RE: I have2 Oct 2018 21:10
Nick Read: Yeah, I think it's important to understand how the board think about the dividend cause the board own the policy. And the board have a very specific view. They look at that we, we every year announce how much the cumulative free cash flow long-term incentive plan of management is. So, the midpoint of that range is €17 billion for the next 3 years. So our incentives are tied to delivering €17 billion plus or minus either side in terms of our bonuses and performance.
So they look at €17 billion. Then they say, okay, the dividend is €4 billion a year. So let's call that €12, I'm rounding €12. So they say okay so you got €5 billion of head room to cover spectrum, because that free cash flow is before spectrum. €5 billion to cover spectrum. What is the long-term average of spectrum payments? €1.2 billion, so 3 years, €3.6. So they look at it as we are covered. Yes, we are paying fairly foolish at this point in time. Clearly with €17 billion in a year, one guidance of greater than €5.2, there's growth in the free cash flow profile. And that's driven by EBITDA growth, going back to the conversation we had about absolute costs coming down on a multiyear basis. So they say the dividends covered. We're confident in the dividend policy that we have.