Tokyo Seimitsu : Announces an Year End Dividend for FY2017/3

May 12th, 2017

Tokyo Seimitsu Co., Ltd. Announces an Year End Dividend for FY2017/3

Company name: TOKYO SEIMITSU CO., LTD. (Stock code: 7729, Tokyo Stock Exchange 1st Section) Representative: Hitoshi Yoshida, President and CEO

Inquiries: Koichi Kawamura, Representative Director and CFO (Tel: [phone])

The Board of Directors of TOKYO SEIMITSU CO., LTD. (the Company) at its meeting of May 12th, 2017 endorsed the Company's year-end dividend for FY2017/3 ended March 31st, 2017.

The year-end dividend payments will be proposed for ratification at the 94th Annual General Meeting of Shareholders to be held on June 26th, 2017.

1. Dividend for FY2017/3 ended March 31st, 2017

Dividend for FY2017/3 (Ended March 31st, 2017)	Previous Forecast (Announced on Feb. 14th, 2017)	Dividend for FY2016/3 (Ended March 31st, 2016)
Rights allotment date	March 31st, 2017	Same as at left	March 31st, 2016
Dividend per share	38 Yen	34 Yen	33 Yen
Total dividend	1,575 Million Yen	-	1,365 Million Yen
Effective date of distribution	June 27th, 2017	-	June 22nd, 2016
Source of dividend	Retained Earnings	-	Retained Earnings

For FY2017/3 ended March 31st, 2017, Tokyo Seimitsu plans to issue an additional ¥4 per share on top of the forecast ¥34 per share final dividend previously announced on February 14th, 2017 in line with the policy relating to dividend payment, targeting a consolidated dividend payout ratio of 30%. Therefore the Company's year-end dividend will be ¥38 per share.

Consequently, including the interim dividend already paid, dividend payments in the FY2017/3 will increase by

Per Share Dividend
Rights allotment date	Q2 End	FY End	Total (Yen)
Dividend during FY2017/3	34 Yen	38 Yen	72 Yen
Dividend during FY2016/3 (Ended March 31st, 2016)	26 Yen	33 Yen	59 Yen

¥13 YoY to total ¥72 per share. (Reference) Dividend in Fiscal Year

The Company considers maintaining a core policy regarding the distribution of profits linked to the business performance of the Company and aims to pay stable dividends targeting a consolidated dividend payout ratio of 30%. Also, considering the aim to provide stable and continuous dividend payments, the Company deems to maintain an annual dividend of ¥20 per share regardless of consolidated profits of the Company. However, it is at the discretion of the Board to review this basic policy if the Company experiences losses in two consecutive years.

Retained earnings will be used effectively for the research and development and capital investment that are necessary for growing existing businesses and improving our competitiveness, strength and optimization of production and sales activities, expansion of

overseas sales, sophistication of information security systems, new business development, and M&A investment. Also, since our product lines are greatly impacted by economic fluctuations, the Company considers it important to strengthen our financial position and prepare for possible economic downturns.

The Company's acquisition of its own outstanding stock is one of the returns that supplement its dividends from retained earnings. The Company will analyze its cash flows and retained earnings before undertaking stock acquisition.

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