The distribution of dividends and, when applicable, the amount and payment thereof, is subject to the approval of the Ordinary General Shareholders' Meeting, based on the recommendation of the Company's Board of Directors. In compliance with the applicable legislation, the distribution of retained earnings can only be made after the corresponding financial statements have been duly approved by the Ordinary General Shareholders' Meeting.

Furthermore, the Company may not distribute profits until the losses incurred in one or more previous years have been reinstated or absorbed through the utilization of other capital line items, or the capital stock have been reduced and a reserve fund is established or maintained.

CADU's dividend distributions could be adversely affected by the contractual provisions of debt instruments that the Company may subscribe in the future, and depends, in any event, on the capacity of its Subsidiaries to generate profits and pay dividends to the Company.

Additionally, before distributing profits, 5% of the Company's net income must be allocated annually to the reserve fund, until it equals one fifth of the Company's stock capital (i.e., 20%). The reserve fund must be restored in the same manner when it decreases for any reason.

The current dividend policy corresponds to an equivalent amount of up to 30% of the net retained earnings for the previous year in which they are paid. It is relevant to note that during 2020, meetings with bondholders were held, in which it was agreed, among other things, not to pay dividends in 2020 and 2021, which was extended to 2022 and 2023 at subsequent meetings.

Approval date Dividend
2019-04-29 0.85
2018-04-24 0.75
2017-04-27 0.66
2016-04-28 0.66