#1GAVETEIRO DE ANDAMES Meeting with Investors Jorge Soto August 19th, 2015 BAK LISTED Corporate LATIBEX Sustainability BRKM5 NÍVEL 1 NYSE XBRK BM&FBOVESPA Index ISE 2015 MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM Braskem#2Disclaimer and forward-looking statements Braskem This presentation contains forward-looking statements. These forward-looking statements are not solely historical data, but rather reflect the targets and expectations of Braskem's management. The terms "anticipate," "believe," "expect," "foresee," "intend," "plan," "estimate," "project," "aim" and similar terms are used to indicate forward-looking statements. Although we believe these forward-looking statements are based on reasonable assumptions, they are subject to various risks and uncertainties and are prepared using the information currently available to Braskem. This presentation was up-to-date as of June 30, 2015, and Braskem does not assume any obligation to update it in light of new information or future developments. Braskem undertakes no liability for transactions or investment decisions made based on the information in this presentation.#3Agenda HOW BRASKEM CREATES SHARED VALUE Business Model Strategy & Results Value Distribution Braskem 25 20 15#4CREATING SHARED VALUE BUSINESS MODEL Largest Polymers Producer of the Americas Largest Biopolymer producer of the World Braskem EXTRACTION Feedstocks COMPETITIVE INTEGRATION 1ST GENERATION Basic Petrochemicals NAPHTHA NATURAL GAS ETHANOL SALT 2ND GENERATION Thermoplastic Resins 3RD GENERATION Plastics Manufacturers ETHYLENE PE PROPYLENE PP CHLORINE PVC CAUSTIC SODA Braskem US$ 3.6 billion market cap (from 0.2 bi in 2002) 8126 Team Members across 29 facilities in Brazil, 5 in the US and 2 in Germany 23 laboratories and 7 pilot plants#5CREATING SHARED VALUE RISKS & DRIVERS Braskem 1. Current feedstock mix strongly based on naphtha, leading to higher cost VS. gas-based competitors and could create exposure to carbon pricing mechanisms. 2. Challenges in the Brazilian economy environment: high tax burden, energy prices and infrastructure issues. 3. 4. 5. Third party claims supposed inappropriate payments. Increased water scarcity in some of the company's areas of operation (Bahia and São Paulo). Lack of appropriate post consumption solutions in many countries compromises image of plastics as a 'sustainable' material. ▸ Pioneer and global leader in renewable-based polymers, which can partially offset effect of carbon pricing. ▸ Use of plastic reduces GHG emissions. New investments focused on feedstock matrix and geographical diversification (Braskem Idesa: gas-based) ▸ Ability to increase customer loyalty and competitiveness through value chain enhancement initiatives: PICPlast, ICV Global Braskem is not under investigation ▸ Strong corporate culture and monitoring mechanisms (incl. SOX compliance) to ensure issues are identified and dealt with appropriately. Two independent law firms hired to carry out internal investigations on specific allegations being made. Voluntary process. ▸ Investment in water reuse projects to ensure adequate water supply without competing with domestic users. ▸ Developing recycling solutions: Wecycle, ser+ realizador, PICPlast#6Agenda HOW BRASKEM CREATES SHARED VALUE Business Model Strategy & Results Value Distribution Braskem 25 20 15#7CREATING SHARED VALUE BUSINESS STRATEGY Purpose Strategy Braskem Improve people's lives by creating sustainable solutions through chemicals and plastics STRATEGIC FOCUS a) Strengthening of Clients and of the value chain b) Profitability and cost management CURRENT PRIORITIES c) Diversification of raw materials and international expansion SUSTAINABILITY AND BUSINESS CONTINUITY PREMISES OF BUSINESS OPERATION d) Innovation e) Socio-environmental Impacts Serve the client with responsibility and innovation Values (TEO) Trust in people Spirit of service#8CREATING SHARED VALUE MATERIALITY MATRIX Braskem 21 High 23 Level of Braskem's Impact Medium Low on 1 13 27 28 9 20 10 25 17 11 24 18 19 Irrele- vant 16 7 14 15 Irrelevant Low Medium Level of Importance for stakeholders 7a По High LEVEL OF BRASKEM'S CONTROL OR INFLUENCE OVER THE ASPECT MATERIALITY CRITICAL о HIGH о MINIMAL LOW MEDIUM HIGH MODERATE LOW ENVIRONMENTAL (1) Non-renewable resources (2) Water (3) Climate change and energy (4) Air (5) Waste (6) Transportation (7) Biodiversity (7a) Biodiversity Mexico (8) Post-consumption (9) Suppliers - environmental management (10) Product development - environmental SOCIAL (11) Jobs (116) Jobs - USA (12) Freedom of association (13) Health and safety (14) Training and career (15) Equal opportunities (16) Company security guards (17) Safe use of Braskem's products (18) Grievance mechanisms (19) Suppliers-social management ECONOMY AND GOVERNANCE (20) Economic performance (21) Community investments and relationships (22) Receipt of government assistance (23) Local suppliers (24) Free competition (25) Fraud and corruption (26) Contribution to public policy (27) Product development - social (28) Labor from Local Communities (29) Transparency and integrity MATERIAL ASPECTS Financiers Team Members Shareholders Communities Academia Government 14#9CREATING SHARED VALUE 2020 STRATEGY & RESULTS Increasingly sustainable operations and resources Increasingly sustainable product portfolio Solutions for an increasingly sustainable life. Braskem#10CREATING SHARED VALUE 2020 STRATEGY & RESULTS Braskem Increasingly sustainable operations and resources SAFETY Increasingly sustainable product portfolio MACRO-OBJECTIVES AND GOALS FOR 2020 Solutions for an increasingly sustainable life. Be recognized as a reference in chemical, occupational and process safety in the global chemical industry. ECONOMIC/FINANCIAL RESULTS Be among the three largest producers of thermoplastic resins in the world, guaranteeing profitability that supports the continuity of the business, maintaining "Investment Grade" classification in the 3 main international agencies. US$ 7th largest global thermoplastic resins producer By installed capacity 2.4 BI EBITDA CAGR 15% from 2002 2014 Figures INVESTMENT GRADE Moody's, S&P, Fitch#11CREATING SHARED VALUE 2020 STRATEGY & RESULTS Increasingly sustainable operations and resources Increasingly sustainable product portfolio Solutions for an increasingly sustainable life. Braskem SAFETY MACRO-OBJECTIVES AND GOALS FOR 2020 Be recognized as a