Toyota 2006 Annual Report Download - page 15

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13
In the current fiscal year, I want to realize higher net revenues and operating
income again by maintaining our management policy of consolidating foun-
dations while continuing to grow. (see the Message from the Executive Vice President
Responsible for Finance & Accounting section on page 14 for further details)
[ Policy on Returns to Shareholders ]
In closing, what is Toyota’s basic approach for returns to
shareholders?
We will heighten the reflection of consolidated results in
profit distribution.
We regard actively returning profits to our shareholders as an important
management policy. Our approach for returns to shareholders has three
main aspects: first, the implementation of returns to shareholders on a con-
solidated basis; second, the change to consolidated dividend payout ratios
as the main determinant of dividend policy; and third, the increase of cash
dividends to a markedly higher level. In fiscal 2006, we adhered to that
approach, raising cash dividends for the seventh consecutive fiscal year.
Going forward, based on considerations of consolidated performance
trends, we aim to heighten the reflection of consolidated results in profit
distribution. Further, the Company will flexibly acquire common stock to
enhance capital efficiency and respond to the supply and demand situation.
The automobile industry is a growth industry. However, expanding the
operations of vehicle manufacturers requires a huge amount of funding. At
Toyota, we regard the realization of higher earnings and the enhancement
of corporate value through the development of operations as our primary
responsibility to shareholders. Accordingly, we will effectively utilize retained
earnings for forward-looking investment to establish next-generation tech-
nologies and enhance product appeal as well as for investment aimed at the
further expansion of global operations through the enlargement and
improvement of production and marketing systems.
I would like to ask our shareholders and other investors for their contin-
ued cooperation and understanding as we take on further challenges.
500
1,000
1,500
’02 ’03 ’04 ’05 ’06
0
10
20
30
1,250 25
750 15
250 5
0
Net Income and Consolidated
Dividend Payout Ratio
(¥ Billion) （%）
Consolidated dividend
payout ratio (Right scale)
FY
Q
A