UT : Notice Regarding Decision on the Shareholder Return Method and Dividend Forecast for FY3/2022

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March 8, 2022

UT Group Co., Ltd.

Yoichi Wakayama, President, Representative Director & CEO 2146, TSE First Section)

Takahito Yamada, Senior Executive Officer and Division Manager, General Affairs Division [phone]

Notice Regarding Decision on the Shareholder Return Method

and Dividend Forecast for FY3/2022

UT Group resolved at its Board of Directors meeting held on March 8, 2022 to pay dividends to shareholders as its shareholder return for FY3/2022. The shareholder return had been undecided.

1. Shareholder return method for FY3/2022

We recognize returning profits to shareholders as an important management issue. With a total return ratio of 30% as our baseline target, we have a policy to make a comprehensive assessment of the share price level, business environment, and other factors and to deliver optimal shareholder returns through dividend payment or share buyback that helps to improve capital efficiency.

Regarding the current term, in accordance with the above shareholder return policy, we will pay the ordinary dividend of 30% of profit attributable to owners of the parent for the current term.

2. Background of the decision

In FY3/2022, in response to the rapidly recovering demand for human resources in the semiconductors and electronic components sector and the automotive-related sector, we have taken steps to focus on hiring activities. This has resulted in strong performance with a significant net increase of 8,051 in the number of technical employees in domestic operations to 30,516 at the 3Q-end.

We further expanded our market shares by firmly capturing demand at the time of the rapid recovery of production activities in the manufacturing dispatch market, which contracted temporarily due to the Covid-19 impact in FY3/2021. The current FY3/2022 is the second year of the Fourth Medium-term Business Plan (a five-year plan from FY3/2021 to FY3/2025) and is positioned as an important year for UT Group to achieve long-term sustainable growth. We believe that the results of such efforts in FY3/2022 will enhance the probability of achieving business growth in FY3/2023 and beyond.

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We would like to express our gratitude to the shareholders for their continued support in an environment where there are concerns over our business outlook, stemming from the prolonged COVID-19 pandemic. Regarding the return to shareholders for FY3/2022, we have decided to carry out a return to shareholders through dividends from our surplus, based on a comprehensive assessment of share price level, business environment, and other factors.

3. Dividend forecast

			Annual dividend per share (yen)
	1Q-end	2Q-end		3Q-end	FY-end	Total
Previous					TBD	TBD
forecasts
Revised					Ordinary div. 17.84	Ordinary div. 17.84
forecasts
Current fiscal	0.00	0.00		0.00
year (FY3/2022)
Previous fiscal	0.00	0.00		0.00	66.00	66.00
	(Ordinary div. 32.00)	(Ordinary div. 32.00)
year (FY3/2021)
				(Special div. 34.00)	(Special div. 34.00)

The above figures are based on the current forecast of profit attributable to owners of the parent for FY3/2022, as stated in the "Notice of Revision of Consolidated Results Forecast" released today.

(Reference) Performance and forecast of the shareholder return

															(Million yen)
			FY3/2018			FY3/2019			FY3/2020			FY3/2021			FY3/2022
											(forecasts)
	Profit attributable to	3,534	4,968	4,509	4,299	2,400
	owners of the parent
	Total dividend	-	2,499	-	2,663	720
	amount
	Amount of shares	1,060	-		-		-		-
	bought back
	Total return ratio	30.0%	50.3%	0.00%	62.0%	30.0%

End

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