UrBC, Yekaterinburg, February 5, 2020. The Board of Directors at Chelyabinsk Pipe Rolling Plant (ChelPipe Group) adopted a new dividend policy, the Group’s press service reports.

The Group intends to pay the dividends at least twice a year in order to increase the company’s shareholder value and ensure more profit for the shareholders.

The amounts will vary depending on the company’s current debt burden so as to let the business remain financially stable and to account for the Group’s CapEx needs (namely, strategic investment projects).

The Group will direct at least 100% of its net profit (IAS-based) to dividend payments if the net debt/EBITDA ratio drops to below 1.5x;

The Group will direct at least 70% of its net profit (IAS-based) or at least 100% of its net cash flow (whichever happens to amount to more) to dividend payments if the net debt/EBITDA ratio is greater than or equal to 1.5x yet yet is less than 2.5x;

The Group will direct at least 50% of its net profit (IAS-based) or at least 75% of its net cash flow (whichever happens to amount to more) to dividend payments if the net debt/EBITDA ratio is greater than or equal to 2.5x yet is less than 3.5x;

If the net debt/EBITDA ratio is greater than 3.5x, the dividend amounts will be left at the discretion of the BOD.

All the dividend payments will also have to get approved of at the general shareholder meeting.