Our dividend policy is based on constantly high and free cash flow covered dividend payments. We seek to distribute a dividend equivalent to 80 per cent of free cash flow.

freenet is therefore considered to be one of the top dividend stocks on the German capital market.

The upcoming dividend distribution of freenet AG will be made from the tax-specific deposit account, so the payment will be made without deduction of withholding tax and solidarity surcharge. freenet AG assumes that this will continue to be the case in the coming financial years.

Domestic investors who acquired freenet AG shares after 31 December 2008 will realise a profit subject to withholding tax in the event of a sale. In the opinion of the German tax authorities, in this case the distributions reduce the taxable purchase costs of the shares and thus lead to a profit on sale – and therefore to an implicit subsequent taxation of the dividends.

*The dividend yield is calculated by dividing the dividend per share and the closing price (XETRA) on the day of the Annual General Meeting.

**The Annual General Meeting approves to pay a dividend for the 2020 financial year in the amount of 1.50 euros per no-par-value share and a special dividend of 0.15 euros per share.

***To ensure the financial stability and flexibility of the freenet Group at a time when the effects of the coronavirus crisis could not yet be foreseen, the proposal by the company’s management to suspend the dividend for the 2019 financial year and only distribute the legally binding statutory minimum of 0.04 euros per share was adopted with a majority of 94.74 per cent at the Annual General Meeting on 27 May 2020.