TAIYO YUDEN recognizes that distributing profits to its shareholders is one of management's most important responsibilities. Today, the Company must develop a stable and sustainable earnings structure as well as improve its financial standing. Until now, it has been our policy to provide a stable annual dividend of 10 yen per share.
The dividend for the year ended March 31, 2012 was reduced to 5 yen per share to coincide with the Company's weakened financial position. The dividend consisted of 2.5 yen per share year-end dividend and a 2.5 yen per share interim dividend. Our expectations are to return to a stable cash dividend of 10 yen per share in the year ending March 31, 2013, driven by a recovery in earnings.
We plan to further increase our distribution of profits to shareholders based on a new dividend policy that includes purchasing our own stock when possible to achieve our long-term target of 30% total return ratio (*) once the Company has developed a stable and sustainable earnings structure and improvement in the financial standing. These targets have been set forth in the new medium-term management plan for three years starting in the year ending March 31, 2013.
(*)[Payment of cash dividends + purchase of treasury stock]/ net income)
The Company has stipulated that an interim dividend can be offered based on a resolution by our Board of Directors and has established a basic policy to offer two dividends per annum in the form of an interim dividend and year-end dividend.The interim dividend is determined by the Company's Board of Directors.The year-end dividend is decided at the general shareholders' meeting.