Dividend Policy / Return to Shareholders

Dividend Policy

DISCO's basic policy on dividends is to distribute the surplus twice annually in the form of interim and final dividends.
Interim and final dividends consist of the performance-linked dividend, and the performance-linked and additional dividend respectively.
  • For the performance-linked dividend, 25% of the half-yearly consolidated net income of each the interim and final dividends will be distributed. (*)
  • Except when there is a loss, one-third (1/3) of the surplus funds after deducting the funding requirements from the year-end balance of cash and deposits is added to the final dividend as an additional dividend.
The funding requirements are the total of: (1) funds linked to the business performance and financial conditions and (2) the allowance based on plans.
  • (1) Funding requirements linked to business performance and financial conditions: the total of working capital, acquisition of technology resources, long-term interest-bearing liabilities, taxes, dividends, etc.
  • (2) Allowance based on plans: mainly funding for facility expansion, such as construction of new buildings in the factories. If there are no plans, it will be zero.

Calculation Formula for Additional Dividend

Calculation Formula for Additional Dividend

*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. The ¥20 payout stipulated in our stable dividend policy may be reviewed if there are consolidated net losses in three consecutive years.

Decision Making Board / Record Date

The Board of Directors determines the interim dividend and, as a rule, the General Shareholders Meeting determines the final dividend.

Record Dates:
Interim dividend: September 30th
Final dividend: March 31st

At the Ordinary General Shareholders Meeting on June 29, 2022, with the aim of ensuring a flexible dividend policy, DISCO made the following amendment to the Articles of Incorporation:
"Unless otherwise provided for by laws and regulations, the Company may, by resolution of the Board of Directors, determine Dividends of Surplus and other matters set forth in the items of Article 459, paragraph 1 of the Companies Act."
However, regardless of these regulations, the General Shareholders Meeting will as a rule continue to determine the final dividend going forward. The Board of Directors will make the decision only in the event that convening the General Shareholders Meeting is deemed difficult due to disaster or other unforeseen circumstance.

Dividend Trend

Dividend Per Share Dividend Resource FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
1H 25% of the half-yearly
consolidated net income		 50 72 85 83 141 114 91 116 199 282
2H 40 73 78 87 119 87 102 156 261 293
Additional Dividend Surplus funds in the year-end
balance		 - 15 152 204 129 121 245 405 348 341
Annual dividends - 90 160 315 374 389 322 438 677 808 916
Payout Ratio - 25.2% 27.6% 48.8% 55.3% 37.6% 40.1% 56.9% 62.4% 44.0% 39.9%