OREANDA-NEWS. August 04, 2014. The Board of Directors of Aeroflot (“the Company”, Moscow Exchange ticker: AFLT) approved a dividend policy (the “Policy”) for JSC Aeroflot.

The Policy aims to ensure maximum transparency for shareholders concerning the way in which dividends are calculated, and the procedure for their payment. The Policy establishes guidelines for how the Board of Directors determines its recommendations for the General Shareholder Meeting regarding the distribution of profit, including payment of dividends.

The Policy establishes Aeroflot Group’s consolidated net profit under International Financial Reporting Standards (“IFRS”) as the basis for calculation of future dividend payments.

Aeroflot will aim to pay dividends equal to 25% of the Group’s IFRS net profit.  The decision on the size of dividends will be based on a formula that takes into consideration the Company’s financial results in the reporting year, debt level and medium-term financial plan, specifically the availability of sources of financing for investment activities and debt repayments as well as the Group’s capital expenditure plans.

Aeroflot CEO Vitaly Saveliev said: “One of Aeroflot’s top priorities is to further improve its corporate governance system, ensuring transparency and predictability for investors regarding the Company’s dividend payments. Introduction of a dividend policy is an important step that will further enhance our investment case which will benefit both our minority shareholders and the Russian Government.”

Aeroflot Board of Directors Chairman Kirill Androsov said: The framework for determining dividends approved by the Board will help to establish a proper balance between the interests of the shareholders and the Company, contributing to the further development of Aeroflot and the growth of the shareholders’ prosperity.”

The full text of JSC Aeroflot’s dividend policy will be published on the Company’s website.