Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

Statement onCorporate GovernanceDividend PolicyAxiata’s existing dividend policy provides that theCompany intends to pay dividends of at least 30% of itsconsolidated profits after taxation attributable toshareholders after minority interest (PATAMI) andendeavours to progressively increase the payout ratioover a period of time, subject to a number of factorsincluding business prospects, capital requirements andsurplus, growth/expansion strategy, considerations fornon-recurring items and other factors considered relevantby the Board.As the Company is a holding company, its income, andtherefore its ability to pay dividends, is dependent uponthe dividends received from its subsidiaries, which in turnwould depend on the subsidiaries’ distributable profits,operating results, financial condition, capital expenditureplans and other factors that the respective subsidiaries’Board deem relevant.Whilst the dividend policy reflects the Board’s currentviews of the Group’s financial and cash flow position, thedividend policy will be reviewed from time to time. It isthe policy of the Board, in recommending dividends, toallow shareholders to participate in the Company’sprofits, as well as to retain adequate reserves for futuregrowth.In February 2013, in light of the Group’s strongperformance, Axiata announced an accumulative increasein payout of dividends of 23 sen per share (single tierincluding interim dividend of 8 sen per share paid lastyear), with, a dividend yield of 3.6% for FY12, based ona 6 month volume-weighted average price (VWAP). Thistranslates to a 70% payout, an increase from the 60%payout last year. In addition to the 70% payout, Axiataalso announced a one-off special dividend of RM1 billion,which will result in an additional 12 sen per share.Based on the above, the combined dividend for FY12 is35 sen per share. The total estimated dividend to bepaid for financial year 2012 will likely exceed RM3 billion,almost double the RM1.6 billion last year. The finaldividend and one-off special dividend, based on theGroup’s normalised PATAMI, is subject to the approval ofthe shareholders at the forthcoming AGM.Key Performance IndicatorsOn 21 February 2013, the Company announced theHeadline KPIs set and agreed upon by the Board andManagement of the Group as follows:-FY13 Headline KPIsFY13 Headline KPIsRevenue Growth (%) 7.6Earnings before Interest,Tax, Depreciation andAmortisation (EBITDA) Growth (%) 0.2Return on Invested Capital (ROIC) (%) 10.3Return on Capital Employed (ROCE) (%) 8.390