Distribution of Profits to Shareholders and Dividends

Recognizing profit distribution to shareholders as one of its vital management goals, Santen will continue executing appropriate, performance-based dividend payments, while making sure to increase its capital efficiency, invest in R&D projects that will help enhance its corporate value, and retain earnings for the development of its future growth strategies. Santen will also consider repurchasing or retiring its own stocks in a timely manner.

To ensure the continuous and stable distribution of profits to its shareholders, Santen utilizes, among other indicators, the dividend payout ratio is the amount of dividends relative to the amount of total net income. Considering profit distribution to shareholders through both dividend payment and capital efficiency improvement, we are targeting the dividend payout ratio of 40% in our Medium-term Management Plan for FY2014-2017.

With regard to retained earnings, we intend to effectively invest them in R&D that we believe will help increase our corporate value and prepare ourselves for the development of future growth strategies.

In its Articles of Incorporation, Santen states its decision to pay interim dividends. Even after the enactment of the new Companies Act in May 1, 2006, Santen has continued and plans to continue its dividend payment on a biannual basis with its record dates set at each half-year end and year end. Dividend payout levels will be determined by the Board of Directors for the interim dividend and by the General Meetings of Shareholders for the year-end dividend.

Dividend per share

Dividend per share
Account Closing Month Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018
Interim Dividend ¥ 10 ¥ 10 ¥ 12 ¥ 13 ¥ 13
Year-end Dividend ¥ 10 ¥ 12 ¥ 13 ¥ 13 ¥ 13
Annual Divident ¥ 20 ¥ 22 ¥ 25 ¥ 26 ¥ 26
Payout Ratio 48.2 % 37.8 % 19.4 % 46.3 % 30.0 %
*
Santen conducted a 5-for-1 stock split of ordinary shares on the effective date of April 1, 2015.
Dividends until the fiscal year ended March 31, 2015 are calculated based on the stock split.
*
Removing the related impact of the succession of the company's anti-rheumatic pharmaceutical business, the payout ratio (Core basis) is 35.5% in fiscal year ended March 31, 2016.

Shareholder Returns and Dividends

Repurchase of treasury stocks

Time Number of stocks
(Thousands of stocks)
Total amount of repurchased stocks (Millions of yen)
Mar 2001 2,387 5,084
Mar 2002 2,000 3,202
Mar 2003 2,741 3,237
Nov 2004 1,351 2,569
Mar 2008 1,833 4,800
Aug 2012 4,937 13,735
Nov 2016 8,284 12,310

Retirement of treasury stocks

Time Number of stocks
(Thousands of stocks)
Percentage to the total number of outstanding stocks (%)
Mar 2001 2,387 2.5 %
Mar 2002 2,000 2.1 %
Mar 2004 2,741 3.0 %
Mar 2005 1,351 1.5 %
Nov 2012 4,938 5.6 %
Dec 2016 8,300 2.0 %

Special Benefit Plan for Shareholders

Santen offers no shareholder special benefit plan.
Our basic policy adheres to profit distribution to shareholders through dividend payment.