As its basic shareholder returns policy, UNITED ARROWS LTD. recognizes the maximization of shareholder value as one of the most important tasks for management. With this in mind, we will continue to work diligently to expand growth on a sustainable basis and improve operating performance in an effort to raise earnings per share. At the same time, we will actively seek to maximize shareholder value by ensuring the stable payment of dividends linked to operating performance, conducting stock splits, and acquiring and then cancelling treasury stock.
In the fiscal year ended March 31, 2017, as our fundamental policy in connection with the payment of dividends, we plan to undertake the stable payment of dividends based on a consolidated dividend payout ratio target of 30% in order to increase the return of profits to shareholders. While earnings fell below initial targets, we declared a period-end dividend of ¥58 per share for an annual dividend of ¥78 per share for the fiscal year ended March 31, 2017, unchanged from the previous fiscal year. This translates to a consolidated dividend payout ratio of 44.7% and a consolidated DOE of 7.3%.
In addition, we aim to continuously increase the return profits to shareholders by setting new profit distribution targets from the fiscal year ending March 31, 2018: ROE of over 16%, consolidated dividend payout ratio of over 35%, and consolidated DOE of over 5.5%.
Turning to the distribution of profits for the fiscal year ending March 31, 2018, based on the above, the Company plans to pay an interim dividend of ¥20 per share and a period-end dividend of ¥58 per share for a forecast annual dividend of ¥78 per share. This will translate to a consolidated dividend payout ratio of 40.2%.
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* A commemorative dividend of ¥5 per share to celebrate the Company’s 25th anniversary is included in the period-end dividend for the fiscal year ended March 31, 2014.