Distributive policy

Japan Petroleum Exploration: Notice Regarding Change in Dividend Policy

Japan Petroleum Exploration Co., Ltd. (JAPEX) announced that it has decided to modify its dividend policy, including the adoption of a consolidated dividend payout ratio as an index for calculating dividend amounts, in its medium and long-term management plan “Plan de management JAPEX 2022-2030” unveiled today.

1.Reason for change

Strengthen returns to shareholders in light of the basic policies of the new management plan and profit level forecasts, etc.

2.Changed content

1) Policy before change (conventional policy)

JAPEX has as its basic policy the distribution of profits in order to maintain stable and long-term dividends for shareholders. As a company whose role is to provide a stable supply of oil and natural gas essential to the functioning of society, the specific amount of the dividend is set after careful consideration of investments to secure new proven reserves. worldwide and retain profits to fund development and expansion. of our supply infrastructure given the medium and long-term outlook for the business environment. In addition to the above, we must consider the level of revenue for each fiscal year and any future funding needs.

2) Policy after change

We recognize that returning profits to shareholders is an important management issue, along with maintaining a sound management base and strengthening our financial position. We aim to build sustainable business value through proactive investments utilizing retained earnings and expanding our business base, thereby sharing the fruits of our efforts with our shareholders.

JAPEX’s basic profit distribution policy is to pay dividends in line with each year’s business results with a target consolidated dividend payout ratio of 30%, while striving to maintain an annual dividend of ¥50 per share, even if there is a temporary slowdown. business performance due to factors such as changes in the business environment. (However, in the year in which the profit attributable to owners of the parent company fluctuates significantly due to extraordinary income or loss or other exceptional factors, the amount of the dividend will be determined taking into account these fluctuations.)

Effective period of change

As of the interim dividend and the year-end dividend for the year ended March 31, 2023

Please note that the information contained in the news is as of the date of the announcement and is subject to change without notice.