INTEGRATED REPORT - 2015 Voluntary NUMBER OF UNITS / NUMBER OF PARTICIPATIONS commitments Cement Grinding Concrete Batching Aggregates Mortar Lime We are signatories of OUR BUSINESSES AND MARKETS Plants Mills Centers Plants Plants Plants the following voluntary global and national A pacts and initiatives: 1. United Nations Global COMPANY Compact (UNGC) – This is a United Nations initiative to encourage companies BUILT TO to respect human rights, support decent work, protect LAST the environment and fight corruption; In , which is our main market, due to the political and economic 2. Cement Sustainability ● CEMENT ● CONCRETE ● MORTAR ● AGGREGATES LIME ● AGRICULTURAL Initiative (CSI) – This is an scenario, we had to react quickly 3 37,2 MILLION METRIC TONS 10,2 MILLION M IN 2015 1,8 MILLION METRIC TONS 26,7 MILLION METRIC TONS IN 2015 LIMESTONE international cement industry in 2015, with measures that IN 2015 IN 2015 HYDRATED LIME protocol, signed by the 25 In Brazil, we market concrete We provide gravel and sands A material with a plasticizing would safeguard our operations Used in agriculture and in largest producers of building Our biggest business area in 15 Brazilian states through In Brazil, we produce three of different grain sizes for the capability, used in construction and business activities. animal husbandry in order materials in the world, to and main product is still our Engemix affiliate, a ranges of mortars: the construction industry, to meet the and mortars. At the same time, we conti- to: correct soil acidity, promote the adoption of best cement. well-known brand name Matrix brand, which is a needs of the market segments for nued with our long-term invest- neutralize aluminum toxicity, practices in the cement sector; that specializes in concrete range of standard mortars, concrete producers, industries, LIME PAINT increase the efficiency of ment plan in order to increase APPLICATIONS: It is the basic batching centers. the Votomassa brand, a infrastructure, paving and retail. Economically attractive our geographical diversifica- fertilizers and improve component of concrete and range of adhesive mortars material, used to paint large nutrient availability. Due to 3. Business Pact – "In the tion and consolidate our posi- mortars. Cement is used APPLICATIONS: Composed of and Decoratta brand, a fine APPLICATIONS: Materials used areas at a lower cost. the high levels of calcium Right Direction" Program tion in markets with high growth in construction in general, a mixture of cement, sand, plaster for finishing masonry. mainly for the manufacture of and magnesium in its – By signing this pact potential. for industrial, commercial aggregates and water, it is the concrete but also for: asphalt, composition it also provides the signatories commit

