Capital, shares and dividends

Share capital

The charter capital of PJSC M.video as of 31 December 2018 was RUB 1,797,682,270 and was divided into 179,768,227 ordinary shares with a nominal value of RUB 10 per share.

Shareholder structure

PJSC M.video’s largest shareholder is Mianello Limited, with a shareholding of 38.6%.

In August 2018, M.Video–Eldorado Group closed deals in which MediaMarktSaturn acquired a 15% stake in PJSC M.video from SAFMAR Group, and M.Video–Eldorado Group acquired a 100% stake in the Russian business of MediaMarktSaturn.

At the end of 2018, LLC MVM owned 236,990 shares of PJSC M.video. The rest of shares (treasury shares) were bought out and owned by PJSC M.video.

Market capitalisation and stock quotes

Ordinary shares of PJSC M.video are traded on the Moscow Exchange under the ticker MVID and are included in the level 1 quotation list. The Company’s shares are included in the calculation base of the main index of the Russian stock market – the Moscow Exchange Index – as well as the Consumer Sector Index calculated by the Moscow Exchange.

In 2018, PJSC M.video’s share price decreased slightly by 2.3% as a result of downward pressure on the shares of Russian retailers stemming from macroeconomic and geopolitical factors. At the same time, the PJSC M.video stock price noticeably outpaced changes in the Moscow Exchange Consumer Sector Index, which showed a decrease of 12.9% in 2018.

The average trading volume of the Company’s shares (in units of stocks) in 2018 decreased by 58.0% compared with 2017.

As of the end of 2018, PJSC M.video had a market capitalisation of RUB 73,740,926,715.40.

Market making

As part of the Group’s work aimed at improving its investment case, PJSC M.video pays considerable attention to maintaining the liquidity of its shares on the Moscow Exchange. To this end, the Company has entered into agreements to maintain its share price and to provide market-making services with professional securities market participants. In accordance with these agreements, when certain conditions are met, market makers ensure that transactions involving the Company’s shares are carried out on the stock exchange, thus creating additional liquidity in the interests of all groups of shareholders.

DIVIDENDS

In accordance with the current Regulation on the Dividend Policy of PJSC M.video, the Company may pay dividends to shareholders out of the net profit based on the results of the corresponding financial reporting period. In determining the amount of dividends recommended to the General Meeting of Shareholders, the Board of Directors is guided by the Group’s net profit in accordance with IFRS.

In determining the recommended amount of dividends, the Board of Directors takes into account the main areas for profit distribution proposed by the CEO together with the Management Board based on the following factors:

• the amount of the Group’s net profit after tax for the corresponding period;
• the Group’s financial and business plans for future periods;
• the Group’s working capital structure at the end of the corresponding period;
• the Group’s debt at the end of the corresponding period.