Announcement • 21h
Meiko Network Japan Co., Ltd. Revises Dividend for the Fiscal Year Ended August 31, 2026 Meiko Network Japan Co., Ltd. announced dividend of JPY 15.00 per share for the Fiscal Year Ended August 31, 2026 as compared to JPY 14.00 per share paid an year ago for the same period. for the Fiscal Year Ended August 31, 2026. Record date: August 31, 2026. Dividend source is Retained earnings. Reason: The Company regards returning profits to shareholders as one of its important management issues. Furthermore, from the fiscal year ended August 31, 2025, the Company changed its basic policy on capital and dividends, aiming to enhance corporate value over the medium to long term with an awareness of the cost of capital. Under the new basic policy, using a DOE (Dividend on equity ratio) of approximately 5% to 7% as a benchmark for determining dividends, the Company implements sustainable returns to shareholders through more stable and continuous dividends that are not affected by short-term fluctuations in business performance, and strikes an optimal balance with the enhancement of equity capital necessary for strengthening the business foundation and growth investments. Under this policy, regarding the dividend for the fiscal year ending August 31, 2026, based on the fact that business performance is progressing smoothly in line with the initial plan, the Company sets the year-end dividend at JPY 15, an increase of JPY 1 from the previous forecast. As a result, combined with the dividend at the end of the second quarter of JPY 14, the annual dividend per share will be JPY 29. The Company will continue to strive for continuous and stable returns to shareholders. To meet the expectations of shareholders, the Company will continue to accelerate its growth toward achieving. Declared Dividend • May 09
First half dividend of JP¥14.00 announced Dividend of JP¥14.00 is the same as last year. Ex-date: 28th August 2026 Payment date: 25th November 2026 Dividend yield will be 4.1%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is covered by earnings (42% earnings payout ratio) but not adequately covered by cash flows (94% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to decline by 1.2% over the next 3 years. However, it would need to fall by 53% to increase the payout ratio to a potentially unsustainable range. New Risk • Apr 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 0.3% per year for the foreseeable future. High level of non-cash earnings (25% accrual ratio). Minor Risk Dividend is not well covered by cash flows (94% cash payout ratio). 