The economic recovery in the and residential surfaces and most common construction APPLICATIONS: It is used to pre-cast slabs, reinforced concrete these macro-nutrients for to combating the sexual United States and the improved floors. It is used in all types of material. It is also used for join blocks or bricks, finish structures, pre-cast concrete crop development. exploitation of children and infrastructure construction. paving outdoor areas. surfaces and lay ceramic tiles. artifacts, cyclopean concrete, and performance of our operations adolescents along Brazilian materials for landfills, drainage, highways; in , Europe, Africa base and sub-base of highways and Asia offset the decline in and paved areas. consumption in Brazil. The deva- 4. SBE-VC-RBMA Technical luation of the R$/US$ exchange 33.3 Cooperation Agreement – rate also contributed positively VOTORANTIM VOTORANTIM CIMENTOS This is a partnership among Votorantim Cimentos, the to our consolidated results. CIMENTOS BRAZIL NORTH AMERICA 5.2 Brazilian Society for Speleology We were the first Brazilian 3.2 (SBE), and the Atlantic company to make a bond issue in 3.0 Forest Biosphere Reserve the international capital markets 17 10 104 18 9 2 5.9 4/1 2 103/18 43 Great Lakes ● ● ● ● ● ● ● (RBMA) to develop social and in 2015, in the amount of EUR In 2015 we inaugurated three production United States/Canada Expansion of our Charlevoix plant environmental practices that 1.2 ● ● ● 500 million. units: a cement plant in Edealina (GO), in Michigan, United States. The contribute to the protection of 1.8 with a capacity of 1 million metric tons/ ● ● ● production capacity of the plant caves and the Atlantic Forest For our employees, we are 0.8 ● year; a mortar plant in Camaçari (BA); will be increased from 1.3 to 1.9 biome; committed to creating an incre- 5 Tunísia ● ● Florida ● ● million metric tons/year. Our plant in asingly challenging internal envi- and an agricultural lime production plant 1.2 Bowmanville, Canada, received its first ronment. In 2015, we invested in Arroio Grande (RS). 5. Global Reporting Initiative ● long-term government authorization (GRI) – This is an independent 20 million reais in the develop- to use low-carbon fuels. ment of our teams. For our custo- international organization that mers, we improved the average VOTORANTIM CIMENTOS helps businesses, governments LATIN AMERICA service time and our product and other organizations to BRAZIL ● ● ● ● VOTORANTIM CIMENTOS understand and communicate quality index in all segments. ● EUROPE, ASIA AND AFRICA their impacts on critical 0.2 Sustainability is one of the main São Paulo sustainability issues such as 5 2/1 6/43 1/16 1/1 4 2.2 ● Bolivia3 drivers of our business activities. climate change, human rights, 2.8 0.5 We developed a Sustainability We signed a financing agreement for the 2/6 ● ● ● Uruguay4 ● ● ● ● 14 8 104 21 2 corruption and many others; construction of a new cement plant to be Strategic Plan and established Expansion of our cement factory constructed in Santa Cruz Province, . ● ● ● Argentina1/6 a series of commitments and in Sivas, Anatolia, Turkey. The new 6. Open Letter to Brazil on In , we approved an expansion targets to be achieved by 2020. production line, which has a planned Climate Change (ETHOS project in San Luis, which will increase its In 2015, we participated in the capacity of 1.2 million metric tons/ Institute) – This is a Brazilian production capacity to 993 thousand metric year, is expected to begin operations business sector initiative, COP 21 meeting in Paris and tons/year. Also in Argentina, we invested created a new area to seek new 1. Argentina, participation of 49% (Avellaneda) | 2. Chile, INSTALLED ANNUAL MILLION in early 2017. This investment, coordinated by the ETHOS US$ 12.6 million in the modernization of a CEMENT CAPACITY OF OUR METRIC options for Alternative Fuels and participation of 16.7% (Bio Bio) | 3. Bolivia, participation of 67% amounting to EUR 140 million, is Institute, under which the lime factory to serve the construction market. (Itacamba) | 4. , participation of 51% (Artigas) | 5. Includes CONSOLIDATED OPERATIONS 55,5 TONS/YEAR the largest ever made by Votorantim company makes a number Raw Materials (AFR). We started up operations at an adhesive 100% of the installed annual capacity of Suwanee, which is not consolidated in VCSA's financial statements | 6. Includes 100% of Cimentos outside the Americas. of commitments to combat We still have much to build for mortar plant in Uruguay, with a capacity 1 MILLION 83 MARACANÃ the installed annual capacity of Bío Bío and Avellaneda, which are METRIC TONS = STADIUMS climate change. this and future generations. of 25 thousand metric tons/year. not consolidated in VCSA's financial statements KEY ACTIVITIES CUSTOMER MANAGEMENT OF PROJECTS AND INDICATORS SEGMENTS Advocacy B2C RETAIL Distributors: small retailers, home centers

B2B REAL ESTATE Construction companies INFRASTRUCTURE Infrastructure construction companies

INDUSTRIAL Concrete batching centers Precast concrete industry Concrete artifacts industry Fiber cement industry 1 2 3 4 Mortar industry

