Honda 2008 Annual Report Download - page 16

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The FCX Clarity is a fuel cell vehicle that features zero CO2 emissions. Lease sales of
this epoch-making vehicle are scheduled to begin in the United States in July 2008 and in
Japan in fall 2008.
Honda strives to conduct its business from a global perspective and to increase its corpo-
rate value. We consider the distribution of profits to shareholders to be one of our most im-
portant management responsibilities. Our basic policy for dividends is to make distributions
after taking into account our long-term consolidated earnings performance. Honda also ac-
quires its own shares at the optimal timing, with the goal of improving the efficiency of Hon-
da’s capital structure.
Under Honda’s Articles of Incorporation, the Board of Directors may pay dividends from
retained earnings; however, the dividend for the end of the fiscal year is a matter for approval
at the General Meeting of Shareholders.
The present goal is to maintain a shareholder return ratio (i.e., the total amount of the divi-
dend payment and the repurchase of Honda’s own shares to consolidated net income) of ap-
proximately 30%. Retained earnings will be allocated toward R&D activities that are essential
for Honda’s future growth and capital expenditures and investment programs that will expand
its operations for the purposes of improving business results and strengthening its financial
condition.
For fiscal 2008, Honda set a year-end cash dividend of ¥22 per share, bringing total cash
dividends for the year to ¥86 per share, ¥19 per share higher than for the previous fiscal year.
This dividend comprised ¥20 per share for the first quarter, ¥22 per share for the second
quarter, ¥22 per share for the third quarter, and the previously mentioned year-end dividend of
¥22 per share.
For the fiscal year ending March 31, 2009, we plan to pay quarterly dividends of ¥22 per
share, or ¥88 per share for the full year—¥2 per share higher than in fiscal 2008.
We will continue to do our utmost to meet the expectations of our shareholders.
Honda is a company where each and every member of management and the organization
has challenging objectives, works to realize the dreams of providing joy to Honda customers
as well as fulfilling his or her potential, and, while setting a course for a better tomorrow, wants
to shape the future through innovation and growth.
Our overriding quest is to become a company that society wants to exist throughout the
world. In the years to come, as in years past, we will continue to meet the challenges of inno-
vation and creativity and, motivated by “The Power of Dreams,” respond to the expectations
of society, offering our customers enjoyment, inspiration, and satisfaction.
We look forward to the continued understanding and support of our shareholders and
other investors as we embrace the challenges and the opportunities the future may bring.
June 24, 2008
Takeo Fukui
President & Chief Executive Officer
To Our Shareholders
Returning Profit to Shareholders
Annual Report 2008
14