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 Eighth Medium-Term Business Plan (for the period between the fiscal year ended December 2023 and the fiscal year ending December 2025) announced in February 2023, we aim for further improvement of consolidated business results and financial position, along with continuous, stable dividend supporting existing dividend levels.
Based on the aforementioned policy and targets, the Group distributed an interim dividend for the term under review 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), which is the same level as 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: further improvement of consolidated business results and financial position, along with continuous, stable dividend supporting existing dividend levels.
| Dec. 2019 | Dec. 2020 | Dec. 2021 | Dec. 2022 | Dec. 2023 | Dec. 2024(E) | |
|---|---|---|---|---|---|---|
| Annual Dividend per Share | 70 | 72 | 74 | 76 | 76 | 76 |
| (Interim Dividend per Share) | 35 | 36 | 37 | 38 | 38 | 38 |
| Consolidated Dividend Payout Ratio(%) | 72.7 | 81.0 | 100.9 | 106.1 | 122.6 | 119.8 |
(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.