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The Board of Directors and management consider an constant and stable dividend to constitute a key element of MTS’s investment attractiveness and shareholder return. Since 2010, MTS has paid out in excess of RUB 235 billion in yearly dividends at an average annual growth rate of 12% (while the annual amount grew 69% between 2010 and 2015).

As a leading telecommunications group operating in rapidly developing, yet volatile, markets, MTS’s primary need is to maintain sufficient resources and financial flexibility to meet our financial and operational requirements. As demonstrated throughout our history, MTS continually seeks ways to create shareholder value through both commercial and financial strategies, which may include both organic and inorganic development as well as the Company’s capital management practices.

In keeping with our historical practices, MTS will continue to pay semi-annual dividends as part of our commitment to enhancing shareholder value. In determining the Company’s payout, the Board of Directors considers a number of factors, including cash flow from operations, capital expenditures and the Company’s debt position. Decisions on dividends are proposed by the Board of Directors and voted upon thereafter at an annual general meeting of shareholders (AGM) or extraordinary meeting of shareholders (EGM).

For the calendar years 2016 – 2018, MTS management sets a target payout of RUB 25.0 – 26.0 per ordinary share (RUB 50.0 - 52.0 per ADR) for investors, while committing to a minimum cumulative payout of RUB 20.0 per share through two (2) semi-annual payments. In addition, the Board has asked that management consider the advisability of other options to increase the shareholder return, namely through the repurchase of shares through the open market by potentially spending up to RUB 30 bln over the next 3 years.

In considering whether to increase returns through the buyback of shares, the Board will consider the Company’s liquidity position, operating performance, leverage and future needs, as well as overall market conditions.

Dividend History

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Total pay out in full calendar year, RUB bln 15.1 19.3 29.6 39.4 30.7 30.0 30.4 41.0 51.2 52.0 52.0 52.0 52.0
Dividend per share, RUB 7.6 9.7 14.8 20.2 15.4 14.5 14.7 19.8 24.8 25.2 26.0 26.0 26.0

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