Logitech 2015 Annual Report Download - page 27

Agenda Proposals and Explanations
17 | – Proxy Statement
2015 Annual General Meeting Invitation, Proxy Statement
Proposal 3
Appropriation of Retained Earnings and Declaration of Dividend
Proposal
The Board of Directors proposes that CHF 449,500,812
(approximately USD 462,221,685) based on the
exchange rate on March 31, 2015) of retained earnings
be appropriated as follows:
Year ended
March 31, 2015
Retained earnings available at the
end of fiscal year 2015 CHF 449,500,812
Proposed dividends* CHF (82,661,493)
Balance of retained earnings to be
carried forward* CHF 366,839,319
The Board of Directors proposes distribution of a gross
aggregate dividend of approximately CHF 82,661,493,
based on the Board-approved gross aggregate dividend of
USD 85,000,000 and the exchange rate on March 31, 2015,
or approximately CHF 0.5025 per share (approximately
USD 0.5167).*
No distribution shall be made on shares held in treasury
by the Company and its subsidiaries.
If the proposal of the Board of Directors is approved, the
dividend payment of approximately CHF 0.5025 per share
(or approximately CHF 0.3266 per share after deduction
of 35% Swiss withholding tax whenever required) will be
made on or about September 22, 2015 to all shareholders
on record as of the record date (which will be on or about
September 21, 2015). We expect that the shares will be
traded ex dividend as of approximately September 17, 2015.
Explanation
Under Swiss law, the use of retained earnings must be
submitted to shareholders for approval or disapproval
at each annual general meeting. The retained earnings
at the disposal of Logitech shareholders at the 2015
Annual General Meeting are the earnings of Logitech
International S.A., the Logitech parent holding company.
The proposal of the Board of Directors to distribute a
gross dividend of approximately CHF 0.5025 per share
represents an increase of approximately 91% over the
prior year, following another year of strong cash flow from
operations, and is an indication of the Board of Directors’
confidence in the future of the Company. Since fiscal
year 2013, the Board of Directors decided on a recurring
annual gross dividend and not on an occasional one. As
a consequence, the Company expects to propose such
a dividend to the shareholders of the Company every
year (subject to the approval of the Company’s statutory
auditors in the applicable year).
Other than the distribution of the dividend, the Board of
Directors proposes the carry-forward of retained earnings
based on the Board’s belief that it is in the best interests of
Logitech and its shareholders to retain Logitech’s earnings
for future investment in the growth of Logitech’s business,
for share repurchases, and for the possible acquisition of
other companies or lines of business.