Dividend policy

KBC Ancora intends to pay out its recurring profit in the form of a dividend to the greatest possible extent, subject to the prevailing legal parameters (such as setting aside a legal reserve).

It should be noted, however, that:

• In the event that KBC Ancora does not receive a dividend from its participating interest in KBC Group in any given year, KBC Ancora will itself not pay a dividend in that year. If KBC Ancora receives KBC Group dividend again in a subsequent financial year, its result carried forward from previous years will be taken into account when determining the profit available for distribution.
• The setting aside of the legal reserve does not constitute an economic cost for KBC Ancora shareholders. The share of profits that cannot be distributed due to the obligatory setting aside of a legal reserve remains part of KBC Ancora’s capital, which will, in time, be reflected in the price of KBC Ancora shares (indirect flow-through).
• KBC Ancora’s operating expenses, expressed in terms of the market value of its assets, are extremely low and are significantly lower, for example, than the management fees charged by BEVEK or SICAV investment funds.
• In the event of a (full or partial) reversal of the value write-down on the financial fixed assetsm effected in 2009, KBC Ancora also intends to take the necessary steps to neutralise the impact of this reversal on its ability to distribute dividends.