The annual net profit of the Company shall be distributed after deducting general costs and other costs, as follows:

Set aside ten percent (10%) of the net profits to form the statutory reserve. The Ordinary General Meeting Assembly of Shareholders shall discontinue this deduction when the reserve amounts to half of the Company’s capital;

• The Ordinary General Assembly of Shareholders Meeting may, according to the Board of Directors proposal, set aside other percent as deemed approriate from the net profit to form a reserve for a certain purpose or purposes; and
• Using the remained amount, a first dividend payment of five percent (5%) is allocated to the shareholders out of the paid-in capital.
• Next, Board of Directors allowance is allocated then the rest is distributed to the shareholders as an additional share of the profits.

Dividends scheduled to be distributed among shareholders shall be paid at a place and time determined by the Board of Directors according to instructions from the appropriate government authorities.

The declaration of a dividend will be dependent upon Yansab’s earnings, its financial condition, the condition of the markets, the general economic climate and other factors, including analysis of investment opportunities and the reinvestment needs of the Company, cash and capital requirements, business prospects and, as well as other legal and regulatory considerations and any dividend restrictions under any debt financing arrangements the Company intends to enter into. In addition, Yansab may also take into account the dividend payment practices of other major Saudi Arabian and GCC companies, and international petrochemical operators.

Yansab does not expect to pay annual dividends to its shareholders for at least the first three years following its incorporation, or depending on the cash flow and financial leverage (whichever is longer), and is expected to be detailed in the terms and conditions of the loans, in order to build its revenues and fund its capital expenditure program during that phase.