Capital Management Policy


Fisher & Paykel Healthcare manages its balance sheet and financial policies to support long term financial sustainability.  The company’s priority is to appropriately invest in the business to support long term sustainable growth.
The company has a target debt to debt plus equity ratio in the range of +5% to -5% (excluding unrealised financial instrument gains or losses), taking into account expected business performance and future cash requirements.  This target range is considered appropriate to support business growth and operation of the company’s foreign currency hedging policy. 
The payment and amount of any future dividends will be at the discretion of the board after taking into account various factors. These factors include the company’s financial position, operating results, current and anticipated cash needs, plans for expansion and debt covenants.
The company expects to increase dividends as earnings grow, taking into consideration the target gearing ratio. The history of dividend payments is available on the company’s website.
Dividends will be paid in the period following that to which they relate, with the dividend payout dates being December and July of each year.
To the extent they are available, it is the intention of the board to attach imputation credits to dividends.
Under the imputation regime, New Zealand tax paid gives rise to imputation credits that can be attached to dividends paid to shareholders. New Zealand tax resident shareholders can offset these imputation credits to reduce their income tax liability in respect of that dividend. The amount of the dividend and the imputation credits (together the "gross" dividend) must be included in a New Zealand tax resident shareholder's income tax return. Resident withholding tax will be deducted from a dividend at a rate of 33% to the extent that imputation credits attached to the dividend do not cover the full 33% tax due on the gross dividend.
If a shareholder has a certificate of exemption from resident withholding tax this should be provided to Fisher & Paykel Healthcare's share registry, Link Market Services Limited.

Non-resident shareholders receiving dividends will generally be subject to non-resident withholding tax. Fisher & Paykel Healthcare generally expects to pay supplementary dividends to non-resident shareholders pursuant to the foreign investor tax credit regime to reduce or eliminate the economic impact of statutory withholding taxes for those non-residents.
Dividends are paid in New Zealand and Australian currency.