Dividends

In accordance with the recommendation presented in the JSW S.A. issue prospectus (p. 59), in 2013 the Parent Company’s Management Board will propose to the JSW S.A. Shareholder Meeting the payment of a dividend of at least 30% of the consolidated net profit for 2012. The Company's dividend policy takes into account the Group’s development plans, in particular its investment plans aimed at ensuring stable development of the Group and generating profit from ongoing operations, and depends on current activity results, cash flows, financial standing and capital requirements, general economic conditions as well as legal, tax, regulatory and contractual restrictions pertaining to dividend payments and on other factors which the Management Board considers important, and is subject to changes aimed at adapting it to the above factors. JSW S.A.’s dividend payments also depend on the approach of the State Treasury who is the shareholder with the decisive vote.
 

Dividend for the 2012 financial year

On 28 May 2013, having reviewed the JSW S.A. Management Board motion on distribution of the Company’s net profit for the financial year ended 31 December 2012 and having reviewed the results of the assessment of the motion presented by the JSW S.A. Supervisory Board, the JSW S.A. Ordinary Shareholder Meeting distributed JSW S.A.’s net profit for the financial year ended 31 December 2012in the amount of PLN 995,946,834.21 in the following manner:

1. the amount of PLN 295,877,221.92 was allocated for dividend to the Company’s shareholders, which means that the dividend per share will amount to PLN 2.52;
2. the amount of PLN 185,999,753.00 was allocated to cover the net loss recorded in “Other comprehensive income”;
3. the remaining amount of PLN 514,069,859.29 was allocated to reserve capital earmarked for financing the Company’s investment program.

In addition the Ordinary Shareholder Meeting set:

• the date of acquiring the right to the dividend at 31 July 2013
• the dividend payment date at 20 August 2013.

Dividend for the 2011 financial year

On 31 May 2012, the Ordinary Shareholder Meeting of JSW S.A. adopted a resolution on the distribution of net profit for the financial year 2011. The net profit earned by JSW S.A. in 2011 in the amount of PLN 2,082,532,648.47, reduced by the obligatory payment from the profit for the period from 1 January 2011 to 31 July 2011 charged from wholly-owned State Treasury companies pursuant to the Act of 1 December 1995 on Profit Distributions by Companies Wholly Owned by the State Treasury (Journal of Laws No. 154 Item 792, as amended) in the amount of PLN 126,978,067.20 million, and therefore the distributable net profit of PLN 1,955,554,581.27 was distributed as follows:

1. the amount of PLN 631,674,386.48 was earmarked for dividends. This means that the dividend per share was PLN 5.38. The date of acquisition of the right to the dividend was set at 6 July 2012 and the dividend was paid on 24 July 2012. The dividend received by the State Treasury was PLN 349.6 million,
2. the amount of PLN 130,000,000.00 was earmarked for distribution to JSW S.A.’s employees and to cover related charges. The profit bonus for employees was paid out on 22 June 2012,
3. the amount of PLN 1,193,880,194.79 was earmarked for additional reserve capital to finance the investment program of JSW S.A.

As a result of 2011 profit distributions from the subsidiaries, the Parent Company received dividends in the total amount of PLN 54.1 million. The dividend per share ratio is presented in Note 34 of the “Consolidated financial statements of Jastrzębska Spółka Węglowa S.A. for the financial year ended 31 December 2012”.