Profit distribution and dividend policy
The dividend policy of the Company is based on the balance of interest between the Company and its shareholders regarding determination of the dividend amount as well as respect and strict adherence to the observation of shareholder rights stipulated by the Russian legislation, the Charter and our bylaws. It is aimed at increasing our investment attractiveness and market capitalization. According to the approved dividend policy principles (BoDBoard of Directors protocol #73 dd. 31.08.2010) dividends are distributed from the net profit (without revaluation of financial investments) following its distribution to obligatory reserves, investment program as well as clearing off of the operating losses shown in previous years. Besides, conditions, stipulated underneath, should be obligatorily fulfilled:
- There should be net profit without revaluation of financial investments;
- Debt/EBITDA as of the year end should not exceed 3;
- Reliability and quality indicators should be achieved.
To view the Regulations on the Company’s dividend policy (BoDBoard of Directors Protocol #73 dd. 03.09.2010), please, visit our official web-site (Section Founding and Internal Documents).
Profit distribution in 2011-2013*
|As of 2011 (2012 AGSMAnnual General Shareholder Meeting)||As of 2012 (2013 AGSMAnnual General Shareholder Meeting)||As of 2013 (2014 AGSMAnnual General Shareholder Meeting)||2013 /2012%|
|Overall non-distributed profit, including:||2,548,050||625,814||354,581||-43.3%|
|Discharge of losses of previous periods||-||-||-||-|
|Dividends||RURRussian ruble thousThousand.||244,805||156,501||89,179||-43.0%|
|% of net profit||9.6%||25.0%||25.2%||-0.2%|
|Dividend per 1 share, RURRussian ruble||0.0028||0.00179||0.00102||-43.0%|
*Information on profit distribution according to resolutions adopted by the AGSMAnnual General Shareholder Meetings:
- as of 2011 – AGSMAnnual General Shareholder Meeting protocol #4 dd. 15.06.2012.
- as of 2012 – AGSMAnnual General Shareholder Meeting protocol #6 dd. 14.06.2013.
- as of 2013 – AGSMAnnual General Shareholder Meeting protocol #7 dd. 27.06.2014.
The amount of announced dividends as of 2013 minus tax totaled RURRussian ruble 88,619.6 thousThousand. The overall amount of 2013 dividends paid to shareholders totaled RURRussian ruble 87,757.6 thousThousand. Persons from the list of those entitled to collect dividends have not collected RURRussian ruble 862.0 thousThousand. dividends due to the failure to submit valid or actual information on dividend collection method.
According to the Company’s Charter a resolution on profit distribution as of 2014 will be adopted by the shareholders during the AGSMAnnual General Shareholder Meeting arranged in 2Q 2015.