7.10.4. Dividends paid and proposed

The per share dividend ratio is calculated as the quotient of the dividend payable to shareholders of the Parent Company and the number of ordinary shares outstanding as at the dividend date.

In connection with the clauses of the Bond Issue Program, the JSW Management Board made the decision not to recommend a dividend distribution for 2017.
In its resolution of 28 June 2018, JSW’s Ordinary Shareholder Meeting decided to designate JSW’s entire 2017 net profit in the amount of PLN 2,422.1 million for supplementary capital.

In accordance with the dividend policy set forth in the JSW prospectus of 2011 (page 59), it is the intention of the JSW Management Board to recommend to the Shareholder Meeting to pay a dividend in the amount of at least 30% of the consolidated net profit for the financial year. The dividend policy 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 will be subject to changes aimed at adapting it to the above factors.

Considering the above, in 2019 the Company’s Management Board will propose to the JSW Shareholder Meeting to distribute dividend of about PLN 200.8 million, i.e. PLN 1.71 per share. The JSW Management Board will propose to designate the remainder of the 2018 financial result in the amount of PLN 1,162.9 million (after obligatorily covering the net loss incurred in Other comprehensive income on the measurement of the defined employee benefits programs for after the employment period in the amount of PLN 53.4 million and after covering the net loss incurred on the first application date of IFRS 9 in the amount of PLN 1.5 million) to reserve capital for the purpose of financing JSW’s investment program.