Profit appropriation

Proposal for appropriation of profit for 2021

The articles of association of Stedin Holding N.V. contain provisions concerning profit appropriation. The company's articles of association state that holders of the cumulative preference shares are entitled annually to a yield of 3%. The distribution of this yield is at the discretion of the Board of Management, subject to the approval of the Supervisory Board. If the preference dividend is not distributed, it must be added to the preference profit reserve.
In addition, the Articles of Association state that the Board of Management may reserve a maximum of 50% of the profit available for distribution (after the preference dividend), where at least 50% of the profit is available for the General Meeting of Shareholders, excluding exceptional income. The General Meeting of Shareholders may decide to distribute this amount in whole or in part. The Board of Management shall, after the approval of the Supervisory Board, make a recommendation to the General Meeting of Shareholders concerning the amount to be distributed.

The Board of Management intends, with the approval of the Supervisory Board, to distribute the preference dividend of € 3.1 million to the holders of preference shares. This would represent a dividend of €7.51 per preference share for 2021.
In addition, the Board of Management intends, with the approval of the Supervisory Board, to increase the reserves by an amount equal to 50% of the profit available for distribution for the 2021 financial year, i.e. an amount of €0.5 million.

Stedin Holding N.V. has designated the following items as incidental items:

A recommendation will be made to the General Meeting of Shareholders to resolve to pay a dividend of €0.5 million. This would represent a total dividend of €0.11 per share (2020: €4.14 per share).

The proposed profit appropriation has not been recognised in the balance sheet as at 31 December 2021.

Rotterdam, 17 February 2022

Stedin Holding N.V.