Dividends

Dividend policy and payment

As established by the Brazilian Corporations Law and the Bylaws of Cosan, the company must hold an Annual Shareholders Meeting on or before April 30th of each year to discuss capital allocation and the distribution of dividends for the fiscal year. The payment of annual dividends is determined based on the audited financial statements of the previous fiscal year.

As set forth in the Bylaws of Cosan, at least 25% of its adjusted net income should be distributed as mandatory annual dividends. Here, adjusted net income is the amount that can be distributed, before any deductions for statutory reserves and investment project reserves.

The Board of Directors of Cosan may declare interim dividends by debiting retained earnings or profit reserves existing in the previous annual or semiannual balance sheet. Additionally, the Board of Directors may declare dividends based on net income recorded in the Company’s semiannual or quarterly balance sheet. Dividends paid every half year cannot exceed the amount of capital reserves. Interim dividends may be charged to mandatory dividends on net income at the end of the year in which such interim dividends were distributed.

The mandatory dividend may also paid be as interest on equity, treated as a deductible expense for the purpose of corporate income tax and social contribution on net income.

See below the history of dividends paid by Cosan S.A. (in million R$) on accrual and cash basis, in recent years.