conjunction with a progressive dividend policy as a shareholder return measure, from the previous '4% or more' to '5% or more'. 'Shin-chiku' refers to the creation of new value for existing real estate by carefully enhancing the value of each property with heart, utilizing Ichigo's real estate technology and know-how, aiming to realize '100-year real estate' in Japan. The content of the DOE target is '5% or more' from the fiscal year ending February 2027. (Reference) Announced on April 17, 2019 (initial setting): 3% or more. Changed on April 15, 2024: 4% or more.