Anicom : Notice Regarding Revision to Dividends Forecast (Dividend Increase)

Notice Regarding Revision to Dividends Forecast (Dividend Increase)

Anicom Holdings, Inc. (the "Company") hereby announces that it has revised its dividend forecast for the fiscal year ending March 2022 announced on May 12, 2021 in Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 [Under Japanese GAAP] as follows.

1. Details for Revising Projected Dividend

Note: The forecasts contained in the above are based on information currently available to the Company as of the date of release of this document and include a considerable number of uncertain factors. Accordingly, actual results may differ from the forecasted values due to changes in the business conditions.

2. Reason for revisions to the dividend forecasts

The Company considers returns to shareholders as one of its most important management issues. Based on the concepts of financial soundness and capital efficiency, our basic policy is to distribute profits continuously and steadily from a mid- to long-termperspective.

The fiscal year ended in March 31, 2022 is the final year of the "Mid-term Management Plan FY2019-FY2021." The current business performance is solid, and according to the "Study on Economic Value-Based Solvency Regulations" published by the Financial Services Agency in June 2021, the average level of premium risk is 10%-15%, which is lower than the 35% coefficient for the "other" category, and it is suggested that discussions are underway for future revisions (see note). In the light of those, the Company has decided to enhance shareholder returns while considering appropriate capital allocation and shareholder returns in the future.

For the next fiscal year and beyond, the Company plans to reiterate our basic policy, including a gradual increase in shareholder returns, in the next med-term management plan.

Note: Insurance companies are subject to a capital regulation called the solvency margin ratio regulation, and the higher the risk coefficient for each type of insurance specified in this regulation, the larger the capital required to operate the relevant insurance line. Until now, pet insurance has been operated under the category of "other" (27%), without a risk coefficient as a single insurance type, due to its short history in Japan (we understand that discussions are underway to change the "other" category to 35% under the new standards).