How will CCA use its strong free cash flow (eg. acquire more businesses, buy-back shares, repay debt)?
Our net debt to book equity was a healthy 54.1% at year end 2003 and follows the $260.1 million of free cash flow generated in 2003. The 2003 dividends increased by 24.3% as a consequence of the strong free cash flow and earnings growth. Consistent with our commitment to increase total shareholder returns your Board has established a dividend policy of paying between 70% to 80% of net profits as dividends. Dividends paid to shareholders have almost doubled since 2000. We shall continue to review acquisitions in the non-alcoholic ready-to-drink market on a case-by-case basis. Only those that meet a strict set of financial return criteria will be actioned. In the short term, that will involve acquisitions of beverage companies in our existing countries.
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