Rostelecom Board of Directors convenes its AGM and refines FCF calculation for its dividend policy
Moscow, Russia – April 26, 2019 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that its Board of Directors has convened the Company’s 2018 Annual General Meeting (the “AGM”). The AGM will be held on June 14, 2019 at the World Trade Center, 12 Krasnopresnenskaya Embankment, Moscow (the World Trade Center is located on the 2nd floor of the 4th entrance).
The record date to participate in the AGM has been set at May 20, 2019.
The Board of Directors has also approved a revised dividend policy to amend free cash flow (“FCF”) methodology for dividends calculation. The amended FCF has been increased by subsidy from government for investment projects, which provides a fairer reflection of the Company’s actual free cash flow. Subsidy from government had not been taken into account for FCF calculation in the previous methodology. This decision has been made in light of the increasing number of state-funded investment projects, which make part of the Company’s overall investment programme, but are sponsored by the government through subsidies. The new methodology will be applied for the dividend calculation based on the Company’s results in 2019 and onwards.
The revised dividend policy defines free cash flow as 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, (3) plus interest received (4) and plus subsidy from government. The FCF shall be determined according to the Cash Flow Statement of the Company’s consolidated financial statements pursuant to requirements of the International Financial Reporting Standards.
The full text of the revised dividend policy is available of Rostelecom’s website at: https://www.company.rt.ru/en/ir/dividends/.