RESEARCH* PLANT MINING PRODUCTION OTHER STAKEHOLDERS CONSTRUCTION Shareholders Investors Financial institutions Employees: own and KEY ACTIVITIES 1 2 3 4 5 6 7 8 third-party contract staff Society Local community MAIN RESOURCES VALUE PROPOSITION Class associations Investment capacity Brand credibility and legacy Process improvement and bureaucracy reduction People Mines Investments in sustainability Natural resources Energy MATERIALITY Fuel Water Customer relations 5 6 7 8 Financial Capital Quality and variety of the product range Inputs Firewood Human Capital INBOUND/ Technical expertise and safety at work Machinery/equipment Gas COMMUNICATION SALES AFTER-SALES OUTBOUND Services Social and relationship Capital Vehicle fleet and concrete mixers LOGISTICS SERVICE Mine closure Natural Capital Infrastructure Plants IMPACTS BY ACTIVITY Media and marketing Concrete batching centers STRATEGIC DRIVERS A Ethics, transparency and Positive impacts Negative impacts IT Distribution centers integrity Technology center Customer Empowered Operational Sustainable B Occupational health and safety SOCIAL Focus People Excellence Practices C Generation of Employment and Income CO2 emissions Modernization of Public Administration Anti-corruption practices PARTNERSHIPS AND D Overloading of local infrastructure KEY ACTIVITIES 1 2 3 4 5 6 7 8 and compliance with the Truck traffic STRATEGIC ALLIANCES competition laws E Regulatory risks ● Community/Social license ENVIRONMENTAL ● Universities PERFORMANCE INDICATORS F Supply chain management Social and environmental education ● Training Schools G I G Contribution to local Archaeological and paleontological protection ● Environmental Institutes Community engagement development ● Government entities Reduction in emissions of NOx and SO E M Rehabilitation of degraded areas 2 H Economic performance: ● Trade Unions C K L Removal of vegetation Use 30% of alternative fuels economic value generated ● Government Noise Security (fatality rate) E B and distributed ● Class Associations Water and biodiversity E O Q Emissions of particulate matter ● Banks I Community relations Impacts (soil, biodiversity and communities) ● Suppliers Ethical business practices (conduct code) A D J Government relations Biodiversity management ● Equipment Suppliers AFR - Alternative fuels target C K L ● Coke Suppliers (fuel and additives) K Energy efficiency Waste EBITDA H ● Supplier of alternative fuels F G L Alternative sources of Co-processing ● Co-processing services Sustainability in the supply chain Reduction of CO emissions C electricity and fuels CO2 emissions ● Transport companies and independent 2 truck drivers Global Environmental Policy and Green Rules I C K L M N O M Air emissions (Particulate Other emissions (NOx,SO2,etc.) ● Matter, NOx and SO ) Effluents Brazilian Army (explosives) Cash Cost process 2 ● Cementitious products companies Clinker / Cement Factor C N Management and re-use of civil ● Opinion leaders/influencers construction waste and reverse ECONOMIC IQP processes P ● Customers/promoters logistics for used cement bags Taxes on contracted services ● Newspapers, magazines, TV and websites Commercial NPS P Taxes on mineral exploration (CFEM) ● Customers OEE - Productivity and Quality O Water consumption ● Key accounts (Large construction Taxes on the acquisition of goods and services Tmac - Customer Service P Customer satisfaction companies and Home Centers) P Taxes on the sale of products and services ● Technical Laboratories Index of engagement Q Biodiversity conservation

* Geological research, Research and Development (R&D) and Market research SOCIAL PERFORMANCE ECONOMIC PERFORMANCE

In a year which saw a sharp downturn in the Brazilian market, we revised our organizational structure, with the challenge Our long-term strategy, which focuses on geographic diversification, commitment to improve operational excellence of seeking a balanced budget and at the same time, preserving the knowledge base and maintaining the company in a and financial discipline (cost reduction, divestiture of non-strategic assets, extended debt profile and an adequate level of state of preparedness for an upswing in the economy. We recorded a significant improvement in our Organizational Climate liquidity), demonstrates the company's capacity to adapt to any scenario, including, principally, unfavorable situations, such Survey indicators, in several countries, as a result of the strengthening of our corporate image as a global company. as that experienced in Brazil. These actions enabled us to maintain our leadership position in the Brazilian market and to consolidate our position in other countries where we operate, without impacting the investors' confidence in the company.

