Shareholder Returns

As its basic shareholder returns policy, UNITED ARROWS recognizes the maximization of shareholder value as one of the most important tasks for management.

In accordance with this policy, we will actively promote the return of profit to shareholders by paying dividends, conducting stock splits, and acquiring and then cancelling treasury stock. At the same time, we will work to raise our stock price by improving the market’s evaluation of the Company, effectively maximizing shareholder value.

In returning profit to shareholders, we will take into consideration the operating environment and performance while striking a balance with the need to maintain sufficient internal reserves to fund future store openings and conduct capital investment for growth businesses. Returns will also be conducted based on earnings levels and dividend payout ratios.

Based on this policy, we issued an interim dividend of ¥10 per share and a year-end dividend of ¥19 per share in the fiscal year ended March 31, 2011, making for an annual dividend of ¥29 per share, a consolidated dividend payout ratio of 29.9%, and a consolidated dividend on equity (DOE) ratio of 6.8%.

In the fiscal year ending March 31, 2012, we intend to issue an interim dividend of ¥10 per share and a year-end dividend of ¥21 per share, making for an annual dividend of ¥31 per share, an estimated consolidated dividend payout ratio of 21.5%, and an estimated consolidated DOE ratio of 5.2%.