Maxis Berhad
Annual Report 2015
page
16
Investor Relations
CREATING LONG-TERM SHAREHOLDER VALUE
Maxis continues to reward its shareholders with cash returns.
In the financial year 2015, Maxis recommended a dividend
payment totaling approximately RM1.5 billion to shareholders
comprising four interim dividends of approximately RM375
million per quarter. The total dividend payout of 20.0 sen per
share represents a dividend yield of 2.9% based on the closing
share price of RM6.80 as at end 2015.
The proposed dividend pay-out is aligned with our dividend
policy and policy of active capital management.
DIVIDEND POLICY
Our full dividend policy, as stated in our IPO Prospectus dated
28 October 2009 is reproduced here for reference:
“The declaration of interim dividends and the recommendation
of final dividends are subject to the discretion of the Board
and any final dividend for the year is subject to shareholders’
approval. It is the Company’s intention to pay dividends
to shareholders in the future. However, such payments
will depend upon a number of factors, including Maxis’
earnings, capital requirements, general financial condition, the
Company’s distributable reserves and other factors considered
relevant by the Board.
Maxis intends to adopt a dividend policy of active capital
management, it proposes to pay dividends out of cash
generated by its operations after setting aside necessary
funding for network expansion and improvement and working
capital needs. As part of this policy, the Company targets
a payout ratio of not less than 75% of its consolidated PAT
under Malaysian Generally Accepted Accounting Standards
(“GAAP”) in each calendar year ending 31 December 2010,
subject to confirmation of the Board and to any applicable law,
license and contractual obligations and provided that such
distribution would not be detrimental to its cash needs or to
any plans approved by its Board. Investors should note that
this dividend policy merely describes the Company’s present
intention and shall not constitute legally binding statements
in respect of the Company’s future dividends which are
subject to modification (including reduction or non-declaration
thereof) at the Board’s discretion.
As the Company is a holding company, its income, and
therefore, its ability to pay dividends, is dependent upon the
dividends and other distributions that it receives from its
subsidiaries. The payment of dividends or other distributions
by the Company’s subsidiaries will depend upon their
operating results, financial condition, capital expenditure plans
and other factors that their respective boards of directors
deem relevant. Dividends may only be paid out of distributable
reserves. In addition, covenants in the loan agreements, if any,
for the Company’s subsidiaries may limit their ability to declare
or pay cash dividends.”
Notwithstanding the above, the pay-out ratios of 2013, 2014
and 2015 were 170%, 175% and 86% respectively.
INVESTOR COMMUNICATION
We continuously promote effective and open communication
with all our shareholders. This is reflected in our commitment
to provide shareholders with timely access to disclosures
related to financial reporting, material developments,
governance and risk profile. All of this is to enable efficient
and informed trading in the Company’s securities.
To achieve this, we communicate information regularly to
shareholders and other stakeholders through various forums.
The key spokespersons and representatives for shareholder
communication are the Chief Executive Officer, the Chief
Financial and Strategy Officer and Head of Investor Relations.
Financial Reporting
Delivering financial and strategic communications in a timely
and clear manner is important to us. We are also focused
on presenting a fair, balanced and clear assessment of the
Company’s position and prospects.
Every quarter, our financial results are released publicly
through Bursa Securities. All financial reports and regulatory
announcements as well as associated materials including
management presentations and transcripts can be found on
.
