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3. Appropriation of proft

The Directors have proposed the following appropriation of proft, expressed in thousands of euros, pending approval by the General Shareholders’ Meeting:

Amount

Proposed appropriation

Proft for the year 113,934

Total 113,934

Appropriation to:

Dividends 97,912

Voluntary reserves 16,022

Total 113,934

Limitations on the distribution of dividends

The Company is obliged to transfer 10% of the proft for the year to a legal reserve until this reserve reaches an amount at least equal to 20% of share capital. Unless the balance of the reserve exceeds this amount, it cannot be distributed to shareholders.

Once the legal or the company bylaw requirements have been met, dividends may only be distributed against proft for the year or against freely distributable reserves if the value of equity is not lower than share capital or would not be caused to be less than share capital by the distribution of dividends. Accordingly, proft recognized directly in equity may not be distributed either directly or indirectly. Where losses exist from previous years that reduce the Company’s equity to below the amount of share capital, proft must be allocated to ofset these losses.

At its meeting of 23 February 2011, the Board of Directors resolved to submit for approval by shareholders in ordinary meeting a proposal to distribute an extraordinary dividend amounting to EUR 42,248 thousand with a charge to the Company’s freely distributable reserves.

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Financial Statements, Management and Corporate Governance Report. 2010