reference in chemical, occupational and process safety in the global chemical industry. PARTNERSHIPS to foster plastics post-consumption solutions ECONOMIC/FINANCIAL RESULTS Be among the three largest producers of thermoplastic resins in the world, guaranteeing profitability that supports the continuity of the business, maintaining "Investment Grade" classification in the 3 main international agencies. POST-CONSUMPTION Be recognized as an important agent that contributes to the recycling of plastics. Wecycle PICPLAST Plano de Incentivo à Cadeia do Plástico ICVGlobal INICIATIVA GVCES#12CREATING SHARED VALUE 2020 STRATEGY & RESULTS Increasingly sustainable operations and resources Increasingly sustainable product portfolio MACRO-OBJECTIVES AND GOALS FOR 2020 Solutions for an increasingly sustainable life. Braskem LARGEST I'm green GLOBAL producer of renewable-based resins SAFETY Be recognized as a reference in chemical, occupational and process safety in the global chemical industry. ECONOMIC/FINANCIAL RESULTS Be among the three largest producers of thermoplastic resins in the world, guaranteeing profitability that supports the continuity of the business, maintaining "Investment Grade" classification in the 3 main international agencies. POST-CONSUMPTION Be recognized as an important agent that contributes to the recycling of plastics. RENEWABLE RESOURCES Be recognized as a leader in the production of chemicals and thermoplastic resins from renewable raw materials, continuing to be the world's largest producer of thermoplastic resins from renewable sources. 200 kt installed capacity 2.15 CO₂e SEQUESTERED PER TON OF GREEN PE 95.7% VERIFIED ETHANOL PURCHASED JULY 2012-JUNE 2014 FROM MILLS WITH VALID 3RD PARTY AUDITS AGAINST BRAKEM'S CODE OF CONSUCT FOR ETHANOL SUPPLIERS (10.7% increase on prior period)#13R$ CREATING SHARED VALUE FOCUS ON INNOVATION & RENEWABLES 232M (US$ 92 MI) MM IN INVESTMENTS 15% RENEWABLES E4tech LCAworks First Step 2014 Figures Green Polyethylene nipe REVENUE FROM NEW PRODUCTS LIVICANO Braskem FASTOMPANY Ongoing Projects Green Butadiene ✓ genomatica sustainable chemicals LAUNCHED IN THE PAST 3 YEARS (2014 BRAZIL POLYOLEFINS UNIT) PATENTS Ongoing Projects Green A MICHELIN FILED Isoprene AMYRIS 852 AS OF APRIL 2014*#14CREATING SHARED VALUE 2020 STRATEGY & RESULTS Increasingly sustainable operations and resources Increasingly sustainable product portfolio MACRO-OBJECTIVES AND GOALS FOR 2020 Solutions for an increasingly sustainable life. SAFETY Be recognized as a reference in chemical, occupational and process safety in the global chemical industry. Braskem ECONOMIC/FINANCIAL RESULTS Be among the three largest producers of thermoplastic resins in the world, guaranteeing profitability that supports the continuity of the business, maintaining "Investment Grade" classification in the 3 main international agencies. POST-CONSUMPTION Be recognized as an important agent that contributes to the recycling of plastics. RENEWABLE RESOURCES Be recognized as a leader in the production of chemicals and thermoplastic resins from renewable raw materials, continuing to be the world's largest producer of thermoplastic resins from renewable sources. WATER EFFICIENCY Continue as a reference in the use of water resources in the global chemical industry and achieve a rate of reuse greater than 40%. Water reuse rate (%) 23.8 2012 +18% 28.1 2014 Reuse projects saved 18.7 billion liters from being extracted from nature, that is 7,000 Olympic pools, enough to supply a city of 500,000 people for one year.#15CREATING SHARED VALUE 2020 STRATEGY & RESULTS Increasingly sustainable operations and resources Increasingly sustainable product portfolio MACRO-OBJECTIVES AND GOALS FOR 2020 Braskem Solutions for an increasingly sustainable life. GHG emissions (scope 1+2) (tCO2e/t) 0.72 -13% 2008 CLIMATE CHANGE Be among the best large chemical companies in the world in terms of greenhouse gas emissions (GHG) intensity and a major player in carbon sequestration, as a result of the use of renewable raw materials. ENERGY EFFICIENCY Be among the world's best large chemical companies in terms of energy consumption intensity and a major user of renewable energy. 0.63 2014 Best peer group result: 0.56 Energy use (GJ/t) 11.90 2002 -10% 10.74 2014 ➤ Best peer group result: 9.16#16CREATING SHARED VALUE 2020 STRATEGY & RESULTS Increasingly sustainable operations and resources Increasingly sustainable product portfolio Solutions for an increasingly sustainable life. MACRO-OBJECTIVES AND GOALS FOR 2020 Braskem CLIMATE CHANGE Be among the best large chemical companies in the world in terms of greenhouse gas emissions (GHG) intensity and a major player in carbon sequestration, as a result of the use of renewable raw materials. ENERGY EFFICIENCY Be among the world's best large chemical companies in terms of energy consumption intensity and a major user of renewable energy. LOCAL DEVELOPMENT Be recognized by the communities surrounding our operational sites and by society in general for our contribution to the improvement of human development, as shown by achieving the reputation level of "excellent" in the Citizenship Dimension of our Reputation Survey (RepTrak™ Pulse). DEVELOPMENT OF SOLUTIONS Be recognized as a company that supports its Clients in the development of environmental and social solutions; contribute to the perception of plastic as a solution to sustainable development due to its potential to improve people's lives. STRENGTHENING OF PRACTICES Be recognized as a corporate leader in Brazil, as well as a global leader in the chemical industry, for our contribution to sustainable development. ISE Indice de Sustentabilidade Empresarial 2014 (2005 - 2014) +CDP DRIVING SUSTAINABLE ECONOMIES (2008 - 2014) MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM (2012-2014)#17Agenda HOW BRASKEM CREATES SHARED VALUE Business Model Strategy & Results Value Distribution Braskem 25 20 15#18VALUE DISTRIBUTION Products used as raw materials in the manufacture of consumer and industrial goods, which are essential to various fields, including healthcare, food, transportation, housing, technology, clothing, etc Over 40,000 indirect jobs created, promoting socio-environmental development through chemical and plastics. Braskem R$ 45.6 billion In payments to suppliers O Of which, R$ 482 million to shareholders R$ 3.2 billion in payments to capital providers R$ 1.1 billion in salaries and benefits to Team Members R$ 508 million in payments to the Government R$ 24 million invested in the Community R$ 50.4 bi Distributed Economic Value#19SO WHY INVEST IN BRASKEM? Braskem ▸ Solid company investing to ensure its long term success through geographic, market and feedstock diversification, leading the way on renewables. ▸ Responsible in its management of direct and indirect social and environmental impacts. ▸ Proactive in identifying and harnessing the sustainable development benefits of its products, working with its value chain and society. ▸ Significant market expansion prospect of main product - plastics - which can make a meaningful contribution to sustainable development, reducing environmental impacts and increasing accessibility.