Annual
Report 2013

Mr. Mendes da Silva sees in retirement planning a virtuous way for companies to boost their benefits and motivate employees to save: "Saving for tomorrow is a matter of education. Planning and discipline are key to achieve any long-term project." A senior executive, he said he intends to retire in 2015, but he doesn't plan on not working: "This is how I keep my mind busy and, today, this is one of my life plans." Mrs. Amorim, who started investing in her retirement after joining a company that offered this benefit to their employees, wants to increase the amount of her contributions as she rises through the ranks: "I want to have financial independence and travel to live new experiences."

To improve our management model, our investments focus on two key guidelines: investment in people with an evolution that stems from groundbreaking practices in our corporate infrastructure and projects that aim to improve processes that promote operational effectiveness. To this end, our total investments in 2013 were thus:

Investments

Value-added payout - 2013

Our fixed-assets are the physical assets intended for our operations, including efforts that transfer the benefits and risks of as well as the controls over these assets to us. At Brasilprev, intangible assets are identifiable nonmonetary assets without physical existence, such as processes, systems, reputation, and so forth.

To develop business sustainability and innovation projects and maintain our competitive edge in the marketplace, investment volumes reached BRL 7.3 million:

• Forty-seven percent (47%) in innovation / competitive edge to enhance our products, services, or market positioning and boost our ability to do business and foster client loyalty;
• Twenty-nine percent (29%) in evolutionary projects, that is, those that are geared towards improving already existing processes and / or internal services and increase productivity, improve quality, and / or cut costs;
• Eighteen percent (18%) in new processes, systems, and internal services to increase productivity, improve quality, and cut costs. In this case, this includes system infrastructure and information technology projects;
• Three percent (3%) were earmarked for Legal to promote adjustments to amended laws, adapt new products and / or services, and adopt internal controls and accounting standards;
• Three percent (3%) were invested in the improvement of operational risk management and compliance tools and instruments, including the control of potential financial losses as a result of failed procedures, nonconformities, and fraud.