Zavod VZMD proposed a dividend payment of EUR 2.5 per share, compared to initially no dividend payment proposed by the Management Board. Dividend yield is 8.9%. Note that the Management Board opposes the counter-proposal.

Triglav received a counter-proposal by the shareholder Zavod VZMD (Pan-Slovenian Shareholders’ Association) regarding the dividend payment in 2020. Zavod VZMD proposed a dividend payment of EUR 2.5 per share, compared to initially no dividend payment proposed by the Management Board. The newly proposed dividend translates into a yield of 8.9%.

As a reminder, Triglav has set the minimum dividend payout of 50% of consolidated net profit for the previous year, with the note that the company will not strive to reduce its dividend payment below the level of the previous year. Since 2015 (for net profit of the previous year), Triglav has been paying out a constant dividend of EUR 2.5 per share, which implied a high single digit dividend yield each year ranging from 7.3% to 9.5%.

The Management Board of Triglav opposes the counter-proposal. The proposal of the Management Board and the Supervisory Board is to leave the accumulated profit of EUR 60.5m from 2019 undistributed and thus its full amount to be allocated for the future payment of dividends or for other purposes in accordance with the GSM resolution. Their proposal is consistent with the Slovene regulator’s call and with the aim of ensuring the medium-term sustainable target capital adequacy of the Triglav Group, as set out in the Company’s dividend policy.

Given the current situation regarding the Covid-19 pandemic and the implications and uncertainties which come with the situation, we do not see the counter-proposal being approved on the GSM.