Management Board Report on the activity of the JSW S.A. for 2012
1.4.4. Dividends
In accordance with the recommendation presented in the JSW S.A. issue prospectus (p. 59), in 2013 the 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. The Company’s dividend payments also depend on the approach of the State Treasury who is the shareholder with the decisive vote.
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:
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,
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,
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 subsidiaries, the Company received dividends in the total amount of PLN 54.1 million.
The dividend per share ratio is presented in Note 32 of the “Financial statements of Jastrzębska Spółka Węglowa S.A. for the financial year ended 31 December 2012”.
