Dividend policy

In 2007 we updated our dividend policy. We aimed at a floor in the dividend of € 1.25 and consistent dividend growth through the cycle, based on a flexible payout ratio of 30% to 60% of net profit adjusted for amortization of acquisition-related other intangible assets. We stress tested the financing of the Vedior acquisition and based on a scenario of 5% revenue decline in H2 2008, 10% declines in both 2009 and 2010 and another 5% in 2011, we believed we would be able to pay this dividend. However, due to rapidly deteriorating markets, revenue declined at a pace far beyond this scenario in Q4 2008 and at the start of 2009, while visibility is low. In combination with the existing debt burden and the increased costs of capital, we believe it was prudent to pass the dividend over 2008 in order to strengthen the balance sheet. We aim to reinstate payment of dividends as soon as possible. In order to pay dividends we need stabilization of our markets, a clearly improved outlook, and preferably a leverage ratio of below 2. At this stage we can not guarantee the payment of dividends over 2009.

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