Rostelecom announces Strategy 2022 and Dividend policy for 2018-2020 previously approved by the Company’s BoD
Moscow, Russia – March 21, 2018 – Rostelecom PJSC (“the Company”) (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, has presented at the Company’s Capital Markets Day in Moscow the Company’s Strategy 2022 and Dividend policy for 2018-2020, previously approved by the Company’s BoD on 14 March 2018.
As part of the Company’s strategic plan for 2018-2022, Rostelecom aims to transform into ‘digital partner for families, business and the State’: a credible provider of a wide range of high quality products and services to meet clients’ demands in telecommunication, IT and other areas. To achieve this, Rostelecom will focus on the following core areas:
- Development of products & services ecosystems and customer experience improvement
- Modernisation of the technological platform
- Improvement of the human resources function
- Efficiency enhancement.
The details on the Company’s strategic initiatives for 2018-2022 are available on the website: https://www.rostelecom.ru/ir/results_and_presentations/cmd/2018/.
Delivering on the strategic targets will ensure attractive dividends payout in line with the announced Company’s Dividend policy for 2018-2020. The Company will continue paying dividends based on free cash flow (FCF). The Company will aim to allocate at least 75% of the FCF to dividend payments (payable on ordinary and preferred shares in total) for each reporting year; it will also aim to pay dividends in the amount of at least 5 rubles per one ordinary share; the Company aims to ensure that the amount of dividend payments does not exceed 100% of net profit according to IFRS for the reporting year. The full text of Dividend Policy is available on the website: https://www.rostelecom.ru/ir/dividends/.
“We have finalised the renewed 5-year Strategy aimed at Rostelecom’s transformation into a provider of digital solutions for all of our key client segments. We have also accomplished an important target of the Strategy alignment with the State Digital Economy Programme where we play a significant role as an offtaker. Steady execution will pave the way for solid dividends for our shareholders. Our ambition is that Rostelecom shares be amongst the most attractive ones from the dividend yield perspective”.