FamilyMart has positioned shareholder returns as an important policy. Beginning in fiscal 2007, we raised our targeted payout ratio from 30% on a non-consolidated basis to 35% on a consolidated basis, and have paid dividends that adequately reflected our earnings performance. Due to expectations of sustained stable growth in profits, we have further raised our target in fiscal 2010, and are targeting a payout ratio of around 40% on a consolidated basis.
Taking due account of the upward revision of earnings forecasts for the first half of fiscal 2012, we have upwardly revised the initially forecast year-end dividend per share by ¥8 to ¥54. The annual dividend forecast has been revised to ¥100, an increase of ¥8 from the initial forecast.
Retained earnings will be devoted to strengthening our financial standing, opening new stores, renovating existing stores and making strategic investments in new areas as we seek to reinforce management and bring about further improvements in earnings performance. To ensure a flexible capital policy, we plan to retire stock to treasury from time to time as deemed necessary.