Addition to the Provision for general
contingencies
The amount of the addition was reduced by
Fl. 25 million to Fl. 600 million. The
improvement in the economic climate resulted
in a lower amount being required for specific
bad debt provisions in the domestic sector, but
these provisions in the foreign sector were
still at too high a level. Partly as a consequence
of the decline in value of the dollar, it was
possible to reduce the size of the provisions
formed in respect of investments in countries
with balance of payments problems.
Taxation
This amount is made up of the taxation payable
on the profit for the year under review both in
the Netherlands and abroad. Taxation rose by
6.3% in absolute terms, although the total tax
burden fell. In the domestic sector there was a
net increase in taxation mainly due to the
increase in gross profits, but in the foreign sector
amongst others more generous fiscal allowances
in a number of countries meant a reduction in
taxation.
shares, Share capital will increase by Fl. 17
million and Reserves by Fl. 68 million. Payment
in shares charged to the Share premium reserve
does not attract income tax or dividend tax in
the Netherlands. The new shares will be entitled
to dividend for 1986 and subsequent years.
Profit Appropriation
In consultation with the Supervisory Board an
amount of Fl. 247 million has been appropriated
to Reserves. After payment of the primary
dividend of 4% on the priority shares and 5% on
the ordinary shares and the bonus to the
Supervisory Directors amounting to Fl. 900,000,
the remaining amount of Fl. 187 million is
available for distribution in dividend to holders
of ordinary shares. The total dividend thus
amounts to Fl. 230 million so that, including the
interim dividend of Fl. 13 made payable on
30 August, the dividend per ordinary share
amounts to Fl. 27.
Instead of the final cash dividend of Fl. 14 per
ordinary share, payment of Fl. 4 in cash together
with payment in ordinary shares charged against
the Share premium reserve or, if desired, against
the General reserve, on the basis of one new
ordinary share for every 50 ordinary shares held,
may be taken at shareholder's option. Final
dividend which is not taken in cash will be
added to Reserves in due course. If all share
holders opt to take part of the final dividend in
Amsterdam, 21 March 1986
Managing Board
R. Hazelhoff
H. Langman
J. de Jongh
P. J. Kalff
C. J. Oort
L. D. de Bièvre
P. RibourdoiuIIe
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