Taiheiyo Cement Corporation is strengthening its management base, especially its financial base, as a management priority, and our basic policy on the distribution of profits remains to maintain stable dividends.

It is provided in the Articles of Association of the Company that an interim dividend can be paid following a resolution at a meeting of the Board of Directors of the Company, with September 30 of each year as the record date. Thus, as a rule we pay an interim dividend and final dividend in each fiscal year. The decision to pay the interim dividend is made by the Board of Directors, and the decision to pay the final dividend is made by the Annual General Meeting of Shareholders.

In fiscal 2010, the Company regretfully decided to forego distribution of profits as dividends, in light of earnings results for period and posting business restructuring expenses as an extraordinary loss.

The Company plans to keep its basic policy of an appropriate distribution of profits by maintaining stable dividends, taking into consideration the business environment, consolidated earnings for the period, and other factors.