Dividend Policy to be Proposed at the 1/2008 AGM
Ref: COR:MS/EL08001e/ms
4 January 2008
Subject : Clarification of Dividend Policy to be Proposed at the 1/2008 AGM
To: The President of the Stock Exchange of Thailand
Ref : Disclosure of Information No. COR:MS/EL07032e/ms dated 21 December 2007 in Relation to Annual General Meeting of Shareholders
In the above-mentioned report to the Stock Exchange of Thailand ("SET"), it was noted that an amendment to the dividend policy of Thoresen Thai Agencies Public Company Limited ("TTA") would be proposed for shareholders approval at the 1/2008 Annual General Meeting of Shareholders (the "1/2008 AGM").
According to the Federation of Accounting Professions (Issue No. 26/2549 dated 11 October 2006), TAS No. 44 "Consolidated Financial Statements and Accounting for Investment in Subsidiaries" requires that a parent company has to account for investments in subsidiaries and associates with the cost method instead of the equity method. TTA will adopt this accounting change during the current financial year from 1 October 2007 to 30 September 2008. This change could result in differences between the net profit amounts shown in TTA's consolidated financial statements and TTA's company only financial statements.
TTA would like to clarify its proposed dividend policy as follows: (The underlined words represent amendments from TTA's previous announcement.)
| Before | After |
| A minimum of 25% of the net profit after tax. | The Company's dividend policy is to distribute dividends to shareholders of at least 25% of the consolidated net profit after tax but excluding unrealised foreign exchange gains or losses, subject to the Company's investment plans, and other relevant factors. The Board may review and revise the dividend policy from time to time to reflect the Company's future business plans, the needs for investment, and other factors, as the Board deems appropriate. However, dividend distributions may not exceed the retained earnings reported in the Company only's financial statements. |
Cont. 2.../
| Thoresen Thai Agencies Public Company Limited | |
| Page 2 | Ref. No. COR:MS/EL08001e/ms |
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The amendment to the dividend policy will become effective from the 2008 financial year subject to shareholders approval. Other agenda items of the 1/2008 AGM that were previously reported to the SET remain unchanged.
Yours faithfully,
Thoresen Thai Agencies Public Company Limited
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