17 June 2021 – At the AGM ALROSA shareholders approved the payment of the second half of 2020 dividends of RUB 9.54 per share.
H2 2020 dividends were approved at RUB 70.3 bn, and were based on the Free Cash Flow1 in the second half of the year. This is the highest interim dividend payment in the Company’s history, slightly below the amount distributed for the 12 months of 2018, the record year.
The date upon which the shareholders entitled to H2 2020 dividends will be determined was set as 4 July 2021.
The Annual General Meeting of Shareholders was held on 16 June 2021 in the form of absentee voting.
ALROSA’s Dividend Policy:
Dividends are paid twice a year – for the first six months and for twelve months of the year, net of dividends for the first six months paid previously.
In line with the dividend policy, FCF representing the operating cash flow net of capex is used as a basis for calculating dividends.
Depending on the Net Debt2 / EBITDA3 ratio, the semi-annual dividend payout ratio recommended by the Supervisory Board is determined based on the FCF for the respective half of the reporting year:
No less than 100% of FCF, if the Net Debt/EBITDA ratio as at the end of the respective period is below 0.0x;
70–100% of FCF, if the Net Debt/EBITDA ratio as at the end of the respective period is within the range of 0.0x to <1.0x;
50–70% of FCF, if the Net Debt/EBITDA ratio as at the end of the respective period is within the range of 1.0x to 1.5x.
Minimum dividend pay-out ratio
If the actual and forecasted Net Debt / EBITDA ratio is below 1.5, a minimum dividend of 50% of IFRS net income is paid for the year.
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.
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.