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Dividend Policy and History

Dividend Policy

The Brazilian Corporation Law requires that the by-laws of a corporation specify a minimum percentage of the amounts available for distribution by such corporation that must be distributed to shareholders as dividends for each year, also known as mandatory distribution, which may include distribution of net income and interest on shareholders’ equity.

The mandatory distribution is based on a percentage of the Company’s net income. Under our by-laws, a minimum of 25% of our net income for the year, calculated according to the Brazilian GAAP and adjusted pursuant to the Brazilian Corporation Law, must be distributed as the annual mandatory dividend. “Net income” for any particular year may be defined as the results of operations distributable as dividends in a particular year, prior to the deduction of any by-laws reserve or investment reserve.

Under the Brazilian Corporation Law, we may suspend any mandatory dividend distribution in fiscal years in which the Company’s board of directors informs its shareholders’ meeting that it would be inadvisable to distribute dividends because this could jeopardize the Company’s financial condition. This suspension is subject to approval by a meeting our shareholders’ upon a recommendation of the fiscal council, if active. In publicly held companies the board of directors must submit a justification of the suspension to the CVM within five days from the date of the shareholders’ meeting. If we do not declare dividends, the portion of our income that otherwise would have been allocated to distribution of the mandatory dividend must be held in a special reserve. If not subsequently offset against losses, this amount must be paid to our shareholders as long as our financial condition permits.

Pursuant to the Brazilian Corporation Law, the shareholders’ meeting of a publicly held company, such as we are, provided there is no objection from any shareholder in attendance, may decide to distribute dividends in an amount lower than the mandatory dividend, or decide to retain the whole net income solely to raise funds by issuing maturing debentures not convertible into shares.

The mandatory dividend may be paid in the form of interest on shareholders’ equity, considered a deductible expense for purposes of calculating our income tax and social contribution on net profits.

Dividend History

Distribution of Dividends and Interest on Equity

 

 

1H07 2H07 Total – 2007
Gross
Value (R$)
Net
Value (R$)
Gross
Value (R$)
Net
Value (R$)
Gross
Value (R$)
Net
Value (R$)
Dividends 18,268,556 18,268,556 18,184,535 18,184,535 36,453,091 36,453,091
Interest
on Equity
13,013,668 11,323,817 19,186,508 16,308,532 32,200,177 27,632,349
Total 31,282,255 29,592,373 37,371,043 34,493,067 68,653,268 64,085,441
Payment Date 08/27/2007 04/07/2008
1H08 2H08 Total – 2008
Gross
Value (R$)
Net
Value (R$)
Gross
Value (R$)
Net
Value (R$)
Gross
Value (R$)
Net
Value (R$)
Dividends 13,896,467 13,896,467 17,000,000 17,000,000 30,896,467 30,896,467
Interest
on Equity
12,021,083 10,217,921 0 0 12,021,083 10,217,921
Total 25,917,551 24,114,389 17,000,000 17,000,000 42,917,551 41,114,389
Payment Date 8/22/2008 07/31/2009 e 12/30/2009
Total – 2009
Gross Value (R$) Net Value (R$)
Dividends 50,000,000 50,000,000
Interest on Equity 0 0
Total 50,000,000 50,000,000
Payment Date 08/02/2010 and 11/30/2010
Total – 2010
Gross Value (R$) Net Value (R$)
Dividends 22,299,034 22,299,034
Interest on Equity 0 0
Total 22,299,034 22,299,034
Payment Date 12/15/2011
Total – 2012
Gross Value (R$) Net Value (R$)
Dividends 7,547,553.13 7,547,553.13
Interest on Equity 0 0
Total 7,547,553.13 7,547,553.13
Payment Date 12/16/2013
Total – 2013
Gross Value (R$) Net Value (R$)
Dividends 3,897,583.26 3,897,583.26
Interest on Equity 0 0
Total 3,897,583.26 3,897,583.26
Payment Date 12/16/2014
Total – 2014
Gross Value (R$) Net Value (R$)
Dividends 5.817.648.62 5.817.648.62
Interest on Equity 0 0
Total 5,817,648.62 5,817,648.62
Payment Date 12/16/2015
Total – 2016
Gross Value (R$) Net Value (R$)
Dividends 2,209,525.25 2,209,525.25
Interest on Equity 0 0
Total 2,209,525.25 2,209,525.25
Payment Date 12/15/2017