Basic Policy for Profit Sharing with the Shareholders
Latest Update :
Nov.16, 2011
Enhancing Corporate Value
At present, under the new management system, our company is making efforts to create a system for continuous growth of the company's value with a new management policy. Please refer to the detailed summary explanation of the latest investor meeting.
Profit Distribution to Shareholders
We have been improving the financial situation by reducing net interest-bearing debts toward 100 billion yen medium-term target level based on the annual cash-flow. At the end of March 2011, however, it increased to 103.6 billion yen due to a larger working capital requirement as we built up inventory to meet growing demand in addition to increased capital expenditure.
We will continue our efforts in creating cash flows, and try to keep our net interest-bearing debt level at around 100 billion yen.
Net interest-bearing debts at the end of the second quarter were 110.7 billion yen. This is because of increased cash needs for bonus payments, dividend payments, repurchases of our own shares and investments at new factories, in addition to lower profits during the first half of the fiscal year ending March 2012.
When taking into consideration for investment for the long-term future, investment for new product development, mobility of capital expenditures and possible mergers & acquisitions, we need to maintain the soundness of the financial situation, to enhance equity efficiency and to improve returns to our shareholders. Regarding dividend, our basic dividend policy gives priority to enhancing equity efficiency and improving returns to our shareholders, with dividends reflecting performance in light of the overall business environment while maintaining stable and continuous distributions of profits.
For the fiscal year ending March 2012, we have decided to pay interim dividend of 3 yen per share and plan to pay year-end dividend of 4 yen per share (total 7 yen per share for the fiscal year). Also, we have repurchased our own shares aiming to carry out an agile capital management policy in response to changes in the business environment. Please refer to Dividend/Share Repurchase page concerning the dividend distribution and share repurchase history.
