By letter dated
October 26, 2020, the Company informs
that the Shareholders’ Meeting has resolved that (i) the sum
of ARS 95,031,214 must be deducted from the earnings for the year,
which restated at the date of the Shareholders’ meeting rises
to the sum of ARS 102,305,796, in order to integrate the legal
reserve, thereby complying with the provisions of art. 70 of the
General Law of Companies and the Regulations of the National
Securities Commission and (ii) the unallocated results as of
06.30.2020 amount to the negative sum of ARS 2,387,032,790.61,
which restated at the date of the Shareholders’ Meeting
amount to ARS 2,569,758,719, formed by (a) the adjustment of
results from previous years for the amount of ARS 814,138,722.68,
which restated at the date of the Shareholders’ Meeting rise
to ARS 876,460,553, (b) the negative effect of other changes in the
equity of subsidiaries for ARS 60,919,391.76, which restated at the
date of the Shareholders’ Meeting rise to ARS 65,582,735, and
(c) the effect on unallocated results of the distribution of shares
approved by the Shareholders’ Meeting on October 30, 2019 for
ARS 1,511,974,676.17, which restated at the date of the
Shareholders’ Meeting rise to ARS
1,627,715,430.
Considering the necessity to integrate the legal reserve, there is
a remaining balance for the year in the amount of ARS
1,805,593,061.32 that must be used to absorb the adjustment of
results from previous years for the sum of ARS 814,138,722.68, the
negative effect on other changes in the equity of subsidiaries for
ARS 60,919,391.76 and partially the effect on unallocated results
of the cost of distribution of treasury shares for ARS
1,511,974,676.17.
Consequently, and considering that the Company can only distribute
dividends after losses have been absorbed, the meeting resolved not
to distribute dividends.