Share distribution and dividend policies

Shareholder stock

In 2014, no changes of shareholders took place. JSC FPC main shareholder is JSC RZD that holds 152,635,848,132 shares, one share belongs to JSC Baminvest.

In September 2014 JSC FPC initiated a scheduled issuance of additional company shares in a sum of RUB 12,825,192,406.

The issuance of additional shares by JSC FPC is determined by the need to optimise utilisation of the RZD holding assets.

To pay for securities money in the amount of RUB 4.5bn and property with the value of RUB 8.3bn that included 17 immovable property items; 399 passenger cars and 432 items of other movable property was transferred.

Contribution of the specified property into the authorised capital stock of JSC FPC will allow JSC RZD to increase the value of financial investments into JSC FPC shares, whereas JSC FPC will reduce rental costs for this property.

The money is planned to fund the investment programme of the Company.

Upon the completion of the issuance of additional shares procedure the authorised capital stock of the Company will increase to RUB 165bn.

JSC FPC share distribution

Changes in authorised capital stock, RUB bn

Voting shares by class (type) of shares

Class (type) of securities Registered ordinary shares
Form of shares issued uncertified
Number of shares issued 152,635,848,133
Public registration information 1-01-55465-E
Nominal value per 1 share RUB 1

Dividend policy

JSC FPC shareholders decided not to pay out dividends at the Annual General Shareholders Meetings of 2010, 2011 and 2012.

On December 17, 2012 JSC FPC Board of Directors approved the Regulations for JSC FPC dividend policy.

In accordance with the Regulations, the magnitude of dividend payouts according to the totals of the financial year are determined by the sums of a fixed amount of dividend payments (DIV1) and a residual amount of dividend payments (DIV2).

In 2014, the Extraordinal General Shareholders Meeting dated November 10 made the decision to direct the undistributed profit of past years for dividend payment and simultaneous contribution of the specified sum to the authorised capital stock of JSC FPC for the purpose of the Company investment programme financing.

Fixed dividend payments (DIV1) = Net profits for the reporting year * (fixed amount of dividends paid (no less than 25%)) + coefficient of variations to the dividend payments actually received by the Company by the deviation of the net profit from the target value (CP).

Where the deviation of actual net profits from the target value is no greater than 15%, CP is equal to 0.

Where the deviation of actual net profits from the target value is greater than 15% but no greater than 50%, CP is equal to 5%.

Where the deviation of actual net profits from the target value is greater than 50% CP is equal to 10%.

Residual dividend payments (DIV2) = Net profits for the reporting year — value of mandatory deductions from net income (reserve fund and charities) — the value of fixed dividend payments (DIV1) — the portion of the Company profits for the financing of the Company’s investment programme (investment programme — deprecation — loans).