Basic Policy Concerning Profit Distribution

The Group previously considered the payment of stable dividends, with a dividend payout ratio of at least 30% on a consolidated basis as a standard, as the basic policy on the return of earnings to shareholders.

However, in relation to the Company’s move of making Ichibanya Co., Ltd. its consolidated subsidiary in December 2015, and making GABAN Co., Ltd. its consolidated subsidiary in June 2016, the changes in profits and losses that will not entail cash movements are expected to become greater for the near future, including the fiscal year under review, due to the generation of extraordinary income from shares for step acquisitions and the amortization of goodwill and intangible assets.

For this reason, believing that stable dividends will more likely materialize if we exclude these fluctuating factors from the source for dividend payments, we will revise our the basic policy on the payment of dividends to “maintain stable dividends, with a dividend payout ratio of at least 30% on a consolidated basis excluding the effects of extraordinary income arising from business combination and the amortization of goodwill as a standard,” from the fiscal year ended March 31, 2016.

In terms of internal reserves, the Group seeks to use such reserves to fund investment in manufacturing equipment, research and development, and new businesses development, to prepare for future business.

The Company paid an annual dividend of 32 yen per share (Interim: 15 yen, Year-end: 17 yen) for the fiscal year ended March 31, 2017.

*Trend of Dividends and Payout Ratio

※Tap the image to see detail.
(Unit: Yen/%)
  Fiscal year
ended March
31, 2009
Fiscal year
ended March
31, 2010
Fiscal year
ended March
31, 2011
Fiscal year
ended March
31, 2012
Fiscal year
ended March
31, 2013
Interim 11 11 11 13 15
Year-end 11 11 11 15 15
Annual Total 22 22 22 28 30
Consolidated
Dividend
Payout Ratio
51.1 50.1 45.5 37.7 38.6
  Fiscal year
ended March
31, 2014
Fiscal year
ended March
31, 2015
Fiscal year
ended March
31, 2016
Fiscal year
ended March
31, 2017
Fiscal year
ending March
31, 2018
Interim 15 15 15 15 18
Year-end 20 15 15 17 18(forecast)
Annual Total 35 30 30 32 36(forecast)
Consolidated
Dividend
Payout Ratio
42.1 44.4 13.6 37.9 43.0(forecast)
Payout ratio
based on profit
distribution policy
- - 32.0 30.4 30.6(forecast)

NOTE: An interim dividend system was introduced and started in the fiscal year ended March 31, 2008.
Breakdown of annual dividend for the fiscal year ended March 31, 2014: Ordinary dividend of 30 yen + Commemorative dividend of 5 yen (celebrating 100th company anniversary)

page top