ALROSA holds an Extraordinary General Meeting of Shareholders

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30 September 2021 – On Thursday, 30 September 2021, ALROSA’s Extraordinary General Meeting of Shareholders, in line with recommendations of the Supervisory Board, resolved to pay dividends and amend the Company’s internal documents.

The meeting was held in absentia and had a hitherto unprecedented quorum of 85.66001%. All the proposed resolutions were adopted, with more than 99.7% of votes cast in favour.

The shareholders voted to pay dividends for 1H 2021 of RUB 8.79 per share. Total dividends for 1H 2021 will be RUB 64.7 bn, or 100% of the free cash flow for the period.

The approved record date for the 1H 2021 dividends is 19 October 2021.

With the 2H 2020 dividends of RUB 70.3 bn, ALROSA will be paying a total of RUB 135 bn in dividends in 2021. This is more than the 2018 and 2019 dividends combined.

The shareholders also resolved to amend the Company’s Articles of Association and the Regulations on the General Meeting of Shareholders to be able to hold meetings remotely in accordance with Russian laws.

Following the meeting, Sergey Ivanov, ALROSA CEO, said that a record-breaking   number of minority shareholders took part in the vote or 19.66% of the total share capital. “Strong involvement of all three groups of our shareholders (Russian Federation with 33% of shares, Yakutia, including its districts, also with 33% of shares, and minority shareholders, which combined hold a total of around 34% of shares) has once again highlighted our sound corporate governance practices. We will continue upholding them as we honour and protect the interests of all of ALROSA’s shareholders,” said Sergey Ivanov.

For reference:

In March 2021, ALROSA’s Supervisory Board approved a new version of the Company’s Dividend Policy and updated the methodology for determining the amount of dividends. In accordance with the IFRS, ALROSA’s H1 2021 FCF1 amounted to RUB 64.7 bn, with Net Debt2 / EBITDA3 standing at minus 0.2x as at 30 June 2021.

Dividends accrued for the period, RUB bn

Dividends_approvement_ENG 

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[1] Free cash flow (FCF) is the operating cash flow calculated in accordance with the International Financial Reporting Standards (IFRS) net of capital expenditure (posted as Purchase of Property, Plant and Equipment in the consolidated IFRS statement of cash flows).

[2] Net debt is calculated on an IFRS basis as the amount of debt less cash and cash equivalents as well as bank deposits at each reporting date.

[3] EBITDA stands for the Group’s earnings or loss for the last 12 months adjusted for income tax expenses, financial income and expenses, share of net profit of associates and joint ventures, depreciation and amortisation, impairment and disposals of property, plant and equipment, gain or loss on disposal of joint ventures, revaluation of investments, and one-off items.

 

 

This page was last updated on 30 September 2021 at 14.03