The distribution of dividend for the financial year of 2018
The payment of dividend, in respect of the 2018 financial year, will commence on 27 June 2019 (starting day of the dividend payment). The Dividend Per Share will be announced in a separate announcement – as soon as the number of treasury shares on the record date becomes known – by the Company.
The Annual General Meeting of MOL Hungarian Oil and Gas Company Public Limited Company (MOL Plc. or Company) held on 11 April 2019 approved to pay a dividend of HUF 107,284,482,158 in respect of the 2018 financial year. According to the resolution of the Annual General Meeting the dividend on treasury shares will be distributed to shareholders entitled to receive dividend, in proportion to their number of shares.
The payment of dividend will commence on 27 June 2019 (starting day of the dividend payment)
Prior to payment of the dividend, MOL Plc. will carry out a shareholder identification, based on the data of 18 June 2019 (Record Date). The last day of trading on the Budapest Stock Exchange and the Warsaw Stock Exchange for shares entitled to the dividend of 2018 financial year will be 14 June 2019 in case of T+2 days settlement (ex-coupon day: 17 June 2019). Shareholders (natural persons and legal entities) will be entitled to receive the dividend if they own MOL shares at the Record Date, and their account keeper has requested that the shareholder be recorded in the Company Share Register. Shareholders will remain entitled to receive the dividend within a limited five-year period (set by the statute of limitation) beginning at the starting day of the dividend payment. The Company is not obliged to pay any interest on dividends paid after 27 June 2019.
According to Section 3:225. (3) of Act V of 2013 on the Civil Code, any dividend that is payable on the company’s own shares shall be taken into account at nominal value as pertaining to shareholders with respect to the dividends payable on their shares. Therefore, the Dividend Per Share may change depending on how many treasury shares will be held by MOL Plc. on the Record date.
The Dividend Per Share will be announced in a separate announcement – as soon as the number of treasury shares on the record date becomes known – by the Company until 13 June 2019.
Process of dividend payment:
1. In respect of shareholders holding their shares in a security account with a Hungarian account keeper, the dividend will be transferred to the bank account attached to the security account held at the account keeper or to the personal bank account of the shareholder from 27 June 2019, if the above mentioned account keeper has transferred all adequate data suitable for identification of the shareholder in the requested form to KELER Ltd.
If the account keeper inadequately identifies the owner of the respective shares by the given Record Date, the account keeper may finish the identification process later, according to KELER Ltd.'s General Business Rules. Having obtained the missing or supplementary information, KELER Ltd. determines the net dividend payable and transfers it to the account of the shareholder at its account keeper or to his personal bank account. Please note that in such cases KELER Ltd. executes supplementary transfers only once a month which shall not be considered as late payment. The Company therefore kindly asks all shareholders to request their respective account keepers to perform the said shareholders identification appropriately and in a timely manner, and in case of doubt they should check whether the account keeper has all data required for the data to be supplied to KELER Ltd. The Company and KELER Ltd. do not undertake any liability for late dividend payments arising from the delay of or incomplete, unsuitable or missing information from the shareholder or its account keeper, furthermore do not undertake any liability if the dividend is transferred to a bank account based on the direct declaration of the shareholder that differs from the bank account given by the account keeper.
2. In case of DR holders, dividends will be transferred by MOL Plc. through the domestic custodian bank (UniCredit Bank Hungary) to the shareholders through The Bank of New York Mellon (the DR issuer). In case of any question should arise, holders of DRs may contact The Bank of New York Mellon (101 Barclay Street, 22 West New York, NY 10286, phone: 1 212 815 3503 fax: 1 212 571 3050), or its Hungarian custodian bank UniCredit Bank Hungary Zrt., Department of Deposits (1054 Budapest, Szabadság tér 5-6, phone: 36 1 301 1942).
3. In case of shares introduced to the Warsaw Stock Exchange the account keepers have to identify shareholders via Polish Clearing House (KDPW) and the money transfer shall also be delivered via KDPW. The Company also pays the dividend for these shares in HUF, the exchange is the shareholder’s task.
We kindly call the attention of the shareholders to the following:
For private individual shareholders having Hungarian domicile the dividend is payable only if they provide their surname and first name, surname and first name at birth, Tax ID number, date of birth and address, via their account keeper. If there is any lack of the above mentioned personal data, the dividend cannot be paid under the legal provisions. When the above mentioned data has been provided, the dividend will be paid out after the deduction of 15% personal income tax, in compliance with the provisions of Sections 66 and 8 of Act CXVII.of 1995 on Personal Income Tax (“Act on Personal Income Tax”),
For legal entity shareholders having Hungarian domicile the dividend is payable only if its name, registered seat and tax number is provided via the account keeper. In this case the dividend is paid without any tax deduction.
