DIVIDENDS

Dividens and Interest on Own Capital

Consistent with Lojas Renner best interests and its financial condition, the Company will distribute as dividends at least 25% of its net profits for each fiscal year, as this amount may be adjusted pursuant to Article 202 of Brazilian Corporation Law, and notwithstanding the possibility that Renner management decides to allocate part of its profit to reserves set forth by law and in its bylaws.

The Company, by resolution of the Board of Directors, ad referendum of the Annual Shareholders Meeting, may also pay interim dividends or interest on own capital to the account of (1) income earned in semi-annual balance sheet; and (2) retained earnings or profit reserves existing in the last annual or semi-annual balance sheet. The payments of interim dividends constitute anticipation of the amount of mandatory dividends relative to the net profit earned at the end of the fiscal year in which the interim dividends were paid, except in case there are no mandatory dividends. In turn, the amount paid as interest on own capital, net of income tax, may be imputed as part of the mandatory dividend amount.

The mandatory dividend paid by resolution of the Board of Directors of Lojas Renner as interest on own capital will be treated as a deductible expense for purposes of calculating Brazilian income tax, and for the purpose of social contribution tax.

The deduction is limited to the greater of: (1) 50% of Lojas Renner net profits (after deduction of social contribution and before payment of any interest or any deduction for income taxes) relating to the period to which the payment is made and (2) 50% of Renner accumulated profits. The interest on own capital is limited to the pro rata die variation of the TJLP (Taxa de Juros de Longo Prazo), Brazilian long-term interest rate, for the applicable period.

Additionally, the Company’s Board of Directors may determine that balance sheets be prepared in periods shorter than six months and declare dividends or interest on own capital based on the profits calculated in these balance sheets, provided that the total dividends paid in each semester of the fiscal year do not exceed the amount of capital reserves provided for in paragraph 1 of art. 182 of the Corporate Law.

Moreover, the Company has a Results Allocation Policy, approved by the Board of Directors in October 18, 2018 and reviewed in June 23rd, 2022. This policy is designed to establish the rules for the distribution of results to the shareholders of Lojas Renner S.A., pursuant to the prevailing legislation, without prejudicing the investments necessary for the continuity of the Company.

To access the Dividend and Interest on own capital payment historical data, access Spreadsheets and Fundamentals, on the investor information tab.