Annual
Report 2013

As a company that essentially works with long-term fundamentals, we understand that doing business responsibly at the community level is part of our nature. Because we are part of our community, we became affiliated with the Ethos Institute for Business and Social Responsibility and we are accredited by the Child-Friendly Company Program of the Abrinq Foundation for the Rights of Children and Teenagers. Since 2008, we have been supporting the United Nations Global Compact and, in 2013, we renewed our commitment to incorporate the core values associated with human rights, industrial relations, the environment, and the fight against corruption into our business practices.

During 2013, our investments in social projects with a focus on education, income generation and job creation for young people and adults, as well as sports and cultural activities worked out at BRL 10.4 million.

Privately-Funded Social Projects

During FY 2013, we continued to fund social project privately. They are as follows:

• Breakdown of Life Plans: in association with the Trevisan School of Business, in 2010, we started a financial-literacy project to educate the community with free lectures. The contents include the importance of financial planning and long-term savings as a way to enable life plans. These lectures, which last an hour and a half on average, are given by college students, who receive specific training to become multipliers and are oriented towards young people from public and private schools, members of neighborhood associations, and other entities from the city of São Paulo and the ABC Region. After the lecture, attendees receive a summary of the contents that were presented and a link to access a budget spreadsheet on our website. At the end of 2013, we had 977 lectures, which benefited 43,933 people. This project is slated for completion in April 2014, with 1,090 meetings attended by nearly 59,000 people.
• Collective Water Project: we are also sponsoring the Collective Water Project in association with the Cooperforte Institute, Brasilcap, and the BB Mapfre Insurance Group. With this initiative, we want to minimize the effects of droughts in the worst affected areas in Pernambuco State. Starting in 2010 and slated for completion in 2014, 200 rainwater harvesting tanks were delivered during the first phase in five cities upstate as well as 13 housing units in the town of Pesqueira. Through professional training and the development of local businesses, this project entered a new phase and, currently, we are trying to meet people's needs in five other cities from that area. To this end, in 2013, we invested BRL 50,000, which, when allocated to the other stages, will fund the installation of 360 water tanks and 24 housing units to directly benefit around 1,800 people. Besides Pesqueira, the cities that were benefited by this project are as follows: Caetés, Itaíba, Manari, Serra Talhada, Arcoverde, Buíque, Camocim de São Félix, Santa Cruz do Capibaribe, and Taquaritinga do Norte.

Volunteering Program

We encourage our employees to become volunteers by promoting internal and external actions and allowing them to leave the workplace during office hours for up to eight hours a year to participate in volunteer projects. This program covers the following initiatives:

Volunteer Citizen

Volunteers teach classes on personal and professional development to young people aged 16-22 who participate in the São Paulo State Government's Young Citizen Program, which we support. All in all, there are 44 volunteers, who bring knowledge to 22 young people from our current team.

Storytellers

In association with institutions that are close to our headquarters, volunteers and employees encourage reading among children aged three through 12. These meetings happen regularly and materials include company-supplied books and trinkets to enrich the learning experience. This initiative aims to promote recreational moments and help the cultural development of chidlren.

A Breakdown of Life Plans

Just like we bring lectures on financial literacy to the general public, we encourage our employees to spread the word at surrounding institutions on demand. Besides the external audience, we also impart knowledge to service providers that work in our headquarters.

Donation Drives

Every year, we launch five campaigns to gather products for the target audience of our partner institutions. Besides traditional drives to gather winter clothes and Christmas gifts, we had different goals in 2013: school supplies, food, and personal hygiene products.

The campaigns lasted 116 days and we gathered around 7,100 items, plus 2,425 pounds of clothes and 323 Christmas toys, which were delivered to seven institutions. Social Responsibility identifies the needs of each registered institution and distributes resources accordingly. We use a rotating method to meet the needs of most, if not all of them.

Sponsored Projects

We also use the tax breaks the Brazilian government offers us to support social, cultural, and sports projects as a way to promote social development and get business results. During FY 2013, our investments in sponsored projects added up to BRL 10.2 million.

