REG-Rostelecom OJSC ROSTELECOM’S BOARD OF DIRECTORS APPROVES A NEW DIVIDEND POLICY <Origin Href="QuoteRef">RTKM.MM</Origin>

Rostelekom PAOAnnouncement

17/02/2016 11:52

      ROSTELECOMS BOARD OF DIRECTORS APPROVES A NEW DIVIDEND POLICY    
ROSTELECOMS BOARD OF DIRECTORS APPROVES A NEW DIVIDEND POLICY
Moscow, Russia  December 04, 2015  Rostelecom PJSC (the       Company) (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russias national       telecommunications operator, today announces that its Board of Directors       has approved a new dividend policy, whereby the Company pays dividends       as a percentage of Free Cash Flow (FCF1).    
      The terms of the approved dividend policy are as follows:    
1.The FCF payout ratio is set at no less than 75% for       ordinary and preferred shares;
2.But, no less than RUB 45 billion cumulatively over 2016,       2017 and 2018 (i.e. upon results of 2015, 2016 and 2017);
      3. The Company is to increase the dividend amount payable per       ordinary share in absolute ruble terms compared to the relevant       preceding year.    
      The payable dividend amount shall not equate to less than the level       recommended by Rosimuschestvo for companies with state ownership       interest.    
      Sergei Kalugin, President of Rostelecom, commented: The adoption of       the new dividend policy, based on free cash flow, is a significant       milestone for the Company, and it further strengthens Rostelecoms       investment case.
As Rostelecom nears the completion of the capital-intensive       modernisation of its network infrastructure, which has seen the       conversion of its last mile network to fibre optic and seen its       transport network capacity expand, the Companys Capex commitments will       be lower starting from 2016, releasing more funds available for       dividends.
Historically, Rostelecoms shares offered significantly lower       dividend yield compared to its publicly traded peers. However, the new       policy will bring the yield to a comparable level, and further improve       Rostelecoms equity story.
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For more information please visit http://www.rostelecom.ru/en/ir       or contact:
Rostelecom Investor Relations / Rostelecom IR application is       now available to download for free from the Apple App Store and Google       Play    
Investor Relations Department
      Tel. +7 (499) 995 97 80    
ir@rt.ru
***
Rostelecom (www.rostelecom.ru)       is one of the largest national telecommunications operators in Russia       and Europe. The Group operates in all segments of the telecommunications       market and covers millions of households in Russia.    
      Rostelecom is an undisputable leader of the broadband and pay-TV markets       in Russia with over 11.4 million fixed-line broadband subscribers and       over 8.4 million pay-TV subscribers, over 3.0 million of which are       subscribed to Rostelecoms IPTV services.    
      The Group generated RUB 216.3 billion of consolidated revenues, RUB 75.0       billion of OIBDA (34.7% of revenue) and RUB 10.3 billion of net income       in the nine nine months of 2015.    
      The Group is a market leader in providing telecommunications services to       government bodies and corporates of all levels. It is also an important       innovator that provides solutions in the field of medicine,       E-Government, cloud computing, education, security and housing & utility       services.    
      Rostelecom was assigned BBB- and BB+ international credit ratings by       Fitch Ratings and Standard & Poors respectively.    
      * * *    
Certain statements in this press release are forward-looking       statements within the meaning of the U.S. federal securities laws and       are intended to be covered by the safe harbors created thereby.
Those forward-looking statements include, but are not limited to:
Managements assessment of the Companys future operating and         financial results as well as forecasts of the present value of future         cash flows and related factors;
the Companys anticipated capital expenditures and plans to         construct and modernize its network;
the Companys expectations as to the growth in demand for its         services, plans relating to the expansion of the range of its services         and their pricing;
the Companys plans with respect to improving its corporate         governance practices;
the Companys expectations as to its position in the         telecommunications market and the development of the market segments         within which the Company operates;
economic outlook and industry trends;
the Companys expectations as to the regulation of the Russian         telecommunications industry and assessment of impact of regulatory         initiatives on the Companys activity;
other statements regarding matters that are not historical facts.
Such forward-looking statements are subject to risks, uncertainties       and other factors, which could cause actual results to differ materially       from those expressed or implied by these forward-looking statements.       These risks, uncertainties and other factors include:
risks relating to changes in political, economic and social         conditions in Russia as well as changes in global economic conditions;
risks relating to Russian legislation, regulation and taxation,         including laws, regulations, decrees and decisions governing the         Russian telecommunications industry, securities industry as well as         currency and exchange controls relating to Russian entities and their         official interpretation by regulatory bodies;
risks relating to the Company, including the achievement of the         anticipated results, levels of profitability and growth, ability to         create and meet demand for the Companys services including their         promotions, and the ability of the Company to remain competitive in a         liberalized telecommunications market;
technological risks associated with the functioning and development         of the telecommunications infrastructure, technological innovations as         well as the convergence of technologies;
other risks and uncertainties. For a more detailed discussion of         these and other factors, see the Companys Annual Report and the         Companys other public filings.
Many of these factors are beyond the Companys ability to control or       predict. Given these and other uncertainties, readers are cautioned not       to place undue reliance on any of the forward-looking statements       contained herein or otherwise. The Company does not undertake any       obligation to release publicly any revisions to these forward-looking       statements (which are made as of the date hereof) to reflect events or       circumstances after the date hereof or to reflect the occurrence of       unanticipated events, except as may be required under applicable laws.
1 Free Cash Flow (hereinafter the FCF) shall mean the net       cash from operating activities, (1) net of cash paid for purchase of       property, plant and equipment and intangible assets, (2) plus proceeds       from sale of property, plant and equipment and intangible assets. The       FCF shall be determined according to the Cash Flow Statement of the       Company consolidated financial statements pursuant to requirements of       the International Financial Reporting Standards (hereinafter the IFRS);    
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      Rostelecom OJSC