Corporate Governance

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1. Which is current Valid’s Ownership Structure?

Ownership Structure, click here.

2. Which is the frequency of Valid’s results release?

The company’s results are released quarterly.

3. What do interest on equity (JCP) and dividends mean? Which is the difference between them?

The dividend is shareholder’s share in the company’s profit. Whenever a company record profits, it earmarks part of this result to share with its shareholders. In Brazil, companies are required to pay, at least, dividends of 25% of profit.

The return on dividends may be referred to as dividend yield of a share and corresponds to the dividend paid divided by share price. Besides dividends, the companies also pay interest on equity (JCP), which means another way of sharing profit with the companies’ shareholders. The difference is such payment is treated as expense in the company’s results, while dividend not.

4. What does share buyback program mean and how these take place?

The share buyback program means the Company’s buyback of its shares, which may be cancelled or held in treasury for subsequent sale. This program is regulated by the Brazilian Securities Exchange Commission Rule nº 10/1980 and authorized by resolution of the Company’s Board of Directors, which shall specify the company’s objective in the operation, the number of shares to be acquired, the maximum term to carry out the operations authorized, which cannot exceed 365 days, the number of shares outstanding in the market; the name and the address of the financial institutions to act as agents. Listed companies cannot hold in treasury shares issued thereby in amount exceeding 10% of each class of share outstanding in the market, including in this percentage, current shares held in treasury by subsidiaries and associated companies. In addition, the share purchase price cannot exceed the market cap.

Click here to access the Share Buyback section.

5. How much Valid paid as interest on equity and dividends over the past years?

To access the table of dividends, click here.