Column 2: Returning Profit to Shareholders
We intend to maintain our policy on returning profit to shareholders by adhering to our approach to date. To improve the return of profit to shareholders, we believe that it is important to balance improvement in corporate value with the enhancement of dividends. Naturally, improving corporate value entails retaining earnings to fund investments in future growth. On the other hand, we also believe that it is important to directly return profits generated in step with expanding earnings to shareholders by paying dividends. Based on this perspective, the Sumitomo Corporation Group has decided to target a dividend payout ratio in the range of 20% to 30%. During fiscal 2011 and fiscal 2012, the 2-year period of the ƒ(x) plan, we expect to achieve a dividend payout ratio of 25%.
For fiscal 2011, Sumitomo Corporation paid a record-high annual dividend of ¥50 per share, an increase of ¥14 from the previous fiscal year. For fiscal 2012, we plan to pay an annual dividend of ¥51 per share, provided that we achieve our net income target of ¥260 billion.
