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:)divideNdpOlicy_The dividend policy, approved by the Board of Directors andcommunicated at the Ordinary General Shareholders Meetingon April 26, 2011 is as follows:Dividend policyIn accordance with the regulations set out by the Chilean Securitiesand Insurance Supervisor, the board of directors mustapprove the company’s dividend policy for future years.For 2011 and subsequent years the board intends to keep astable dividend policy and proposes to distribute up to 80%of the profits earned during each financial year as a dividendand also, where applicable, to capitalize part of these profitsaccrued at the end of each period. It is proposed to pay the finaldividend on or before 31 May of each year. The intention is topay an interim dividend in the final quarter of 2011 with the valueof this payment to be based on the company’s performanceduring the first three quarters of this period.The policies for the determination of the liquid distributableprofit for the handling of adjustments for the initial applicationof IFRS for the 2009 financial year are maintained as follows:a.- As policy to determine the liquid distributable profit for thefinancial year, it was agreed to consider the net effect, takinginto account positive and negative variations from changes inthe fair value of assets and liabilities.In the event of a net positive effect (profit), this will be deductedfrom the financial profit in order to calculate the liquid distributableprofit.In the event of a negative effect (loss), this will not be addedto the distributable liquid profit. It is expressly stated that thispolicy relates to adjustments for the purpose of financial derivativecontracts, since at the date of writing, the companyhas no recorded assets or liabilities subject to adjustment tomarket values as per IFRS.115Report 2011In determining the percentage of profit and the dates on whichproposed final dividends will be paid, the company seeks toensure financial stability while adhering to the established distributionpolicy. In particular, specific attention has been paidto safeguards in terms of debt, liquidity, and finance budgeting,and possible covenants that may arise in public supplycontracts and credit agreements entered into by the company.b.- As policy for handling adjustments for the first-time adoptionof IFRS, losses incurred for the first-time adoption of IFRSwill be managed in an equity account. As such, it has been decidednot to absorb them by decreasing paid-in capital.However, a decision may be taken to absorb this balance byallocating it against profits for future financial years.At all times, the board’s intended dividend payments dependon the results and investment requirements as stated in theforecasts made regularly by the company.It is also noted that the policy was communicated to the ChileanSecurities and Insurance Supervisor in a timely manner and that