Dividends

RusHydro’s dividend policy is focused on supporting the Company’s strategic development for the benefit of its shareholders by striking an optimal balance between dividend payouts and profit capitalization.

To ensure transparency in determining the amount of dividends and dividend payments, the Company has Regulations on the Dividend Policy in place, which was approved by the resolution of RusHydro’s Board of Directors (minutes No. 195 dated March 28, 2014). When determining the recommended amount of dividends and submitting it to the General Meeting of Shareholders for approval, the Board of Directors considers the Company’s net profit in accordance with the consolidated financial statements of RusHydro Group in accordance with the International Financial Reporting Standards (IFRS) and the Russian Accounting Standards (RAS), as well as the Company’s need to finance the investment program. The Company allocates no less than 5% of its profit under the IFRS consolidated financial statements of RusHydro Group to pay dividends at the end of the period (http://www.eng.rushydro.ru/investors/Dividends/).

The Development Strategy of RusHydro Group until 2020 with an outlook for 2025 sets the dividend payout ratio of at least 50% of net profit, and the Company is always going to target the maximum level of dividend yield for its shareholders. [103]

Based on RusHydro’s performance in 2017, the Annual General Meeting of Shareholders on June, 27, 2018 resolved to pay out dividends on the ordinary shares in the amount of RUB 11.23 bn, or 50% of the IFRS net profit.

Over the last three years, the Company has paid out a total of RUB 46.1 bn in dividends.

Dividend history for the five years preceding the reporting year
Reporting period for which the dividends were paid Total amount of declared (accrued) dividends, RUB ‘000 Amount of dividends declared per share, RUB
2013 5,248,250 0.01358751
2014 6,032,750 0.01561855
2015 15,011,046 0.038863
2016 19,875,503 0.0466245
2017 11,225,676 0.0263335

Information on payment of declared (accrued) dividends on the Company’s shares in 2017

As at December 31, 2018, the Company had paid out RUB 11.19 bn in dividends, with unpaid dividends amounting to RUB 38 mn. The latter was due to reasons beyond the Company’s control: the Company or the Registrar (nominal holder) did not have the exact and necessary address details or bank details.

The Company made the dividend payments to the federal budget in full, in the amount of RUB 6.8 bn. The Company has no dividends to the federal budget that are in arrears.

On April 19, 2019, RusHydro’s Board of Directors approved an amended version of the dividend policy Minutes No. 287 of April 22, 2019. setting the base value for calculating the amount of dividends in the amount of 50% of RusHydro Group’s net profit for the relevant reporting year under IFRS and the minimum dividend (lower threshold) at the level The level of average dividend for the previous three years is calculated the following formula: Divthreshold = (Div–3 years + Div–2 years + Div–1 year ) / 3 of average dividend for the previous three years.

Share of IFRS net profit allocated for dividends, %
Dividend yield, The dividend yield is calculated upon the adoption of the resolution on the size of the annual dividend by dividing the annual dividend per one share by that share’s median market price in the reporting period (dividends — PJSC Moscow Exchange, http://moex.com). %