For private individuals shareholders having foreign domicile the dividend is payable only if they provide their name, name at birth, date of birth, address, citizenship and the Tax ID number given by Hungarian TAX Authority or passport number via their account keeper. When the above mentioned data has been provided, the dividend will be paid out after the deduction of 15% personal income tax, in compliance with the provisions of Sections 66 and 8 of Act on Personal Income Tax,. If a foreign domiciled individual shareholderintends to receive its dividend through application of a preferred tax rate in accordance with inter-state treaties on avoidance of double taxation, such shareholder is obliged to submit to the Issuer Department of KELER Ltd. (address: H-1074 Budapest, Rákóczi út 70-72., R-70 Irodaház) until 18 June 2019 all the documents specified in Annex 7 to the Act on Personal Income Tax. We kindly remind the shareholders and the account keepers that the certificates of residency issued by foreign tax authorities regarding the tax year 2019 will be acceptable in English, in Hungarian professional translation or a copy of one of them. If a certificate of beneficial ownership is also required by the treaty on avoidance of double taxation, this certificate shall also be translated into Hungarian by a professional translator to be. The certificate of beneficial ownership can also be issued in Hungarian. If the shareholder would like to receive the dividend with preferred taxation, but fails to submit the required documents within the deadline, until 18 June 2019 the shareholder may request in writing to withhold the dividend until the arrival of the documents.
If a foreign domiciled individual shareholder has the documents specified in Annex 7 to the Act on Personal Income Tax and there is an inter-state treaty on avoidance of double taxation based on which a preferential tax rate can be used, but the shareholder fails to submit the documents to KELER Ltd. (or to request to withhold the dividend until the arrival of the documents) by 18 June 2019 and therefore receives dividend after deduction 15% income tax, they may apply to the Significant Taxpayers’ Office (in Hungarian: “Kiemelt Adózók Igazgatósága”) of the National Tax and Customs Administration (“NAV”) of Hungary and claim back the difference between the 15% and the preferential tax rate. The tax authority shall remit the amount of such tax difference to the payment account specified by the foreign domiciled individual shareholder (Section 4 of Annex 7 to the Act on Personal Income Tax).
For legal entity shareholders having foreign domicile the dividend is payable only when it can be unequivocally established that the shareholder is a legal entity having foreign domicile. In this case the dividend will be paid without any tax deduction.
For entities represented by a Nominee, as a general rule 15% tax will be deducted from the dividend.
If the account keeper of the nominee specifies in the course of the recording process (shareholder identification process) the number of shares held by individual shareholders and the number of shares held by legal entities (not private individuals) from the total number of shares represented by the nominee, then the dividends will be paid after applying the relevant tax rate. In case of legal entity shareholders, no tax will be deducted from the payable dividends. In case of private individual shareholders, personal income tax of 15% will be deducted from the payable dividends.
The Nominee is obliged to make a statement and provide detailed data from private individuals (pursuant to Section 8 of Annex 7 to the Act on Personal Income Tax) to KELER Ltd. acting as agent on behalf of MOL until the deadline specified in the Act.
If the shares represented by the nominee are owned by foreign domiciled individual shareholders who intend to receive their dividends through the application of a preferred tax rate, then those shareholders should be recorded separately in the course of the recording process and the provisions detailed above in the paragraph starting with “For private individuals having foreign domicile” shall apply for them.
In case of shares held on long term investment account (in Hungarian: ‘Tartós Befektetési Számla’)
In case of shares held by domestic and foreign individuals on long term investment account, no tax will be deducted from the dividends (pursuant to Section 67/B (6) c) and Annex 7 to the Act on Personal Income Tax). Simultaneously with claiming the dividend, account keepers are required to indicate to KELER Ltd., acting as agent in the dividend payment on behalf of MOL Plc., that shares are held on long term investment account, and the dividend to be paid will be registered in deposit, otherwise the dividends will be paid after deducting a personal income tax of 15%.
Shareholders who have not received yet their dividend in respect of the 2013, 2014, 2015, 2016 and/or 2017 financial years, may claim their dividend through their account keeper with providing supplementary information to KELER Ltd. In case of dividend received in respect of the previous years, the Company is not obliged to pay any interest for the period elapsed since the commencement date of the dividend.
If you need any further information on dividend payment, please do not hesitate to contact our colleagues on +36-1-483-6251 or send an e-mail to the following e-mail address: email@example.com
The Board of Directors of
MOL Hungarian Oil and Gas Public Limited Company