Dividend policy

As a leading telecommunications group with a home base in rapidly developing markets, MTS’ primary need is to maintain sufficient resources and flexibility to meet our financial and operational requirements. At the same time, MTS continually seeks ways to create shareholder value through both its commercial and financial strategies, including both organic and inorganic development as well as the Company’s capital management practices.

In keeping with our historical practices, MTS will continue to include annual dividend payments as part of our commitment to enhancing shareholder value. In determining the Company’s dividend payout, the Board of Directors considers a variety of factors, including the outlook for earnings growth, capital expenditure requirements, cash flow from operations, potential acquisition opportunities as well as the Company’s debt position. Decisions on dividends are proposed by the Board of Directors and voted upon thereafter at an annual general meeting of shareholders (AGM) in the first half of the year.

As a goal, MTS aims to maintain its practice of returning a minimum of 50% of annual US GAAP net income to our shareholders through dividend payments, but this could vary depending upon any of the reasons listed above.