Owner Returns

Fundamental Policy for Distribution of Earnings

TDK recognizes that achieving increase in corporate value over the medium- and long-term ultimately translates into higher shareholder value. In line with this understanding, TDK’s fundamental policy is to work to consistently increase dividends through growth in earnings per share. In addition, since the start of Medium-term Plan from Fiscal 2025, TDK has adopted a shareholder return policy that aims for a dividend payout ratio of 35%. Under these policies, TDK actively reinvests its earning in business activities and determines its dividends taking into consideration comprehensive factors, including return on equity (ROE) and dividends on equity (DOE) on a consolidated basis, as well as changes in the business environment, among other factors.

TDK plans to pay an interim dividend of 15 yen per common share and a year-end dividend of 15 yen per common share respectively in FY March 2026.

Dividends per common share

Term	FY March 2022	FY March 2023	FY March 2024	FY March 2025	FY March 2026
Dividends per common share (yen)	15.67	21.20	23.20	30.00 (Forecast)	30.00 (Forecast)
(Details)
Year-end dividends (yen)	6.67	10.60	11.60	14.00	15.00 (Forecast)
Year-end dividends (yen)	9.00	10.60	11.60	16.00 (Forecast)	15.00 (Forecast)
Payout ratio	22.6%	35.2%	35.3%	34.1%	-

* TDK split one share of its common stock into five shares with the effective date of October 1, 2024.
Figures have been converted to align with the post-stock split standard.
* TDK has adopted the IFRS on its consolidated financial statements in the Annual Securities Reports from the FY March 2022 in place of the US-GAAP.
The figures for the FY March 2021 are also presented in accordance with IFRS.
* No payout ratio for fiscal year ended March 31, 2026 is provided due to consolidated projection in range format. The payout ratio is 33.5% at the upper limit of the consolidated projection and 42.2% at the lower limit.