Kendrion Worldwide

Division Automotive

Kendrion N.V.

Kendrion N.V. is a public limited liability company incorporated under the laws of the Netherlands, with its registered office in Zeist.

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Dividend policy

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

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, with the approval of the Supervisory Board, submitted a proposal to the shareholders for the payment of a dividend of 53% of the net profit of 2016. The dividend is equivalent to an amount of EUR 10.4 million. The number of outstanding shares entitled to dividend at 31 December 2016 was 13,396,034 and, consequently, the dividend amounts to EUR 0.78 per ordinary share. A proposal was submitted to the shareholders during the General Meeting of Shareholders on 10 April 2017 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 will be set on 3 May 2017 (before start of trading), on the basis of the volume-weighted average price of all ordinary shares in Kendrion traded on 25, 26, 27 and 28 April and 2 May 2017, at a level whereby the value of the dividend in shares is virtually equal to the cash dividend. The dividend will be made available on 5 May 2017.

Both proposals were approved.