#20Thank you! São Paulo, August 19th, 2015 Braskem#21Meeting with Investors August 19th, 2015 AES Brasil $13/07#22Agenda Meeting with Investors AES Brasil overview Sustainable strategic planning • Opportunities and challenges Sustainability - a business approach • Value creation models Q&A section AES Brasil AES Brasil#23AES Corporation Global Company Natural gas and coal fired thermal plants 25.6 GW of installed capacity 36 GW installed capacity Providing services to over 100 million people 18.5 thousand employees Over 8.3 GW of Renewable sources1 Distributed energy +60MW of solar PV2 projects World leader in Energy Storage Total of 228 MW3 AES Corp is present in 18 countries and 4 continents AES Brasil 1 - Includes hydro, wind, solar, energy storage, and biomass 2 - PV - Photovoltaic; 3 - Operating and under construction 2#24Leading position in the energy sector in Brazil AES Tietê 2,658 MW Concession ends in 2029 AES Serviços AES Uruguaiana 640 MW AES Eletropaulo 20m people served 6.8m customers Concession ends in 2028 AES Sul 3.7m people served 1.3m customers Concession ends in 2027 AES Brasil 1 - installed capacity as of 2015; 2 - Consumption (GWh) in 2014 (Source: ABRADEE) Generation1 Market Share 2% 98% Distribution² Market Share 87% AES Brasil Other 13% 3#25Ownership Structure T 99.70% AES Sul AES Corp C 50.00% +1 share P 0.00% + 7 shares T 46.15% BNDES Cia. Brasiliana de Energia C 50.00% 1 share P 100.00% - 7 shares T 53.85% C 99.99% T 99.99% AES Serviços C 99.99% T 99.70% AES Uruguaiana C = Common Share P = Preferred Share T = Total C 71.35% P 32.34% T 52.55% AES Tietê T 98.26% AES Elpa C 77.81% P 0.00% T 30.97% C 0.00% P 7.38% T 4.44% AES Eletropaulo 1 AES' BNDES AES Eletropaulo 16.1% 19.2% AES Tietê 24.2% 28.3% Free Float Others² Market Cap³ 56.3% 8.5% US$ 0.7 bi 39.5% 8.0% US$ 1.9 bi AES Brasil 1 - Parent, AES Corp and BNDES, have similar voting capital on each of the companies: approx 35,9% on AES Eletropaulo and 32,9% on AES Tietê; 2 - Includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively; 3 - Base: 08/17/2015. FX rate 3.1897 BRL/1 USD 4#26AES Brasil Mission, Vision and Values Mission To promote well being and development with the safe, sustainable and reliable provision of energy solutions Vision To be the leading power company in Brazil that safely provides sustainable, reliable and affordable energy Values •Put safety first •Act with integrity •Honor commitments •Strive for excellence •Have fun through work AES Brasil AES paala 5#27Sustainable Strategic Planning 2015-2019 Long-term goals - Total shareholder return above the Electric Energy Index (sector average) -Top quartile "Great Place to Work" ranking - Member of Corporate Sustainability Index (ISE) -Top quartile ABRADEE ranking -Increase installed capacity Guidelines CLIENT SATISFATION BUSINESS DEVELOPMENT EFFICIENCY AND DISCIPLINE ON EXECUTION STAKEHOLDER ENGAGEMENT Business & Sustainability Commitments Ensure maximum excellence of services provided with ethics and respecting the client Development using sustainable energy solutions Maximize value while predicting and mitigating economic, social and environmental risks and impacts Promote advances on the sector, educate the population on mindful consumption and develop employees, partners and communities Values AES Brasil PUT SAFETY FIRST ACT WITH INTEGRITY HONOR COMMITMENTS STRIVE FOR EXCELLENCE HAVE FUN THROUGH WORK 6#28What's on? Opportunities and Challenges ahead Hydrology challenges • Lower storage system ☑ Storage capacity (months)¹ AES Brasil MJADA 1. ONS and internal analysis Actual Forecast 6.2 5.7 5.4 4.6 4.4 4.3 4.2 3.7 нн 2001 2005 2009 2013 2014 2015 2016 2019 Increase on Tariffs (Tariff Flags, Extraordinary Tariff Reset) Quality requirements / Innovation Economical / Growth perspectives (GDP, real income, level of employment) 7#29Sustainability - a business approach: generation External Factors • Hydrology challenges Energy reliability and dispatchable energy Strategic Guidelines Business development Efficiency and discipline on execution • Asset management • Reservoir management Indicators • Hydrology shortfall (GSF) impact ⚫ Business development activities • Manageable costs reduction/ Investment program: - Guidance of PMSO reduction -Increased reservoir inspection - Modernization / maintenance - Environmental risk mitigation • Total shareholder return AES Brasil Pipeline of +1GW CCGT (flexible and firm energy) Pipeline of 180MW of solar Innovation & technology Drone for the management of reservoirs 8#30Sustainability - a business approach: distribution External Factors • . Economical performance • Consumption reduction. • Increase on tariff • Bad debt/ delinquency Climate challenges Strategic Guidelines • Client satisfaction • Efficiency and discipline on execution. • Stakeholder engagement: education on mindful consumption and communities development Indicators • SAIDI / SAIFI levels • ISQP (perceived satisfaction level) Manageable costs reduction/ Investment program • Total shareholder return • Safety (employees and population) • Global Losses - CO₂ emissions Delinquency - Regularization of clients AES Brasil Consumers into Clients Program Recycle More, Pay Less 9#31Value creation models AES Brasil INPUTS FINANCIAL + Revenues • Paid-in capital Third party capital NATURAL • Water - Biodiversity of reservoirs and its surroundings - Renewable and non-renewable resources for power generation SOCIAL AND RELATIONSHIP • Stakeholders relations ⚫ Licenses to operate + Customer base • Society demand for electricity. HUMAN • Employees and contractor personnel • Technical and behavioral skills VALUE CREATION