Investor Presentaiton

27. Equity Accounting policy (i) Share capital Share capital is represented exclusively by common shares classified as equity. (ii) Dividends This is recognized as a liability in the Company's financial statements at year-end based on the Company's bylaws. Any amount that exceeds the minimum required, 25% of the profit for the year, is only recognized on the date it is approved by the stockholders at a General Meeting. When a Company presents a loss in the year, there is no dividend. (iii) Earnings per share Earnings per share are calculated by dividing the profit attributable to the controlling stockholders by the weighted average number of common sha- res during the year. The weighted average number of shares is calculated based on the periods in which the shares were outstanding. (iv) Statutory reserve and retained earnings reserve The statutory reserve is constituted by the appropriation of 5% of the net income for the fiscal year or remaining balance, limited to 20% of the capi- tal stock. Its purpose is to ensure the integrity of social capital. It can only be used to offset losses and increase capital. When the Company presents a loss in the year, there will be no legal reserve. The retained earnings reserve refers to the retention of the remaining balance of retained earnings in order to meet the business growth plan established in the Company's investment plan. (v) Government grants The tax incentive reserve is credited with tax incentive benefits, which are recognized in the income statement for the year and allocated to retained earnings for this reserve. These incentives are not included in the calcula- tion of the mandatory minimum dividend. (vi) Equity valuation adjustments The equity valuation adjustments include: (a) The effective portion of the cumulative net change in fair value of hedge instruments used in hedge of cash flow until the recognition of the cash flows that were hedged. (b) Cumulative translation adjustments with the exchange differences arising from the translation of the financial statements of foreign operations. (c) Effective portion with exchange differences of hedge of the Company's net investments in a foreign operation. (d) Actuarial losses (gains) and measures with retirement benefits. (a) Share capital On December 31, 2021 and December 31, 2020, the fully subscribed and paid-up capital of the Company was R$ 28,656, consisting of 18,278,789 thousand common shares. 180 =

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