Basic Policy on Profit Sharing and Dividends

The azbil Group places great importance on the distribution of profits to its shareholders. The management would like to maintain stable dividends while striving to increase its dividends payout, taking into account comprehensively its consolidated performance, levels of ROE (Return On Equity), DOE (Dividends On Equity), as well as retained earnings for strengthening its business base and developing future businesses.

In consideration of the policies outlined above, it is planned to issue an annual dividend for FY2010 of 63 yen per share, as previously announced. As for FY2011, it is true that there remains uncertainty in the business environment by the assumable effects of the Great Eastern Japan Earthquake; however, Yamatake plans to pay a the normal dividend of 63 yen per share annually in order to maintain profit sharing with its shareholders, on which we have strived to improve until now.

As regards the appropriation of retained earnings, the management proposes to make effective investments designed to reinforce the company’s business base, expand businesses. These include investments to develop advanced technologies and high value-added products, to enhance the company’s global production and sales network, and to create new businesses. In addition, the management also proposes to pay out for strengthening management structures and to prepare for unexpected contingency such as disasters. They are implemented for a further increase in shareholder value.

(May 10 , 2011)