6. Dividend policy
The Company believes in distributing profits by maintaining stable dividend payments and seeks to increase cash
flow through greater management efficiency and improved profitability. On that basis, with the goal of achieving
a consistent consolidated dividend payout ratio of 30% over the medium- to long-term, the Company distributes
profits to shareholders while taking into account the need for capital to fuel its business strategy and to maintain
its business performance and financial standing.
The Company’s dividend policy is to pay cash dividends twice a year. The year-end dividend is determined by
resolution of the general shareholders’ meeting and the interim dividend is determined at a meeting of the board
of directors.
Although it recorded unforeseen extraordinary losses during the year, including a ¥4,755 million loss associated
with inventory and equipment as a result of the Great East Japan Earthquake that struck on March 11, 2011, the
Company increased its annual dividend by 10 yen per share, declaring a 20-yen dividend (10 yen of which was
paid as an interim dividend at the end of the first half). The two main considerations in this decision were the
Company’s policy of paying stable dividends and the fact that it posted positive net income, thus achieving the
goal established at the beginning of the period of reaching or exceeding break-even in this income category.
The Company’s Articles of Incorporation allow the Company to issue an interim dividend with a base date of
September 30 every year by resolution of the board of directors.
The Company’s distribution of retained earnings for the fiscal year under review is as follows: