Le Foyer S.A.

Shareholders’ equity6 Movements in shareholders’ equity in the course of the year are shownin the table below.Reserve forSubscribed Issue Statutory wealth tax Other Retained Profit for(in €) capital premiums reserve deductions reserves profit the yearAt 31.12.2002 44 994 210.00 3 106 002.40 3 111 000.00 -xxx 10 400 000.00 4 979 405.23 9 369 641.77Appropriation of profitdividends -7 649 015.70reserves and retained earnings 470 000.00 388 000.00 5 000 000.00 -4 137 373.93 -1 720 626.072003 profit 9 717 931.78At 31.12.2003 44 994 210.00 3 106 002.40 3 581 000.00 388 000.00 15 400 000.00 842 031.30 9 717 931.7882On 31 December 2003, subscribed capital came to € 44,994,210.00,represented by 8,998,842 fully paid up shares with no assignednominal value. Authorised share capital is € 74,350,000.00.Statutory reserve7 Under Luxembourg law, 5% of a company’s annual net profit musteach year be transferred to a statutory reserve. These transfers ceaseto be obligatory once the value of the statutory reserve is equivalentto 10% of the company’s total share capital.The statutory reserve cannot be distributed to shareholders, exceptin the event of the company’s dissolution.