Dividend Policy and Cash Dividends
Dividend policy
The Company regards the continuous return of profits to its shareholders as a highly important management policy, and maintains a basic policy to stably implement dividends according to the Company’s performance to its shareholders over the long term, having taken into consideration future business expansion, investments in facilities, and the like, as well as striving to improve the return on equity attributable to owners of the parent (ROE). Taking into account this basic policy, the Company aims to gradually raise the payout ratio to 30%.
In principle, we pay dividends of surplus twice a year: interim dividend and year-end dividend. Organizationally, interim dividends are determined by the board of directors, and year-end dividends are determined at the general meeting of shareholders.
Internal reserves are used for overseas business development and capital investment for newly developed automotive models, and are used for business development to improve corporate value and secure shareholder profits in the future.
Based on Article 454(5) of the Companies Act, the Articles of Incorporation include a provision to the effect that interim dividends may be distributed by resolution of the board of directors.