Dividend policy

The dividend policy from 2017 onwards:

Sanoma aims to pay an increasing dividend, equal to 40–60% of annual cash flow from operations less capital expenditure.

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.

The table below illustrates the development of dividends from the year 1999 onwards.

Year Dividend/share EUR DPS/EPS reported, % DPS/EPS excl. non-recuring items, % 
’16 0.20 30.8 39.2
’15 0.10 n.a. 79.2
’14 0.20 62.0 61.5
’13 0.10 n.a. 22.7
’12 0.60 68.2 76.9
’11 0.60 115.6 69.4
’10 1.10 59.4 117.4
’09 0.80 122.0 92.2
’08 0.90 125.1 82.7
’07 1.00 67.9 80.7
’06 0.95 72.2 n.a.
’05 0.90 62.0 n.a.
’04 0.80 61.2 n.a.
’03 1.00 144.3 n.a.
’02 0.40 178.0 n.a.
’01 0.51 147.5 n.a.
’00 0.47 69.9 n.a.
’99 0.45 84.9 n.a.

Historical development

Dividend policy until 7.2.2017

Sanoma conducts an active dividend policy and primarily pays out over half of Group result excl. non-recurring items for the period in dividends. Communicated on 31 October 2013: 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 payout.

Dividend policy 2002–2005

SanomaWSOY pursues an active dividend policy, based on the principle of normally distributing half of the Group’s result after taxes in the form of a dividend.

Dividend policy 1999–2001

According to the dividend policy 1999–2001, SanomaWSOY pursued an active dividend policy, based on the principle of distributing at least one-third of the Group’s annual consolidated profit in the form of a dividend.

The signatories of SanomaWSOY’s shareholders’ agreement, who together hold more than 50% of all shares and votes in SanomaWSOY, had agreed to vote for and also otherwise operate in a way to ensure that SanomaWSOY would take a decision in the annual general meeting to be held in 2003 to distribute a dividend of at least EUR 0.26 per share for the 2002 financial year.

Under the shareholders’ agreement linked to the merger in 1999, the main shareholders agreed that the annual dividend payable for the three first financial years (1999–2001) would be at least EUR 0.88 per share (EUR 0.22 following the four-for-one split on 10 May 2000), which corresponded to the dividend level offered by WSOY in 1997, increased by 10% annually. In addition, an average of EUR 0,84 per share (EUR 0,21 following the four-for-one split on 9 May 2000) would be added during the years concerned. SanomaWSOY’s dividend in 1999, 2000 and 2001 was in accordance with shareholders’ agreement.

The shareholders’ agreement expired on 14 May 2003 and no new such agreement will be signed.