Baltika Breweries shareholders approved the dividend pay-out for 2006

may 15, 2007

Today the Annual General Shareholders Meeting of OJSC Baltika Breweries approved the Company’s results, the accounts and annual report for 2006. The amount to be paid in dividends grew by 62% compared with the pay-out of 2005.

In 2006 the Company’s net profit increased by 43.4% (338.4 million EURO). This high size of dividends was provided by good financial indicators, reached in 2006. In this way the dividend payment for both ordinary and preference shares amounts to 39.5 rubles per share. This is in accordance with the Company’s policy on dividends, which aims to grow the size of dividends paid each year. In keeping with the decision of the assembly of shareholders, payment of dividends will begin since May 30, 2007.

The high level of dividends was ensured by the good financial indicators achieved in 2006 thanks to the successfully executed process of merging the companies Baltika, Vena, Yarpivo and Pikra. This process was unique in Russia from the standpoint of the specifics, the complexity and the short time available to achieve a project that was characterised by a transparent information policy and was implemented with full respect for the interests of shareholders of all four companies.

The new membership of the Board of Directors of the Company was also elected at the Baltika Breweries Shareholders Meeting. It consists of the following persons:

  1. Anton Olegovich Artemiev
  2. Alexander Vyacheslavovich Ikonnikov
  3. Alexander Vadimovich Izosimov
  4. John Nicolson
  5. Jørgen Buhl Rasmussen
  6. Bjørn Søndenskov
  7. Andrew Stevenson

Furthermore, the Baltika shareholders elected members of the Internal Auditing Committee and approved the appointment of the auditors KPMG ZAO and A & P Audit CJSC. They also added Ernst & Young Ltd to the list of auditors, approved a new versions of the Articles of Association and Regulation on the Management and Control Bodies and established the levels of pay and cost reimbursement for members of the Board of Directors.

President of Baltika Breweries Anton Artemiev commented as follows: "In 2006 we not only held onto our position in the market but also achieved high financial results which enabled us to increase the dividend pay-out to our shareholders. We thank our shareholders for their understanding and support for the process of merging Baltika with other Russian companies of the BBH Group."

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Ever since 1996 Baltika Breweries has been the leader on the Russian beer brewing market. In 2006 Baltika was merged with the companies Vena, Pikra and Yarpivo.
Baltika Breweries owns 10 breweries in 9 regions of Russia, has a very strong brand portfolio and staff around 12,000 employees.

 

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