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
