In accordance with the Articles of Association, class B shares are preferred for a dividend, which is at least one percent and no more than 2.5 percent higher than the dividend paid to the holders of class A shares, calculated from the accounting par value of the share. The accounting par value of the share is EUR 0.25.
Payment of dividends
The Annual General Meeting approved the Board of Directors' proposal that for the financial year 2010 a dividend of EUR 0.895 will be paid for each class A share and a dividend of EUR 0.90 will be paid for each class B share. All shares existing on the dividend record date, March 3, 2011, are entitled to the dividend. The dividend will be paid on March 10, 2011.
| Class B share, EUR |
0.90 |
1.30 |
0.65 |
0.65 |
0.50 |
0.50 |
| Class A share, EUR |
0.895 |
1.295 |
0.645 |
0.645 |
0.495 |
0.495 |
In the table above for 2007-2005 the figures have been adjusted taking into account the share issue without payment (split) on February 28, 2008.
Kone Corporation demerged into two new listed corporations, KONE Corporation and Cargotec Corporation. The demerger was registered in the trade register on 1 June, 2005. Hence, the dividends shown in the table below illustrate the situation that existed before the demerger.
| Class B share, EUR |
2.00 |
2.00 |
1.50 |
0.73 |
0.50 |
| Class A share, EUR |
1.98 |
1.98 |
1.48 |
0.71 |
0.48 |
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Dividend Policy
KONE’s philosophy is to take an aggregated view of share price trends and dividends as components of total shareholder return. The growth in share value can also be influenced by the purchase of own shares. Consequently, KONE does not define a separate dividend policy. Furthermore, no definite capital structure target has been defined.
In the case of dividend distribution, the dividend paid on the class B share is higher than that on the class A share. The difference between the dividends is at minimum one (1) percent and at maximum two-and-a-half (2.5) percent, calculated from the accounting par value of the share. The accounting par value of the share is EUR 0.25.
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