Konica Minolta 2014 Annual Report Download - page 47

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KONICA MINOLTA, INC. Annual Report 2014
Financial Review and Data
Management’s Discussion and Analysis
Basic Dividend Policy
The Company’s basic policy regarding the payment of dividends is to sus-
tain distribution of earnings to shareholders after comprehensive consid-
eration of factors including consolidated business results and strategic
investment in growth areas. The Company’s specific medium- to long-
term dividend benchmark for dividends is a consolidated payout ratio of
25% or higher. The Company also considers factors such as financial
position and share price in making decisions about share repurchases as
another means of distributing earnings to shareholders.
Based on Article 459, Paragraph 1 of the Japanese Corporate Law, the
Company’s articles of incorporation specify the Board of Directors as the
decision-making body with regard to the payment of dividends from
retained earnings. The Company does not have a basic policy as to the
Looking at the global economic conditions surrounding the Group,
moderate economic recovery is expected in Europe while corporate
results are projected to remain strong in the United States and Japan.
Economies in emerging countries are forecast to keep expanding due
to recovery in the economies of industrialized countries, despite lin-
gering uncertainty in the Chinese economy.
As for the outlook for demand in the Group’s main markets, in the
Business Technologies Business, we expect demand for A3 color MFPs
for the office to continue expanding in Europe and the United States.
In emerging countries, demand for monochrome units and the overall
market are projected to expand alongside economic growth. In the
production print field, we expect sales of color units to expand and
the number of units in the market to increase worldwide. In the
Industrial Business, the market for notebook PCs is expected to con-
tinue contracting, while continued strong growth is forecast for smart-
phones and tablets, and the TV market is projected to expand
moderately as well. In addition, as the use of smartphones and tablets
spreads, displays for mobile devices are expected to increase in vol-
ume terms and capital investment is forecast to increase in the manu-
facturing sector. In digital cameras, the market for compact cameras is
Dividends for the Fiscal Year Ended March 31, 2014 and
Planned Dividends for the Fiscal Year Ending March 31, 2015
With respect to dividends from retained earnings for the fiscal year under review, the Company will distribute a year-end dividend of ¥7.5 per share,
as planned. Combined with the dividend of ¥10 per share paid at the end of the second quarter (comprising an ordinary dividend of ¥7.5 and com-
memorative dividend of ¥2.5), the total annual dividend will be ¥17.5 per share. The Company plans to increase annual dividends per share ¥2.5 to
¥20 for the fiscal year ending March 31, 2015.
Dividend Policy
Outlook for the Fiscal Year Ending March 31, 2015
Cash dividends per share
FY2013FY2012FY2011
(Yen)
17.5
15.0
15.0
0
5
10
15
20
25
30
number of times per year that dividends are paid, but, per the articles of
incorporation, can pay dividends from retained income on March 31,
September 30, and other record dates.
Performance forecast for the fiscal year
ending March 31, 2015 As of May 9, 2014
(Billions of yen)
Net sales 1,000
Operating income 62
Operating income ratio 6.2%
Net income 26
Capital expenditure 60
Depreciation 55
Research and development costs 75
Free cash flow 2
Investment and financing 40
expected to continue contracting due to smartphone growth, while
sales of models with interchangeable lenses are projected to remain
firm. In the Healthcare Business, robust growth is forecast for cassette
digital x-ray systems in all regions.
Cash dividends per share ¥20.00
We assume exchange rates of JPY 100 to USD 1 and JPY 135 to EUR 1.