This excerpt taken from the TM 6-K filed Nov 7, 2006.
2. Basic Policy on the Distribution of Profits
TMC deems the benefit of its shareholders as one of its priority management policies and strives to continuously increase per-share earnings, through promoting its business aggressively while improving and strengthening its corporate foundations. With respect to the payment of dividends, TMC seeks to enhance the distribution of profits by striving to raise the consolidated dividend payout ratio, with the aim of increasing it to 30% over the medium- to long-term, while giving due consideration to factors such as the business results of each term and new investment plans. Furthermore, we acquire treasury stock to improve capital efficiency and to respond appropriately to changes in the business environment.
As we anticipate the continued growth in worldwide automotive markets, we will utilize our internal funds mainly to invest in improvement of product performance and development of next-generation technologies to achieve future growth, and to develop production and sales networks domestically and overseas for further expansion of our global business, while securing solid management foundation.
Dividends will be declared twice a yearan interim dividend and a year-end dividendand in order to secure an opportunity to seek shareholders input, year-end dividends will be a matter for resolution at the ordinary general shareholders meeting.