MODEL AES TIETÉ VALUE CREATION MISSION To promote welfare and development by providing safe, sustainable and reliable energy solutions VISION To be the leading power company in Brazil that safely provides sustainable, reliable and affordable energy FINANCIAL Total shareholder return Return on third party capital + Total compensation of employees Taxes HUMAN Satisfaction, development safety and well being of employees and contractors - Strengthening of organizational culture and Values ACTIVITIES • Energy sale Hydro plants and locks operation Asset management NATURAL - Preservation and restoration of biodiversity reservoirs and its surroundings • Mitigation of CO2e emissions -Efficiency in water and energy use INTELLECTUAL Ethics and transparency Values Risk Intangible Assets Management goals Long-term Operational and financial excellence Intellectual property Market knowledge - Innovation MANUFACTURED Hydro plants (turbines. generators and reservoirs) - Reservoir locks •Infrastructure, materials and equipment for service and operation SOCIAL AND RELATIONSHIP Stakeholders satisfaction and trust -Professional training + Adoption of conscious consumption habits Population safety • Development of suppliers and communities • Socioeconomic development of the surrounding of plants and the country INTELLECTUAL - Innovative and efficient products, processes and services • Transfer of knowledge among educational institutions. industry companies, suppliers, employees MANUFACTURED Safety and reliability in energy supply ECONOMIC, POLITICAL, CULTURAL, SOCIAL AND ENVIRONMENTAL CONTEXT 10#32Value creation models AES Brasil INPUTS FINANCIAL ⚫ Revenues NATURAL -Renewable and non-renewable • Paid-in capital resources for power generation Third party capital SOCIAL AND RELATIONSHIP •Stakeholders relations ⚫ Customer base (captive market and free customers) •Licenses to operate • Society demand for electricity HUMAN • Employees and contractor personnel •Technical and behavioral skills INTELLECTUAL • Operational and financial excellence • Intellectual property -Market knowledge ⚫ Innovation MANUFACTURED - Electricity •Sub-transmission and distribution network •Infrastructure, materials and equipment for service and operation VALUE CREATION MODEL AES ELETROPAULO MISSION To promote welfare and development by providing safe, sustainable and reliable energy solutions VISION To be the leading power company in Brazil that safely provides sustainable, reliable and affordable energy FINANCIAL • Total shareholder return Return on third party capital of employees • Total compensation • Taxes VALUE CREATION HUMAN ⚫Satisfaction, development, safety and well being of employees and contractors •Strengthening of organizational culture and Values •Appropriate vegetation management • Mitigation of CO2e emissions • Reduction of waste generation NATURAL • Efficiency in energy use (internal and clients) ACTIVITIES - Market planning and energy purchase •Revenue management - Management of electricity assets Customer service Ethics and transparency Values Intangible assets Risk management Long-term goals SOCIAL AND RELATIONSHIP • Stakeholders satisfaction and trust .Professional training • Access to regulated energy ⚫Population safety • Adoption of conscious consumption habits • Development of suppliers and communities • Socioeconomic development of the concession area and the country MANUFACTURED - Access to electricity, public lighting, telecommunications services through grid capillarity • Safety and reliability in energy supply and customer service t ECONOMIC, POLITICAL, CULTURAL, SOCIAL AND ENVIRONMENTAL CONTEXT INTELLECTUAL • Innovative and efficient products, processes and services •Transfer of knowledge among educational institutions, industry companies, suppliers, employees 11#33Contact for further information • Investor Relations Team: [email protected] [email protected] http://ri.aestiete.com.br http://ri.aeseletropaulo.com.br Sustainability Team: [email protected] http://www.aesbrasilsustentabilidade.com.br AES Brasil AES Brasil 12#34August 2015 brf Investor Meeting | Integrated Report <IR>#35Company Overview brf#36BRF OVERVIEW One of Brazil's biggest and most internationalized companies: 7th largest public food company in the world by market cap; 4th largest exporter in Brazil, reaching more than 120 countries; 5th largest employer in Brazil, with more than 104 thousand employees One of the world's largest food companies: More than 2,300 products; Present in most part of Brazil's terriotory; 34 production units in Brazil and 10 abroad. MOST RELEVANT BRANDS Sadia Sadia PREZATO Sadia PERDIGÃO Sadia HOT POCKET Sadilar paty Speedy POLLO OURO PERDIGAO AVIPAL أفيبال brf nova Claybom PERDIX Qualy صحنين Danica naBrasa CHESTER PERDIGAO Sahtein DIFFUSED CONTROL Treasury 2.9% National 24.7% Tarpon 10.5% ADR 12.9% Previ 10.5% brf Foreign 26.0% Petros 12.5% 3#37Large Company with Global Scale World's Largest Food Companies by Market Capitalization (US$ Bn)(¹) Source 243.7 62,2 World's 8th Largest Food Company 51,9 41,6 35,8 23,4 22,2 18,2 16,2 15,9 15,4 15,1 14,5 14,4 13,7 12,3 12,3 11,1 6,6 Nestle Mondelez KRAFT DANONE Market Capitalization (US$Bn) FactSet, as of April 9, 2015 brf B Hellogg's HERSHEY'S brf -Foods ConAgra Hornel JBS) Tyson Campbella DIMDO KERRY Saputo Fonterra#38Dominant Market Position with Strong Brands Scale and Leadership in Brazil and Globally ■ Largest Brazilian food company, with size and scale to compete both in the domestic market and globally 4.7 million tons of products sold in 2014 Undisputed leadership across categories ■Leadership through branding and innovation Highly recognized brands in Brazil and in international markets Leader in Processed Food in Brazil BRF's Share of Brazilian Market - % of Value 58,7% 58,4% 50,9% 50,4% - Continuous portfolio recycling Over 2,300 SKUs 10,7% Processed Meat Frozen Meat Frozen Pizza Margarine Dairy Products Source AC Nielsen, as of October/November/December The Most Valuable Brands in The Food Segment in Brazil and Latin America "+US$1Bn" Brands Sadia PERDIGAO 1st Most Valuable Brand in Brazil 2nd Most Valuable Brand in Brazil Isto É Dinheiro Magazine Isto É Dinheiro Magazine brf Other Leading Brands Brazil International CHESTER Qualy Naturis OURO Sadia Danica paty Sadilar naasa Veg Claybom DoBon MEU MENU SPROD POLLO Soldrin HOT POCKS Borella PREZATO Satia Deline CHIXXS ARGOSLANE 5#39Widespread