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Investor Presentaiton

Dividend Policy Eletrobras Dividends and/or own interest on capital totaling not less than 25% (twenty-five percent) of adjusted net income; Dvidends can only be distributed after deducting, before any participation, accumulated losses and provision for Income Tax; The Company should pay dividends out of net income from the year, retained earnings or earning reserves (excluding the legal reserve). The payment of the earnings reserves is a Company decision; Class "A" preferred shares shall be given priority in the receipt of dividends distributed each fiscal year, at a rate of 8% (eight percent) per annum on the capital relative to this type and class of shares; Class "B" preferred shares shall be given priority in the receipt of dividends distributed each fiscal year, at a rate of 6% (six percent) per annum on the capital relative to this type and class of shares; Preferred shares shall participate, on equal terms, with common shares in the distribution of dividends each fiscal year, after ensuring that common shares receive a dividend at a value equal to the lowest of those assigned to preferred shares. Preferred shares are ensured the right to receive dividends distributed in the fiscal year, per share, at least 10% (ten percent) higher than the amount assigned to common shares in the respective year. 7
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