Toyota 2008 Annual Report Download - page 21

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•Annual Report 2008 • TOYOTA
development even under such conditions as rises in raw material costs and
drastic changes in foreign exchange rates, and underpins the high credit
ratings that enable access to stable, low-cost financing even during the credit
crunch. In view of anticipated medium-to-long term growth in automotive
markets worldwide, we believe that maintaining adequate liquidity is essential
for the implementation of forward-looking investment to improve products
and develop next-generation technology, as well as establish production and
sales operations for the expansion of businesses worldwide.
Toyota considers the returning of profits to its shareholders as one of its
priority management policies and continuously strives to increase per-share
earnings through aggressively promoting its business while improving and
strengthening its corporate foundations. With respect to the payment of
dividends, Toyota declared an annual dividend payment of ¥140 per share at
the end of fiscal 2008, which is an increase of ¥20 from the previous fiscal year.
This marks the ninth consecutive term of dividend increase—a record high for
Toyota. The consolidated dividend payout ratio increased from 23.4% in fiscal
2007 to 25.9% in fiscal 2008. Going forward, Toyota aims to achieve a
consolidated dividend payout ratio of 30% at an early stage, as well as strives
for continuous growth of dividend per share, giving due consideration to such
factors as business results for each term and new investment plans.
With respect to the repurchase of our own shares, all shares authorized at
the Ordinary General Shareholders’ Meeting held in June 2007, which were
the lesser of 30 million shares or the number of shares equivalent to ¥250
billion in cost of repurchase, were repurchased. Furthermore, in February 2008
the Board of Directors authorized an additional share repurchase of the lesser
of 12 million shares or the number of shares equivalent to ¥60 billion in cost
of repurchase, and as of March 31, 2008, 9.52 million shares at a total cost of
¥59.9 billion were repurchased. In fiscal 2008, Toyota repurchased 49 million
shares at a total cost of ¥317 billion. Since Toyota began repurchasing shares
in fiscal 1997, the cumulative number of shares repurchased as of the end of
June 2008 was approximately 722.04 million shares at a total cost of
approximately ¥2,796.0 billion.
To define improvement of capital efficiency, Toyota canceled 162 million
shares of its treasury stock at the end of fiscal 2008. Toyota will continue to
retain the remaining treasury stock of approximately 300 million shares to
achieve flexibility in management, but as a principle, plans to cancel all shares
it repurchases in the future. At the Ordinary General Shareholders’ Meeting
held in June 2008, a resolution was passed to authorize the repurchase of
30 million shares at a total cost of ¥200 billion. Toyota aims to continue
repurchasing shares to effectively respond to changes in the management
environment and to improve capital efficiency.
Going forward, Toyota hopes to continue meeting shareholders’
expectations through medium-to-long term growth and the active return
of profits to shareholders.
July 2008
Mitsuo Kinoshita, Executive Vice President
Dividends and Share Acquisitions
Performance Messages from the Management &
•Overview •Management •Special Feature •Business Overview •Corporate Information •Financial Section •Investor Information •
’04
+9
45
’05
+20
65
’06
+25
90
’07
+30
120
’08
+20
140
0
60
30
90
150
120
0
20
10
30
50
40
(¥) (%)
FY
Consolidated dividend payout ratio
(Right scale)
Dividends per Share
Note: Fiscal years ended March 31