Dividends and Interest on Equity

Payments of Dividends and of Interest on Equity

 

Pursuant to the Brazilian Corporation Law and Raízen’s Bylaws, the company must hold its annual shareholders’ general meeting up to July 31 of each year, which will to resolve on the allocation of income relative to the current fiscal year‘s income and the distribution of dividends. The payment of annual dividends is determined based on the audited financial statements of the previous fiscal year.

Pursuant to Raízen’s Bylaws, the amount required to pay the mandatory dividends to the common shares and preferred shares, which cannot be less, in each fiscal year, than 1% (one percent) of the adjusted annual net income. Adjusted net income is the amount that can be distributed, before deductions for statutory reserves and capital expenditure reserves allocated to investment projects.

Raízen’s Board of Directors can may declare interim dividends to be deducted from accumulated profits or existing profit reserves in the previous annual or semi-annual balance sheet. In addition, the Board of Directors may declare the payment of dividends based on the net income in the company’s semi-annual or quarterly balance sheet. The dividends paid each semester shall not exceed the company’s capital reserve. The distribution of interim dividends can be imputed to the mandatory dividends related to the net income at the end of the fiscal year in which interim dividends were distributed.

Mandatory dividends can also be paid as interest over capital, booked as deductible expenses for the purpose of income tax and social contribution on net income paid by the company.

See in the following table and chart the historical of distributed Dividends and Interest on Equity by Raízen S.A. referring to the last years.

 

Crop Year Payment Type of Earnings Total Amount (in R$)
2016/17 Dividends  R$ 2,269,158,936.02
Interest on Equity R$ 429,000,000.00
2017/18 Dividends R$ 2,854,551,066.70
Interest on Equity R$ 194,000,000.00
2018/19 Dividends R$ 2,071,567,956.26
Interest on Equity R$ 176,400,000.00
2019/20 Dividends R$ 2,511,235,064.75
Interest on Equity R$ 93,900,000.00
2020/21 Dividends R$ 2,249,577.87

Click here to download Dividends and Interest on Equity Payment spreadsheet.