Revision of Dividend Policy and Dividend Forecasts
Upward for the Fiscal Year Ended March 31,2005
Upward for the Fiscal Year Ended March 31,2005
January 28, 2005
Nomura Research Institute, Ltd.
Nomura Research Institute, Ltd.
The board of directors of Nomura Research Institute,Ltd.(NRI) resolved today to revise the dividend policy and increase the dividend as follows.
1. Revision of Dividend Policy
NRI maintains that sustained growth in corporate value is the most important return to shareholders. The company's basic policy on profit distribution is to provide appropriate and stable dividends, taking into consideration the enhancement of internal reserves to ensure long-term business growth, as well as profit levels and the status of cash flow. The target of dividend payout ratio is 30%, taking into consideration the business profit levels and the status of cash flows.
Retained earnings will be invested to enhance multi user system services, to cultivate new businesses and improve system development efficiency, to improve facilities, to engage in research and development, to develop human resources, and to further enhance quality management.
2. Reasons for Dividend Increase
According to the Revision of Dividend Policy above, and taking into consideration the profit levels and the status of cash flow, the forecast of end of term dividend is revised 80 Yen per share as detailed below. The forecast of annual total dividend per share is 100 Yen, including the interim dividend already paid. The fiscal year dividend needs a resolution at an ordinary general meeting of shareholders on June, 2005.
Please see the NRI’s NEWS RELEASE,“Revision of Financial Results Forecast for the Fiscal Year Ended March 31, 2005”.
3. Dividend per share for the fiscal year ended March 31, 2005(40th term)
1. Revision of Dividend Policy
NRI maintains that sustained growth in corporate value is the most important return to shareholders. The company's basic policy on profit distribution is to provide appropriate and stable dividends, taking into consideration the enhancement of internal reserves to ensure long-term business growth, as well as profit levels and the status of cash flow. The target of dividend payout ratio is 30%, taking into consideration the business profit levels and the status of cash flows.
Retained earnings will be invested to enhance multi user system services, to cultivate new businesses and improve system development efficiency, to improve facilities, to engage in research and development, to develop human resources, and to further enhance quality management.
2. Reasons for Dividend Increase
According to the Revision of Dividend Policy above, and taking into consideration the profit levels and the status of cash flow, the forecast of end of term dividend is revised 80 Yen per share as detailed below. The forecast of annual total dividend per share is 100 Yen, including the interim dividend already paid. The fiscal year dividend needs a resolution at an ordinary general meeting of shareholders on June, 2005.
Please see the NRI’s NEWS RELEASE,“Revision of Financial Results Forecast for the Fiscal Year Ended March 31, 2005”.
3. Dividend per share for the fiscal year ended March 31, 2005(40th term)
(Unit:Yen)
| 1st Half | Fiscal Year | Annual Total | |
| Previous forecast | 20.00 | 20.00 | 40.00 |
| Revised forecast | 20.00 | 80.00 | 100.00 |
| Reference:Dividend for previous year (Year ended March 31,2004) | – | 40.00 | 40.00 |
| (Note) | 1. | Dividend per share is on the assumption of business environment and business results forecast. |
| 2. | Dividend payout ratio estimates 29.0%.(based on revised financial results forecast of FY Mar.2005) |
[For inquiries, please contact:]
Shin Ueoka, Investor Relations
Tel: +81-3-5533-3910
E-mail: ir@nri.co.jp
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No reproduction or republication without written permission.