Body of the Report:
The Management Board of Jastrzębska Spółka Węglowa S.A. („Company”, „JSW”) hereby reports that on 19 March 2020 it adopted a resolution concerning the Company’s proposed distribution of profit for 2019. In accordance with the adopted resolution the Management Board will not recommend the payout of dividends for 2019 to the Ordinary Shareholder Meeting.
According to the Company’s dividend policy, the JSW Management Board’s intention is to recommend to the Shareholder Meeting dividend payouts of at least 30% of net consolidated profit for a given financial year; however, this policy hinges on current business performance, cash flow, financial standing and capital requirements, overall economic conditions as well as legal, tax, regulatory and contractual restrictions pertaining to dividend payments and on other factors the Management Board considers important, and which will contribute to aligning it to these factors.
Having the foregoing in mind, the Company’s decision not to recommend the payout of dividends for 2019 is warranted by the following:
- overall economic conditions;
- contractual limitations included in the Company’s funding contracts, which JSW reported in current reports no. 29/2019 and 30/2019 according to which the Company is obligated not to recommend the payout of dividends from its profits in the event withdrawals are made from the JSW Stabilization Closed-end Investment Fund (“FIZ”) in the 12 months preceding such a dividend payout recommendation; and
- JSW’s capital needs.
Legal basis: Article 17(1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC