At a meeting of the Board of Directors of Shizuoka Gas held on August 7, 2008, resolutions were adopted, as shown below, regarding the payment of interim dividends to shareholders of record as of June 30, 2008, and for a reduction in the monthly salaries paid to directors and executive officers of the Company. This notice also includes revisions to forecasts for the term-end dividend for fiscal 2008 (ending December 31, 2008).
Data on interim dividend
Background to resolutions
Our policy is to pay a stable level of dividends to shareholders.
Regarding our business performance for fiscal 2008 (ending December 31, 2008), as described in detail in Revised Forecasts of Business Performance for Fiscal 2008, issued separately on this date, we project a large decrease in earnings in comparison with fiscal 2007. This decrease will be largely the result of one-time factors, most particularly a time lag between rises in the prices of LNG purchased and the effective date of our corresponding raises in gas selling prices under the official price adjustment system.
In view of these factors, we are unfortunately compelled to reduce the interim dividend by one yen from the figure forecast on February 13, to three yen per share. We are also currently scheduling the payment of the same three yen per share dividend as the term-end dividend payment, giving a total annual dividend per share of six yen.
Forecasts of FY2008 term-end dividend
Reduction in executives' compensation
At a meeting of the Board of Directors of Shizuoka Gas held on August 7, 2008, in response to the downward revisions of business performance forecasts for the current term (issued separately as of this date) in addition to the weakness of current performance indicators, which have necessitated a reduction in dividend payments, the Board took the decision to reduce the compensation paid to directors and executive officers of the Company. This decision reflects the recognition by the directors and executive officers of their responsibility for the management. Reductions in compensation will be made as listed below.
Reductions in executives' compensation
(monthly salary figures)
• Representative directors: 25% reduction
• Directors (excluding directors on a non-regular basis): 15% reduction
• Executive officers: 10% reduction
Effective period for salary reduction
Five-month period from August to December 2008.