Dividend policy

The Board considers that the size of future dividends should be based on Semcon’s long-term growth, profits and capital requirements for continued expansion with regard to its financial targets.

One of Semcon’s financial objectives is that dividends to shareholders over the long-term will be equivalent to at least one third of the profit after tax. In accordance with Semcon’s dividend policy, consideration is given to the company’s financial position and capital requirements for continued expansion, and due to the major insecurity on the market the Board proposes that no dividend be paid for 2011 (0).

Financial objectives

An operating margin of no less that 8 per cent over a business cycle

Outcome: In 2011, the operating margin was 4.5% (0.1) and excluding one-off items was 5.8% (0.9).

The equity/assets ratio will exceed 30 per cent

Outcome: The company equity/assets ratio exceeded the target, amounting to 38.4% (33.0).

Dividends to shareholders will be around one third of the
profit after tax

Outcome: Semcon’s dividend policy states that the company’s financial position and capital requirements for continued expansion must be taken into consideration. Due to the current uncertain macroeconomic situation in the world and so that the company can continue to strengthen its financial position for further expansion, the Board proposes that no dividend be paid (–).