Dividend Policy / Return to Shareholders

Dividend Policy

DISCO’s basic policy on dividends is to distribute the surplus twice annually in the form of interim and final dividends.
Interim and final dividends consist of the performance-linked dividend, and the performance-linked and additional dividend respectively.
  • For the performance-linked dividend, 25% of the half-yearly consolidated net income of each the interim and final dividends will be distributed. (*)
  • Except when there is a loss, one-third (1/3) of the surplus funds after deducting the funding requirements from the year-end balance of cash and deposits is added to the final dividend as an additional dividend.
The funding requirements are the total of: (1) funds linked to the business performance and financial conditions and (2) the allowance based on plans.
  • (1) Funding requirements linked to business performance and financial conditions: the total of working capital, acquisition of technology resources, long-term interest-bearing liabilities, taxes, dividends, etc.
  • (2) Allowance based on plans: mainly funding for facility expansion, such as construction of new buildings in the factories. If there are no plans, it will be zero.

Overview

Overview

Calculation Formula for Additional Dividend

Calculation Formula for Additional Dividend

*Irrespective of the level of income, we will maintain a reliable dividend of ¥10 per half-year. This means that the minimum yearly dividend will be ¥20. The ¥20 payout stipulated in our stable dividend policy may be reviewed if there are consolidated net losses in three consecutive years.

Decision Making Board / Record Date

Decisions concerning the distribution of dividends are made at the General Meeting of Shareholders in the case of the final dividend, and by the Board of Directors in the case of the interim dividend.

Reference Dates:
Interim dividend: September 30
Final dividend: March 31

Dividend Trend

Dividend Per Share Dividend Resource FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
1H 25% of the half-yearly
consolidated net income
25 29 40 50 72 85 83 141 114 91 116
2H 40 19 16 40 73 78 87 119 87 102 156
Additional Dividend Surplus funds in the year-end
balance
- - - - 15 152 204 129 121 245 405
Annual dividends - 65 48 56 90 160 315 374 389 322 438 677
Payout Ratio - 20.0% 22.5% 25.3% 25.2% 27.6% 48.8% 55.3% 37.6% 40.1% 56.9% 62.4%