1. Board Adoption

This Dividend Distribution Policy (“Policy”) was approved by the Board of Directors of National Mineral Water Company SAOG, a company listed on the Muscat Stock Exchange (MSX), at its meeting held on 09/03/2026.

2. Purpose

This Policy is adopted to ensure transparency, regulatory compliance, and clarity regarding the Company’s approach to dividend distribution, in accordance with the applicable laws and regulations of the Sultanate of Oman and MSX requirements.

3. The Company’s Current Financial Position

The Board is currently focused on strengthening the Company’s financial position to support long-term business continuity, particularly in light of prevailing conditions and accumulated losses that have impacted shareholders’ equity. Accordingly, priority is being placed on enhancing operational performance to drive profitability, improve liquidity, and reduce leverage. Any profits generated will be directed towards fully offsetting the accumulated losses. Accordingly, dividends will not be distributed unless the accumulated losses have been fully extinguished, in line with applicable legal requirements.

4. Key factors affecting dividend distribution

a)     The distribution would negatively impact the company's ability to meet its debt and financial obligations on time.

b)     2.The dividends are paid from unrealized profits.

c)      The company has accumulated losses that have not been fully covered.

d)     Any other applicable legal and regulatory requirements.

5. The Company’s Approach to Dividend Distribution and Forms of Distribution

The Company seeks to achieve a balance between creating sustainable long-term value and delivering stable returns to shareholders, while maintaining adequate capital to support its operations. The Company does not commit to fixed or guaranteed dividend payout ratios. Instead, any distribution of profits is determined based on the Company’s financial performance, the availability of distributable profits, liquidity levels, and its ability to meet future obligations post-distribution. Consideration is also given to regulatory reserve requirements, future investment and growth needs, and prevailing market conditions in the sectors in which the Company and its subsidiaries operate. Dividend decisions may vary depending on the operational and financial outlook of the Company and its subsidiaries. The Board of Directors may, at its discretion, recommend not distributing dividends in order to strengthen the Company’s financial position and support future growth in line with its long-term strategy, with clear disclosure to shareholders.The Company’s dividend policy provides for distributions in the form of cash dividends and/or bonus shares, as determined by the Board of Directors and approved by the General Assembly.

6. Frequency

Dividends may be declared annually and/or as interim dividends. Final dividends shall be subject to Board recommendation and approval by shareholders at the Annual General Meeting (AGM), where required by law. Interim dividends may be declared by the Board of Directors in accordance with applicable laws and regulatory requirements.

7. Determining Factors

In recommending dividends, the Board shall consider various factors, including but not limited to:

a)      Net profit and retained earnings

b)      Mandatory and optional reserves, including the legal reserve.

c)       Solvency ratio and regulatory capital position

d)      Technical reserves adequacy

e)      Capital expenditure and investment plans

f)        Working capital requirements

g)      Debt levels and covenant restrictions

h)      Reinsurance arrangements

i)        Economic and market conditions

j)        The Company’s overall financial health, underwriting performance, and growth strategy

All dividend decisions shall comply strictly with applicable laws and regulations.

8. Dividend Approval Process

a)     Management shall submit dividend recommendations supported by financial analysis.

b)     The Board of Directors shall review and endorse the recommendation.

c)      Shareholders shall grant final approval at the AGM, where required under applicable laws.

9. Payment

Approved dividends shall be paid within the timelines prescribed by the Financial Services Authority and in accordance with Muscat Clearing & Depository (MCD) mechanisms.

10. Disclosures

Where dividends are declared or recommended, the Company shall disclose through:

• Muscat Stock Exchange (MSX) disclosure platform
• The Company’s official website
• Any other regulatory channel as required

Disclosures shall include:

• Type of dividend
• Amount per share
• Payout ratio (if applicable)
• Record date
• Ex-dividend date
• Payment date

11. Review and Amendment

The Board of Directors reserves the right to review and amend this Policy from time to time as it deems appropriate, including as a result of regulatory amendments, legal requirements, strategic considerations, or changes in the business environment.

Any amendments shall be approved by the Board of Directors and disclosed in accordance with applicable laws, regulations, and regulatory requirements.

12. Disclaimer

This Policy does not constitute a commitment or guarantee to distribute dividends in any given year. Dividend decisions remain subject to the Company’s financial performance, solvency position, regulatory obligations, and prevailing economic conditions at the time of determination.

13. Contact Information

Investor Relations / Board Secretary

For further clarification, shareholders may contact the Company through its official communication channels via email at:
[email protected]
Tel: 90691585