Dividend Basic Policy

Mabuchi's basic policy is to collect funds for research and development and capital investment, which are required for Mabuchi's growth and development, from internal reserves, to maintain financial soundness, and to actively carry out both paying long-term stable dividends and returning Mabuchi's profits such as dividend increase and stock split according to performance.

Standards for Calculating Dividends

Dividend amount is the sum of ordinary dividend and special dividend. The following are standards for calculating both dividends:

• Ordinary dividend:
  annually 60 yen per common stock as a long-term stable dividend
• Special dividend:
  amount as a dividend of business results, which is calculated by dividing 20% of consolidated net income by the number of total stocks

Actual full-year dividend amount shall be based on the above calculation standards and shall not be less than expected full-year dividend amount announced during the full-year period unless a significant profit warning is issued.

Date of Record (Date of Right Allotment)

It is Mabuchi's basic policy to distribute surpluses twice a year as interim dividend and year-end dividend. The shareholders' meeting and the board of directors determine distribution of the surpluses as the year-end dividend and the interim dividend, respectively.

• Dates of record for surpluses
  • Interim dividend: June 30
  • Year-end dividend: December 31

Dividend Status

Cash Dividend per Share : FY2009

2009	Ordinary Dividend	Special Dividend	Total
Interim	30.00 yen	20.00 yen	50.00 yen
Year-end	30.00 yen	20.00 yen	50.00 yen
Annual	60.00 yen	40.00 yen	100.00 yen

Changes in Dividend per Share and Dividend Payout Ratio

		2004	2005	2006	2007	2008	2009	2010 Projection
Dividend per Share	Interim	64	42	51	61	61	50	50
	Year-end	51	50	63	62	62	50	50
	Annual	115	92	114	123	123	100	100
Dividend Payout Ratio (Consolidated)		36.4%	50.9%	42.5%	43.8%	129.8%	64.3%	61.5%

Changes in Total Dividend, Amount for Repurchase of Own Stocks,
and Total Dividend Payout Ratio

	2004	2005	2006	2007	2008	2009
Total Dividend	4,664	3,681	4,509	4,703	4,468	3,503
Amount for Repurchase of Own Stocks	18,042	6,559	-	8,682	13,957	-
Total Dividend Payout Ratio (Consolidated)	171.0%	139.3%	42.5%	122.7%	516.8%	64.3%

Reference: Changes in Standards for Calculating Dividends

Year	Ordinary Dividend per Share	Standard Value for Calculating Special Dividend
2007 (*)	60 yen	20% of consolidated net income
2005	60 yen	20% of consolidated net income
2003	50 yen	20% of consolidated net income
1999	50 yen	5% of consolidated net income

(* Additional policy) Actual full-year dividend amount shall be based on the above calculation standards and shall not be less than the expected dividend amount announced during the full-year period unless a significant profit warning is issued.