Dividend
Federal Grid’s Dividend policy is based on strict adherence to and respect for shareholders’ rights, as provided for in applicable legislation of the Russian Federation, the Company’s Articles of Association and Regulations on the Dividend Policy.
Procedure for announcing and paying dividends:
Dividend payments in 2005-2010
|
| 2005 | 2006 | 2007 | 2008* | 2009* | 2010 |
|---|---|---|---|---|---|---|
| RAS non-consolidated net profit, RUR mln. | 1,997 | 1,833 | 2,296 | 4,465 | -59,866 | 58 088 |
| Announced dividends for all issued shares, RUR thousand | 367,292.8 | 587,847.4 | 380,000 | 0 | 0 | 2 577 664 |
| Dividend per share, RUR | 0.001510016 | 0.01626664 | 0.0007977370096 | 0 | 0 | 0,0020523650155 |
* Annual General Shareholders Meeting (AGM) decided not to pay dividends
Key dates
|
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|---|---|
| Board of Directors’ decision on dividend recommendations | 06/02/2006 | 05/29/2007 | 06/15/2008 | 05/15/2009 | 05/14/2010 | 05/16/2011 |
| Register closing date | 06/02/2006 | 05/29/2007 | 05/15/2008 | 05/15/2009 | 05/14/2010 | 05/16/2011 |
| Date of the Annual General Shareholders Meeting (AGM), where dividend payment decisions are made | 06/23/2006 | 06/29/2007 | 06/30/2008 | 06/30/2009 | 06/29/2010 | 06/29/2011 |
| Term during which dividends are to be paid, as determined by the Annual General Shareholders Meeting (AGM) | 08/21/2006 | 08/28/2007 | 08/29/2008 | — | — | 08/28/2011 |
More information on the Annual General Shareholders Meeting 2011 you will find here.
Principles of the Company’s dividend policy:
- To adhere to accepted practices for distributing and paying out dividends as stated in applicable Russian Federation legislation and provided for by best practice corporate standards
- To adhere to shareholders’ interests
- To support the Company’s required financial and technical levels and to ensure the Company’s future development prospects
- To fulfill the need to upgrade the Company’s investment attractiveness and to increase its market capitalization
- To ensure a transparent mechanism for determining the sum of dividend payments
- The Company has the right – based on Q1, H1, 9M and/or FY financial results – to decide (announce) dividend payments on placed shares. The decision to pay (announce) dividends based on Q1, H1 and 9M results can be taken at any point in time during the three months following the completion of the applicable period
- The Company strives to increase dividend pay-outs to shareholders based on net profit made during the financial accounting period and the Company’s needs for production development and investment activity
- The decision to pay out (announce) dividends, including the decision on the size of dividends and the form of dividend payment for shares of each category (type) is made at the Company’s General Shareholders Meeting
- The dividend size may not be greater than the amount recommended by the Company’s Board of Directors. Members of the Board of Directors determine the recommended amount of dividend payments on shares based on the Company’s financial results, adhering to balancing both the Company’s and shareholders’ interests
- Dividend payments are made using the Company’s after tax profit (the Company’s net profit). The Company’s net profit is determined based on Federal Grid’s accounting reports. Dividends are distributed among shareholders in direct proportion to the number of shares that the shareholder has in the appropriate category (type)
- The announced dividend size includes taxes retained from shareholders
- In cases provided for by applicable Russian Federation legislation, Federal Grid Company does not have the right to make decisions about (announce) dividend payments on shares and also does not have the right to pay announced dividends on shares.