Epson 2016 Annual Report Download - page 35

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34
6. Dividend policy
The Company strives to sustain business growth through the creation of customer value and to generate stable
cash flow by improving profitability and using management resources efficiently. While the top priority is on
strategic investment in growth, the Company also actively returns profits in parallel with its efforts to build a
robust financial structure that is capable of withstanding changes in the business environment.
In line with this policy, the Company has set a consolidated dividend payout ratio in the range of 40% as a
medium-term target, the ratio based on profit after an amount equivalent to the statutory effective tax rate is
deducted from business profit, a profit category that shows profit from the Company’s main operations (and
which is very similar to operating income under Japanese accounting standards, both conceptually and
numerically). The Company intends to be more active in giving back to shareholders by agilely repurchasing
shares as warranted by share price, the capital situation, and other factors.
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 there is evidence that the near-term economic environment has been deteriorating, the Company’s
full-year financial performance was in line with the outlook primarily as a result of strategic progress in the
Company’s businesses. The Company therefore has paid an annual dividend of ¥60 per share, as forecast at the
beginning of the fiscal year. (Epson declared a two-for-one stock split of the Company’s common shares,
effective April 1st, 2015.)
The Company’s Articles of Incorporation allow the Company to issue an interim dividend with a record 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.
Distribution of retained earnings for the fiscal year under review
Date approved Cash dividends
(Millions of yen)
Cash dividend per share
(Yen)
October 29, 2015, by resolution
of the board of directors 10,733 30
June 28, 2016, by resolution of
the general shareholders’ meeting 10,733 30