On 10 March 2022, the Management Board, with the approval of the Supervisory Board, adopted a revised dividend policy.
Beter Bed Holding’s dividend policy focuses on maximising shareholder value while maintaining a healthy capital position. On an annual basis, the Supervisory Board, on proposal of the Management Board, will assess the amount of dividend that will be proposed to the AGM.
There are two main elements of the dividend policy:
- Determination of the dividend is based on the Company’s assessment of its underlying cash flow position and the profit that it has to retain in order to carry out its plans for the medium to long term, while maintaining solvency of at least 30% and net interest bearing debt / EBITDA below 2.0x.
- Subject to stable financial conditions Beter Bed Holding’s policy is to target a dividend payout of at least 30% of normalised net profit from continuing operations.
Definition of normalised net profit in relation to dividend policy
Normalised net profit from continuing operations is defined as profit attributable to equity holders adjusted net for tax for significant one-offs and special items.
Definition of solvency in relation to dividend policy
Solvency is defined as equity, divided by total assets adjusted for non-current and current lease liabilities.
Definition of net debt / EBITDA in relation to dividend policy
Leverage is defined as net interest bearing debt, divided by EBITDA adjusted for depreciation and amortisation of right-of-use assets relating to leases.