Provision in the Articles of Association concerning the appropriation of profit
The provision and the appropriation of the net profit is based upon the Articles of Association and the Agreement State-FMO of November 16, 1998.
The General Meeting will determine which portion of the result of a financial year is reserved or in which way a loss will be incorporated, as well as the appropriation of the remaining profit, with regard to which the Supervisory Board and the Management Board can make a non-binding proposal in accordance with the provision and dividend policy adopted by the General Meeting, taking into account the relevant provisions in the Agreement State-FMO of November 16, 1998.
Proposal for appropriation of profit
A company net profit of €120,363k was recorded in 2019. Under the Agreement State-FMO of November 16, 1998, FMO is required to add €117,656k to the contractual reserve. Therefore the 2019 profit is not completely distributable. The distributable element of the net profit amounts to €2,707k (2018: €3,570k). The Management Board and the Supervisory Board propose distributing a sum of €2,707k (2018: €3,570k) as cash dividend equaling €6.67 per A and B share (2018: €8.92 per A and B share). This proposal for dividend distribution can be withdrawn if FMO's economical and financial conditions deteriorate significantly in the period up to the moment of distribution of the dividend. This reservation is the result of the recommendation of the European Central Bank and adopted by the Dutch Central Bank.