Dividend policy 2017

  • PostNL aims to pay a progressive dividend which develops substantially in line with the development of its operational performance. 
  • The condition for paying out dividend is a leverage ratio (adjusted net debt/EBITDA) not exceeding ~2. 
  • PostNL targets a dividend pay out ratio of around 75% of the underlying net cash income. 
  • PostNL strives to pay interim and final dividends annually as election dividend, meaning that the shareholders can decide whether they want to receive cash or shares. 
  • Barring unforeseen circumstances, interim dividend will be paid to holders of ordinary shares following publication of the first half-year results. 
  • Interim dividend is set at one third of the total dividend over the prior year. 

These guidelines will be pursued subject to the financial results and equity position of PostNL. Notwithstanding these guidelines, the Board of Management may establish, with the approval of the Supervisory Board, the amount to be appropriated to the reserves and/or the amount of the dividend in the light of particular circumstances. PostNL’s dividend policy will be reviewed annually to ascertain that they correspond with PostNL’s financial policy and that PostNL continues to distribute dividends.

Definition underlying net cash income

The underlying net cash income is defined as profit attributable to equity holders of the parent adjusted for significant one-offs and special items, cash out from provisions and additional cash pension contributions. This normalising adjustment is based on the underlying cash operating income, is meant to better reflect the underlying cash adjusted earnings development and will be separately explained in the Annual Report.

Articles of Association and dividend

Preference shares B

If preference shares B have been issued and are outstanding, PostNL first has to pay dividends on the paid-up part of the nominal value of such shares, at a rate of one to three percentage points above the average 12-monthly EURIBOR (EURO Interbank Offered Rate), weighted to reflect the number of days for which the payment is made over the financial year to which the distribution relates.

Ordinary shares

The Board of Management shall determine, subject to the approval of the Supervisory Board, what part of the profit is to be appropriated to the reserves after payment of dividends on the preference shares B (if applicable). The part of the profit remaining after the appropriation to the reserves shall be proposed to the General Meeting of Shareholders to be distributed as dividend on the ordinary shares.

When will PostNL pay no dividend?

PostNL cannot pay dividends if the payment would reduce shareholders' equity below the sum of the paid-up and requested part of the capital and any reserves. 

If a loss is sustained in any year, we may not distribute dividends for that year and we may not pay dividends in subsequent years until the loss has been compensated for out of subsequent years' profits.