DISCO’s role is to evolve advanced Kiru, Kezuru, and Migaku technologies and continue providing products to society in an accessible form, as defined in our Mission.
Growth in scale, including sales figures and global shares, is something that DISCO can obtain as a result of our activities, but it is not our goal. DISCO believes that striving to increase Mission-achievability connects to increase in our Value-exchangeability and competitiveness, and enables us to respond to the expectations of all capital-market stakeholders.
Therefore, capital utilization and return will be conducted based on the following principles.
DISCO will always focus on advanced Kiru, Kezuru, and Migaku technologies and continue to improve the quality of our business. The following items have been set as specific indexes.
Four-year consolidated ordinary income margin of 20% or more
Four-year consolidated RORA (return on risk assets) of 20% or more
Reference: RORA calculation formula
DISCO believes that utilization of tangible net worth is important for flexible business management and R&D activities.
Capital will be utilized to strengthen the company based on the principles above.
Regarding return for our shareholders, who have generously continued to support DISCO over the long term, the basic policy will be return in the form of dividends.
The basic dividend payout ratio is 25% (performance-based). At the end of the fiscal year, if surplus funds are generated after calculation of the investment capital for future operations, an additional dividend* of one-third of the surplus funds will be paid out as return.
When surplus funds are generated, if all the dividends are paid out at one time, the dividends for that fiscal year will be high, but a significant dividend cut will occur in the next year. In order to prevent this from occurring, the surplus funds will be equalized and paid out in one-thirds each year to provide stable payment.
Unit: JPY
Dividends | Source of dividends | FY13 | FY14 | FY15 | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 |
---|---|---|---|---|---|---|---|---|---|---|---|
1H Dividend | Dividend payout ratio 25% (performance-based) |
50 | 72 | 85 | 83 | 141 | 114 | 91 | 116 | 199 | 282 |
2H Dividend | 40 | 73 | 78 | 87 | 119 | 87 | 102 | 156 | 261 | 293 | |
Additional dividends | Surplus funds | - | 15 | 152 | 204 | 129 | 121 | 245 | 405 | 348 | 341 |
Dividends (Annual Rate Per Share) |
- | 90 | 160 | 315 | 374 | 389 | 322 | 438 | 677 | 808 | 916 |
Dividend Payout Ratio | - | 25.2% | 27.6% | 48.8% | 55.3% | 37.6% | 40.1% | 56.9% | 62.4% | 44.0% | 39.9% |
Share buyback
While taking into account capital efficiency and management environment, DISCO is considering share buyback as one method of return in addition to dividends.
Share buyback would be conducted by disposing of treasury shares so that the share price is kept at a level at which net assets per share do not substantially decrease. Acquired treasury shares will in principal be disposed.
Share buyback will be conducted for the purpose of returning profit to all shareholders, including existing and new, from a long-term perspective by increasing the value of each share.
Unit:JPY | FY13 | FY14 | FY15 | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 |
---|---|---|---|---|---|---|---|---|---|---|
Net Asset Per Share | 1,193 | 1,410 | 1,558 | 1,676 | 1,895 | 2,031 | 2,091 | 2,322 | 2,703 | 3,202 |
Share price at the end of Marck | 2,140 | 4,093 | 3,180 | 5,643 | 7,650 | 5,257 | 7,120 | 11,583 | 11,467 | 15,300 |
Based on the above principles, DISCO welcomes all investors in the capital market dedicated to supporting DISCO from a long-term perspective.