Dividend Information

Policy regarding dividends payment

NEC Electronics distributes part of its earnings to shareholders in the form of dividends, while appropriating retained earnings for the research and development of new products and capital expenditures, and maintaining a durable financial structure capable of generating high earnings to maximize enterprise value. For each dividend period, payment determinations are made with consideration of consolidated and non-consolidated income surplus, consolidated income, forecast for income for the next period, and cash flow status.

For the year ended March 31, 2008, the company posted net losses on both consolidatedand non-consolidated bases. Accordingly, it suspended payment of dividends for this period.
Although NEC Electronics aims to restore net profit for the year ending March 31, 2009, net income levels are not expected to be high enough to reinstate dividend payments. Therefore the company intends to forgo interim and year-end dividend payments but will work toward improved results that will allow dividends to be reinstated at the earliest possible date.

Dividends