Brother International 2007 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2007 Brother International annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 48

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48

04 Brother Annual Report 2007
Revision to Basic Policies for Dividend Payments
Brother started to promote its commitment to CSR at the beginning of fiscal 2007. We w ill fulfill our
responsibilities with regard to the demands and expectations of customers, employees, shareholders,
business partners, community residents and all other stakeholders. In addition, we w ill view these
demands and expectations as new business opportunities. The ultimate goal is to become a
company that can constantly contribute to society w hile receiving support from all stakeholders.
To rew ard shareholders, w e plan to increase corporate value by achieving the goals of "Global
Vision 21." Furthermore, w e have established a clearly defined dividend policy for distributing
earnings to shareholders. Our commitment to shareholders also includes the provision of information
that maintains the transparency of our operations. Concerning the dividend, w e have revised our
basic policy. Our new policy is to make substantial dividend payments that reflect earnings in each
fiscal year. At the same time, dividends w ill factor in the need to retain earnings to fund investments
for future grow th, the level of cash flow s each year, and other items. We are also using numerical
goals for dividends, thereby providing shareholders w ith a clearly defined policy for setting dividends.
Establishment of numerical goal as part of the dividend policy
For the next several years, our target for consolidated dividend payout ratio w ill be about 20% in order
to provide sufficient funds for the substantial investments required to achieve the goals of "Global
Vision 21." Our long-term goal is to raise the consolidated payout ratio to 30% in order to return a
larger amount of earnings to shareholders.
Establishment of numerical goal for continuous dividend
To continue paying a dividend regardless of increase or decrease in operating results in each fiscal
year, w e have established a policy of paying a minimum dividend equivalent to a DOE (dividend on
equity) ratio of about 1% .
Dividend
Due to the record earnings in fiscal 2007, w e increased the annual dividend of ¥20 per share
applicable to fiscal 2007, w hich is a consolidated payout ratio of 19.1%. In accordance w ith the new
basic dividend policy, w e plan to pay an annual dividend of ¥20 per share in fiscal 2008, both interim
and year-end payments are ¥10. This represents 23% of the fiscal 2008 consolidated earnings
forecast.
(Yen )Payout ratio (consolidated)
(Net loss in this period)
25
20
15
10
5
0
Payout ratio (%)
30
20
10
0
2000/3
10
2001/3 2002/3 2003/3 2004/3 2005/3 2006/3 2007/3 2008/3
Projection
5
45.3% 131.6%
55
7
8.5
10 13
8.8%
11.5% 13.6% 14.6%
20 20
19.1%
23.0%
Moving onto the stage of higher profit distribution after the phase of
profit stabilization and consolidation of the financial base
Trend of dividend and payout ratio