Moscow Exchange's Supervisory Board adopts new dividend policy
Moscow Exchange's Supervisory Board on 14 October 2019 approved a new dividend policy. Under the policy, Moscow Exchange will seek to pay the company’s entire free cash flow out in the form of dividends. The dividend payout floor has been raised from 55% to 60% of the company's consolidated net profit under IFRS. The company will continue to pay dividends on an annual basis.
For the purposes of the dividend policy, free cash flow takes into account investments needed to maintain and grow the business, as well as regulatory requirements applicable to Moscow Exchange and its subsidiaries.
Oleg Vyugin, Chairman of Moscow Exchange’s Supervisory Board:
"Growing shareholder value remains a priority for Moscow Exchange. The new dividend policy has been designed to balance long-term growth and financial stability with continued strengthening of the investment case. It raises the payout floor and introduces a transparent method for calculating the target dividend payout, which aligns with our objective of being open and transparent for our investors."
Yury Denisov, CEO of Moscow Exchange:
"We continue to maintain a balance between cash returns to shareholders and investments in the future of the business. We have modified the dividend policy to introduce a target dividend payout ratio equal to free cash flow, demonstrating our commitment to best-in-class corporate governance. Throughout its history as a public company, the Exchange has paid out its free cash flow to shareholders in the form of substantial dividends. Under the new policy, we expect dividend payments to be even more predictable."