Trend Micro announced today that year-end cash dividend per share would be as follows. The effecting of the resolution is conditional on the agenda item being approved at the 27th ordinary general meeting of shareholders on March 25, 2016.
1. Dividend for the Year ending December 2015 (January 1 to December 31, 2015)
2. Reason for of cash dividend for FY2015
We intend to continue to return profits to shareholders based on our net profits on a consolidated basis while striving to enhance financial strength and secure inner reserves in order to deal with the significantly changing business environment and maintain a competitive edge against competitors. Our basic policy on dividends has been set as 70% of consolidated net income since FY2014.
3. Basic cash dividend policy from FY2016
As per to our announcement on October 21, 2015, “ Notice Subsidiary’s Execution of Asset Purchase Agreement for Purchase of the TippingPoint Business of Hewlett-Packard Company,” we expect that this acquisition’s amortization of goodwill will start from FY2016. To avoid the dividend payout being affected by this non cash charge, we plan to pay the year-end dividend on the basis of a dividend ratio of 70% calculated after excluding the effect of this acquisition related after-tax impact of the amortization of goodwill.
(Reported net income + After-tax impact of amortization of goodwill related to purchase of the TippoingPoint Business) x 70%