The Supervisory Board of X5 Retail Group approved a dividend policy for the company in 2017, establishing a set of principles for the allocation of net profit among X5's shareholders. The amendments to the dividend policy were approved in 2020.
The key principles of the dividend policy are as follows*:
1) The Company intends to pay a full year dividend per share that will be stable or growing over time in absolute Russian Ruble-denominated terms.
2) The dividend payout will be based on operating cash flow and a target consolidated net debt* / adjusted EBITDA** ratio of below 2.0x per the end of the year for which the dividend is being proposed, taking into account considerations including but not limited to the Company's growth profile, capital requirements and return on capital.
3) Starting 2020, X5 commits to semi-annual dividend payments. The interim dividend will be announced following the release of the third quarter results.
The interim dividend is proposed and announced by the Management Board based on the nine-month financial results of the calendar year for which the dividends are proposed, and is subject to Supervisory Board approval. The final annual dividend shall be based on the Company's full year consolidated financial statements for any given year, following a proposal by the Supervisory Board to the Annual General Meeting of Shareholders
*Calculated based on the Company's full year consolidated financial statements or information in accordance with IFRS 16 as of the end of each reporting period as the sum of short-term borrowings and long-term borrowings less cash and cash equivalents.
**EBITDA shall be adjusted (decreased) by the amount that would have been recognised as operating lease, other store costs, third party services and other expenses payable during the period, but which is not recognised as such under IFRS 16, as well as the amount of the net effect from decrease in the scope of the lease and terminations of lease agreements recognised under IFRS 16.
Amount, RUB mln||
Dividend per GDR, RUB |
| 2017||25.05.2018 ||24.05.2018 ||before 22.06.2018 ||21,590 || 79.5 |
| 2018||24.05.2019 ||23.05.2019 ||before 22.06.2019 ||25,000|| 92.06 |
| 2019||29.05.2020 ||28.05.2020 ||before 26.06.2020 ||30,000 || 110.47 |
| 9M 2020||18.12.2020 ||17.12.2020 ||before 31.12.2020 ||19,997 || 73.645 |
| 2020*||28.05.2021 ||27.05.2021 ||before 25.06.2021 ||30,000 || 110.49 |
*The proposed dividend will be considered by the AGM on 12 May 2021.
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