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TIM’s Dividend Policy for the years 2021-2023 and the Recommendation Regarding Dividend for the year 2020

Management Board of TIM SA adopted a dividend policy assuming annual submission to the Shareholders’ Meeting of a proposal of dividend payment determined depending on the level of the generated net profit. The primary goal of the Management Board is to maintain the predictable and attractive dividend policy taking into consideration capital needs resulting from further development of the TIM Capital Group and effective financial management.

In addition, Management Board has decided that while submitting a request regarding distribution of the net profit for the year 2020, it shall recommend to the Shareholders’ Meeting of TIM SA, regardless of the advance paid on 30 December 2020, the payment of additional dividend in the amount of PLN 22 gross, i.e. PLN 1 gross per 1 share.  This means that after the Shareholders’ Meeting of TIM SA had made the appropriate decision, the total amount of the dividend for the year 2020 will amount to over PLN 48.8 million gross (PLN 2.20 gross per 1 share).

Dynamic Development and Sharing the Success

The financial year 2020 is the third year in a row for which TIM is paying dividends. TIM’s turnover and financial results break new records. The estimated unconsolidated revenues from the sale for the year 2020 amounted to over PLN 935 million (increase by 17% y/y). TIM’s net profit for the three quarters of 2020 was 18% higher and the consolidated profit nearly 40% higher than that achieved in the corresponding period of 2019. 3LP – a logistics company, TIM’s subsidiary specializing in handling customers from the e-commerce sector – in IV quarter of 2020, for the first time in history, obtained most of the revenues from logistics services from the customers from the outside the TIM Group.

– We are developing dynamically and we are not going to slow down. Thanks to this we are generating better financial results and want to share our success with the shareholders – declares Krzysztof Folta, the President of the Management Board of TIM S.A. – Of course, we cannot forget about the future and we will be implementing further investments both in e-commerce technology used by the TIM.pl e-commerce platform and in logistics infrastructure. Our ambition is to maintain high business growth dynamics – adds Krzysztof Folta.

Dividend Policy

As per the adopted policy, when determining the amount of the paid dividend, which will be recommended to the Supervisory Board and the Shareholders’ Meeting of TIM S.A. by the Management Board, the following factors will be taken into consideration:

business assessment, development prospects and the related investment needs of the TIM Capital Group,

liquidity situation, cost of debt financing, possibility to obtain it for the existing and future liabilities and the necessity to maintain the indebtedness of the TIM Capital Group at a safe level (net debt to EBITDA ratio <2),
analysis of the current and forecasted market situation.

One of the primary goals of TIM is to pay dividends to shareholders in a predictable manner. Therefore, the Management Board has decided that by submitting to the Supervisory Board and the Shareholders’ Meeting of proposals for the payment of the dividend for the financial years 2021-2023 it will strive to calculate the amount of the dividend taking the following principles into consideration:

1) in the event of generating unconsolidated net profit in a given financial year at the level of at least PLN 15 million – payment of the dividend in the amount of PLN 22 199 200 1 gross (PLN 1 gross per 1 share) increased by 50% of any surplus of unconsolidated net profit in a given financial year over the amount of PLN 22 199 200;

2) in the event of generating unconsolidated net profit in a given financial year in the amount of up to PLN 15 million, the Management Board will propose the amount of the dividend based on the assessment of the situation based on the analysis of the factors mentioned above.

– Looking back you can see that TIM has been a dividend company for a number of years, of course, except for the period of the change of the business model, which is completely natural, taking into account the scale and costs of the transformation – says Piotr Tokarczuk, member of the Management Board and Financial Director of TIM S.A. – We have been paying dividends on a regular basis since 2018. Therefore, we are getting closer to our goal, i.e. to join the WIGdiv index whose portfolio includes companies regularly paying dividends over the period at least covering the last five years – adds Piotr Tokarczuk.