The overriding objective of the Group is to generate an attractive total shareholder return for its shareholders. Against this backdrop, ProSiebenSat.1 is adjusting its dividend pay-out policy. The Group targets a maximization of total shareholder return along various components, which particularly includes an increase in earnings growth next to an attractive dividend yield.
The Group thus intends to pay out 50% of adjusted net income as a dividend (previously 80% to 90%) for the first time in the financial year 2018 (to be paid in 2019). ProSiebenSat.1 will use the funds thus released primarily for earnings-increasing investments in organic and inorganic
At the same time, we adhere to the targeted leverage factor of 1.5 to 2.5. It indicates the level of netdebt in relation to LTM adjusted EBITDA - i.e. the EBITDA adjusted for reconciling items that the ProSiebenSat.1 Group has generated in the last twelve months (LTM = last twelve months).
The Executive Board and Supervisory Board propose the Annual General Meeting a dividend of 50% of adjusted net income – EUR 1.19 a share – for the financial year 2018 (previous year: EUR 1.93). This corresponds to a dividend yield of 7.7% (previous year: 6.7%) of the closing price of the ProSiebenSat.1 share at the end of 2018.
The effective dividend date is the date of the Annual General Meeting. Thus, all common shareholders who own ProSiebenSat.1 shares on this date are entitled to a dividend.
Dividend proposal (Annual Press Conference)
Dividend resolution (Annual General Meeting)
Number of shares in million1
Underlying earnings per share
Dividend per dividend entitled common share
Payout in million3
1 The share capital of ProSiebenSat.1 Media SE amounts to EUR 233,000,000.00. As a result of a capital increase, it rose from EUR 218,797,200.00 to a nominal amount of EUR 233,000,000.00 with effect from November 7, 2016. In this capital increase, ProSiebenSat.1 made partial use of the company’s Authorized Capital and issued 14,202,800 new, registered shares. On 08/16/2013, the 109,398,600 bearer
preference shares that existed at that time had already been converted into registered common shares, with the effect that the share capital then totaling EUR 218,797,200.00 consisted of 218,797,200 registered common shares with a nominal share in the share capital of EUR 1.00 each. Today, all (233,000,000) of the company’s registered common shares are now tradable, i.e. both the formerly unlisted registered
common shares and the registered common shares resulting from the conversion of the bearer preference shares. Until 08/16/2013, only the bearer preference shares of the company were publicly traded.
2 Adjusted due to changes in reporting practices for non-IFRS figures from the beginning of financial year 2017. The Annual Report 2016 comprises more detailed information on pages 73 and 74.
3 ProSiebenSat.1 Media SE held at the time of the Annual General Meeting preference shares as treasury stock. Shares directly or indirectly owned by the company are in accordance to § 71b AktG not entitled to receive a dividend.
Information for natural persons regarding the taxation of the dividend 2018
Of the proposed dividend per no-par value share entitled to dividend of EUR 1.19, no amount will be paid out of the tax contribution account (steuerliches Einlagekonto). Therefore, the total dividend amount is generally subject to withholding tax at a rate of 25%, plus solidarity surcharge of 5.5% thereon, resulting in a total tax rate of 26.375% (plus any church tax). If you have any additional questions regarding dividend taxation, please consult your tax advisor.
Additional information for individual shareholders:
The information provided below does not constitute tax advice but only describes certain general principles of German taxation, which might be relevant in connection with the dividend distribution. Share-holders should seek advice from their own tax advisor regarding the tax implications of the dividend distribution.
The sections below only apply to shareholders who are natural persons and hold their shares as private assets. Whether such shareholders are to be considered resident taxpayers for the purposes of the summa-ry below depends upon whether they are subject to unlimited taxation in Germany (e.g., due to their residence or usual place of abode).
The tax liability applicable to dividend payments is generally satisfied by withholding a flat tax (Abgeltungsteuer) of 25%, plus a solidarity surcharge of 5.5% thereon, resulting in a total tax rate of 26.375% (plus any church tax). Under certain circumstances, however, no with-holding will be made, e.g. if shareholders have given their bank a certificate from the German tax authorities stating that the shareholder is not subject to an assessment procedure (Nichtveranlagungsbescheinigung). The same applies to such shareholders who have sub-mitted a German application for exemption (Freistellungsauftrag) from withholding tax with sufficient exemption volume that has not been used in connection with other income from capital investment.
The withholding will be made irrespective of the individual tax rate and generally satisfies the personal income tax liability of the shareholders in respect of the dividend. However, certain exemptions apply. For instance, shareholders may request that a tax assessment be carried out on their income from the dividend and all other capital investments if this results in less tax liability (e.g., due to a lower individual tax rate, an unused lump-sum saving allowance (Sparer-Pauschbetrag) or al-lowances for losses). However, as a rule, expenses actually incurred in connection with the dividend are not tax deductible within the scope of the flat rate withholding tax (Abgeltungsteuer).
The above principles do not apply to the extent funds from the tax contribution account (steuerliches Einlagekonto) are deemed to be used for the distribution. In this case, the respective amounts are generally tax exempt (at least, if the amounts from the tax contri-bution account do not exceed the acquisition cost/tax basis of the shares) and are not subject to withholding. However, the German tax authorities assume that amounts distributed from the tax contribu-tion account result in a reduction of the acquisition cost/tax basis for the shares. Shareholders should consult their tax advisor for more details.
Based on the proposed dividend of EUR 1.19 per no-par value share entitled to dividend, the company expects that no amount thereof will be from the tax contribution account.
Non-resident taxpayers are subject to limited taxation in Germany with respect to the dividend, i.e., the flat withholding tax (Abgeltung-steuer) also applies to them in principle. As a consequence, the dividend will be subject to a withholding tax at a rate of 25%, plus a solidarity surcharge of 5.5% thereon, i.e., in total 26.375% to the extent that no amounts from the tax contribution account (steuerliches Einlagekonto) are deemed to be used for the distribution (please see “Dividend” section above).
For dividend payments to non-resident taxpayers, a reduced withhold-ing tax rate may apply if there is a respective double-taxation treaty in place between Germany and the country in which the shareholder resides for tax purposes. The discount, if any, is generally granted by crediting the difference between the withheld tax and the tax lia-bility arising under the respective treaty. The shareholder must file a corresponding request with the Federal Central Tax Office (Bundes-zentralamt für Steuern, An der Küppe 1, 53225 Bonn, Germany or the German website http://www.bzst.bund.de) in compliance with certain formalities and deadlines.
If and to what extent non-resident taxpayers are liable to taxes on the dividend in the country of their tax residence is to be determined on the basis of the tax laws applicable in such country.