Kendrion’s dividend policy takes account of both the interests of the shareholders and the expected further development of the company.

Kendrion carried out an evaluation of its dividend policy during the course of 2011. The results from this evaluation were discussed during the General Meeting of Shareholders on 16 April 2012.

Kendrion endeavours to realise an attractive return for shareholders, supported by a suitable dividend policy. However, to provide the necessary assurances for its continuity the company needs to retain a healthy financial position. When the dividend to be distributed to shareholders is determined consideration also needs to be given to the amount of profit to be retained to support the medium and long-term strategic plans of the company and to maintain a minimum solvency ratio of 35%. Kendrion strives to distribute an annual dividend of between 35% and 50% of the net profit. In principle, Kendrion offers shareholders an opportunity to opt for dividend in cash and/or in the form of ordinary shares in Kendrion N.V.’s capital.

The Executive Board have, in line with the dividend policy and with the approval of the Supervisory Board, submitted a proposal to the shareholders for the payment of a dividend of 50% of the normalised net profit of 2012. The dividend is equivalent to an amount of EUR 6.75 million. The number of outstanding shares entitled to dividend at 31 December 2012 was 11,639,375 and, consequently, the dividend amounts to EUR  0.58 per ordinary share with a nominal value of EUR 2.00 each.

The General Meeting of Shareholders resolved on 15 April 2013 for the payment of the dividend, at the shareholder’s discretion, in cash and/or in ordinary shares, charged to the share premium reserve. The share dividend has been set on 7 May 2013 (before start of trading), on the basis of the volume-weighted average price (VWAP) of all ordinary shares in Kendrion traded on 29 and 30 April and 2, 3 and 6 May 2013, at a level whereby the value of the dividend in shares is virtually equal to the cash dividend. The VWAP was 18.8366. 133,113 shares have been delivered on 9 May 2013.