Maxis Berhad | Annual Report 2013

OVERVIEW OUR BUSINESS STRATEGIC REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS Maxis Berhad Annual Report 2013 OTHER INFORMATION 15 INVESTOR RELATIONS COMMITMENT TO SHAREHOLDERS Maxis is committed to creating long- term value for its shareholders. Since its listing in November 2009, Maxis has been providing cash returns to shareholders on a regular basis through the declaration of interim dividends on a quarterly basis and a final dividend in each financial year. In the financial year 2013, Maxis declared/recommended dividends totalling RM3.0 billion (40 sen net/ share) to our shareholders, comprising: • Four interim dividends of RM600 million (8.0 sen net/share) per quarter totaling RM2.4 billion (32.0 sen net/ share) for the year; and • A recommended final dividend of RM600 million (8.0 sen net/share) subject to shareholders’ approval. The total dividend payout of 40 sen net/share represents a dividend yield of 5.5% based on the closing price of RM7.27 as at end 2013. DIVIDEND POLICY Our full dividend policy, as stated in our IPO prospectus dated 28 October 2009 is reproduced below for your reference: “The declaration of interim dividends and the recommendation of final dividends are subject to the discretion of the Board and any final dividend for the year is subject to shareholders’ approval. It is the Company’s intention to pay dividends to shareholders in the future. However, such payments will depend upon a number of factors, including Maxis’ earnings, capital requirements, general financial conditions, the Company’s distributable reserves and other factors considered relevant by the Board. The Company has proposed to adopt a dividend policy of active capital management, and proposes to pay dividends out of cash generated by its operations after setting aside necessary funding for network expansion and improvement and working capital needs. As part of this policy, the Company targets a payout ratio of not less than 75% of its consolidated Profit After Tax under Malaysian Generally Accepted Accounting Standards (GAAP) in each calendar year beginning financial year ending 31 December 2010, subject to the confirmation of the Board and to any applicable law, license and contractual obligations and provided that such distribution would not be detrimental to its cash needs or to any plans approved by its Board. Investors should note that this dividend policy merely describes the Company’s present intention and shall not constitute legally binding statements in respect of the Company’s future dividends which are subject to modification (including reduction or non-declaration thereof) at the Board’s discretion. As the Company is a holding company, its income, and therefore, its ability to pay dividends, is dependent upon the dividends and other distributions that it receives from its subsidiaries. The payment of dividends or other distributions by the Company’s subsidiaries will depend upon their operating results, financial condition, capital expenditure plans and other factors that either respective boards of directors deem relevant. Dividends may only be paid out of distributable reserves. In addition, covenants in the loan agreements, if any, for the Company’s subsidiaries may limit their ability to declare or pay cash dividends.” Notwithstanding the above, the payout ratios for 2011, 2012 and 2013 were 119%, 162% and 170% respectively. INVESTOR ENGAGEMENT The Company is committed to enhancing long-term shareholder value through regular on-going dialogue with its shareholders, both individual and institutional. To this end, the Company strives to ensure that shareholders have ready and timely access to all publicly available information of the Company. The key spokespersons and representatives for Investor Relations of the Company are the Chief Executive Officer, the Chief Financial and Strategy Officer and the Head of Investor Relations. Some of these investor related activities are described below. ANNUAL GENERAL MEETING The Company fully recognises the rights of shareholders and encourages them to attend and exercise their rights at the annual general meeting as this provides a valuable opportunity to discuss the Company’s performance, plans, corporate governance and other important matters with management and the Board, as appropriate. Notices of the annual general meetings and the accompanying papers are provided to shareholders within the prescribed time in accordance to the Bursa Securities Listing Requirements. These notices are lodged with Bursa Securities. They are also placed in major local newspapers. These annual general meetings are held at a convenient location to allow as many shareholders as possible to attend personally. All directors are expected to attend the annual general meetings. The Company also requires its external auditors to attend each annual general meeting to answer questions on the conduct of the audit and the preparation and content of the auditor’s report. In every annual general meeting, the management team presents a comprehensive review of the Company’s financial performance for the year and outlines its prospects for the following financial year. Time is set aside for shareholders’ queries. Where it is not possible to provide immediate replies, the Company undertakes to provide shareholders with written replies after these annual general meetings. Copies of the review are posted on the Company’s Investor Relations website immediately after the close of the annual general meetings.