Dividend policy

The Company’s management board and the supervisory board intend to make suggestions for the distribution of dividends to the general shareholders’ meeting taking into account: (i) the profit for the year; (ii) historical and forecasted free cash flow adjusted for leases and excluding exceptional items and payments for spectrum as well as liquidity; (iii) distributable reserves available; (iv) benchmarking against other telecommunications companies; (v) the current and expected leverage and financial condition of the Company; (vi) the general economic and business conditions; (vii) any applicable legal and regulatory requirements; and (viii) any other factors management may deem relevant. The management board intends to maintain a high payout ratio in relation to free cash flow adjusted for leases and excluding exceptional items and payments for spectrum. With regards to the 5G network rollout and the launch of the 5G commercial offers, the management board and the supervisory board might also consider in their dividend proposal expected benefits to be realized in the future.

Financing policy

The management board and supervisory board intend to maintain the Company’s investment grade rating (BBB from Fitch or equivalent from Moody’s and S&P) as well as the leverage ratio (calculated by dividing net financial debt according to IFRS16 by OIBDA according to IFRS16) at or below 2.5x over the medium term (the “Target Leverage”). Net financial debt will be measured as interest-bearing financial liabilities less interest-bearing financial assets, cash and cash equivalents, taking into account the value of financial derivatives and hedge arrangements. Future payment obligations in relation to the acquired 5G spectrum are not considered as financial debt. In order to assess compliance with the Target Leverage, OIBDA will be measured as operating income before depreciation and amortization for the last twelve months, excluding non-recurring and exceptional items. According to its financing policy, the Company aims to: (i) refrain from paying dividends, distributing capital or capital reserves in cash or buying back shares if the ratio of net financial debt/OIBDA materially and consistently exceeds the Target Leverage; and (ii) restrict the use of new debt to pay dividends, allowing it only if the ratio of net financial debt/OIBDA complies with the Target Leverage.
YearDistribution in totalDividend per share1)Date
2019EUR 505,674,348.81EUR 0.1720 May 2020
2018EUR 803,129,848.11EUR 0.2721 May 2019
2017EUR 773,384,298.18EUR 0.2617 May 2018
2016EUR 743,638,748.25EUR 0.259 May 2017
2015EUR 713,893,193.32EUR 0.2419 May 2016
2014EUR 713,893,193.32EUR 0.2412 May 2015
2013EUR 524,964,338.00EUR 0.4720 May 2014
2012EUR 502,625,430.00EUR 0.457 May 2013
1)for each share entitled to dividends

Information for paying agent

BNP Paribas Securities Services S.C.A. Europa-Allee 12 60327 Frankfurt am Main

Investor Relations

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