23rd Nov 2015 08:52
SIGNIFICANT EVENT
At the meeting of the Company’s Board of Directors held on 20 November 2015, Endesa, S.A.’s Dividend Policy was approved. Among other points, this policy establishes that in 2017, 2018 and 2019 the ordinary dividend per share to be distributed will be the equivalent of 100% of ordinary net profit attributable to the parent set down in the consolidated annual financial statements of the Group headed by this company.
ENDESA, S.A. DIVIDEND POLICY
1. INTRODUCTION
The Board of Directors of ENDESA, S.A. (“Endesa” or the “Company”) is tasked with the function of ensuring that the Company is guided by corporate interest, understood as the achievement of a profitable and sustainable long-term business that fosters continuity and maximise economic value.
In the area of shareholder remuneration this involves a dividend policy designed to give shareholders the maximum possible return on their investment in the Company, without jeopardising its sustainability or long-term growth potential.
Therefore, in accordance with the provisions of Article 6.5.2 of its Regulations, the Board of Directors has approved this dividend policy.
2. SHAREHOLDER REMUNERATION
The economic and financial strategy developed by the Board of Directors envisages the generation of a significant level of cash flow that both allows the Company to maintain its current debt levels and to remunerate shareholders to the fullest extent. It also complies with the objective of ensuring the sustainability of Endesa’s business project.
Unless exceptional circumstances arise, that will be duly reported, as part of this economic and financial strategy, the Board of Directors intends to provide Endesa shareholders with the following remuneration:
2015 and 2016: the ordinary dividend per share distributed against both years will be the equivalent to 100% of net profit attributable to the parent set down in the consolidated annual financial statements provided that this amount is higher than the result of applying a minimum 5% increase to the ordinary dividend paid with a charge to the prior year. 2017 to 2019: the ordinary dividend per share to be distributed in these years will be the equivalent of 100% of ordinary net profit attributable to the parent set down in the consolidated annual financial statements of the Group headed by this company.The Board of Directors intends to pay this ordinary dividend exclusively in cash and in two payments (January and July) on the specific date to be confirmed in each month, which will be clearly announced.
However, it should be remembered that Endesa’s capacity to pay dividends to its shareholders depends on numerous factors, including profits obtained and the availability of distributable reserves, and can not guarantee that dividends will be paid in future years, nor the amount that will be paid out.
3. TRANSPARENCY
In line with the principle of transparency set down in Endesa’s market disclosure strategy, the Company will announce any amendment to this dividend policy sufficiently in advance, in addition to all relevant dates for shareholders entitled to receive remuneration.
Madrid, 23 November 2015
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