Dividend policy and dividend forecast
PRONEXUS believes that returning profits to shareholders is a vital issue facing company management and implemets measures based on this belief. Our basic dividend policy is the stable, continuous payment of dividends, taking comprehensive evaluation of business performance and the business environment into account. The basic dividend payout ratio has been set at 40% or more.
For the fiscal year ended March 31, 2020, in addition to a midterm dividend of 15 yen already paid, the Company forecasts a year-end dividend of 15 yen per share, which based on the initial forecast. This is expected to result in an annual dividend of 30 yen, a dividend payout ratio of 44.5%.
Regarding the dividends for the fiscal year ended March 2021, while it is difficult to calculate the effects on our full-year earnings caused by the spread of COVID-19, considering that we have sufficient dividend resources and our basic policy based on stable dividends, the Company forecasts an annual dividend of 32 yen, including a commemorative dividend of 2 yen in addition to interim and year-end dividends of 15 yen each.
PRONEXUS places importance on share buyback for treasury in consideration that it will contribute to returning profits to shareholders and improving capital efficiency. During the fiscal year ended March 31, 2020, the Company purchased approximately 360 thousand shares of common shares. Combining the dividends and a share buyback for treasury during the fiscal year ended March 31, 2020, this maintained the total shareholder return ratio at a high level with a ratio of 69.6%.
Forecast for FYE March 2021
As of January 29, 2021, the Company decided to acquire treasury stock up to a limit of 500,000 shares for a total amount not exceeding 500 million yen (period: February 1, 2021 to June 30, 2021).
Notice concerning the Acquisition and Cancellation of Treasury Stock
The forecast for the above dividend payout ratio and the percentage of earnings returned to shareholders are calculated assuming that the purchase limit of one-half (250,000 shares) is reached during FYE March 2021. The above figures are for reference only and do not represent the Company's expectations.
PRONEXUS has introduced a shareholder benefit program to express its appreciation to shareholders for their continuous support as well as to make investing in PRONEXUS' stock more attractive so that shareholders retain shares for a long period of time.
[Content of the shareholder benefit program]
QUO prepaid cards presented based on the number of years and number of shares owned
(offered to shareholders recorded in the shareholder registry as of March 31 each year who own more than 100 shares)
- * New benefit, effective from March 31, 2021, for shareholders who have held Company shares for 10 years or more (disclosed in January 29, 2021).
|Number of shares owned||Number of years owned|
|Less than 1 year||1 or more years but less than 3 years||3 or more years but less than 5 years||5 or more years but less than 10 years||(New)
10 or more years
|100 or more but less than 1,000 shares||¥500 QUO prepaid card||¥1,000 QUO prepaid card||¥1,500 QUO prepaid card||¥2,000 QUO prepaid card||¥3,000 QUO prepaid card|
|1,000 shares or more||¥1,000 QUO prepaid card||¥3,000 QUO prepaid card||¥5,000 QUO prepaid card||¥7,000 QUO prepaid card||¥10,000 QUO prepaid card|
- * The number of years owned will be verified according to same shareholder number are recorded consecutively in the shareholder registry.