Dividend

Description

The dividend corresponds to the portion of the Company’s annual net profit distributed to shareholders. The amount, recommended by the Management Board, is subject to shareholder approval at the Annual Shareholders’ Meeting.

The dividend is payable within a maximum of nine months after the end of the financial year. It is paid out after being approved by shareholders at the Annual Shareholders’ Meeting.

All shareholders who own shares on the last cum dividend date (i.e., the day before the dividend is paid) are entitled to a dividend.

Taxation for individuals with France as their tax home

You have two options for dividends received as from 2008:

Tax determined according to the progressive scale for income tax.
In this case, you will be entitled to:
• A 40% deduction of the full dividend.
• A total annual deduction of €3,050 for couples filing a joint return and €1,525 for persons who are single, widowed, divorced or filing separately.
• A 50% tax credit on the full amount included in taxable income, within a limit of €230 for couples filing a joint return and €115 for persons who are single, widowed, divorced or filing separately.

Flat-rate withholding tax (18%).
This option, which cannot be modified, covers all eligible dividends received in the same year.
It is attractive for taxpayers with significant dividend income and who are subject to the marginal tax rate of 40%.
We recommend that you contact your bank, broker or tax advisor to see if this option is best for you.
Holders of non-administrated registered shares must mail their request for flat-rate withholding to BNP Paribas Securities Services.

Under both options, additional taxes amounting to 12.1% will be withheld. These include the Contribution Sociale Généralisée - CSG (8.2%), Contribution pour le Remboursement de la Dette Sociale - CRDS (0.5%) and Prélèvement Social - PS (3.4%).