The Supervisory Board of X5 Group approved a dividend policy establishing a set of principles for the allocation of net profit among X5’s shareholders.
The key principles of the dividend policy are as follows*:
- The Company intends to pay a full year dividend per share that will be stable or growing over time. The 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.
- The dividend payout is 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.
- In addition, X5 intends to pay interim dividends. Any such dividend shall be 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.
- In March 2022, the Supervisory Board decided not to distribute dividends for the full year 2021 as a result of the prevailing geopolitical and market situation and uncertainty. Any decision regarding future dividend payments will be made taking into account relevant regulatory constraints at the time thereof. The Company remains committed to its long term goal of returning company profits to shareholders, however, given the ongoing nature of current uncertainties, may deviate from its dividend policy.
- Dividends are declared in absolute Russian Ruble-denominated terms, and paid in US dollars. The exchange rate and final US dollar amount per GDR net of withholding tax and fees will be announced before any dividend payment.
*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.
|Record date||Ex-dividend date||Last day to buy GDRs with dividends||Payment date||Amount, RUB mln||Dividend per GDR, RUB|
|9M 2021||17.12.2021||16.12.2021||15.12.2021||before 31.12.2021||20,000||73.65|
|2020||28.05.2021||27.05.2021||26.05.2021||before 25.06.2021||30,000||110.49 |
|9M 2020||18.12.2020||17.12.2020||16.12.2020||before 31.12.2020||19,997|| 73.645|
|2019||29.05.2020||28.05.2020||27.05.2020||before 26.06.2020||30,000|| 110.47|
|2017||25.05.2018||24.05.2018||23.05.2018||before 22.06.2018||21,590|| 79.5|