Page 89 - RusRPTDec20

and the EGM record date for 16 November. The dividend record date was proposed for 24 December.
● Other
Phosagro​ recommended 3Q20 dividends 2x above BCSe. ​On November 5, Phosagro BOD recommended Rb123/share or Rb16bn 3Q20 interim dividends – 2x above our expectations (we expected 50% FCF dividend payout ratio – Rb61/share or 2.1% quarterly dividend yield). Strong dividend not recognized by the market yet. In 2018 and 2019 Phosagro delivered an 8% dividend yield to its shareholders. For 2020, the company has approved Rb30bn of dividends for 1-3Qs which implies 7.8% dividend yield at the share’s current price. Such a dividend yield is yet to be recognized by the market, which still perceives PHOR as low dividend story, we believe.
Unipro​ interim dividend recommended at 4.3% dividend yield as expected. ​On 3 November, Unipro has released the decision of the Board of Directors that recommended RUB7bn in dividends for 9mo20 or RUB0.111 DPS with the record date set for 20 December. The dividend recommendation came in line with guidance and our expectations with the interim dividend implying a 4.3% dividend yield. We highlight that the company guides for similar level in May as well (with no launch of unit 3 Berezovskaya GRES), bringing the NTM dividend yield total to healthy 8.5%. Indeed, Unit 3 Berezovsakya GRES relaunch continues to be the key focus - any delay beyond 2021 (current deadline - 1H21) would not allow the company to pay even the current dividend level, albeit grow it to 12%. Thus, we do not believe the interim dividend recommendation is market moving. We expect to hear the the updates during the confernce call next week on 10th of November (see our RUSSIA – Unipro – 9mo20F IFRS preview; recovery is mild of 29 October).
8.3.3 ​ ECM news
Russia's largest food retailer ​X5 Group​ could IPO its delivery and e-groceryassetsintwo-threeyears​,K​ ommersant​dailyreportedon November 26 citing the management of the company. As reported by ​bne IntelliNews,​ X5hadastronghead-startondigitalinnovationintheRussian retail segment and used its advantage to ​emerge as the largest e-grocer amid the coronavirus (COVID-19) lockdown​. The digital overhaul of the company is detailed in an ​exclusive interview with Vladimir Salakhutdinov​, the head of strategy at the company. X5 is now considering an IPO of its express-delivery aggregator Okolo, Perekrestok Vprok platform, 5Post e-grocery logistics service, the management of the company said at an online conference organised by Aton. Perekrestok Vprok could be the first asset to go public, with its sales expected to exceed RUB100bn ($1.3bn) in 2021. Apart from IPOs, private placement investment is considered. The management of the retailer is encouraged by the ​most recent IPO of Ozon e-commerce platform on NASDAQ​, boosting its market capitalisation by 40% to over $8bn after the placement. The main shareholders of X5 Retail Group are CFT Holdings (part of the Alfa Group) with 47.86%, Intertrust Trustees (Axon Trust) with 11,43%,
89 ​RUSSIA Country Report​ December 2020 www.intellinews.com