22
Maxis Berhad
Annual Report 2014
Investor
Relations
COMMITMENT TO LONG-TERM VALUE
FOR SHAREHOLDERS
Since its listing in November 2009, Maxis
has been rewarding shareholders with
cash returns on a regular basis through
the declaration of interim dividends on
a quarterly basis and a final dividend in
each financial year.
In financial year 2014, Maxis
recommended dividends totalling
approximately RM3.0 billion (40.0 sen
per share) to our shareholders. These
dividends comprise:
• Four interim dividends of
approximately RM600 million (8.0 sen
per share) per quarter amounting to
approximately RM2.4 billion (32.0 sen
net/share) for the year; and
• A recommended final dividend
of approximately RM600 million
(8.0 sen per share) subject to
shareholders’ approval
The total dividend payout of 40.0 sen
per share represents a dividend yield of
5.8% based on the closing share price of
RM6.85 as at end 2014.
DIVIDEND POLICY
Our full dividend policy, as stated in our
IPO prospectus dated 28 October 2009 is
reproduced below for 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 board 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
subsidiariesmay limit their ability to
declare or paycash dividends.”
Notwithstanding the above, the payout
ratios of 2012, 2013 and 2014 were 162%,
170% and 175% respectively.
INVESTOR ENGAGEMENTS
The Company engages in regular
dialogues with its shareholders, both
institutional and individual, to enable
them to exercise their rights in a fully
informed manner.
The Company is also committed to
the promotion of investor confidence
by ensuring transparency in financial
reporting, timely access to information
about Maxis’ strategic goals, material
developments, governance and risk profile.
All this is to enable efficient and informed
trading in the Company’s securities.
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.
Other Maxis’ investor-related
engagements are described below.
