Sanoma’s New Dividend Policy and Renewed Long-term Financial Targets

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Sanoma Corporation, Stock Exchange Release, 7 February 2017 at 08:31 CET+1

Sanoma Board of Directors has decided on a new dividend policy and adjusted the long-term financial targets. The new dividend policy reflects Sanoma’s aim to be a solid dividend paying company while further deleveraging its balance sheet.

According to the new Dividend Policy, Sanoma aims, from 2017 onwards, to pay an increasing dividend, equal to 40–60% of annual cash flow from operations less capital expenditure. For 2016, the Board proposes a dividend of EUR 0.20 per share, double from EUR 0.10 per share in 2015.

When proposing a dividend to the AGM, the Board of Directors will look at the general macro-economic environment, Sanoma’s current and target capital structure, Sanoma’s future business plans and investment needs as well as both previous year’s cash flows and expected future cash flows affecting capital structure.

Since 2013, the dividend policy has been: Sanoma conducts an active dividend policy and primarily pays out over half of Group’ result excl. items affecting comparability for the period in dividends. One-time investments and costs associated with the transformation of its business require Sanoma to pursue a prudent dividend policy in the near-term implying lower than historical dividend pay-out. 

Deleveraging continues

Sanoma Board of Directors also renewed Group’s long-term financial targets. Sanoma continues to deleverage its balance sheet. Sanoma targets for net debt/adj. EBITDA* ratio to be less than 2.5 times (previously 3.5 times) and the equity ratio is targeted between 35% and 45% (unchanged). The previous gearing limit of less than 100% is concluded to be redundant and thus been discontinued.

  New target Old target Actual 2016 Actual 2015 Actual 2014
Net debt/ adj EBITDA* <2.5 <3.5 3.2 5.1 4.8
Equity ratio 35–45% 35–45% 41.0% 39.5% 42.2%
Gearing N/A < 100% 78.4% 77.8% 66.7%
               

* EBITDA adjusted: 12-month rolling operational EBITDA, where acquired operations are included and divested operations excluded, and where programming rights and prepublication rights have been raised above EBITDA on cash-flow basis.

 

Additional information
Sanoma's Investor Relations, Anna Tuominen, tel. +358 40 584 6944

Sanoma.com

Sanoma

Sanoma is a front running media and learning company impacting the lives of millions every day. We provide consumers with engaging content, offer unique marketing solutions to business partners and enable teachers to excel at developing the talents of every child.

With companies operating in Finland, the Netherlands, Belgium, Poland and Sweden, our net sales totalled EUR 1.6 billion and we employed more than 5,000 professionals in 2016. The Sanoma shares are listed on Nasdaq Helsinki.