Basic Policy for Profit Sharing with the Shareholders
Latest Update : Aug.4, 2017
Enhancing Corporate Value
At present, our company is making efforts to create a system for continuous growth of the company's value with a new management policy. Please refer to the detailed summary explanation of the latest investor meeting.
Profit Distribution to Shareholders
We have been improving the financial position by reducing net interest-bearing debts, which are interest-bearing debts minus cash and cash equivalents, based on annual cash-flows. At the end of March 2016, net interest-bearing debts were 97.5 billion yen. We are making our efforts in increasing profits and creating cash flows. At the same time, we are aiming at a large M&A in the machined components business area. If there are no large M&As. However, net interest-bearing debts are expected to be reduced more.
When taking into consideration for investment for the long-term future, investment for new product development, mobility of capital expenditures and possible mergers & acquisitions, we need to maintain the soundness of the financial situation, to enhance equity efficiency and to improve returns to our shareholders. Sharing profits with our shareholders is job one at Minebea. That's why our basic dividend policy gives priority to enhancing equity efficiency and improving returns to our shareholders. Dividends, while reflecting performance, are determined in light of the overall business environment and with an eye to maintaining stable and continuous distributions of profits.
Based on this basic policy, for the fiscal year ending March 31, 2017, we had a target dividend payout ratio of around 20% at the beginning, but when we announced the second quarter results. We set the interim dividend at 7 yen per share. Also, we plan to pay the year-end dividend of 7 yen per share (total 14 yen per share for the fiscal year).
Also, we have repurchased our own shares aiming to carry out an agile capital management policy in response to changes in the business environment. In June, 2016, we had repurchased convertible bonds for 13.9 billion yen, a similar action to a stock buyback. Please refer to Dividend/Share Repurchase page concerning the dividend distribution and share repurchase history.