Dividends & Returns

Policies on the Distribution of Surplus

Based on the premise that a sustainable level of business development and mid-to-long term enhancement of corporate value is fundamental to the creation of shareholder value, the Company practices management that is conscious of capital efficiency, financial soundness and shareholder returns.

The Company has set the capital policy to prioritize business investment for growth such as R&D, facility enhancements, and M&A, while being flexible in utilization of liabilities (Debt) from the viewpoint of balance sheet management that considers both capital efficiency and capital cost. In addition, the Company ensures an appropriate capital structure with maintaining financial soundness in order to strengthen the Company’s business position and enhance its corporate value.

The shareholder return that is in congruence with second mid-term management plan for the three years starting from April 1,2021, under the premise of stable business environment, is set to make a stable and continuous dividend with a minimum amount of ¥50 per share for a semi-annual and ¥100 per share for annual. In addition to dividends, the Company set the target to achieve total annual return ratio (*) of 50% or more, including share buybacks. However, there is a possibility that the Company may not be able to disburse shareholder returns due to the occurrence of investment growth opportunities that require more funds than expected and the deterioration of business performance for the changes in the market environment.

(*) Total return ratio: (Dividend + share repurchase)/consolidated net income