Rostelecom’s Board of Directors recommends dividend payment for 2016
Moscow, Russia – May 15, 2017 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that its Board of Directors has approved an agenda for the 2016 Annual General Meeting (the “AGM”) as well as recommended dividend payment for 2016.
Rostelecom’s Board of Directors has recommended that the AGM approves a 2016 dividend payment on both ordinary and preferred shares of RUB 15 billion, or 113% of Free Cash Flow 1, or 122% of net profit. The dividends are to be paid as follows:
The record date to participate in the AGM as well as the record date for receiving dividends has been set at May 25, 2017, and at July 7, 2017, respectively.
Mikhail Oseevskiy, the President of the Company commented on the BoD recommendation on dividends:
“The level of dividends the BoD proposes to the AGM reflects the company’s actual performance in the reporting period. This year we intend to significantly increase the portion of free cash flow distributed across our shareholders. This proves our commitment to the key principle of our policy which is to allocate more than three quarters of the free cash flow for dividends, and in any case not less than RUB 45 billion within a period of three years, without the need to increase the company’s debt burden.
We believe the proposed level of RUB 5.39 per share keeps high dividend yield as well as enables us to be generally in line with the current dividend policy”.
The AGM will be held on June 19, 2017 in the conference hall of the Radisson Slavyanskaya Hotel and Business Centre, Europe Square, 2, Moscow.
The 2016 AGM materials will be available on Rostelecom’s official website http://www.rostelecom.ru/ir/agm/events/gosa/detail/2016/ not later than 30 days before the AGM.
1 The Free Cash Flow shall mean the net cash from operating activities, (1) net of cash paid for purchase of property, plant and equipment and intangible assets, (2) plus proceeds from sale of property, plant and equipment and intangible assets. Free Cash Flow shall be determined according to the Cash Flow Statement of the Company consolidated financial statements pursuant to requirements of the International Financial Reporting Standards;
2 The unrounded dividend per Class A preferred share is equal to RUB 5.387002045593.
3 The unrounded dividend per ordinary share is equal to RUB 5.387002045593.