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Investor Presentaiton

Approach to Shareholder Returns TOKAI's policy in FY2015 is to achieve a total return ratio of 100%. Aiming for a dividend payout ratio of 40%, TOKAI's approach is to achieve stable dividends, and when surplus cash has been generated, we will flexibly return it by purchasing TOKAI shares or alternative methods. For FY2015, the annual dividend is expected to be ¥12 (comprising an interim dividend of ¥6 and a year-end dividend of ¥6), and the total dividend amount to be ¥1.4 billion. In addition, we intend to purchase ¥1.8 billion of treasury stock because our business results have been progressing steadily toward the final fiscal year of IP16. Moreover, on November 6, 2015, TOKAI canceled 15.52 million of its treasury stock, representing 10% of its issued common shares. (Units: \ billion) 100.0% 4 3 Dividend Share buy-back Total return ratio 90.0% 70.0% 52.9% 44.2% 40.2% 1.8 50.0% 2 35.1% 30.0% 1 1.2 1.3 1.4 1.4 1.4 10.0% 0 -10.0% FY2011 FY2012 FY2013 FY2014 FY2015 10
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