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 2008 (0).

FINANCIAL OBJECTIVES

• An operating margin of no less than 8 per cent over a business cycle.
• An equity/assets ratio of no less than 30 per cent.
• For dividends to shareholders to be around one third of the profit after tax over the long-term.