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Dividends

Dividends and Interest on Shareholders’ Equity

Corsan’s Dividend Policy sets out the rules and procedures regarding dividends payout and/or interest on shareholders’ equity of the company; the frequency of those payouts; the reference standards to be used to define the amount and percentages of profits to be distributed for a given fiscal year; the bodies responsible for proposing dividends payouts and/or interest on shareholders’ equity; and the circumstances and factors that could affect payouts.Concerning shareholders and their representatives, members of the Board of Directors, members of the Audit Committee and members of other bodies with technical or consultative functions at Corsan, the Policy has its groundwork on the Federal Law No. 6.404/1976 – Corporate Law, Federal Law No. 13.303/2016 – Legal Statute of State Companies and the Company Socials Bylaws.

Corsan allocates to shareholders, as dividends or interest on shareholders’ equity, the amount corresponding to a minimum of 25% (twenty-five percent) of the adjusted net income, calculated in each fiscal year, after deducting the legal reserve of 5% (five percent), pursuant to art. nº 202 of Federal Law nº 6.404/1976.

Dividend Policy was first elaborated in March 2017 by the Office of the President, having being approved by the Board of Directors in June 2017. It has since been effective and was lastly updated in September 2020, and has the objective of regulating the practices of dividends payouts to shareholders when Corsan obtains profits for the fiscal year, and the criteria for retaining profits. Therefore, below is a summary of Profit Retention and Dividend Payouts in the years 2018 to 2020.

2020:
In the fiscal year of 2020, R$ 90,720 million was allocated to the legal reserve and R$ 17 million to the investment subsidy incentive. The shareholders at the Ordinary General Meeting, held on April 30, 2021, approved a profit retention of the amount of R$ 155.174 million, which was intended for partially meet the Annual Investment Program established in the 2020 Budget, which was also approved at the that meeting. The percentage of the sum of profit retentions (legal reserves, tax incentives and other retentions) on the total value of profits declared in fiscal year 2020 was 76.55%. The Board of Directors approved at a meeting held on April 24, 2020, as per Minutes 07/2020, the allocation of 25% of adjusted profits as dividends, as provided for in art. 9 of Law 9,249/95 and State Decree 48990/2012 and its amendments.The amount of interest on shareholders’ equity distributed in 2020 as dividends was R$97,444. A reserve for unrealized profits was also set up in the amount of R$333,470 million, related to the gain in tax immunity.In 2020, the revision of the Dividend Policy defined that the Company may use interim or projected balance sheets, on a quarterly basis, for the purpose of distributing dividends or interest on shareholders’ equity payouts.
2019:
In the fiscal year of 2019, R$ 15,508 million was allocated to the legal reserve and R$ 58 million to the investment subsidy incentive. The shareholders at the Ordinary General Meeting, held on June 16, 2020, approved a profit retention of the amount of R$ 155.174 million, which was intended for partially meet the Annual Investment Program established in the 2020 Budget, which was also approved at the that meeting. The percentage of the sum of profit retentions (legal reserves, tax incentives and other retentions) on the total value of profits declared in fiscal year 2019 was 56.55%.For the fiscal year of 2019, the Board of Directors approved at a meeting held on December 29, 2019 that 40% of profits should be allocated to shareholders as dividends, in proportion to the shares they hold. The amount of interest on shareholders’ equity distributed in 2019 as dividends was R$113,969 million.
2018:
In the fiscal year of 2018, R$ 14,604 million was allocated to the legal reserve and R$ 582 million to the investment subsidy incentive. The shareholders at the Ordinary General Meeting, held on April 29, 2019, approved a profit retention of the amount of R$ 144,758 million, which was intended for partially meet the Annual Investment Program established in the 2019 Budget, which was also approved at the that meeting. The percentage of the sum of profit retentions (legal reserves, tax incentives and other retentions) on the total value of profits declared in fiscal year 2018 was 54.76%.For the fiscal year of 2018, the Board of Directors approved at a meeting held on January 29, 2019 that the maximum amount of interest on shareholders’ equity should be allocated to shareholders as dividends, as provided for in art. 9 of Law 9,249/95 and State Decree 48,990/2012 and its amendments, in proportion to the shares they hold. The amount of interest on shareholders’ equity distributed in 2018 as dividends was R$133,792 million.