Nihon M&A Center : Notification of Dividends from Surplus (Dividend Increase) and 30th Anniversary Commemorative Dividends

April 30, 2021

To whom it may concern,

Company name: Nihon M&A Center Inc.

Representative: Suguru Miyake, President and Representative Director

(Stock exchange code: 2127, TSE First Section)

Contact:Takamaro Naraki,

Executive Vice President and Director, General Manager, Administration Division

(Phone: [phone])

Notification of Dividends from Surplus (Dividend Increase) and 30th Anniversary Commemorative Dividends

Nihon M&A Center Inc. (the "Company") hereby announces that its Board of Directors has resolved on April 30, 2021 on dividends from surplus for which the record date is March 31, 2021 and commemorative dividends for the 30th anniversary for the fiscal year ending March 2022, as described below.

The dividends from surplus (dividend increase) will be officially decided at the Company's 30th Annual General Meeting of Shareholders scheduled to be held on June 24, 2021.

1. Dividends from Surplus (Dividend Increase)

(1) Details of Dividends

		Most recent dividend	Previous fiscal year
		forecast
	Amount decided	(Fiscal year ended
	(Announced on July
		March 2020)
		30, 2020)
Record date	March 31, 2021	Same as on the left	March 31, 2020
Dividend per share	15.00 yen	13.00 yen	15.00 yen
Total amount of dividends	2,478 million yen	―	2,445 million yen
Effective date	June 25, 2021	―	June 26, 2020
Source of dividends	Retained earnings	―	Retained earnings

(Note)

The Company conducted a 2-for-1 stock split of its common stock on April 1, 2021.

Dividends for the year ended March 2020 and for the year ended March 2021 represent the amount prior to the stock split.

Adjusting for the stock split, year-end dividends per share for the fiscal year ended March 31, 2020 were 7.50 yen, and year-end dividends per share for the fiscal year ended March 31, 2021 will be 7.50 yen.

1. Reasons

The Company recognizes return of profits to shareholders over the long term as its most important management issue, and therefore intends to maintain a dividend payout ratio of approximately 40%. The Company's consolidated business results for FY2020 showed 36,130 million yen in sales (up 12.9% year-on-year), 16,408 million yen in operating income (up 15.2% year-on-year), 16,540 million yen in ordinary income (up 14.3% year-on-year), and 11,415 million yen in net income for the period belonging to parent company shareholders (up 11.1% year-on-year), achieving record-high profits for the eleven consecutive fiscal years.

Accordingly, the Company will revise the year-enddividend per share to 15 yen, an increase of 2 yen per share, making the annual dividend per share 28 yen as described in "(Reference) Breakdown of Annual Dividends" below.

(Reference) Breakdown of Annual Dividends

		Dividend per share
Record date	Interim	Year-end	Total
Current fiscal year	13.00 yen	15.00 yen	28.00 yen
(Fiscal year ended March 31, 2021)
Previous fiscal year	11.00 yen	15.00 yen	26.00 yen
(Fiscal year ended March 31, 2020)

(Note)

The Company conducted a 2-for-1 stock split of its common stock on April 1, 2021.

Dividends for the year ended March 2020 and for the year ended March 2021 represent the amount prior to the stock split.

Adjusting for the stock split, annual payments per share for the year ended March 31, 2020 were 13 yen, and annualpayments per share for the year ended March 31, 2021 will be 14 yen.

2. Regarding the "30th Anniversary Commemorative Dividends"

The Company was founded on April 25, 1991, and this year marked the 30th anniversary of its founding. The Company would like to express its heartfelt gratitude for the long-standing support and cooperation of its shareholders and other stakeholders.

In order to express thanks to shareholders, the Company has decided to provide a 30th anniversary commemorative dividend payout of 3 yen per share (interim payout of 2 yen and year-endpayout of 1 yen) for the fiscal year ending March 31, 2022.

As a result, the Company plans to pay an annual dividend of 18 yen per share for the year ending March 31, 2022, including an ordinary dividend of 7 yen per share and a commemorative dividend of 2 yen per share at the end of the second quarter, and an ordinary dividend of 8 yen per share and a commemorative dividend of 1 yen per share at the end of the fiscal year, as announced today in the consolidated financial statements for the year ended March 31, 2021.

The Company also plans to hold an M&A Conference 2021 to commemorate its 30th anniversary on November 5, 2021. The Company will not only commemorate the 30th anniversary of its founding, but will continue to communicate its vision for the future of the Group, which is expected to achieve further growth and development in the future.