Dividend policy
In deciding whether to propose a dividend and in determining the dividend amount, the Board of Directors will take into account legal restrictions, as set out in the Norwegian Public Limited Companies Act (see Section 5.2 “Legal constraints on the distribution of dividends”), the Company’s capital
requirements, including capital expenditure requirements, the Company’s financial condition, general business conditions and any restrictions that its contractual arrangements in place at the time of the dividend may place on its ability to pay dividends and the maintenance of appropriate financial flexibility. Except in certain specific and limited circumstances set out in the Norwegian Public Limited Companies Act, the amount of dividends paid may not exceed the amount recommended by the Board of Directors.
Elopak will initially target a dividend pay-out ratio of approximately 50-60% of the Group’s Adjusted net profit.
Elopak’s next dividend payment is expected to be paid out in the spring 2022 based on the financial year ended 31 December 2021.
The proposal to pay a dividend in any year is, in addition to the legal restrictions as set out in Section 5.2 “Legal constraints on the distribution of dividends”, further subject to any restrictions under the Group’s borrowing arrangements or other contractual arrangements in place at the time. See Section 10.12 “Borrowing requirements and funding structure” for further information concerning the Group’s current borrowing arrangements. There can be no assurance that a dividend will be proposed or declared in any given year. If a dividend is proposed or declared, there can be no assurance that the dividend amount or yield will be as contemplated above.