Presence in Brazil and Strategically Located Global Platform Extensive Distribution Network More than Largest distribution network of frozen and chilled products in Brazil Virtually full coverage of the country Efficient delivery to thousands of small retailers (largest client accounts for less than 5% of revenues) Exports to over 120 countries in 5 continents 220k Clients in Brazil Coverage of 95% of Brazil's Territory More than 680k Monthly Deliveries in Brazil International Presence More than 120 Importing Countries 10 Indust.Units Abroad 19 Offices Abroad Source Company International Industrial Units ▲ International Commercial Offices brf Reach of Virtually All Brazilian Territory Source 27 Distribution Centers 34 Industrial Units Company Industrial Units Distribution Centers 6#40BARBECUE na Brasa PARA APAIXONADOS PRONTO PARA ASSAR PERDIGÃO POR CHURRASCO espeto de frango MANTENHA CONGELADO A 12°C OU MAIS FRIO CONTEM GORDURA VEGETAL espeto temperado congelado de frango-filé de peito CONTE SU Business Strategy brf PERDIGÃO 7#41Management Model VIVABRF SOUL brf SUSTAINABLE CHAIN INNOVATION PEOPLE R BRAND QUALITY RESULTS BRF17 One team, one dream 8#42Corporate Structure DECENTRALIZED STRUCTURE General Manager Alexandre Borges AMÉRICA LATINA Supply Chain Hélio Rubens Suprimentos Commodities Planejamento Integrado Logistica Primária Engenharia CIEX Agro CIEX Operações (BRL + Intl) Margarinas Global Desk General Manager BRASIL Flavia Faugeres Qualidade e Gestão Gilberto Orsato Qualidade Gestão SSMA CSC TI Rel. Sindicals GLOBAL CEO Pedro Faria Patricio Rohner MEDIO General Manager ÁFRICA E Finanças Augusto Ribeiro Tesouraria Controladoria RI M&A Legal el e Relações José Roberto Rodrigues Tributário Juridico Governança Relações governamenta Relações Corporativas brf Talentos Remunera Gestão T Comunicação Co uneração Estratégi Liderança Cultura o Corporativa EUROPA E EURASIA General Managar Gente Vieira Rodrigo V Roberto Inovação Marca Consumidor P&D Planejamento Estratégico Inovação e Marketing Simon Cheng ÁSIA General Manager A definir Our new model is based on strengthening the leading role and autonomy of the Company's five regional structures: Brazil; Europe/Eurasia; Asia; Middle East; and Latin America; These five General Managers will report to the Global CEO, and they will have the support of the Corporate Areas of: Quality and Management; Innovation and Marketing; Supply Chain; Legal Affairs; Finance; and People; 9#43Financial Highlights י יין ין 10 brf#44Consolidated Performance NOR (R$ MILLION) COGS (R$ MILLION) +12.8% brf +12.3% +5.4% 8,047 7,913 +10.3% 5,359 5,388 7,238 7,015 7,048 5,114 5,093 4,885 2Q14 3Q14 4Q14 1Q15 2Q14 3Q14 4Q14 2Q15 1Q15 2Q15 Gross profit (R$ MILLION) +480 bps +120 bps 2,687 2,525 2,145 33.4% 2,164 1,901 31.9% 30.7% 29.6% 27.1% brf 2Q14 3Q14 4Q14 1Q15 2Q15 SG&A (R$ MILLION) +10 bps 16.1% 15.5% +90 bps 15.8% 16.9% 16.0% 1,130 1,120 1,274 1,191 1,269 2Q14 3Q14 4Q14 1Q15 2Q15 11#45Consolidated Performance EBIT (R$ MILLION) 13.4% 1,058 +390 bps 1,406 +430 bps 17.5% 9.5% 11.5% 833 667 9.1% 641 Net Profit (R$ MILLION) brf +46.6% 572 249 991 -21.0% 462 364 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 EBITDA (R$ MILLION) brf +370 bps 1,762 +390 bps 21.9% 1,380 961 13.7% 1,130 15.6% PERDIGAO 951 13.5% 17.4% FEMIGAO 2Q14 3Q14 4Q14 1Q15 2Q15 Calabrida PERDIGAO Presunto 12#46-567 Financial Performance ROIC +542 bps 13.30% 12.27% 11.70% 9.14% 7.88% 2Q14 3Q14 4Q14 1Q15 2Q15 Cash Flow 2Q12 3Q12 4Q12 1Q13 2Q13 ετδε 4Q13 +16.6% 2595 3184 3125 4148 1Q14 2Q14 4Q14* 1Q15* 2Q15* 3Q14 4096 3714 65.5 2Q12 3Q12 4Q12 16.3% 15.3% 61.3 ετότ 2013 3Q13 4Q13 14.8% 14.6% ยยยย 56.0 58.4 57.4 Financial Cycle 56.2 49.5 Net debt/EBITDA 1Q14 13.0% 11.0% 2014 9.8% 3014 10.8% 4Q14* 1Q15* 2015* 41.8 36.4 41.1 36.9 32.6 35.2 9.7% 6,230 5,951 5,113 5,394 1.51 1.40 5,032 1.04 1.26 1.12 2Q14 *Considering only the result of the continued operations result for the multiple calculation (without Dairy products), other quarters consider continued and discontinued operations. brf 3Q14 4Q14* 1Q15* 2Q15* Net Debt -Net Debt/EBITDA 13 brf#47Green Bonds brf 14#48BRF's Sustainability Strategy ■Compliance with environmental Law; ■ Ethics and anticorruption mechanisms; ■Company performance and value creation; ■ Sustainability guidelines. Sustainability with focus on continuous improvement Leveraging sustainability along the value chain ■Compliance with social and environmental laws of integrated suppliers; Traceability in the supply chain; ■ Relationship, policies and criteria for selection and evaluation of suppliers; ■ Suitable working conditions and human rights; Animal welfare. 6 SUSTAINABILITY PILLARS Effluents, emissions and waste management; ■ Environmental Protection; ■Rational and efficient use of water, raw materials and energy; ■Cleaner production, prevention of pollution, reduction of negative impacts and operational efficiency. brf Engagement with stakeholders ■Long-term relationships and mutual, transparent and ethical respect; Integrated Report in the mold of IIRC; ■ Annual and Sustainability Report GRI G4 version. Adapting to Climate Changes Enhacing Human Capital Promoting sustainable consumption ■ Food Security, quality of products and packaging; Health, nutrition and healthy eating; ■Responsible communication, labeling and product information. ■ Suitable working conditions and human rights; ■ Occupational Health and Safety; ■ Enhancing Human Capital. 15#49First private placement of GBs in Brazil ■ International market is attractive without the use of tax incentives; ■ International markets do not require unique rules, but require transparency in reporting and specific audits; ■ Reputational gains; ■ Access to diversified capital; ■ Access to responsible investors with medium to long term view; ☐ Long-term funding for initiatives with proven social and environmental gains. ■ BRF - Value: 500 MM (Euros): ✓ The notes won't be sold in Brazil (offered to institutional investors); ✓ Annual coupon interest of 2.750% p.y. (Yield to maturity 2.822%); ✓ Launch in June/15, maturing in June /22 (7 years); ✓ Senior unsecured obligations; Participating banks: Morgan Stanley, BNP Paribas, Santander, BofAML, Deutsche and Citi; Second Opinion: Sustainalytics. brf 16#50Eligible Categories brf Energy Efficiency Replacement of refrigeration equipment with more efficient models in terms energy; • Installation of more efficient