2013 2014 2015 NUMBER OF SOCIAL PROJECTS – 2015 16,756 15,779 15,288* TOTAL EMPLOYEES BUDGETED EBITDA BRAZIL – In 2015 the economic and DEBT AND * Figures have changed since 2014 they now include China 112 political crisis accelerated significantly, EXECUTED 110 R$ MILLION LEVERAGE AT WOMEN EMPLOYED 11.7% 10.5% 12.3% requiring a fast reaction on our part. YEAR-END 2015 We adapted our business structure EMPLOYEES OVER 50 YEARS OLD 9.9% 17.9% 19.9%* 3,483 R$ MILLION CONSOLIDATED to the new market conditions by * Figures do not include China – R$ MILLION SOCIAL INVESTMENTS 3,512 3,231 focusing on operational excellence ENGAGEMENT INDEX BRAZIL - 73% 76% 8.4 and cost optimization. According 7.5 OWN to the National Cement Industry 19,497 THE VOTORANTIM GROSS DEBT 2,679 Union (SNIC), the apparent cement 7.6 INSTITUTE + BRAZIL 6.8 THIRD-PARTY FUNDS + 2,709 consumption decreased by 9.5% in NUMBER OF FATALITIES VCBR 2013 2014 2015 TAX INCENTIVES Cement, aggregates and concrete* 2015 compared to 2014. The main 4,734 factors causing the fall in consumption CASH + FINANCIAL CONTRACT STAFF 9 7 3 2014 2015 were increased unemployment, reduced INVESTMENTS 1,916 THIRD PARTIES 8 3 1 credit availability and a deceleration in 2 FOR EVERY R$ 1.00 INVESTED EMPLOYEES 3 1 0 construction sector activity. 14,646 IN SOCIAL PROJECTS INTHE NET DEBT COMMUNITY, VOTORANTIM LOST TIME RATE FRENQUENCY 0.74 CIMENTOS GENERATED A RETURN OF NORTH AMERICA – The recovery of (number of injuries with lost time compared to R$ 4.54.Result of a study on the return the North-American market, combined millions of man-hours worked, included injuries on social investment at our cement plant EUROPE, ASIA with the devaluation of the R$/US$ to third parties. We recorded the lowest global in Primavera (PA), using the Return on AND AFRICA exchange rate, helped us to offset the injury frequency rates in the last ten years. Investment (ROI) methodology. 373 741 decline in our business in Brazil. The 414 NORTH AMERICA 483 operating performance for the year 356 302 was the best since our acquisition in LATIN AMERICA 91 88 2001. According to the United States 74 Geological Survey (USGS) and the ENVIRONMENTAL PERFORMANCE 2013 20141 2015 Canadian Cement Association (CAC), the cement consumption in the Great Lakes ENVIRONMENTAL CAPEX AND OPEX – R$ MILLION 2013 2014 2015 Region, Florida and Ontario grew by CAPEX Environmental investments 79 67.8 93.1 6.3%, 8.1% and 4.3% respectively. NET REVENUE OPEX Environmental expenses 51.2 41.6 33.3 AMORTIZATION R$ MILLION EUROPE, ASIA AND AFRICA – In PROFILE EXTENDED – kg CO /METRIC TON OF CEMENTITIOUS PRODUCT SPECIFIC CO2 EMISSIONS 2 Europe, Asia and Africa, we have GROSS 657.1 657.3 659.3 +7% 14,046 different dynamics for each market. We were able to access We created a new business unit GLOBAL The highlights of the year were the financing lines at attractive NET 649.6 646.8 647 13,130 focused on Alternative Fuels and economic recovery in Spain, the high terms and interest rates, which enabled the company OTHER AIR EMISSIONS – METRIC TONS/YEAR Raw Materials (AFR), aimed at rate of capacity utilization registered in our operations in North Africa to extend its debt profile, NITROGEN OXIDES (NO ) 65,407 61,005 56,997 increasing co-processing and the X use of alternative fuels to replace and Turkey, and the impact of the thus ensuring greater

