Financial framework

  • FFO/Net debt: Minimum 15%
  • FFO Interest cover: Minimum 3.5
  • Net debt/capitalization: Maximum 60%
  • Solid A rating profile
  • Comply with regulatory criteria for the network operators

Dividend Policy

  • Stable dividend
  • Pay-out: 45% of after-tax profit, adjusted for periodic reimbursement on loans recognized through equity and incidental items, unless CAPEX or financial criteria require higher retained earnings
  • Minimum solvency of 30%

General principles

  • Part of overall policy and strategy
  • Balance between protection of debt providers’ and shareholder returns
  • Financial strength and discipline
  • Maintain cushion relative to regulatory criteria
  • Flexibility to grow and invest
  • Transparent reporting
  • No structural subordination

Overview key amendments in financial policy

(effective as of 31 May 2021)

Financial Framework

  • Adjusted: Minimum FFO/Net debt ratio from 20% to 15%
    Rationale: to bring minimum requirement more in line with relevant observed thresholds at rating agencies for A rating profile
  • Removed: standalone basis requirement for A rating profile
    Rationale: to allow for additional headroom from actual or potential rating uplift from government related entity support

Dividend policy

  • Added: adjustment for periodic reimbursement on loans recognized through equity
    Rationale: to align treatment existing hybrid loan with treatment of contemplated convertible hybrid loan