Honda 2007 Annual Report Download - page 12

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10
160
120
80
40
0
2.0
1.5
1.0
0.5
0
03 04 05 06 07 08
(Yen) (%)
Dividends per Share
Years ended March 31
Dividends per share
Dividends per share
(before stock split)
Dividends yield
To Our Shareholders
Returning Profits to Shareholders
Honda strives to carry out its operations from a global perspective and to
increase its corporate value. With respect to the redistribution of profits
to its shareholders, which we consider to be one of the most important
management issues, Honda’s basic policy for dividends is to make distribu-
tions after taking into account its long-term consolidated earnings perfor-
mance. Honda will also acquire its own shares at the optimal timing with
the goals of improving efficiency of the Company’s capital structure and
facilitating efforts to enhance capital agility.
The present goal is to maintain a shareholder return ratio (i.e., the ratio of
the total of the dividend payment and the repurchase of Company shares to
consolidated net income) of approximately 30%.
Retained earnings will be allocated toward financing R&D activities that
are essential for the future growth of Honda and capital expenditures and
investment programs that will expand operations for the purpose of
improving business results and strengthening Honda’s financial condition.
For fiscal 2007, Honda set a year-end cash dividend of ¥20 per share,
bringing total cash dividends for the year to ¥67 per share, when adding in
the interim dividend of ¥30 and a third-quarter dividend of ¥17 per share.
Honda also implemented a two-for-one stock split on July 1, 2006. Had
this stock split not been carried out, dividends would have been equal to
¥134 per share, a ¥34 increase over the previous year.
For the fiscal year ending March 31, 2008, we plan to pay quarterly
dividends of ¥20 per share, amounting to annual dividends of ¥80 per
share, up ¥13.
We will continue doing our utmost to meet the expectations of our
shareholders.
In Closing
Honda’s overriding quest is to become a company that society wants to
exist throughout the world. To this end, we will strive to provide greater
levels of enjoyment and inspiration to our customers and emphasize the
characteristics that make Honda unique.
We look forward to the continued understanding and support of
shareholders and other investors as we embrace the challenges of
the future.
June 22, 2007
Takeo Fukui
President and Chief Executive Officer