Reserving and dividend policy

Macintosh Retail Group’s reserving and dividend policy was discussed at the General Meeting of Shareholders of April 21, 2004. This policy is aimed at establishing a healthy financial position for the purpose of continuity and expected strategic growth through acquisitions. The underlying idea is that shareholders must be able to rely on
stability in dividend distribution and share in the profit growth.

Barring unusual circumstances, Macintosh Retail Group’s intention is to add some 60% of the net profit to reserves and distribute the remaining approximately 40% to shareholders in cash or in shares. The part of the profit that is to be added to the reserves is determined by the Managing Board, subject to the approval of the Supervisory Board. The balance then remaining is at the disposal of the General Meeting of Shareholders.

In the refinancing deal, Macintosh reached agreement with its lenders that dividends will be distributed only if the leverage ratio is structurally lower than 2.