Shareholder Return / Dividends
Change in Dividends Per Share
(Including Special Commemorative Dividend)
| 2005/3 | 2006/3 | 2007/3 | 2008/3 | 2009/3 | 2010/3 | |
| Year-end Dividend (Yen) | 7.5 | 9 | 7.5 | 8.5 | 8.5 | 8.5 |
|
|
Shareholder Return Policy
The Takara Group appropriates profits in from a medium-to-long-term perspective. Based on this perspective, by strengthening the entire Group’s business foundations and achieving growth in earnings, we aim to maximize corporate value and shareholder profits.
The cash flows generated from business operations are stored in internal reserves, to be used as necessary for such purposes as strengthening the Company’s business base and performing investments dictated by growth strategies; used to pay dividends, which, while principally remain stable, are also linked to business results; and used to acquire treasury stock, which contributes to improved capital efficiency.
The capital stored as internal revenues is used to further solidify the financial base of all group companies and to strengthen their operating base in order to improve their profitability. In addition, the Takara Group continues to invest in current businesses, step-up investment in growth businesses, and thereby raise corporate value throughout the entire Takara Group.
Additionally, in accordance with the Takara Group’s Seventh Medium-Term Management Plan (the plan for the three-year period from April 2008 to March 2011) we will engage in the financial strategies listed below in order to improve corporate value throughout the Group and continue returning profits to our shareholders.
The cash flows generated from business operations are stored in internal reserves, to be used as necessary for such purposes as strengthening the Company’s business base and performing investments dictated by growth strategies; used to pay dividends, which, while principally remain stable, are also linked to business results; and used to acquire treasury stock, which contributes to improved capital efficiency.
The capital stored as internal revenues is used to further solidify the financial base of all group companies and to strengthen their operating base in order to improve their profitability. In addition, the Takara Group continues to invest in current businesses, step-up investment in growth businesses, and thereby raise corporate value throughout the entire Takara Group.
Additionally, in accordance with the Takara Group’s Seventh Medium-Term Management Plan (the plan for the three-year period from April 2008 to March 2011) we will engage in the financial strategies listed below in order to improve corporate value throughout the Group and continue returning profits to our shareholders.
Financial Strategies Defined in the Takara Group’s Seventh Medium-Term Management Plan
We have defined the period of the Seventh Medium-Term Management Plan as a period in which we will lay the foundation on which we will achieve substantial growth. Accordingly, all of the approximately ¥34.0 billion in operating cash flows that is to be generated over that three-year period will be used to invest in existing businesses, invest in future growth, and used to issue vigorous shareholder returns.
| (1) | Growth investments: Cumulative outlays exceeding ¥10.0 billion over the three years |
| (2) | Total shareholder return: Generate aggregate returns of more than ¥10.0 billion over the three years, doubling the previous plan’s level Shareholder return payout: Minimum of 50%*1 |
| *1. | Calculated as follows: Total shareholder return = (Total dividends + Amount of share buybacks) / Deemed consolidated net income*2 ≧ 50% |
| *2. | Deemed consolidated net income = (Consolidated ordinary income – Interest income and dividends + Interest payments) x (1 – Effective tax rate) |