lighting systems; • Thermal energy reuse in the production process; ● Optimization of production processes to reduce energy waste; Renewable Energy • Increase in power generation capacity in PCH Salto Lion; • Installation of biomass boilers for power cogeneration (steam / electricity); • Installation of solar and wind power generation technology; Sustainable Forests • Eucalyptus forest production for biomass supply for power generation and steam in industries; ● Harvesting and replanting, maintaining soil quality and biodiversity; • Soil preparation, purchase of seedlings, soil fertilization and pest control; 17#51Eligible Categories brf GHG Emission Reduction • Reduction of methane emission on the processes; MENOS CO₂ Water management • Reduction of water consumption: • Automation of manufacturing process equipment to supply water only on demand; • Process optimization; • Reuse of water; • Rain water harvesting; ● Improvement in wastewater management; Waste Management • Overall reduction in waste generation through the installation of equipment; • Reuse processing waste as an alternative fuel for power generation; • Construction of composting plant for organic waste; 18#52Eligible Categories Sustainable and Efficient Packaging • Reduction in the amount of raw material used in packaging; • Increase in recyclability; Reduction in raw material brf • Process optimization to reduce animal feed consumption. This implies improving the consistency of the feed, resulting in reduced consumption of grains and other raw materials. 19#53BRF S.A. www.brf-br.com/ir [email protected] [email protected]#54Light ORGULHO DE SER LIGHT Comissão Brasileira do Relato Integrado GT de Empresas Pioneiras em Relatórios de Sustentabilidade e GT de Investidores Investor's Day BM&FBOVESPA August/2015 #orgulhodeserlight#55A-D-1911 Sustainability as Corporate Strategy 110 years of history#56Light in numbers Framework & strategy • Sustainability effort . • Why investing in Light? #orgulhodeserlight Light 3/23#57Light in numbers#58Light Holdings Diversified structure comprised of Distribution, Generation and Commercialization segments Light S.A. (Holding) 100% Light Serviços de Eletricidade S.A 100% 51% 100% 25.5% 100% Light Energia S.A. Lightger S.A. Itaocara Energia Ltda. Amazônia Energia S.A. Light Esco Prestação de Serviços S.A 15.87% Renova Energia S.A. 100% Central Eólica Fontainha Ltda. 51% 9.77% Consórcio UHE Itaocara Norte Energia S.A. 51% Guanhães Energia S.A 100% Lajes Energia S.A. Central 100% Eólica São Judas Tadeu Ltda Distribution #orgulhodeserlight 100% 100% 50.1% 100% 51% Lightcom Comercializbona de Energia S. A Light Soluções am Eletricidade Ltda. Energia Olimpica SA Instituto Light Axxiom Soluções Tecnológica S.A. Generation Commercialization and Services Institutional IT Light 5/23#59Light Holdings Diversified structure comprised of Distribution, Generation and Commercialization segments Light S.A. (Holding) #orgulhodeserlight NET REVENUE BY SEGMENT (1Q15)* Distribution 86.6%** AR Generation 6.0% Commercialization and service 7.4% * Eliminations not considered Construction revenue not considered ** CVA not considered Light 6/23#60Light - Distribution DISTRIBUTION RJ State Concession Area % Population¹ 16 MN 11 MN 68% Área¹ 44,000Km² 11,000 Km² 25% GDP¹ R$ 407 BN R$ 207 BN 51% Consumers 7 MN 4 MN 57% MINAS GERAIS Municipalities 92 20 31 34% #orgulhodeserlight ESPÍRITO SANTO Energy consumption in concession area (GWh) 2014 SÃO PAULO 37,874 26,934 22,791 22,321 21,500 16,348 Eletropaulo CEMIG cpfl paulista coelba COPEL Light Light 7/23#61Framework & strategy#62Framework & strategy Sustainability As a catch-all term, sustainability can be pretty nebulous Corporate sustainability Long-term business vision that incorporates social and environmental dimensions of Light's strategy, as well as economic and financial dimension. Fundamental requirements: ■ Ethics; ◉ ■ Transparency; Effective communication with stakeholders; Good corporate governance practices and Accountability #orgulhodeserlight Light 9/23#63Framework & strategy Sustainability at Light No Isolated initiatives Centralized solutions Strategy & Sustainability Limited and ... short-term actions #orgulhodeserlight Yes Explain who you are and what you do Know your stakeholders Know what you do (good management) Community commitment Light 10/23 McKinsey's research#64Framework & strategy Sustainability at Light #orgulhodeserlight Strategic Materiality Planning Risk Strategy Sustainability Report Strategic & Intelligence Sustainability Database Benchmarking Sustainability Management Light 11/23#65Framework & strategy Sustainability at Light Sustainable operation Sustainable economics Sustainable environment Sustainable relationships Energy distribution business model in low-income communities New relationship model with the low-income population #orgulhodeserlight Light 12/23#66Sustainability effort#67Sustainability effort Non technical losses of Light VALE DO PARAÍBA o Volta Redonda Rigide Janeiro o Petrópolis BAIXADA o Itaboraí Guanabara LESTEneiro OESTE o Angra dos Reis LITORÂNEA Nova Friburgo o Araruama Lagoa de Araruama December data/2014 N Light Vale Litorânea Leste Oeste Baixada Clients (quantity) 4,202,337 436,693 839,751 879,682 988,927 1,057,284 Low Voltage Market Billing (GWh) 14,503 1,247 5,111 2,754 2,789 2,602 Non technical losses (GWh) 5,927 52 177 1,809 1,888 2,001 Non technical losses / low voltage billing (%) 40.87 4.17 3.46 65.69 67.72 76.90 Number of clients in APZ areas 661,069 65,230 102,184 155,514 #orgulhodeserlight 338,141 Light 14/23#68Sustainability effort Non technical losses of Light R$ 7 BN R$ 2 BN (2014) Light Vale Litorânea Leste Oeste Baixada Clients (quantity) 4,202,337 436,693 839,751 879,682 988,927 1,057,284 Low Voltage Market Billing (GWh) 14,503 1,247 5,111 2,754 2,789 2,602 Non technical losses (GWh) 5,927 52 177 1,809 1,888 2,001 Non technical losses / low voltage billing (%) 40.87 4.17 3.46 65.69 67.72 76.90 Number of clients in APZ areas 661,069 65,230 102,184 155,514 338,141 #orgulhodeserlight Light 15/23#69Sustainability effort Loss Reduction Strategy Efficient combination between technology and effective management This consumption is registered by the electronic meter. 