Retail Investors’ Frequently Asked Questions in Croatia

When will the General Assembly be held?
The General Assembly of the Company will be held in the Congress Hall of the Hypo Expo XXI Center, Zagreb, Slavonska avenija 6, on 21 April 2010 at 11:00 hours.

Where can I find information about the General Assembly?
The invitation to the General Assembly of HT-Hrvatske telekomunikacije d.d. was published in the Official Gazette of the Republic of Croatia, issue 32, of 12 March 2010 and on web pages of T-HT. It can also be obtained in the seat of the Company. The notification of the General Assembly will be published in daily newspapers as well.

Who can participate in the General Assembly?
Any shareholder of T-HT has the right to participate in the General Assembly if they report their participation, either personally or through their representative or proxy, to T-HT in writing and at the latest seven days prior to the holding of the General Assembly, i.e. in any case by 14 April 2010. A shareholder of T-HT is any legal entity or private person who is registered as a shareholder of T-HT with the depository of the Central Depository and Clearing Company, Zagreb, on the last day for the application for participation in the General Assembly, i.e. on 14 April 2010.

How can I vote? Who can vote?
All shareholders may vote if they have applied for participation to T-HT in due time. Shareholders vote only at the General Assembly, either personally or through their proxies.

Is participation in the General Assembly obligatory? Is participation in the General Assembly a precondition for receiving the dividend?
Participation in the General Assembly is neither obligatory nor a precondition for entitlement to the dividend.

Will T-HT pay out the dividend and when?
If the General Assembly accepts proposals of the Management Board and the Supervisory Board of T-HT, a dividend amounting to HRK 34.05 per share will be paid on 17 May 2010.

Who is entitled to the dividend? What is the last day to purchase the shares in order to be entitled to the dividend? What is the first day when I can sell my shares and still be entitled to the dividend?
In compliance with the proposal, the dividend will be paid to shareholders registered with the Central Depository and Clearing Company (CDCC) on the day of the General Assembly session planned for 21 April 2010. In order to be entitled to the dividend, the last day for the purchase of the shares is 16 April 2010. The first day on which the shareholders may sell their shares and still be entitled to the proposed dividend is 19 April 2010.

Can I be entitled to the dividend if I still have not registered shares purchased during the IPO with a broker?
In relation to preferential conditions from the IPO and the right to a bonus share after a year from the IPO, we would like to point out that the right to the dividend is realized regardless of registration with a broker, of course, if everything aforementioned has been observed.

Is there entitlement to the dividend of the shares acquired after the IPO as well?
The right to the dividend is realized with regard to shares purchased during the initial public offering (IPO) of T-HT shares and to shares acquired after the IPO, of course, if everything aforementioned has been observed.

I have T-HT shares. What do I have to do to receive the dividend?
The dividend is paid through the Central Depository and Clearing Company in the respective manner, selected by the shareholder when purchasing shares. Potential changes need to be reported directly to the Central Depository and Clearing Company.
If you need any additional details, please consult the Central Depository and Clearing Company or your broker house.

Who do I need to contact if I have problems with the dividend payment?
The dividend is paid to shareholders through the Central Depository and Clearing Company, Heinzelova 62a, p.p. 409, 10002 ZAGREB, phone: +385 1 4607 300, facsimile: 385 (1) 4677 696, e-mail: sda.za.investitore@sda.hr.

What do I need to do if I have changed the number of the account on which I wish to receive the dividend payment?
If you are a private person, you may deliver by mail a request personally signed by you and attach thereto a copy of the valid identification document, or you may come to the Central Depository and Clearing Company’s office for work with clients. If a Croatian or foreign legal entity changes its account, attached to the request (delivered by facsimile or mail) they need to send a copy of the contract for the provision of payment transactions, i.e. for the opening of a non-residential account with a national commercial bank. As to Croatian legal entities , these data can be checked in the public register of accounts held with the FINA (Financial Agency).

How can I receive a confirmation of paid dividend?
The Central Depository and Clearing Company delivers to shareholders a notification of dividend payment upon effected payment. If there is a need to issue a new confirmation, the dividend recipient may take over the confirmation personally at the Central Depository and Clearing Company upon producing their identification card. The confirmation may be also taken over by a person, whom the shareholder has granted the power of attorney for that purpose, provided they produce their identification card and the aforementioned power of attorney verified by the public notary.
If you cannot come to the Central Depository and Clearing Company, you may send a written request for the issuing of the new confirmation to the following address:
Središnje klirinško depozitarno društvo
Heinzelova 62a
10 000 Zagreb.

The request should specify the address to which the confirmation is to be delivered and should contain a copy of your identification card. The request must be signed by the dividend recipient. After receiving the request, the Central Depository and Clearing Company will send the confirmation by mail.

Is T-HT dividend taxable? Who are persons liable to tax and what are tax rates?
Dividend receipts are not considered a personal income and, accordingly, are not subject to income tax. However, dividends are subject to the special tax on salaries, pensions and other receipts at the 2% rate for amounts exceeding HRK 3,000.00 and below HRK 6,000.00, i.e. at the 4% rate for amounts exceeding HRK 6,000.00 in a month. A person liable to tax calculation and payment is the dividend payer at the moment of payment.

If I, for example, receive a dividend in the amount of HRK 8,000, do I pay 4% for the whole amount of the dividend, or 0% for the amount up to HRK 3,000, 2% for the amount from 3,000 to 6,000, and 4% for the amount exceeding 6,000?
A dividend amounting to HRK 8,000 is subject to the special tax in its whole amount at the 4% rate, if it is paid in one month.

How is tax settled? As a small shareholder, am I required to take certain activities or do I simply receive the net amount?
The dividend payer is obliged to calculate and suspend the tax and to pay the net amount (dividend amount less special tax) to the small shareholder’s account.

I still have not received T-HT dividends from previous years because I gave an incorrect current account number. Are they also subject to taxation?
The special tax applies to dividend payments regardless of the period from which the dividend originates, i.e. the special tax is paid also for dividends realized in previous years.