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Pursuant to Argentine law, the distribution and payment of dividends to shareholders is valid only if they result from realized and net earnings of the company pursuant to annual financial statements approved by the shareholders. The approval, amount and payment of dividends are subject to the approval by Cresud‘s shareholders at its annual ordinary shareholders meeting. The approval of dividends requires the affirmative vote of a majority of the shares entitled to vote at the meeting.

In accordance with Argentine law and Cresud‘s by-laws, net and realized profits for each fiscal year are allocated as follows:

  • 5% of such net profits is allocated to Cresud‘s legal reserve, until such reserve amounts to 20% of its capital stock;
  • a certain amount determined at a shareholders’ meeting is allocated to compensation of Cresud‘s directors and the members of its supervisory committee; and
  • additional amounts are allocated for the payment of dividends or to optional reserve funds, or to establish reserves for whatever other purpose its shareholders determine.

Cresud‘s legal reserve is not available for distribution. Under the applicable regulations of the Comisión Nacional de Valores, dividends are distributed pro rata in accordance with the number of shares held by each holder within 30 days of being declared by the shareholders for cash dividends and within 90 days of approval in the case of dividends distributed as shares. The right to receive payment of dividends expires three years after the date on which they were made available to shareholders. The shareholders’ meeting may authorize payment of dividends on a quarterly basis provided no applicable regulations are violated. In such case, all and each of the members of the board of directors and the supervisory committee will be jointly and severally liable for the refund of those dividends if, at the end of the respective fiscal year, the realized and net earnings of the Company are not sufficient to allow for the payment of dividends.

The following table sets forth the dividend payout ratio and the amount of dividends paid on each fully paid common share for the mentioned years. Amounts in Pesos are presented in historical, non-inflation adjusted Pesos as of the respective payment dates.

Year Total Dividend (in ARS mm) Dividend per Common Share¹ (ARS)
1996 - -
1997 - -
1998 3.8 0.099
1999 11.0 0.092
2000 1.3 0.011
2001 8.0 0.030
2002 - -
2003 1.5 0.012
2004 3.0 0.020
2005 10.0 0.059
2006 5.5 0.024
2007 8.3 0.026
2008 20.0 0.040
2009 60.0 0.121
2010 - -
2011 69.0 0.138
2012 63.8 0.149
2013 120.0 0.242
2014 120.0 0.242

¹ Corresponds to per share payments. To calculate the dividend paid per ADS, the payment per share should be multiplied by ten. Amounts in Pesos are presented in historical Pesos as of the respective payment date.

Future dividends with respect to Cresud‘s common shares, if any, will depend on, among other things, its results of operations, cash requirements, financial condition, contractual restrictions, business opportunities, provisions of applicable law and other factors that its shareholders at a general shareholders’ meeting may deem relevant. As a result, Cresud cannot give you any assurance that the Company will pay any dividends at any time in the future.

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