3 This information is retransmitted through Light's smart grid to the Measuring Control Center. The digital display stays In the client's house and shows the energy consumption for monitoring purposes. The Concentrator concentrates the reading of all electronic measuring boxes within a certain region and sends it to the Measuring Control Center through Light's smart grid. • · Monitoring, reading, cutting and reconnecting measured clients - Measurement Control Center; Priorization of areas with a high level of losses and damage to the network; Technology that makes it more difficult to use the network improperly. #orgulhodeserlight Light 16/23#70. Sustainability effort Zero Losses Area - "Light Legal❞ Significant loss reduction and increasing collection rate Focused in areas with 10,000 to 20,000 clients with high level of losses and delinquency; Fully-dedicated teams of technicians and 49.0% APZ LOSSES 22.0 22.2 19.2 20.3 20.0 16.4 17.0 • commercial agents; Results constantly and accurately monitored by Light; Result-linked remuneration for services provided; 37 units implemented with 661 thousand clients BEFORE sep-13 dec-13 mar-14 jun-14 sep-14 dec-14 mar-15 APZ COLLECTION 100.2 93.9 91.2 95.5 98.2 97.1 95.7 89.00 (15% total) 2018 95 units 1,500 thousand #orgulhodeserlight BEFORE sep-13 dec-13 mar-14 jun-14 sep-14 dec-14 mar-15 Light 17/23#71Sustainability effort Investments CAPEX (R$ MN) 1,054 122 929 845 154 797 187 770 132 103 127 Generation 5.0 240 Administration 6.2 775 694 713 746 403 2011 2012 2013 2014 2015 Budget Others Investiments Special Obligations - Losses Investments in Electric Assets (Distribution) #orgulhodeserlight CAPEX BREAKDOWN (R$ MN) 1Q15 Other 0.8 Losses Combat 72.1 Develop. of Distribution System 86.6 Light 18/23#72#orgulhodeserlight Sustainability effort Community commitment Citizenship strengthening & Investments in technology Agena's Light Ao constr formar at onde e RTINO MICHELAN UM Light RECICLA Light 19/23#73Citizenship Strong partnerships Sustainability effort Community commitment Redesigning the business model Awareness and home appliance substitutions Investments in technology Quality commitment New business models reconnecting the company's success to social progress Share the value strengthening #orgulhodeserlight Light 20/23#74Why investing in Light?#75Why investing in Light? Economic Transformation in the Concession Area Rio as a host of major events Communities pacification Pro-business environment Investment projects hub ✓ Energy Market growth Energy Commercializati on focused on the free market New contracts in 2015 Energy available for commercialization Hedge of uncotracted energy to bear GSF deficit Energy Losses Reduction ✔Progress in the Technology Program (Smart Grid) ✓ New network and electronic meters in the pacified areas Growth in the Generation Business "Zero Losses Area" Program Projects under construction with partnerships: Renova, Belo Monte and Guanhães (total of 578 MW) SHPP Lajes under construction (17MW). ✓ Acquisition of Itaocara (150 MW) #orgulhodeserlight Best Corporate Governance Practices Listed in "Novo Mercado" of Bovespa Board Commitees with strong participation in the decision making process Included in the Sustainability Index (ISE) for the 8th year Dividend track Record ✓Dividend Policy: minimum 50% of net income; ✔Average payout since 2010: 75% Light 22/23#76Sustainable Greetings#77Itaú#78Itaú Unibanco at a Glance Leading position in Brazil through key competitive strengths ■ US$ 59.9 billion market cap (1) ■ 91,968 employees in Brazil and abroad ■ 5,003 branches and CSBs in Brazil and abroad ■ 26,709 ATMs in Brazil and abroad ■ Brazilian multinational bank ☐ Major provider of finance for the expansion of Brazilian companies ☐ Among the best talent pool in the Brazilian financial system Global Footprint of Brazil's Top Private Sector Bank | as of June 30, 2015 MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM Índice de Sustentabilidade Empresarial ISE Itaú Unibanco Holding S.A. Notes: (1) As of June 30th 2015. Source: Bloomberg. Indice Carbono Eficiente ICO2 Financial Highlights and Ratios As of and for the quarter ended June 2015 Highlights Total Assets Total Loans (1) Stockholders' Equity Recurring Net Income 2014 (2) Recurring Net Income 2Q15 (3) Long Term Foreign Currency (Itaú Unibanco Holding) BRL 1,230.5 Bln BRL 531.7 Bln BRL 100.7 Bln BRL 20.6 Bln BRL 6.1 Bln Moody's: Baa3 Fitch: BBB+ Financial Ratios Recurring ROE 2014 (4) 24.0% Recurring ROE 2Q15 (5) 24.8% Efficiency Ratio 2014 (6) 47.0% Efficiency Ratio 2Q15 (6) 42.9% BIS III CET I Ratio (7) 13.2% Itaú (1) Includes endorsements and sureties. (2) Represents Net Income adjusted for certain non recurring events described in the 4Q/14 MD&A - Executive Summary. (3) Represents Net Income adjusted for certain non recurring events described in the 2Q/15 MD&A - Executive Summary. (4) Calculated using Recurring Net Income / Average Equity. For annualized calculation method, please refer to the 4Q/14 MD&A - Executive Summary. (5) Calculated using Recurring Net Income / Average Equity. For annualized calculation method, please refer to the 2Q/15 MD&A - Executive Summary. (6) For criteria refer to "Efficiency Ratio" slides 89-91 - Institutional Presentation (7) This ratio is our current number which considers the phase in regulation. For more details see "Capital Ratios" slide 92 - 93 - Institutional Presentation 2#79Brazil | Macroeconomic Outlook GDP |% (YOY) 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% Jun/08 Jun/09 Jun/10 Jun/11 ―EU -USA 2.5% (2015) 1.4% (2Q15) -2.3% (2015) Jun/12 Jun/13 Jun/14 Jun/15 -Brazil Industrial Production x Unemployment Real Interest Rates | Selic/IPCA % 1 11.1% 10.5% 9.4% 6.6% 11.6% 9.8% 7.4% 6.5% Itaú .1% 4.3% 4.6% 5.0% 4.2% 4.5% 3.9% 1.3% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Real Interest Rate Inflation Breakdown -IPCA (Consumer Price Index) (E) (E) 20% 110 11 18% 16% 10 105 14% 8.6% Jun/16 9 12% 100 10% 8 95 8% 7 6% 90 6.67% 6.23% 6.09% 6 4% 90.0% Jun/16 2% 85 5 0% Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15 80 4 Jun/07 Jun/08 Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 -Industrial production Jun/15 Jun/16 Jun/16 (E) -Unemployment -IPCA 12 months IPCA administered prices 12 months -IPCA non-administered prices 12 months Itaú Unibanco Holding S.A.Notes: (1) Source: Brazilian Central Bank and Itaú Unibanco analysis; Forecast: Itaú Unibanco analysis 3#80Strategic Shift With signs of headwinds on the economic front, Itaú Unibanco is prepared for a challenging scenario. Net Interest Margin 13,4% Change in the Portfolio Mix 7,4% Itaú Jun-12 25.5 24.2 15.9 10.3 7.9 6.5 6.4 3.3 11,3% Jun-13 27.7 21.3 11.9 11.0 7.1 8.4 7.8 4.9 Jun-14 29.5 18.4 8.2 12.9 6.8 8.3 8.7 7.2 Jun-15 30.0 16.7 5.2 12.3 6.5 10.2 9.3 9.9 7,2% Corporate Personal Loans Credit Card 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Credit NIM (Gross Spread) Latin America Vehicles Payroll Loans Risk Adjusted Credit NIM (net spread) Linear (Credit NIM (Gross Spread)) ......Linear (Risk Adjusted Credit NIM (net spread)) ■ Very Small, Small and Middle Market Mortgage Loans 90-day NPL Ratio 7,3% 7,5% 6,9% 6,7% 6,4% 6,0% 5,8% 5,4% 5,2% 5,0% 4,7% 4,5% 4,6% 5,2% 5,1% 4,8% 4,5% 4,2% 3,9% 3,7% 3,5% 3,4% 3,2% 3,1% 3,0% 3,5% 3,3% 3,2% 2,9% 2,5% 2,3% 2,0% 1,9% 1,8% 1,8% 1,8% 1,8% 2,2% 3,3% O Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 --Companies --Total --Inidividuals Itaú Unibanco Holding S.A. Efficiency Ratio (%) 49,8 49,2 48,9. 