DISCO Announces an Amendment to the Dividend Policy
At a meeting held on May 10, 2012, the Board of Directors adopted a resolution to amend its dividend policy.
With the aim of giving clearer priority to shareholder returns, our target dividend payout ratio was raised from 20% to 25% of consolidated half-yearly net income.
Note: The total amount of the interim dividend will consist of 25% of consolidated net income for the first half of the year (April to September), and that of the final dividend, of 25% of consolidated net income for the second half of the year (October to March).
Irrespective of the level of income, we will maintain a reliable dividend of ¥10 per half-year. This means that the minimum yearly dividend will be ¥20.
Except when there is a loss, if the year-end balance of cash and deposits after payment of dividends and income taxes is greater than projected funding requirements for the acquisition of technology resources (such as through patent purchases and investment in venture businesses, facility expansions, the retirement of interest-bearing debt and other purposes), one-third of that surplus will be added to dividends.
However, the minimum yearly dividend of ¥20 may be reviewed if there are consolidated net losses in three consecutive years.
Accordingly the following will be removed from the Dividend Policy:
"If the four-year cumulative consolidated ratio of ordinary income to net sales is higher than 20%, a dividend payout ratio of 24% of consolidated net income will be applied. Any difference over the interim dividend will be distributed with the final dividend."
Please also refer to the announcement regarding the Dividend Payment for Fiscal Year 2011 which will be disclosed today.