Frontier Management Inc. announced that at the Board of Directors meeting held on December 27, 2022, FMI resolved to revise the dividend policy as follows. Contents of the review (Before revision): FMI's basic policy on profit distribution is to continue paying stable dividends while securing the internal reserves necessary for future business development and strengthening the management structure. The dividend payout ratio is targeted at 40% of consolidated net income in light of FMI Group's consolidated performance, financial position, economic conditions, and other factors.

(after revision): FMI's basic policy on profit distribution is to continue paying stable dividends while securing the internal reserves necessary for future business development and strengthening the management structure. The dividend payout ratio is targeted at 40% of consolidated net income excluding consolidated subsidiary Frontier Capital Inc. (hereafter the FCI) in light of FMI Group's consolidated performance, financial position, economic conditions, and other factors. (dividend payments from FCI to FMI, if any, will be paid to FMI stockholders in accordance with the payout ratio target).

Reason for review: FMI's basic policy on profit distribution is to continue paying stable dividends while securing internal reserves necessary for future business development and strengthening of the management structure. FMI's dividend policy is to target a dividend payout ratio of 40% of consolidated net income. On the other hand, FMI believe that the loss related to the start-up of FCI business does not correspond to FMI's basic policy on dividends, and that the loss on the start-up of the business does not correspond to FMI's basic policy on dividends.

In addition, if FCI invests in a company that becomes a consolidated subsidiary of FCI in the future, it temporarily increases or decreases FMI's consolidated net income for accounting purposes, but in reality, it does not affect the increase or decrease of FMI's dividend resources. In order to realize stable dividends in the medium to long term, FMI will review and clarify FMI's dividend policy, considering that it is appropriate to deduct FCI profit and loss from FMI's consolidated net income and consider a specific dividend payout ratio target of 40%. Period of Application: The year-end dividend for the year ended December 31, 2022 will be adopted.