ALROSA Supervisory Board recommends H2 2020 dividends of RUB 70.3 bn

Our contacts

Moscow Office

115184, Ozerkovskaya nab., 24

E: info@alrosa.ru

T: +7 (495) 620-92-50
+7 (495) 411-75-25

28 April 2021 – At the meeting held on 27 April, ALROSA Supervisory Board recommended allocating all-time high half-year dividends for H2 2020 amounting to RUB 70.3 bn, or RUB 9.54 per share.

In accordance with ALROSA’s Dividend Policy, the Supervisory Board recommended the AGM to distribute RUB 70.3 bn, or RUB 9.54 per share as dividends for H2 2020, up 47% vs the FY2019 payout.

“As proposed by the Company's management, in March 2021, the Board approved changes to the financial and dividend policies to enhance resilience and sustainability of our business. In particular, it increased the target minimum liquidity reserve to RUB 70 bn and adjusted the methodology for determining the amount of dividend payout for Net Debt/EBITDA below 1.0x. In view of the changes, the Supervisory Board recommended distributing record high RUB 70.3 bn, or 80% of free cash flow for the period as dividends for H2 2020. The decision confirms the Company's commitment to balancing the interests of shareholders and robust financial stability of the business,” said Sergey Ivanov, ALROSA CEO.

The General Meeting of Shareholders will be convened on 16 June 2021. The recommended record date for dividends is 4 July 2021.

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. Specifically, if the Net Debt/EBITDA ratio as at the end of the respective period is within the range of 0.0x to 1.0x (not including 1.0x), the semi-annual dividend payout ratio is from 70% to 100% of the FCF for the respective half of the reporting year. In accordance with the IFRS, ALROSA’s H2 2020 FCF amounted to RUB 87.8 bn, with 2020 FCF at RUB 79.5 bn, 2020 net profit at RUB 32.2 bn, and Net Debt / EBITDA at the end of the year standing at 0.4x. ALROSA paid no dividends for H1 2020 due to a negative free cash flow (FCF).

Period

H1

2018

H2

2018

H1

2019

H2

2019

H1

2020

H2 2020

(recommended amount)

Dividends accrued
for the period, RUB bn

43.7

30.3

28.3

19.4

0.0

70.3


[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 28 April 2021 at 10.31