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Afarak Group — Governance Information 2024
Dec 23, 2024
3302_rns_2024-12-23_e1156cce-7f81-42af-be39-613a500f77f0.pdf
Governance Information
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AFARAK GROUP
AFARAK GROUP SE
Dividend Policy
1. Purpose
The purpose of this Dividend Policy (the "Policy") is to set the framework for the distribution of dividends by the Company to ensure an attractive and consistent return on investment for the Company's shareholders.
2. Distribution of Dividends or Capital Redemption
2.1 The Company shall distribute to its shareholders in the form of a dividend or a capital redemption all funds surplus to the operating and development needs of the Company as determined by the Board of Directors.
2.2 The target dividend payout ratio in respect to each financial year shall be minimum 10% (ten percent) of the Afarak Group's EBITDA per full year.
2.3 All dividends shall be subject to
(i) the solvency requirements of the Finnish Companies Act;
(ii) any banking or other funding covenants by which the Company is bound from time to time;
(iii) the operating requirements as determined by the Board of Directors of the Company; and
(iv) the requirements of the constitutional documents of the Company and applicable laws and regulations.
3. Consistency of Dividends or Capital Redemptions
The Board of Directors of the Company will seek to maintain consistency from year to year when measuring the Company's performance against the target dividend payout ratio in relation to a financial year by smoothing the effect of any variation that may be due to one off gains or losses in individual years, while maintaining the target dividend payout ratio on average over a period of five (5) years.
4. Changes to the Payout Ratio
The target dividend payout ratio/percentage set out in this Policy can be changed by the Board of Directors of the Company.
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