48,2 47,5 46,5 46,0 2Q13 1Q14 2Q14 4Q13 3Q13 Quarterly Efficiency Ratio (%) 3Q14 4Q14 43,2 42,9 1Q15 ........ Linear (Quarterly Efficiency Ratio (%)) 2Q15 4#81Brazil | Macroeconomic Outlook Credit levels are growing from a very low base Itaú ■ Total credit has room to grow to a higher percentage of the GDP, from current 60.1%, approaching per capita adjusted international levels in 2020. ■ The debt leverage is increasing due to the mortgage increase in Brazil. 46.0% 46.3% 44.6% 42.8% 40.3% 36.9% 33.3% 30.9% 31.3% 29.7% 30.5% 29.1% 28.0% 27.5% 22.4% 21.5% 21.9% 22.2% 19.5% 19.7% 19.8% 9.1% 7.4% 7.2% 7.3% 8.6% 9.0% 9.6% 12.1% 12.5% 12.5% 13.4% 12.9% 12.9% 12.6% May/08 May/09 May/10 May/11 May/12 Debt service burden - Principal (% of income) Debt service burden (% of income) Debt Leverage - without mortgage (% of income) Note: Source: BACEN/ Itaú Unibanco analysis. Itaú Unibanco Holding S.A. May/13 May/14 Debt service burden - Interest (% of income) Debt Leverage (% of income) May/15 5#82Financial Education Itaú 1994 Economic plan "Real" Credit expansion New banking products Banking inclusion 60,1% is the credit-to-GDP ratio in Brazil. In 2004, it was less than 25% 1/3 of the population does not have bank account** 3 out of 10 Brazilians save money- 68% of them through saving account** 1960 $ High inflation Overnight Purchases to optimize salary ■ Our strategy Promote financial education 1 and transparency focusing on customer satisfaction 2 Offer knowledge and appropriate financial solutions for each goal of the customer's lifetime 3 Multipliers Program 100% of managers of Customer-Site Branches were trained in financial education. Since 2012 more than 230 lectures and 7,000 customers affected Impact Assessment (% clients) Investments 59,0% Pension 40,0% 26,0% 17,0% Program Impact 2012 2014 +7p.p. 2012 2014 Make assertive offers: the right product at the right time to the customer Sharing Financial Education Content investiré Online platforms with didactic videos, tutorials and guidance on Credit, Insurance and investment: 2.7 million views in 2014 Program Impact + 8p.p Review the offer of debt renegotiation products considering concepts of financial education and transparency. The new offer has a higher level of product hiring *Source: Brazilian Central Bank, as of December 2014. ** Ibope-CNI - june 2012#83Social-Environmental Risks Itaú Legal and Regulatory Risks Compliance with social and environmental legislation • . Reputational Risk Protect and develop reputation Avoid negative media publicity and involvement with critical issues Credit Risk Avoid potential losses due to exposure to social and environmental events affecting our clients Our strategy Own Operations Mitigation of bank's direct impacts, including the consumption of energy, materials, water and the emission of greenhouse gases The biggest green data center in Latin America with LEED certification: 43% reduction of energy consumption Processing capacity 16 times greater than the previous Business Continuity Program- contingency plan for social and environmental aspects 2 Assessment by project or companies financed and invested 3 Macroeconomic View EQUATOR PRINCIPLES .::PRI PSI • • • Credit Prohibited and Restricted List Environmental Contract Clauses Principles for Sustainable Insurance Studies considering the macroeconomic impact and consequences for companies of environmental and social issues Brasil: A Escassez Hidrica e seus Impactos Económicos We estimate the impact of increased regulation and charging fees for water. Most affected sectors: sewage collection, mining, steel, food and beverages, energy and sugar and alcohol. Analysis of Warranties (real estate) Questionnaire for environmental issues In 2014, 2 projects evaluated by EP, total of 5,014.1MM. Investment Own methodology for incorporating ESG issues into the valuation of assets: • 100% of Bovespa Index and ISE • 50% of corporate bonds We estimate the impact of a joint water and electricity rationing as an additional -0.6 p.p. on GDP growth in 2015 Macro Vision We Forecast GDP Wit Contact 6.5% in 2015 Compliance with Brazilian Central Bank Resolution 4327, which provides guidelines for setting the Social and Environmental Responsibility Policy#84Sustainability Governance Board of Directors Provides support for long-term strategies and guide our sustainability policy Annual Sustainability Executive Committee Responsible for integrating business and sustainability strategies Sustainability Committee Specific Committees Studies and Research 三个 Sustainability Indexes (ISE and DJSI) Recognition Implements our sustainability strategy, ensuring its management and monitors the progress of actions and the development of goals. A set of committees that manage relevant initiatives directly with our business units 1 Identification of gaps Voluntary Commitments 2 Prioritization and valuation of gaps Stakeholder Engagement 3 Integration by governance 4 Monitored by compliance Semiannual Semiannual As demanded by each committee EXAME Sustentabilidade 2013 In 2014, Itaú Unibanco was recognized by Exame as the Benchmark in Sustainability among the Brazilian Financial Institutions GUIA 2013 vocês/a AS MELHORES EMPRESAS PARA Best Companies to Launch a Career 2014 Marcas Brasileiras Mais Valiosas 2014 Most valuable brand in Brazil. Market value of R$ guia 21,7 billion Interbrand and honda Itaú Unibanco Holding S.A. VOCÊ TRABALHAR Itaú 8#85Thank you Itaú [email protected] [email protected]