Samsung Electronics is discussing specific shareholder-return measures for this year, including a special dividend. It also plans to unveil the next policy soon to succeed the current three-year shareholder-return policy that ends this year.
Samsung Electronics said on the conference call for second-quarter results held on the 30th, "The board and management are actively discussing specific execution plans for the shareholder-return policy this year, including a special dividend," and "We are also conducting in-depth discussions on the next shareholder-return policy."
Samsung Electronics explained that advance payments under long-term supply agreements (LTA) with memory customers and share buybacks for employee performance compensation could affect free cash flow (FCF). The current policy determines the scale of additional shareholder returns based on FCF.
Samsung Electronics said, "We are preparing measures that maximize the effect of enhancing shareholder value while securing the optimal balance between reinvestment for future growth and shareholder returns," adding, "We will share the key details soon."