Financial policy and framework, dividend policy

Nuon’s financial policy is part of the company’s strategy and general policy.

Financial policy

Nuon’s financial policy, which is part of the company’s strategy and general policy, is to obtain an adequate shareholders’ return, to expand the company and to protect bondholders and debt providers, while retaining the flexibility to grow the company and to make the investments required for that purpose.

Financial framework

The financial framework in which Nuon operates comprises the following elements:
  • A ratio of net profit (excluding non-recurring incidental items) plus depreciation and amortisation to net debt of at least 30%;
  • A ratio of net profit (excluding non-recurring incidental items) plus depreciation and amortisation plus net financial income and expense to net financial income and expense of at least 5;
  • Secure a balanced repayment schedule;
  • Secure sufficient cash and cash equivalents and committed credit facilities;
  • Maintain a solid A rating profile.

Dividend policy

The dividend policy of Nuon is part of the financial framework:
  • Intention to pay out a stable cash dividend over the years, with a targeted minimum of € 45 million per year;
  • Pay-out-ratio of 45% of profit after taxation, adjusted for non-recurring, generally non-cash, incidental items.