Pursuant to the Company’s Bylaws, at least 25% of the adjusted net income of the fiscal year must be allocated for the payment of dividends. The Company may also distribute quarterly dividends as long as the dividends paid do not exceed its capital reserve.

The dividends payable to the shareholders, as well as other amounts payable, will be paid as resolved by the shareholders’ meeting, between the end of the fiscal year and the date set for the effective payment.

The Company may declare interim dividends to be deducted from the accumulated profit reserve or from income allocated to the existing profit reserves in the last annual or semi-annual balance sheet approved by the shareholders. In addition, the Company may declare dividends based on net income recorded in the last semi-annual balance sheet or any balance sheet related to a shorter period, as long as the dividends paid in each half-year of the fiscal year do not exceed the Company’s capital reserve. The distributions of interim dividends may be deducted from the mandatory dividends related to net income at the end of the fiscal year in which the interim dividends were distributed.

History

* Portuguese only.
** Payment suspention approved at the ESM of 12/29/2015. Partial capitalization of R$ 7.2 million through a capital increase approved at the BDM of 12/16/2016.
*** Allocation of net loss for the fiscal years to the retained net loss account.