Shareholder Return Policy

The Company positions returning profits to shareholders as an important management issue. For greater profit distribution , the Company has decided to adopt a policy of return of profits to shareholders including the policy of acquisition of own shares during "CHALLENGE Ⅱ 2020" (fiscal 2018 to fiscal 2020).

Details of the policy of return of profits to shareholders

  1. Policy of return of profits to shareholders
    During the period of the medium-term management plan (from fiscal 2018 to fiscal 2020), the Company will conduct dividend payments and acquisitions of its own shares, targeting a consolidated total return ratio of 100%.

     (i) Dividend policy

    • Consolidated payout ratio is targeted at 70%.
    • The Company intends to pay a steady ordinary dividend of ¥100 (interim dividend of ¥50 and year-end dividend of ¥50) per share, and if the amount of dividend calculated based on the targeted payout ratio above exceeds ¥100, the excess amount will be treated as performance-linked dividend and will be paid out as special dividend at the end of the fiscal year.
      However, if the Company implements capital policies that affect income per share, such as capital increase and stock split, the amount of ordinary dividend may be revised.

     (ii) Policy of acquisition of own shares

    • The acquisition of own shares will be implemented, targeting the amount derived by subtracting the total dividend amount from consolidated net income.

The Company’s basic policy of dividend of surplus is to pay out dividend twice a year, as the interim dividend and the term-end dividend. The Board of Director decides the interim dividend while the term-end dividend is determined at the Annual General Meeting.
As prescribed by Article 454 Clause 5 of the Company Act, the Articles of Incorporation stipulates that the interim dividend can be paid at every 30th of September as the record date set forth by the Board of Director.

As for the usage of retained earnings, the fund will be directed towards new store opening, refurbishment of existing stores, as well as development of new business going forward.
The Company strive for better performance and the improvement of management efficiency so as to further strengthen our competitiveness.

Transition of a dividend