#Sweden #Dividend #Truecaller #Stockholm #Share Cancellation

Truecaller Proposes Substantial Dividend and Share Buyback

In a recent announcement, Truecaller's Board of Directors has put forward a proposal for a dividend of SEK 1.70 for each share based on their performance in the financial year 2024. This decision is complemented by a plan to cancel more than 3.9 million shares that were previously repurchased. Alongside this, the Board seeks authorization from the upcoming Annual General Meeting (AGM) to buy back up to 10% of Truecaller’s outstanding shares.

Financial Performance and Future Prospects

The decision to propose a dividend is rooted in Truecaller's solid profitability. The company established a dividend policy in 2024, intending to distribute 25% of its annual net profit to its shareholders. For the fiscal year 2024, this allocation translates to approximately SEK 0.37 per share. Additionally, the Board is recommending an extra dividend of SEK 1.33 per share.

This initiative comes despite the financial distributions, with the Board expressing confidence that Truecaller will maintain a robust financial stance which is crucial for meeting future operational needs. As of the end of the previous fiscal year, the company had around SEK 1,324 million in cash and short-term interest fund investments, showcasing its healthy liquidity position. The total cash outlay proposed for dividends will exceed SEK 580 million.

Chairman’s Statement

Nami Zarringhalam, the Chairman of the Board, emphasized the ongoing commitment to returning value to shareholders. He stated, "The Board intends to continue returning capital to shareholders through both dividends and potential future share buybacks. Given Truecaller's strong financial position, profitability, and cash flow, we are again proposing a larger dividend for a more capital-efficient structure. Our profitability and robust cash flows enable us to fund growth while also rewarding our shareholders with dividends and repurchases."

If the AGM approves the dividend proposal, Truecaller will have returned over SEK 2.2 billion to its shareholders through dividends and buybacks since its initial public offering (IPO) in 2021.

Historical Context of Dividend and Share Buybacks

To understand the significance of these proposals, it's essential to look back at Truecaller's past dividend distributions. The company’s track record from previous years hints at their strategy of rewarding shareholders consistently while also investing in growth:

• - 2022: Dividend of SEK 182 million
• - 2023: Dividend of SEK 660 million
• - 2024: Proposed total of SEK 832 million (including buybacks)
• - 2025: Current proposal of SEK 580 million

Altogether, Truecaller has allocated over SEK 2.254 billion in buybacks and dividends cumulatively over these years, showcasing their commitment to maximizing shareholder value.

Future Meeting and Proposals

The detailed proposals for the aforementioned matters will be discussed in the upcoming AGM scheduled for May 23. An official notice and other relevant proposals will be circulated through a subsequent press release and will be accessible on Truecaller's official website.

In conclusion, Truecaller's strategic moves not only reflect a solid financial foundation but also indicate a forward-thinking approach in maximizing shareholder satisfaction while ensuring the company is well-prepared for future challenges and opportunities in the market.