At the current share price dividend yield is 4.3%, while ex-date is 5 May 2021.

The Management and the Supervisory Board of HT proposed to the General Assembly of the Company the distribution of the net profit from 2020. To be specific, net profit amounting to HRK 641.90m would be used for the pay-out of dividend to shareholders, while the remaining part of the net profit in the amount of HRK 61.9m would be allocated to retained earnings.

Such a dividend payment translated to HRK 8 per share, the same as paid in the previous year, while the pay-out ratio of Croatian Telecom Inc. stands at 91%.

At the current share price dividend yield is 4.3% Note that the ex-dividend date is 5 May 2021.

In the graphs below, we are bringing you a historical overview of the company’s dividend per share and dividend yield.

Dividend per Share (HRK) and Dividend Yield (%) (2008 – 2021)*

*compared to the share price a day before the dividend proposal

The Supervisory Board also adopted the decision proposing to the General Assembly the Amendments to the Remuneration policy for members of the Management Board. To be specific, the proposal regards Company`s Share Award Plan which should also be rolled-out for members of the Board as a voluntary compensation tool on the basis of which the Board will be offered the option of allotment of HT shares instead of a pay-out of certain percentage of short-term incentive achieved for the previous year. Maximum number of shares that can be awarded to managers is 45,000 shares, pursuant to currently valid SBB Programme.

The Supervisory Board granted its consent to the Management Board for amendments to the bonus scheme to managers and roll-out of Company`s Share Award Plan (PDD) for the managers below the Management Board. PDD is a voluntary compensation tool on the basis of which the manager will be offered the option of allotment of Croatian Telecom shares instead of a pay-out of certain percentage of variable compensation achieved for the previous year. Plan participants achieve entitlement to bonus shares in the ratio of 1 bonus share for each 7 acquired shares, whereby all shares must be retained for an uninterrupted period of 1 year from their allotment.

In 2020, the company recorded flat sales, a decrease in EBITDA of 11.3% and a decrease in net profit of 11.6%.

In 2020 Cinkarna Celje reported flat sales of EUR 172.39m. Of that sales one the foreign market amounted to EUR 157.76m (+2.6% YoY), while sales on the domestic market accounted for EUR 14.62 (-22.3% YoY). Flat sales were mostly compensated in Q3 and Q4 due to a better epidemiological situation and increased optimism in the industry.  

Operating expenses slightly increased by 2% to EUR 149.86m which mostly came on the back higher material costs by EUR 2.68m or 2.5%. Meanwhile, labour costs noted a slight decrease of 2.5% to EUR 30.1m. As a result of somewhat higher opex, EBITDA recorded a decrease of 11.3% (or EUR -4.13m), to EUR 32.46m. Such a result puts EBITDA margin at 18.8%, representing a decrease of 2.4 p.p.

Going further down the P&L, Cinkarna’s operating profit decreased by 12.4% to EUR 22.53m.

In 2020, the company’s net profit dropped by 11.6% to EUR 18.95m. Such a result was however 34% higher than the planned annual result. To be specific, the management outlined that all the following had a positive effect on net profit: the effective cost management; increased demand in the last quarter; postponement of major overhaul to 2021; and the 10-day extension of the production year.

In 2020, Cinkarna’s CAPEX stood at EUR 12.23m, which represents 61.48% of the planned funds. The amount is lower than planned mainly due to the suspension of non-essential investment and maintenance work during the COVID-19 pandemic.

The bank issued a takeover bid at RSD 3,315.47 per regular share and RSD 934.72 per pref. share.

NLB published the takeover bid for the remaining 16.77% of KMBN shares and 100% of KMBNPB shares on Ljubljana stock exchange. The bank issued a takeover bid at RSD 3,315.47 per regular share and RSD 934.72 per pref. share. To put things into a perspective, this translates to EUR 82.5m for the remaining stake in the bank.

Such an offer (for regular shares) also indicates a slight premium to the current share price of 2%.

The offer price puts the multiple at a P/B of 0.75x for regular shares (9M results) implying a valuation of c. EUR 474m for the 100% stake.

Takeover bid is open for acceptance (Bidding Period) for 30 days, beginning from 11th March 2021.

As a reminder, in late February 2020, NLB announced that they have entered into a share purchase agreement with the Republic of Serbia for the acquisition of an 83.23% ordinary shareholding in Komercijalna Banka.

NLB acquired the 83.23% shareholding for the amount of EUR 387m, which will be payable in cash on completion. Such a price puts the transaction multiple at P/B 0.77x and P/E 6x, while it implied a valuation of EUR 465m for the 100% stake in Komercijalna Banka.