Erste Bank JPMorgan Merrill Lynch International

DIVIDEND POLICY
All Existing Shares of Wiener Städtische AG, including the shares issued in the Offering, carry
the same dividend rights.
Whether dividends will be distributed for any given fiscal year and the particular amount and
timing of the distribution of dividends is subject to a proposal for the distribution of profits by the
Management Board. This proposal is presented to the annual general meeting together with the report
of the Supervisory Board. The annual general meeting may then approve, but cannot increase, the
proposed dividend. Shareholders’ dividends not collected within three years after having become
payable shall be forfeited in favor of the free reserve of Wiener Städtische AG.
In accordance with the Articles of Association of Wiener Städtische AG, the Annual General
Meeting takes place within six months after conclusion of the foregoing fiscal year.
The balance sheet profit to be distributed among the shareholders will be distributed pro rata
based on the number of shares held. Equity contributions paid up during a fiscal year shall be taken
into account for profit distribution in relation to the period of time elapsed since the payment was
effected. When new shares are issued, a different dividend right may be fixed. The New Shares will
have dividend rights with respect to fiscal years begining on or after January 1, 2008.
Future distributions of dividends by Wiener Städtische AG will depend on its profitability, its
financial condition and on other factors, including its cash requirements, future prospects as well as
tax, regulatory and other legal conditions.
As one of its medium- and short-term financial objectives, the Vienna Insurance Group management
aims for a dividend distribution quota of at least 30% of the Group profits (Konzernüberschuss).
Whether Wiener Städtische AG will be in a position to distribute dividends depends on the nonconsolidated
(i.e. stand-alone) financial statements of Wiener Städtische AG prepared in accordance
with Austrian GAAP, in particular as laid out in the UGB (the Austrian Business Code, Unternehmensgesetzbuch)
and the AktG (the Austrian Stock Corporation Act, Aktiengesetz). Generally, dividends
may only be determined by reference to and paid out of the annual net profits for the year as shown
in the approved stand-alone annual financial statements. In determining the amount available for
distribution, the annual net profits have to be adjusted for reductions of or allocations to capital
reserves during the year. Certain statutory allocations to the capital reserves have to be made
decreasing the balance sheet profits available for distribution. The annual profit determined accordingly
has to be increased or decreased, as the case may be, by profit or loss carry forwards of the
preceding year. In addition, the applicable rules of the UGB provide for restrictions on distributions for
business years in which expenses for launching or expanding a business operation or tax assets are
shown on the assets side of the balance sheet: a profit distribution is only allowed to the extent by
which the amount of the free capital reserve relating to the balance sheet position plus a profit carry
forward (or minus a loss carry forward) is at least equal to the amount shown on the asset side of the
balance sheet. The restrictions on distribution and other legislation with an impact on the amount of
distributable profits may be amended by the legislator in the future.
There is no guarantee that Wiener Städtische AG will in the future have distributable balance
sheet net profits or reserves from which each year annual dividends can be paid in accordance with
the dividend policy as described above. Even if Wiener Städtische AG has a distributable balance
sheet profit, it cannot be guaranteed that dividends will be actually paid.
The following table sets forth the dividends per share paid by Wiener Städtische AG over the last
several years. No inferences as to the amount of future dividends from dividends can be drawn paid in
the past.
Dividend distributed
EUR per common share
For fiscal year ended December 31,
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.10
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.82
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.66
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