Dividends

The company's dividend policy was updated in 2015 in order to provide maximum clarity for shareholders and all interested parties with regard to strategy for the distribution and usage of NLMK net profit.

According to the current dividend policy, dividends are to be paid with the payout in the range of:

  • 50% of net income and 50% of free cash flow calculated based on US GAAP/ IFRS consolidated financial statements, if Net debt/ EBITDA is 1.0x or less.
  • 30% of net profit and 30% of free cash flow calculated on US GAAP/IFRS consolidated financial statements, if Net Debt/EBITDA exceeds 1.0x.

Dividends are paid annually. If conditions for financial stability are maintained, NLMK will strive to pay interim dividends on a quarterly basis.

The amount to be paid as a dividend for a specific period is approved by company shareholders in line with recommendations by the board of directors.

Year Period Dividend per share Declaration date Amount Dividend pay-out ratio Dividents to FCF***
2016 2 Quarter
RUR1.08
(USD0.0171)
9/30/2016 RUR6,472.7 million
USD102.5 million
55% 64%    
2016 1 Quarter
RUR1.13
(USD0.0169)
6/3/2016 RUR6,772.3 million
USD101.5 million
178% 37%    
2015 4 Quarter
RUR2.43
(USD0.0364)
6/3/2016 RUR14,563.5 million
USD218,2 million
287% 196%    
2015 3 Quarter
RUR1.95
(USD0.0273)
12/21/2015 RUR11,686.8 million
USD163.9
40% 44%    
2015 2 Quarter
RUR0.93 
(USD0.0140)
9/30/2015 RUR5,573.7 million
USD84.1 million
50% 50%    
2015 1 Quarter
RUR1.64
(USD0.0298)
6/5/2015 RUR9,828.9
USD178.7
56% 52%
2014 Full year
RUR2.44
(USD0.0507)

 6/5/2015
RUR14,623.5 million
USD303.9 million
36%  
2014 of which 6 months interim
RUR0.88
(USD0.0223)
9/30/2014
RUR5,274.0 million
USD133.9 million
40%  
2013 Full year
RUR0.67
(USD0.0192)
6/6/2014 RUR4,015.5 million
USD115 million
61%  
2012 Full year RUR0.62 
(USD0.0193)
6/7/2013 RUR3,716
million
USD116
million
20%  
2011 Full year
RUR2
(USD0.0627)
5/30/2012 RUR11,986.5 million
USD375.8 million
28%  
2011
of which 6 months interim
RUR1.4
(USD0.0440)
9/29/2011 RUR8,390.5 million
USD263.7 million

 
2010 Full year
RUR1.82 
(USD0.0632)
6/3/2011 RUR10,907.7 million
USD378.7 million
30%  
2010 of which 6 months interim
RUR0.62
(USD0.0204)
9/30/2010 RUR3,715.8 million
USD122.2 million

 
2009 Full year RUR0.22 
(USD0.0071)
6/4/2010 RUR1,318.5 million
USD42.7 million
21%  
2008 Full year
RUR2
(USD0.0786)
6/5/2009 RUR11.986,5 million
USD471.3 million
21%  
2008 of which 6 months interim
RUR2
(USD0.0786)
9/19/2008 RUR11.986,5 million
USD471.3 million

 
2007 Full year
RUR3
(USD0.1231)
6/6/2008 RUR17,979.7 million
USD737.7 million
33%  
2007 of which 6 months interim
RUR1.5
(USD0.0601)
9/28/2007 RUR8,989.8 million
USD360.1 million

 
2006
Full year RUR3
(USD0.1140)
6/5/2007 RUR17,979.7 million
USD683.3 million
33%  
2006     of which 6 months interim
RUR1.5
(USD0.0561)
9/29/2006 RUR8,989.8 million
USD336.1 million

 
2005 Full year
RUR3
(USD0.1101)
6/6/2006     RUR17,979.7 million
USD659.6 million
48%  
2005 of which 6 months interim
RUR1
(USD0.0352)
9/26/2005 RUR5,993.2 million
USD210.8 million

 
2004
Full year
RUR1.8
(USD0.0643)
5/20/2005
RUR10,787.8 million
USD385.6 million
22%  
2004
of which 9 months interim
RUR1
(USD0.0357)
12/3/2004
RUR5,993.2 million
USD214 million

 
2003
Full year
RUR0.6045**
(USD0.0364)
6/25/2004
RUR3,622.9 million
USD218.2 million
19%  
2002
Full year
RUR312.5
(USD10.3001)*
6/27/2003
RUR1,871.0 million
USD61.7 million
18%  

*The dividends were declared in Russian rubles. The amount of dividends per share stated in US dollars is based on Central Bank’s RUB to USD exchange rate as of the date dividends are declared.

** In May 2004, following the revaluation of fixed assets NLMK has issued an additional 5,987,240,000 of ordinary shares with the nominal value of 1 ruble each. Prior to this issuance, NLMK Group’s share capital amounted to 5,987,240 ordinary shares. The additional ordinary shares were distributed among all NLMK’s shareholders pro rata to their ownership on the date of distribution, so that each shareholder received an additional 1,000 shares for each share on hand.

*** The coefficient is calculating starting from 2015

Taxation

In accordance with Russian legislation, the rate of taxation of dividend payments for corporate shareholders who are residents of the Russian Federation is 13%; for corporate shareholders who are non-residents, it is 15%; for individuals, the rates are 13% and 15% respectively. Where an avoidance of double taxation agreement is in effect, tax payments are made in accordance with the rates specified in the agreement.

Note: Information on taxation is provided for general information purposes only. Potential and existing investors should consult with their own advisors regarding the tax consequences of investing in the Company’s shares, including Global Depositary Shares (GDS).