May 8, 2023
Notice of Changes in Dividend Policy
Lintec (the "Company") announces that a meeting of the Board of Directors held today has resolved to change the Company's basic policy for dividends, as follows.
1. Reason for change
Based on the ongoing basic policy for dividends, the Company has been continuously paying dividends to shareholders in a stable fashion. To further clarify its stance on shareholder returns going forward, the Company has decided to set target indicators in terms of the payout ratio and DOE (dividend on equity ratio).
2. Details of change
(1) Before Change
The Company regards enhancement of return of profits to shareholders as one of its most important management issues and fundamentally aims to provide stable and continued returns after consideration of each fiscal year's consolidated performance while strengthening its management base. Internal reserves are used effectively to reinforce the Company's financial base and provide increased future corporate value through investment in production facilities and R&D.
(2) After Change
The Company positions the enhancement of shareholder returns as one of its most important management issues and strives to realize a distribution profits while also strengthening its management foundations. With this in mind, the Company has decided, in principle, not to reduce dividends for the four-year period from the fiscal year ending March 31, 2024, namely, the final year of the ongoing medium-term business plan LSV 2030-Stage 1, to the fiscal year ending March 31, 2027, or the final year of the next medium-term business plan LSV 2030-Stage 2 (April 2024 to March 2027). It will pay dividends with a view to achieving a payout ratio of at least 40% or a DOE (dividend on equity ratio) of approximately 3%.
3. Timing of change
Effective from the fiscal year ending March 31, 2024
The contents of the News Release are as of the announcement date. Please note that they may differ from the latest information.