SULFUR DIOXIDE (SO2) 22,665 20,735 22,149 fossil fuels. At a global level we devaluation of the R$/EUR exchange liquidity and reducing increased our rate of utilization of rate on the consolidated results. At refinancing risk. PARTICULATE MATTER 3,302 3,126 1,977 BRAZIL alternative fuels from 7.8% in -8% 8,545 year-end we consolidated the results CLINKER FACTOR – TARGET 2020 - 72% 76.1% 74.7% 73% 2014 to 8.9% in 2015. This was 7,831 of our operations in China, due to IFRS We were the first an important initiative for reducing requirements. Previously, since 2012, Brazilian company to SPECIFIC CONSUMPTION OF ELECTRICITY 109.4 112.2 109.1 carbon dioxide emissions. these assets had been accounted for as make a bond issue in kWh PER TON OF CEMENTITIOUS PRODUCT assets for sale. However, we have no the global capital markets intention to hold these assets in China in 2015. We raised and will continue to seek buyers. EUR 500 MILLION ENVIRONMENTAL PRODUCT PRODUCT LIFE-CYCLE ASSESSMENTS 3,544 with a maturity date of DECLARATIONS NORTH AMERICA +55% We conducted two studies to assess the environmental performance of our products, considering the impacts 2,290 LATIN AMERICA – We only 2022 and an interest rate +17% 2,308 We prepared five environmental product throughout their life cycles, from the extraction of natural resources to their final disposal or recycling. EUROPE, ASIA AND AFRICA consolidate the results of our of 3.5% per year. declarations for existing products selected 1,974 operations in Bolivia and Uruguay. LATIN AMERICA from the cement, concrete, and mortar 1. Eco-efficiency of the cement produced on Rio 2. The environmental and economic +19% 340 405 All these countries, especially Bolivia, product ranges. We used the methodology Branco unit (PR) (2005 to 2014) - In a comparative performance of a rigid concrete pavement are emerging markets that have growth 20141 2015 defined by ISO 14025 (EPD) and ISO 14040 analysis, the cement produced in 2005 is more ecoefficient and a flexible asphalt pavement for the potential. According to estimates (LCA), and a software package developed than the 2014, however, the performance of our product construction and maintenance of a highway published in The Global Cement Report, by the Cement Sustainability Initiative has improved in the last few years, being necessary 9% over a period of twenty years. The rigid concrete the consumption for Bolivia and Uruguay in 2015 increased by 7.9% (CSI). These declarations are of particular less cement for the same cubic meter of concrete. The final pavement, which is currently used in only 4% and 4.3% respectively. interest to companies seeking certification results put the 2014 concrete in a more ecoefficient position of Brazil's highway network, is 53% more under the Leadership in Energy and than the 2005 concrete. Besides that, the production cost eco-efficient and costs 54% less, considering Environmental Design (LEED) standard. of Rio Branco's cement in 2014 is lower compared to 2005. the costs of construction and maintenance. 1. Figures have changed since 2014 they now include China 2. Includes R$ 117 million of derivative transactions OUR TARGETS FOR 2020 MAIN R&D Sustainability is inherent to our business approach and activities. It is also AND QUALITY one of the main drivers of our strategic plan. To highlight its importance and to stimulate a change of attitude in our employees, encouraging them PROJECTS to constantly pursue sustainability and innovation in doing business, we established our Sustainability Commitments for 2020. NEW PRODUCTS

 Target achieved  Target on schedule  Target behind schedule

SAFETY   To ensure the effective adoption of the Sustainable products and services: to promote the implementation of new Global Health and Safety Policy and the ACTIVATED POZZOLAN Life Saving Rules. sustainable solutions, products, services and innovation – achieve a clinker/ Production of activated pozzolan from cement factor of 72%. the calcination of kaolin clay and  limestone, aimed at improving cement To implement sustainable supply chain quality and reducing costs. standards.  CO2 emissions: to reduce our CO2 emissions per ton of cement by 25%  compared to 1990 levels. Promote healthy working conditions and zero harms environment for all our employees. To reach zero fatalities  and a LTI* Rate for direct employees of PM NOx SO2 less than 0.4. Air emissions: to reduce particulate

matter, NOx and SO2 emissions per ton ETHICS AND COMPLIANCE of clinker to 65g, 1950g and 750g / ton of clinker, respectively. DECORATTA Development of a surface finishing  product, aimed at a practical form of Ethical Business Practices: to ensure  application and a fast drying time. Up to that all of our operations are carried out Water and biodiversity: to implement in an ethical manner and in conformity water management plans for scarcity 30% reduction in the application time. with the Votorantim´s Code of Conduct. areas in our business units.

ECO-EFFICIENCY AND INNOVATION  Water and Biodiversity: to ensure that all of our quarries have rehabilitation and  biodiversity management plans for local Environmental Policies: to ensure and sensitive biodiversity regions. the implementation of our Global Environmental Policy and Green Ruless. COMMUNITY ENGAGEMENT  PERVIOUS CONCRETE Supply chain standards: to promote  Development of a concrete with a high sustainable supply chain standards by To ensure the implementation of degree of porosity for use in pavements, way of our business units. a community engagement plan in that has a a number of benefits. communities where we operate that  have a high degree of social vulnerability. Non-fossil fuels: to use 30% non-fossil * (LTI Lost-time injury) is defined as an occurrence which results in a COST REDUCTION fuels in our cement plants. fatality, permanent disability or lost time at work for a shift or more. MANGANESE SLAG Manganese slag is used to improve cement quality and reduce costs.

DOWNLOAD THE COMPLETE VERSION OF THIS REPORT AT: ZERO LOSS I www.votorantimcimentos.com/pt-BR/sustainability/Paginas/Integrated-Report.aspx Aims to re-use concrete by the addition of stabilizers. E-MAIL FOR CONTACTS: [email protected]

Period of analysis for this report: January to December 2015.