Dividend policy

MMC Norilsk Nickel’s Dividend Policy aims to balance the interests of the Company and its shareholders, enhance the Company's investment case, boost its market cap, and protect shareholder rights.

The Company’s Regulations on the Dividend Policy approved by the Board of Directors seek to ensure the transparency of the mechanism for determining the amount of dividend and the dividend payout procedure.

When determining dividends, MMC Norilsk Nickel factors in the cyclical nature of the metals market and the need to maintain a high level of creditworthiness. As a result, the dividend amount may change depending on the Company’s operating profit and leverage.

The decision to pay dividends is made by the General Meeting of Shareholders based on recommendations of the Board of Directors. The General Meeting of Shareholders determines the dividend amount and record date, which, as per the Russian law, shall be set no earlier than 10 days before and no later than 20 days after the General Meeting of Shareholders.

Dividends to a nominee shareholder listed on the shareholder register shall be paid within 10 business days, while dividends to other persons listed on the shareholder register shall be paid within 25 business days after the record date.

Dividend report

Individuals/entities whose rights to shares are recorded in the shareholder register are paid dividends by the registrar, IRC – R.O.S.T., upon Nornickel’s instruction.

Individuals/entities whose rights to shares are recorded by a nominee shareholder are paid dividends via their nominee shareholder.

Any person who has not received the declared dividend due to the fact that their accurate address or banking details were not available to the Company or the registrar as required, or due to any other delays on the part of the creditor, may, in accordance with Clause 9 of Article 42 of Federal Law No. 208-FZ On Joint Stock Companies dated 26 December 1995, request payment of unpaid dividend within three years from the date of the resolution to pay dividends.

On 26 September 2019, the Extraordinary General Meeting of Shareholders approved a dividend of RUB 883.93 per share (about USD 13.27 at the exchange rate of the Bank of Russia as at 20 August 2019, the date of the Board of Directors’ recommendation) for the first six months of 2019.

On 16 December 2019, the Extraordinary General Meeting of Shareholders approved a dividend of RUB 604.09 per share (about USD 9.48 at the exchange rate of the Bank of Russia as at 11 November 2019, the date of the Board of Directors’ recommendation) for the first nine months of 2019.

On 7 April 2020, the Company’s Board of Directors recommended that the General Meeting of Shareholders approve a dividend of RUB 557.2 per share (about USD 7.29) for FY2019.

Dividend historyEarlier dividend history is available at our website.
Period Declared dividend Dividend per share
RUB mln USD mln Calculated at the exchange rate of the Bank of Russia as at the date of the Board of Directors’ meeting. RUB USD Calculated at the exchange rate of the Bank of Russia as at the date of the Board of Directors’ meeting.
Total for 2019 323,647 4,754 1,488 22.75
FY2019 On 7 April 2020, the Company’s Board of Directors recommended that the Annual General Meeting of Shareholders approve a dividend for FY2019. 88,174 1,154 557 7.29
9M 2019 95,595 1,500 604 9.48
6M 2019 139,878 2,100 884 13.27
Total for 2018 248,214 3,739 1,569 23.63
FY2018 125,413 1,939 793 12.25
6M 2018 122,802 1,800 776 11.37
Total for 2017 131,689 2,162 832 13.66
FY2017 96,210 1,562 608 9.87
6M 2017 35,479 600 224 3.79
Total for 2016 140,894 2,339 890 14.78
FY2016 70,593 1,239 446 7.83
9M 2016 70,301 1,100 444 6.95
Total for 2015 135,642 2,148 857 13.57
FY2015 36,419 548 230 3.46
9M 2015 50,947 800 322 5.06
6M 2015 48,276 800 305 5.06
Dividends paid
Year Dividends paid in the calendar year. Total dividends paid
RUB mln USD mln
2019 265,233 4,166
2018 218,873 3,369
2017 176,246 2,971
2016 86,712 1,232
2015 154,227 2,859
Dividend yields

Taxation

Income from securities is taxable pursuant to the applicable tax laws of the Russian Federation Chapter 23 (Personal Income Tax) and Chapter 25 (Corporate Income Tax) of the Russian Tax Code..

Item Income from securities transactions Interest income on securities Dividend income on securities
Individuals
Residents 13% Or 0% if by the selling date the Company shares have been held for more than five years and the requirements for the share of real estate in the Company’s assets as outlined in paragraph 2, Article 284.2 of the Russian Tax Code have been met. 13% 13%
Non-residents 30% If the Company shares are sold in Russia. A 0% rate is applied if by the selling date the shares have been held for more than five years and the requirements for the share of real estate in the Company’s assets as outlined in paragraph 2, Article 284.2 of the Russian Tax Code have been met. 30% 15%
Legal entities
Russian entities 20% Or 0% if by the selling date the Company shares have been held for more than five years and the requirements for the share of real estate in the Company’s assets as outlined in paragraph 2, Article 284.2 of the Russian Tax Code have been met. 20% 13% Or 0%, if as at the date of the dividend payout resolution a Russian entity has been owning an interest of 50% (and more) in the authorised capital of the entity paying dividends, for 365 days (and more).
Non-resident entities 20% 20% 15%

Tax treatment of income from securities

Reduced tax rates or exemptions may apply to individuals and foreign entities who are not tax residents of Russia pursuant to international double tax treaties. Starting from 1 January 2017, in order to apply for tax benefits under international double tax treaties, foreign entities must confirm their permanent residence in a state which has a double tax treaty signed with Russia, and also provide the income paying tax agent with a document confirming the entity’s right to receive such income (Clause 1, Article 312 of the Russian Tax Code). Should the entity fail to provide such confirmation by the date of the payout, the Russian tax agent shall withhold the tax at the standard rates stipulated by Clauses 2 and 3, Article 284 of the Russian Tax Code.

Dividend tax formulaThe formula is not applicable to dividends paid to foreign entities and/or individuals who are not tax residents of Russia.