Reserves and dividends policy
Taking account of the growth targets of the ERIKS group and the financial resources needed to achieve them, the company’s policy on reserves is essentially to consistently allocate to the reserves about 50 percent of the after-tax result placed at the disposal of shareholders minus amortisation.
The policy on dividends is essentially to consistently pay out as a dividend about 50 percent of the result available to shareholders plus amortisation. Shareholders may elect to receive the dividend in cash or in shares, charged to the reserves.
Dividend 2007
The profit appropriation and dividend proposal for 2007 can be found in the annual report.
We propose to declare a dividend of EUR 2.25 per share of EUR 0.50 for 2007, providing for a pay-out percentage of 50.2 percent of the result placed at the disposal of shareholders plus amortisation.
Shareholders may elect to receive the dividend in cash or in shares, charged to the reserves. The value of the proposed stock dividend will be 2 to 4 percent higher than that of the cash dividend. The stock dividend will be declared one day after the option period ends, based on the average price of the share during the last five trading days of the option period. During the year under review, 48.8 percent of the dividend for 2006 was paid out in cash and 51.2 percent as stock dividend. The value of the stock dividend was 4.07 percent higher than the cash dividend.