Epson 2015 Annual Report Download - page 34

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33
6. Dividend policy
The Company is a proponent of paying regular dividends, and in the interests of all stakeholders, we strive to
achieve sustained business growth through the creation of customer value, generate stable cash flow by
improving profitability and using management resources efficiently, invest on the basis of a strategy for growth,
and build a robust financial structure that is capable of withstanding changes in the business environment.
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.
In consequence of successful implementation of the business strategy and favorable exchange rates, business
performance has improved significantly. Since the introduction of International Financial Reporting Standards
(IFRS), the Company defines capital as business profit from the principal business of the Company (very
similar to operating income under Japanese accounting standard [J-GAAP]) minus a sum equivalent to the
statutory effective tax rate. Therefore, based on the long-term target for a consolidated dividend payout ratio of
30%, the Company has paid an annual dividend of 115 yen per share this year.
The Company will work steadily to improve corporate value, and will consider future raises in the consolidated
dividend payout ratio over the medium term in accordance with the policy above.
(Reference) The Company’ s approach to annual dividends (forecast)
Annual dividend (forecast): [Business profit (forecast) - Sum equivalent to the statutory effective tax rate] × the
target consolidated dividend payout ratio
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 31, 2014, by resolution
of the board of directors
6,261 35
June 25, 2015, by resolution of
the general shareholders’ meeting
14,311 80