DISCO Announces Revision to Dividend Policy
DISCO Corporation ("the Company") today announced that its Board of Directors adopted a
resolution on February 17, 2006, to revise its dividend policy. The revised dividend policy will be applied to the
dividends applicable to the fiscal year ending March 31, 2006. Details of the revised policy and dividend forecasts
are as follows.
| 1. |
Revised Dividend Policy |
| To improve the transparency of the Company's stance prioritizing the return of profits to shareholders, the Company's dividend policy has been revised as follows. |
|
(1) |
Beginning from the fiscal year ending March 31, 2006,
dividend policy will be used to link dividend payments with the Company's operating performance. |
|
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(2) |
The target dividend payout ratio is
set at 20% of consolidated net income. However, notwithstanding this net income-linked benchmark, the Company
will maintain an annual dividend payment of not less than 20 yen per share as a stable base dividend. |
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(3) |
Furthermore, with the exception of fiscal
years in which a net loss is recorded, in fiscal years where the Company's cash balance, after the payment of dividends and income taxes, exceeds the amount necessary for such uses as technology acquisition reserve, including the purchase of intellectual property and investments in start-up firms, plant and equipment expansion reserve, and planned repayment of interest-bearing debt, approximately one-third of the excess cash will be allocated as additional dividends. |
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(4) |
In the case where a consolidated net
loss is recorded in three consecutive fiscal years, the policy explained in (2) above-regarding the maintenance
of a stable 20 yen per share base dividend-may be subject to review. |
|
| The Company believes that this revised dividend policy will enhance the ability of shareholders to make long-term investment decisions. The Company will continue its efforts to enhance the exchange of values with its shareholders and other stakeholders, and looks forward to the ongoing support of shareholders in these endeavors. |
| 2. |
Revised Policy's Effect on Dividend Forecast for the Fiscal Year Ending March 31, 2006 |
| As of January 31, 2006, the total number of shares outstanding, excluding treasury stock, is 32,175,066. Based on this number of outstanding shares and the revised operating results forecasts announced on February 2, 2006, total dividends applicable to the fiscal year ending March 31, 2006, are projected to be 43 yen per share. The actual year-end dividend will be calculated subsequent to the determination of final operating results for this fiscal year and based on the number of shares outstanding as of March 31, 2006, excluding treasury stock. The cash balance as of March 31, 2006, is not projected to exceed the amount of required funds, meaning an additional dividend allocation as outlined in section 1(3) above is not foreseen. |
| 3. |
Revised Dividend Forecast |
|
| |
Interim dividend |
Year-end dividend |
Annual dividend |
| Previous forecast (November 9, 2005) |
15 |
15 |
30 |
| Revised Forecast |
15 |
28 |
43 |
| (Reference) Fiscal year ended March 31, 2005 |
15 |
25
(including 10 yen commemorative dividend) |
40 |
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Note: The forecasts above are based on information available at the time of announcement. Actual performance may differ from forecasts owing to a variety of factors.
|
Contact: Keizo Sekiya
Phone: 81-3-4590-1099 |
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