O2 Czech Republic : Board of Directors approved 2016 dividend and share premium distribution proposal (30 March 2017)

Inside information

The Board of Directors of O2 Czech Republic approved the 2016 dividend proposal in the total amount of CZK 5,274 million, which represents CZK 17 before tax per each share with the nominal value of CZK 10 and CZK 170 before tax per share with the nominal value of CZK 100. This represents 98% of unconsolidated net profit for 2016. The Board of Directors proposes to allocate remaining part of 2016 unconsolidated net profit for 2016 (CZK 112 million) to the retained earnings from previous years.

On top of the regular dividend, the Board of Directors proposes distribution of part of the share premium in the amount of up to CZK 1,241 million, which means CZK 4 before tax per each share with the nominal value of CZK 10 and CZK 40 before tax per share with the nominal value of CZK 100.

The proposed dividend and share premium distribution payment date is June 9, 2017, while those who will be shareholders on May 10, 2017 will be entitled for exercising the right to dividend and share premium distribution.

Whereas the company's assets include also treasury shares, no dividend and amount related to the distribution of the share premium will be paid to the company.

The proposal has been acknowledged by the Supervisory Board and will be subject to a vote at the General Meeting to be held on May 10, 2017, where the shareholders of the company will be deciding on its adoption. The proposal will also form a part of the invitation to the General Meeting. The invitation will be published in accordance with the timeline required by the law.

Investor Relations

O2 Czech Republic a.s. investor_relations@o2.cz t +420 271462076

O2 is the largest integrated telecommunications provider in the Czech market. At present we operate close to eight million mobile and fixed accesses, which ranks us among the market leaders in fully converged services in Europe. To users of mobile services in the Czech Republic we offer state-of-the-art HSPA+ and LTE technology. We have the most comprehensive proposition of voice and data services in the Czech Republic, and we actively exploit the growth potential of the various business lines, especially ICT. Our data centres, with total floor area of 7,300 square metres, rank us among the leaders in hosting, cloud and managed services. O2 data centres belong to the few commercial ones in Central Europe to have TIER III certification. With our O2 TV we are also the largest IPTV service provider in the Czech Republic.

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