The Management Board recommendation of dividend payment

The Management Board of ENERGA SA on 11 May 2016 adopted a resolution on the distribution of net profit for the 2015 financial year. It has declared that it will recommend to the Shareholder Meeting the following distribution of net profit for 2015 in the amount of PLN 841 m:

1)      payment of a dividend to shareholders in the amount of PLN 203 m , i.e. PLN 0.49 per share (24.1% of profit),

2)      designation of profit in the amount of PLN 571 m to reserve capital (67.9% of profit),

3)      designation of profit in the amount of PLN 67 m to supplementary capital (8.0% of profit).

Analyzing the Company’s financial results, observing the changing market and regulatory environment and having regard for the ENERGA Group’s current and planned investments, we propose to pay a lower dividend to shareholders than the dividend policy indicates in the Prospectus.

The payment of a dividend in the proposed amount will exert a positive influence on the ENERGA Group’s financial and liquidity position, its ability to execute its current investment plans and the ENERGA Group’s growth strategy while maintaining its investment grade rating of its creditworthiness by rating agencies and limiting the risk of breaching the financial covenants defined by the terms and conditions for the debt funding the Company has acquired. Details are in the current report no. 18/2016.

The recommendation of dividend payment will be evaluated by The Supervisory Board and in the next step will be presented to AGM which will finally decide about distribution of net profit for 2015.