Dividend Policy
Basic Policy regarding the Distribution of Corporate Profits
The distribution of profits to shareholders is one of management's primary objectives. In order to enhance its corporate value and shareholders' common interests, the Company endeavors to ensure appropriate distribution of profits, in consideration of management results and securing growth potential in the future. Specifically, the Company has targeted a payout ratio of 30% or higher of the consolidated net income and has increased the dividend due to continued improvement of business performance. Annual dividend per share has increased from 9 yen for the fiscal year 2002 to 22 yen for the fiscal year 2008. In addition, under the "GS-21," a medium-term business plan for fiscal years 2006 to 2008, the Company attempted to increase capital efficiency, setting the target of the shareholder return ratio (defined as the sum of dividends and the amount paid for share buybacks for the three years as a percentage of net income) of 70%. The track record of the last 3 years achieved a payout ratio of 36% and a shareholder return ratio of 86%.
The Company's profit structure has been significantly hurt by the global economic crisis in and after the second half of fiscal year 2008. The Company commenced the "GS-Twins," which is a three-year action plan, as a measure to repair quickly the depressed earnings. Under this plan, the Company's dividend policy is to maintain a payout ratio of 30% or higher of the consolidated net income.
From a middle and long-term perspective, the Company will endeavor to ensure appropriate distribution of profits, in consideration of management results and securing growth potential in the future.
The financial affairs, a capital policy, and granting new stocks to shareholders in a GS-Twins Medium-term Action Plan
