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Investor Presentaiton

Policy on returns to shareholders ◆ To clarify our stance on returning gains to shareholders, we revised the payout table to reflect a consolidated payout ratio of roughly 31-36%. We will increase dividends accordingly from FY2020. ☐ Revisions to the payout table After Before Dividends per share Dividends per share Net income attributable to owners of the parent 2 Performance- 1Fixed 1 +② Consolidated payout ratio 1Fixed 2 Performance- based Consolidated payout ratio % Change 1+2 based 18 yen 36 yen Less than 34.1% +11.4%pt or less More than 33 billion yen 12 yen 24 yen Less than 22.7% More than 30 and not 10 yen 22 yen exceeding 33 billion yen More than 27 and not 8 yen 20 yen 20.8% or more and less than 22.9% 20.8% or more and less than 23.1% 15 yen 33 yen 31.2% or more and less than 34.4% 12 yen 30 yen 31.2% or more and less than 34.7% exceeding 30 billion yen More than 24 and not exceeding 27 billion yen More than 21 and not exceeding 24 billion yen 12 yen 6 yen 18 yen 20.8% or more and less than 23.4% 18 yen 9 yen 27 yen 31.2% or more and less than 35.1% 4 yen 16 yen 20.8% or more and less than 23.8% 6 yen 24 yen 31.2% or more and less than 35.7% 20.8% or more and 3 yen 21 yen 31.2% or more and less than 36.4% +10.4-11.5%pt +10.4-11.6%pt +10.4-11.7%pt +10.4-11.9%pt +10.4-12.1%pt More than 18 and not 2 yen 14 yen less than 24.3% exceeding 21 billion yen 0 yen 18 yen 31.2% or more +10.4%pt or more 18 billion yen or less 0 yen 12 yen 20.8% or more [Trends in consolidated payout ratio] (%) 35.0 30.0 24.3% 25.0 20.0 15.0 10.0 FY2018 28.8% 33.2% Payout table referred to starting with year-end dividends for FY2019 FY2019 Consolidated payout ratio 11.0% 10.8% FY2020 (planned) 10.7% The amount of dividends/share (payout) is projected to increase based on the revised payout table. We expect to be able to maintain a consolidated capital adequacy ratio of 10%, our medium- to long-term target. We will also reconsider capital policies with the capital adequacy ratio in mind. 6
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