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VimpelCom To Pay Final Dividend 2012 Of USD 0.35 Per ADS; Announces Extraordinary Dividend Of USD 0.79 Per ADS Or USD 1.4 Billion; Affirms Dividend Guidelines: USD 0.80 Per ADS Or USD 1.4 Billion Per Annum

AMSTERDAM, April 18, 2013 /PRNewswire/ --  "VimpelCom Ltd." ("VimpelCom", "Company" or "Group") (NYSE:VIP), announces today that the Supervisory Board has authorized the payment of VimpelCom's final dividend of USD 0.35 per ADS, or USD 615 million, in relation to the Company's final 2012 results, bringing the total dividend in relation to the Company's 2012 results to USD 0.80 per ADS. The Supervisory Board also approved an extraordinary dividend of USD 0.79 per ADS in relation to the USD 1.4 billion the Company received following Altimo's conversion of its 128.5 million preferential shares into common shares on April 16, 2013. Each ADS represents one common share. The total dividend payment amount will be approximately USD 2.0 billion.

The record date for the Company's shareholders entitled to receive the dividends has been set for April 29, 2013. The ex-dividend date is April 25, 2013. It is expected that the dividend will be paid by May 15, 2013. The Company will make appropriate tax withholdings of up to 15% when the dividend is paid to the Company's ADS depositary, The Bank of New York Mellon.

The Supervisory Board has announced the affirmation of VimpelCom's dividend guidelines. The group aims to pay out at least USD 0.80 per share per year assuming not more than 1,757 million common shares are issued and outstanding.

Jo Lunder, Chief Executive Officer comments: "Our strategy of profitable growth and increasing cash flows has provided strong results in 2012, enabling us to announce the payment of USD 0.35 final dividend per common share. In addition, it has been decided that the proceeds from the conversion of Altimo's preferential shares into common shares will be distributed to our shareholders. In total we aim to pay USD 2.0 billion in dividends. Going forward, we remain committed to pay annual dividends of at least USD 0.80 per common share, in line with our current dividend guidelines."

Dividend Guidelines

The goal of the Dividend Guidelines is to clarify the context of returns to investors of the Company both in terms of company value increase (capital gain) and cash return. The Company's Dividend Guidelines will be annually reviewed to ascertain that the Company will continue to maintain an efficient capital structure, capable of securing its growth ambitions whilst honoring its financial commitments on a sustainable basis. The key elements of the guidelines are:
  • It is the Company's intention to pay a dividend which develops substantially in line with the development of its operational performance.
  • Barring unforeseen circumstances, the Company aims to pay out a significant part of its annual operating free cash flow to its shareholders in the form of dividends. Operating Free cash flow is defined as "Net Cash from Operating Activities minus CAPEX", and can be derived from the consolidated group financial statements.
  • The Group aims to pay out at least USD 0.80 per share assuming not more than 1,757 million common shares are issued and outstanding.

The company will plan to pay the annual dividend in two tranches in cash. The first tranche will be an interim dividend paid during the second half of the year. The second tranche will be the final dividend that will be paid out following the annual results announcement.

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