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Axiata Group Berhad | Annual Report 2016
MANAGEMENT DISCUSSION & ANALYSIS
032
PRUDENT AND DISCIPLINED DIVIDEND PAYOUT
Axiata declared a 8 sen per share single tier dividend (including interim dividend of 5 sen per share paid last year), implying a DPR of 50%. The Board’s
decision to declare a conservative 50% DPR takes into account the following:
i)
Cautionary, prudent measure to ensure resilience against:
a) unpredictable forex and market volatility; and
b) further spectrum costs in the next two years
ii) Investment for strategic long-term benefits:
a) Increased capex investment where Axiata intends to be a clear number one player in 4G and data leadership in selected areas in all markets; and
b) Market consolidation and edotco’s expansion.
This decision is for the short-term and the DPR is expected to be at 2015 level within two years, as management remains committed to sustain positive
performance with financial discipline, efficient cash management and prudent investments, and growth strategies moving forward.
2010
2011
2012
2013
2014
2015
2016
Inaugural dividend
announcement
Dividend Yield = 2.1%
Total Dividend =
RM0.9bn
DPS = 10 sen
Dividend Yield = 3.9%
Total Dividend =
RM1.5bn
DPS = 19 sen
Dividend Yield = 3.3%
Total Dividend =
RM1.9bn
DPS = 22 sen
Dividend Yield = 3.2%
Total Dividend =
RM1.9bn
DPS = 22 sen
Dividend Yield = 3.1%
Total Dividend =
RM1.8bn
DPS = 20 sen
Dividend Yield = 1.5%
Total Dividend =
RM0.7bn
DPS = 8 sen
Dividend Yield = 5.5%
Ordinary Dividend =
RM1.9bn
Ordinary DPS = 23 sen
Special Dividend =
RM1.0bn
Special DPS = 12 sen
Total DPS = 35 sen
Step increase
in DPR with the
growth in Group
Net FCF
One-off Special
Dividend, on
top of increased
ordinary DPR
Increase in DPR,
in line with
progressive
dividend policy
Increase in DPR,
in line with
progressive
dividend policy
Increase in DPR,
in line with
progressive
dividend policy
Decrease in DPR
for prudent and
strategic reasons
30%
DPR
1
60%
70%
75%
84%
85%
50%
¹ DPR - Dividend payout ratio
2
DPS - Dividend per share
2016 IN REVIEW: KPI, INVESTMENT PERFORMANCE & PRUDENT AND DISCIPLINED
DIVIDEND PAYOUT