Fundamental Policy Regarding Profit Sharing
Under the goal of providing a sustained and stable return of profits to shareholders, the Company has adopted a performance-linked dividend policy to pay dividends in accordance with profit growth. The details are as follows.
[Details of revision of dividend policy ]
A.Setting a target dividend on equity (DOE) of 7% on a consolidated basis
B.Introducing a dividend policy reflecting a comprehensive consideration of such factors as
consolidated financial results in A. above
*Dividend on equity (DOE) is an indicator of shareholders’ return which consists of dividend payout
ratio indicating the amount of profits paid to shareholders and return on equity (ROE) indicating
capital efficiency.
In addition, the Company plans to utilize retained earnings after paying dividends to further enhance existing businesses and invest in new businesses, and is committed to increasing corporate value while working to improve performance in a sustainable manner and to maintain/improve ROE.
Changes in Dividends/Dividend Payout Ratio
| Period | Dividend per share | Payout ratio | ROE | DOE | ||
|---|---|---|---|---|---|---|
| Interim dividend | Year-end dividend | Annual dividend | ||||
| FY2019(Forecast) | 6.5yen | 6.5yen | 13.0yen | 18.5% | 47.1% | 7.1% |
| FY2018 | 5.5yen | 6.0yen | 11.5yen | 20.9% | 40.0% | 8.4% |
| FY2017 | 5.5yen | 6.0yen | 11.5yen | 32.3% | 29.2% | 9.4% |
| FY2016 | 4.5yen | 5.0yen | 9.5yen | 60.4% | 10.5% | 6.4% |
| FY2015 | 4.0yen | 4.5yen | 8.5yen | 37.6% | 13.8% | 5.2% |
| FY2014 | 3.5yen | 4.0yen | 7.5yen | 16.3% | 33.6% | 5.5% |
| FY2013 | 1.5yen | 2.5yen | 4.0yen | 16.0% | 23.2% | 3.7% |
* Actual dividends paid by DIGITAL HEARTS Co., Ltd. are included above.
* The Company conducted a 100-for-1 stock split effective as of July 1, 2012, a 2-for-1 stock split effective as of October 1, 2012 and a 2-for-1 stock split effective as of October 1, 2016. Therefore, dividends before the fiscal year ended March 31, 2017 and the interim dividend for that fiscal year reflect the effects of these stock splits and are adjusted retroactively. Actual dividends are noted in parenthesis.
Shareholder Incentives
Shareholders subject to incentives
Shareholders who are recorded in the shareholder registry as of March 31 every year and hold 100 shares (one unit) and more are covered by the incentive program.
| Number of shares owned | Benefits |
|---|---|
| One unit (100 shares) or moreLess than two units (200 shares) | Rice gift card (3 kg) |
| Two units (200 shares) or more | Rice gift card (6 kg) |
