Megmilk Snow Brand : Notification of a Surplus Dividend

May 13, 2021

Company name: MEGMILK SNOW BRAND Co., Ltd. Representative: Keiji Nishio, Representative Director and

President

(Stock code: 2270, TSE 1st Section/SSE)

Contact: Kentaro Watanabe General Manager

Public Relations & Investor Relations Department

(Phone: [phone])

Notification of a Surplus Dividend

MEGMILK SNOW BRAND announces that we have resolved to pay a surplus dividend as follows with March 31, 2021 serving as the record date at a Board of Directors' meeting held today.

1. Dividend Details

	Year-end Determined	Latest Dividend	Actual dividend in the
	Previous Term
	Forecast (Announced
	Amount	(Fiscal Year Ended
	on February 9, 2021)
		March 31, 2020)
Record date	March 31, 2021	Same as on the left	March 31, 2020
Dividend per share	40.00 yen	40.00 yen	40.00 yen
Total Dividend	2,707 million yen		2,707 million yen
Effective date	June 3, 2021		June 4, 2020
Dividend resource	Retained earnings		Retained earnings

2. Reasons

MEGMILK SNOW BRAND bases profit distribution on the aim of continuing to establish financial soundness through profit creation, to maintain our capital efficiency by re-investing in basic infrastructure to create cash and to enhance return of profit to shareholders. We strive to maintain a stable dividend comprehensively taking into account our consolidated results and financial condition with the aim of a consolidated dividend payout ratio of 20% through 30%.

We set a dividend of 40 yen per share as originally planned based on the above dividend policy for the fiscal year ended March 31, 2021. The start date for the payment of the surplus dividend will be June 3, 2021.

In addition, we plan to pay a dividend of 50 yen per share for the next fiscal year considering sales and profit forecast and financial outlook, based on the above dividend policy.

Note:

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This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.