Dividend Policy and Payments

Dividend Policy

The Company’s annual dividend payment is determined by the Board of Directors and must be approved by the shareholders' meeting of the Company. This requirement does not include interim dividend payments, which the Board of Directors has the power to approve from time to time as appropriate. The Board of Directors is required to report such approvals to the shareholders' meeting following the authorization.

The Company has a policy to pay dividends at the rate of no less than 40 % of the net profit according to the consolidated financial statements, after deducting corporate income taxes and various types of reserves required by law. Nonetheless, payment of such dividends is dependent on the Company’s performance in each year. In addition, the Company's Board of Directors has the power to consider exemption from implementing the said policy or modify such policy from time to time under the condition that the action must be in the best interest of the shareholders of the Company - for instance, in cases that dividends are allocated to be used as a reserve for loan repayment, used as investment to expand the business of the Company, or in the event of change in market conditions that may have an impact on the Company's cash flow in the future.

For dividend payment of subsidiaries and/or associates to the Company, it will depend on the cash flow and liquidity, as well as suitability and needs of each company.