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.

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.

Following historical practice, MTS continues to pay 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).

Payments in 2019, 2020** and 2021 amounted to RUB 28.66, RUB 29.50. and 37.06 rubles respectively, in line with the dividend policy, which provided a minimum cumulative payout of RUB 28.0 per share per calendar year through two semi-annual payments. In May 2022 The Board of Directors recommended that the AGM approve annual dividends of RUB 33.85 per ordinary MTS share based on the Company’s full-year 2021 financial results, equivalent to a total of RUB 66.3 billion*. In June 2022, shareholders at the AGM approved the dividends payment. The record date for shareholders entitled to receive dividends for the 2021 fiscal year was July 12, 2022.

In addition to regular payments under the dividend policy, the Company may further increase shareholder returns through a share buyback program in the open market. When making a decision on the launch and size of a program, the Board of Directors will take into account the current availability of funds, operating performance, amount of debt and future needs of the Company, as well as the overall market situation.

Regular Dividend History

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** 2021 2022
Total regular dividends announced and paid out*, 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 57.3 58.9 74.1 66.3***
Regular dividends 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 28.66 29.50 37.06 33.85

*Total calculated sum includes dividends for quasi-treasury shares owned by MTS subsidiaries and may differ from net annual cash flow for dividend payments as reflected in the Company’s financial statements.

** Excludes a special dividend paid in Q1 2020 based on the Company’s 9M 2019 financial results and taking into consideration the sale of VF Ukraine PrJSC amounting to RUB 13.25 per ordinary share (in total RUB 26.5 bn).

*** FY2021 dividend payments in the amount of RUB 48.2 bn when including quasi-treasury shares were completed by August 16, 2022.

Regulation on Dividend Policy