	Number of Projects	Amount (In Thousands of BRL)
São Paulo City Fund for Children and Teenagers (FUMCAD)	5	1,417,599.56
Sports Act	2	1,474,000.00
Senior Citizens Act	1	1,417,599.56
Rouanet Act	11	5,935,000.00

São Paulo City Fund for Children and Teenagers (FUMCAD)

To support social projects with funds from the São Paulo City Fund for Children and Teenagers (FUMCAD, acronyms in Portuguese), we prioritize initiatives that focus on education and job creation. In 2013, we spearheaded five projects, which will be carried out throughout 2014.

Associação Programa Educar

This institution offers teenagers a human and technical education through vocational courses that aim to prepare them for the job market as apprentices. We have been supporting the Associação's programs for four years. In 2014, the Digital Media Apprentice project will train around 40 young individuals.

Educators Without Borders

We support Educators Without Borders' Ecosaberes – Sustainable Knowledge Development project, which aims to provide further education to children and teenagers from Jardim Ângela, a São Paulo neighborhood. This initiative, whose backing we renewed, aims to remove 80 at-risk children and teenagers from the vulnerability levels to which they are exposed and provide them with educational and cultural insights to prepare them as job-ready citizens

Teen Recycling Institute (Reciclar)

This initiative provides teenagers from Jaguaré, a neighborhood in the São Paulo West Side, with further education and training in the art of recycling paper to make free gifts and other corporate products. In 2014, in addition to educational contents, the curriculum also includes lectures and cultural events and helps around 130 teenagers.

São Paulo Israelite Congregation

The Young Citizen Program will meet the needs of 75 teenagers (aged 12-17), providing them with extracurricular activities. We intend to enhance their educational and cultural universe, favor the development of physical abilities as well as their social and psychological well-being in a shared space, and insert them into society and the job market.

Social Opportunity Institute (IOS)

The Training and First Job Promotion for São Paulo South Side Teenagers project promotes the inclusion of young people and people with special needs in the job market by giving them free work training in information technology and business. This initiative is intended for teenagers aged 14-17. In 2014, 160 teenagers will be benefited.

Senior Citizens Act

In 2013, we started to fund projects under the Senior Citizens Act to improve the living conditions of people 60 or older. Projects are assessed according to the income generation and quality-of-life benefits, which are in line with our mission statement.

Barretos Cancer Hospital

The Oncology Drug Funding project intends to raise funds to purchase drugs and materials for the hospital's Oncology Department, which is exclusively used by senior citizens, that are not paid by the Brazilian Healthcare System. This institution was established 50 years ago and provides healthcare to over 100,000 patients from 1,541 cities across all Brazilian states.

Rouanet Act and Sports Act

Among the key principles that guide our efforts, we also support culture and sports to add value to society. By using the Brazilian Federal Cultural Incentive Act (Rouanet Act) and the Sports Act, we have supported the production of plays, musicals, art books, movies, exhibits, forums, and sports activities. They include the following:

-Masters of Renaissance

This new exhibit in Brazil gathered works from the Italian Renaissance (paintings, sculptures, drawings, and applied arts) by important artists, such as da Vinci, Botticelli, Tintoretto, Raphael, Michelangelo, Titian, and Bellini. This free exhibit allowed over 417,000 people to access the collection, which was available in São Paulo and Brasília.

-Biking Circuit

A family-oriented bicycle ride that tries to promote leisure, encourage the use of bicycles on a daily basis, and raise awareness of the rational use of transportation in favor of urban mobility. With over 16,000 participants, we have been sponsoring this project for two years in a row in the cities of São Paulo, Rio de Janeiro, and Brasília.

-The New Face of Senior Citizens

In 2013, we supported the New Face of Senior Citizens movement, a Garage IM initiative that proposed changes to the pictograms that identify seats, among others, for people 60 or older. This project was based on a discussion on increased longevity and the fact that the curved posture with a cane does not represent this audience anymore. Based on the inspiration from the community – people could send poetry, drawings, pictures, and so forth –, designers created options for pictograms, which were chosen by popular vote. The chosen symbol (left) is already available and can be adopted by any company (http://www.novacaraterceiraidade.com.br/).