ファーストブラザーズ（3454） – [Delayed]Notice on Dividend Payment

For Immediate Release January 20, 2022 Company name: First Brothers Co., Ltd. President: Tomoki Yoshihara (TSE First Section, Stock code: 3454) Inquiries: Chief Financial Officer Yoshinobu Hotta (Tel: +81-3-5219-5370) Notice on Dividend Payment First Brothers Co., Ltd. hereby announces plans for a dividend payout with a record date of November 30, 2021. The decision was approved by a resolution at our Board of Directors meeting held on January 20, 2022. Our articles of incorporation stipulate that we may distribute our retained earnings, by resolution of the Board of Directors, as stipulated in the provisions of Section 1 of Article 459 of the Companies Act. 1. Dividend payout details Resolved payout Most recent forecast (announced January 8, 2021) Previous payout (fiscal year ended November 30, 2020) Record Date November 30, 2021 November 30, 2021 November 30, 2020 ¥27.00 ¥27.00 ¥24.00 ¥378 million Effective date February 7, 2022 Retained earnings ― ― ― ¥336 million February 5, 2021 Retained earnings Dividend per share Total dividend payout Source of payout 2. Reason We are committed to building shareholder value by investing our internal reserves in future business growth, while optimal distribution of profits to our shareholders is also one of our highest corporate management priorities. We have a dividend policy under which we aim to make stable and consistent payouts every year and align dividend growth with our long-term corporate growth. Owing to the nature of our business, earnings at the First Brothers Group are susceptible to external influences such as real estate prices and other macroeconomic trends as well as decisions made by our business partners. Real estate investments in particular have the potential to cause substantial short-term volatility in our Group earnings since the relatively large sums involved in many of the transactions means that periodic profits are often influenced by the end results or timing of certain deals. We therefore determine dividend amounts on the basis of the dividend on equity (DOE) ratio. Since it is pegged to shareholders’ equity, which is relatively stable and tends to plot a growth trend, we find DOE a more suitable yardstick than the dividend payout ratio, which is pegged to annual profits, meaning dividend amounts would fluctuate from year to year. Accordingly, we have adopted a dividend policy for stable and consistent annual year-end payouts regardless of any short-term earnings volatility. Taking into account factors such as the necessary level of internal reserves, in principle we target a DOE ratio of 2.0%. Regarding dividends for the fiscal year ending November 30, 2022, we plan a per-share dividend payout of ¥30.00, which is based on a DOE ratio of 2.0%. (Reference) Breakdown of annual dividend Record date Interim Year-end Total Per-share dividend payout Dividend forecast (FY-ending November 30, 2022) Dividend forecast (FY-ended November 30, 2021) Dividend forecast (FY-ended November 30, 2020) ¥0.00 ¥30.00 ¥30.00 ¥0.00 ¥27.00 ¥27.00 ¥0.00 ¥24.00 ¥24.00