Canon Inc. (the "Company") announced today that its Board of Directors authorized on May 11, 2006 a split of the Company's common stock on a 3-for-2 basis for all shareholders of record at the close of business on June 30, 2006 (the "Record Date"). The Board of Directors also passed a resolution to raise the Company's year-end dividend projection for the fiscal year ending December 31, 2006 (the 106th Business Term) as detailed below.
Despite the existence of uncertain factors, including the recent appreciation in the value of the yen, as 2006 marks the inaugural year of the five-year Phase III of Canon's Excellent Global Corporation Plan, the Company is making all-out efforts to achieve its financial projections released on April 27, 2006. Amid these conditions and the implementation of the stock split, the Company has raised its projected year-end dividend per share as follows, based on the Company's policy on return to shareholders, announced last year on December 14, and in line with its goal to enhance shareholder return.
| Mid-term | Year-end | Full-year | |
|---|---|---|---|
| Previous projection (January 30, 2006) |
50.00 yen | 50.00 yen | 100.00 yen |
| Current revision (Current revision after stock split) |
50.00 yen | 60.00 yen (40.00 yen) |
110.00 yen |
| Previous year's dividend payout (For reference) |
32.50 yen | 67.50 yen | 100.00 yen |
Note: Based on a pre-stock-split basis, the projected year-end dividend per share would be 60 yen. After the stock split of 3 for 2, the projected year-end dividend per share is 40 yen.
Correction: The underlined figures were corrected on June 7, 2006.
| This notice contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management's views and assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this document, words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project" or "should" and similar expressions, as they relate to Canon, are intended to identify forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon's targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this notice. A detailed description of these and other risk factors is included in Canon's annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Canon does not intend or assume any obligation to update these forward-looking statements. |
