The Pigeon Group regards the return of income to shareholders as an important management priority. Our basic policy is to return income actively to shareholders through appropriation of retained earnings and other means, while reinforcing our financial position based on considerations of medium-term changes in business conditions and the Group’s business strategies. Internal reserves are put to effective use to ensure the future profitability of the Group. Applications for internal reserves include not only strengthening the Group’s financial position but also investing in R&D and new business fields for further growth and investing in production facilities to strengthen the corporate brand, raise production capacity, reduce costs, enhance product quality and grow through strategies such as mergers and acquisitions.

With respect to targets of shareholder return, under the Seventh Medium-Term Business Plan (for the period between the fiscal year ended December 2020 and the fiscal year ended December 2022) announced in February 2020, we aim to increase dividends every fiscal year compared to previous fiscal year. We are also targeting a consolidated total shareholder return of about 55%. To this end, we have sought to further strengthen and upgrade measures for returning profits to all shareholders.

The distribution of dividends in the period under review reflects the above policies and targets. The Group distributed an interim dividend of ¥38 per share (ordinary dividend of ¥38). For the year-end dividend, the Group forecasts a dividend of ¥38 per share (ordinary dividend of ¥38). As a result, the annual dividend for the term under review will total ¥76 per share (ordinary dividend of ¥76), a per share increase by ¥2 from the previous fiscal year.

As in the fiscal year under review, the annual dividend for the next fiscal year is expected to total ¥76 per share. This dividend is based on the targets of shareholder return set out under the Eighth Medium-Term Business Plan announced today: further improvement of consolidated business results and financial position, along with continuous, stable dividend supporting existing dividend levels.

 Jan. 2019Dec. 2019Dec. 2020Dec. 2021Dec. 2022Dec. 2023(E)
Annual Dividend per Share 68 70 72 74  76 76
(Interim Dividend per Share) 34 35 36  37 38 38
Consolidated Dividend Payout Ratio(%) 57.2 72.7 81.0 100.9 106.1 112.4

(Note) The Company carried out a 2-for-1 split of common stock, effective August 1, 2013, and a 3-for-1 split of common stock, effective May 1, 2015. Figures have been calculated assuming that those stock splits were conducted at the beginning of the year ended January 31, 2014.