Dividend Policy / Return to Shareholders
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DISCO Corporation (“the Company”) announced that its Board of Directors adopted a resolution on May 12, 2008, to amend its dividend policy and make a dividend payment for the surplus as of March 31, 2008 as explained below.
To improve the transparency of the Company's stance prioritizing the return of profits to shareholders, the Company's dividend policy has been amended as follows. This time, the dividend policy has been amended and the dividend payout for the Fiscal Year Ending March 31,2008 has been increased in accordance with the achieved income performance as seen in (2) below.*1
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| 1. |
The target dividend payout ratio is set at 20% of consolidated net income. However, notwithstanding this net income-linked benchmark, the Company will strive to maintain an annual dividend payment of not less than 20 yen per share as a stable base dividend. |
| 2. |
If the consolidated ordinary income margin exceeds 20%, averaged over four years, the dividend payout will be increased from 20% to 24%.*2 |
| 3. |
Furthermore, with the exception of fiscal years in which a net loss is recorded, in fiscal years where the Company's cash balance, after the payment of dividends and income taxes, exceeds the amount necessary for such uses as a technology acquisition reserve, including the purchase of intellectual property and investments in start-up firms, plant and equipment expansion, and planned repayment of interest-bearing debt, approximately one-third of the excess cash will be allocated as additional dividends. |
| 4. |
In the case where a consolidated net loss is recorded in three consecutive fiscal years, the policy explained in (1) above-regarding the maintenance of a stable 20 yen per share base dividend-may be subject to review. |
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<Note> |
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*1 |
The DISCO Vision was written to establish targets and measure various aspects of DISCO's business performance. The Economic Vision aspect states “DISCO has sufficient economic competence and structure to realize growth as a corporation.” The measurement criterion states DISCO has the ability to maintain an ordinary income margin of 20% or more, averaged over 4 years. The above dividend amendment is based on this Vision and measurement criterion. |
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*2 |
Amended on May 12, 2008. |
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(Yen) |
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Annual |
Interim |
Year-end |
Special/memorial |
| FY2009 |
20 |
10 |
10 |
- |
| FY2008 |
20 |
10 |
10 |
- |
| FY2007 |
79 |
35 |
44 |
- |
| FY2006 |
75 |
30 |
35 |
10 |
| FY2005 |
50 |
15 |
35 |
- |
| FY2004 |
40 |
15 |
15 |
10 |
| FY2003 |
30 |
15 |
15 |
- |
| FY2002 |
20 |
10 |
10 |
- |
| FY2001 |
20 |
10 |
10 |
- |
| FY2000 |
40 |
15 |
15 |
10 |
| FY1999 |
20 |
10 |
10 |
- |
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