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UMC Board of Directors Announces Proposals
for its Annual Shareholders Meeting
Taipei, Taiwan, R.O.C. - March 15, 2007 - United Microelectronics
Corporation (TAIEX: 2303, NYSE: UMC), at a meeting of the Board
of Directors and Supervisors held today, approved the 2006 Business
Report and Financial Statements, submitted proposals to be resolved
at the Annual General Meeting, and set the agenda for the Annual
General Meeting. A brief summary of the proposals is as follows:
- Cash dividend of NT$12,461,529,283, estimated at NT$0.7 per share
- Employee cash bonus of NT$2,324,119,405, 7.1% of net income after
tax
- Proposal for the Company's capital reduction
- Amendment of the Company's Articles of Incorporation, "Acquisition
or Disposal of Assets Procedure", and "Directors and Supervisors
Election Procedure".
2006 Business Report and Financial Statements
UMC's Board of Directors approved the 2006 Business Report and Financial
Statements. The Company's revenue for 2006 was NT$104,099 million
and net income after tax was NT$32,619 million, with EPS of NT$1.80.
The distributable earnings for 2006 were NT$15,494 million. Under
ROC GAAP, the cancellation of 1 billion shares that the Company
bought back in the first half of 2006 resulted in an NT$6,371 million
adjustment. Another NT$9,198 million of retained earnings was debited
due to the transaction from the disposal of shares of Hsun Chieh
Investments Co., Ltd., resulting in the book values of treasury
stock and unrealized loss on long-term investments exceeding the
total long-term investment fair value.
Proposed Dividend Distribution and Employee Bonus
UMC's Board of Directors will propose to issue a cash dividend of
NT$0.7 per share and distribute an employee cash bonus of NT$2,324
million, which is 7% of the net income after tax. To comply with
future regulation changes for employee bonus issuance, UMC's Board
of Directors has carefully evaluated, while taking into consideration
industry trends, the percentage of employee bonus to distributable
retained earnings. The figure will increase from the current 8%
to 15% and will mostly be in the form of cash, supplemented with
compensation programs such as employee stock options and share buyback
programs for employees. The Company's competitive compensation program
with help attract and retain the industry's most talented employees.
As a whole, the 2006 earnings payout ratio will be 95%.
Capital Reduction
On January 23, 2007, UMC's Board of Directors proposed a capital
reduction of NT$57,394 million with the cancellation of 5,739 million
of its outstanding shares. Shareholders will receive approximately
NT$3 for each of their shares held. Related procedures and timetable
will be further announced after the approval from the 2007 Annual
General Meeting and then the Financial Supervisory Commission.
2007 Annual General Meeting
The 2007 Annual General Meeting will be held at 9:00 AM, on Monday,
June 11, 2007 at the UMC Recreation Center in Hsinchu Science Park.
Contacts:
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