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New dividend policy

May 7, 2020

At Landsvirkjun‘s board meeting, on April 20, 2020, the board of directors agreed on a new dividend policy for the company. The objective of this new policy is to ensure the owner, the Icelandic State, a normal dividend from its stake in Landsvirkjun, while at the same time enabling Landsvirkjun to maintain its financial strength and fulfil its obligations and role as a leading company within the Icelandic electricity market.

The policy defines a certain calculation rule that takes into account cash from operation and investment activities during each accounting year and leverage at the end of the same accounting year. The result defines the maximum dividend amount to be paid the following year.

Based on Landsvirkjun’s 2019 consolidated accounts, the calculated maximum dividend amount is USD 74 million, equivalent to ISK 10 billion. At the Annual General Meeting on April 22, the owners of Landsvirkjun accepted the board of directors’ suggestion of this amount to be paid to the Icelandic State in 2020.

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