In September 2007, the Board of Directors of NCSP Group approved the Regulations On Dividend Policy, which establish the procedure for determining the size and payment of dividends when the Board of Directors develops recommendations on the distribution of profits.
The dividend policy ensures the optimal combination of the interests of all shareholders and NCSP Group while ensuring that the rights of all stakeholders are considered, and also taking into account the need to increase liquidity, capitalization, and investment appeal of NCSP Group.
When analyzing proposals on the distribution of net profits and when deciding the issue of the share of profits to be paid out as dividends, the Board of Directors considers inter alia:
· the actual size of the net profits generated by NCSP Group;
· ensuring that the reserve fund of the company is properly funded;
· the profit ratios of NCSP Group, including the return on assets (economic margin ratio), the level of return on equity (financial margin ratio);
· NCSP Group's indicators of solvency and financial stability, including current liquidity, capital adequacy, and debt to equity ratios;
· supporting the top priority goals of strategic development of NCSP Group;
· other factors.
For the past several years, NCSP Group has paid out annual dividends in the amount of approximately USD 10-15 million. NCSP Group intends to maintain payment of dividends at the previous level and to reinvest a large part of cash flow from core activity in the development of the Group as part of the further implementation of its Investment Program. The ability of NCSP Group to pay dividends also depends in part on receiving dividends and other payments from subsidiaries. Dividend payments by subsidiaries depend on the sufficiency of profits, cash flows subject to distribution and their ability to pay dividends in accordance with Russian corporate law and other regulatory acts.
*1 Converted to USD at the rate
of 28.8150 rubles per USD
*2 Converted to USD at the rate
of 28.2864 rubles per USD
*3 According to IFRS consolidated financial
*4 Converted to USD at the rate of 32.01 rubles per USD