Dividends

On 14 May 2019, the Annual General Meeting of Shareholders decided to pay a dividend of EUR 0.134 per share for the results of 2018, totaling EUR 35.242 mln.

The list of shareholders entitled to receive dividends was established as at 28 May 2019 at the end of the working day of the settlement system. Consequently, the day of change of the rights related to the shares (ex-dividend date) was set to 27 May 2019. From that day the person acquiring the shares do not have the right to receive dividends for the financial year 2018. Dividends were be disbursed to the shareholders on 4 June 2019 in two separate payments.

“From year 2019, a lower tax rate (14/86) applies to part of dividends paid by the Estonan resident company regularly (The profit distributed in a calendar year, which is smaller than or equal to the average distributed profit of the previous three calendar years (starting from 2018) on which a resident company has paid income tax).

The natural person receiving such dividends taxed at a lower rate (14/86) in the hands of the Estonian company, has to pay income tax at a rate of 7% in addition. It has to be withheld by the payer.

A non-resident natural person has to pay income tax on dividends received from the Estonian company in the resident country also and he or she cannot take into account the corporate income tax (20/80 or 14/86) paid in Estonia by the Estonian resident company to avoid double taxation of the recipient. Only the income tax withheld at a rate of 7% may qualify to avoid double taxation of the natural person recipient.” /Estonian Tax and Customs Board/

 

Dividend Policy

During the period 2019-2020 the Company intends to pay out annually at least €30 million in post-tax regular dividend distributions and following that period, at least 70% of its preceding year’s net profit.* The dividend policy excludes any one-off effects and is subject to market conditions, growth and development plans and the need to maintain a reasonable level of liquidity.

 

*The timing and amount of any future dividend payments will depend on the Group’s existing and future financial condition, results of operations, capital requirements, liquidity needs and other matters that it may consider relevant from time to time, including, without limitation, the ability of subsidiaries to distribute dividends, its capital needs, financial performance and prevailing equity market conditions. This section includes forward-looking statements which involve risks and uncertainties, relating to events and depending on circumstances that may or may not occur in the future.