INTEGRATED REPORT SHORT VERSION BUILDING OUR TOMORROW

ANNUAL CEMENT CAPACITY We are a Company made to last, KEY FACTS AND INITIATIVES BUSINESS AND MARKETS WHERE WE OPERATE OF CONSOLIDATED and our actions in 2016 promoted OPERATIONS6 important advances towards the ● CEMENT ● CO-PROCESSING CAPTION sustainability of our business. We 33.8 MILLION TONS SOLD IN 2016 AGRICULTURAL LIME invested in competitiveness, optimized ● CONCRETE LIME 9.2 MILLION M3 SOLD IN 2016 INSTALLED CONSTRUCTION SHOTCRETE CAPACITY OF OF 83 MARACANÃ costs and improved the efficiency of all 1 MILLION STADIUMS (RIO DE 57.5 ● MORTAR CONCRETE BLOCKS = our operations. Applied in a planned 1.6 MILLION TONS SOLD IN 2016 METRIC TONS JANEIRO, ) MILLION way in different contexts, these ● AGGREGATES TONS/YEAR 24.4 MILLION TONS SOLD IN 2016 actions made VCNA () 34.3 and VCEEA (Europe, Asia and Africa) 5.2 operations participation reach a new LAUNCH OF THE NEW SUCCESSFUL STARTUP GLOBAL level inside our business, which ratifies PORTFOLIO OF BAGGED OF PRIMAVERA CO-PROCESSING: CEMENT IN BRAZIL. (BRAZIL) AND WE WENT FROM 5.9 the hit in the geographic diversification ● ● ● ● 3.2 HIGHLIGHT: THE NEW YACUSES () 9.7% TO 11.8% OF Great Lakes 3.0 strategy built over the years. STRUCTURAL CEMENT, PLANTS REPLACEMENT OF United States/ In Brazil, our main market, we antic- WHICH ALREADY ACCOUNTS FOSSIL FUELS Canada ● ● ● ● ● FOR 10% OF SALES ● ● ● ● ● ipated the decrease in the Brazilian GDP with initiatives such as the adoption of 1.2 1.8 zero-based budgeting, adjustments to ● ● ● ● the organizational structure and the Morroco ● ● ● launch of a new product line, always ● ● 1.2 framed by financial discipline. More Florida5 than punctual actions, these initiatives ● ● are tied to a long term strategy that already leaves as legacy a much more ● solid and well prepared company to ● ● ● ● ● 1.2 face the next years challenges. APPROVAL OF 3,500 EMPLOYEES THE BOLT PROJECT BRAZIL The same strategy was behind an R$ 1 BILLION IN NEW PARTICIPATED TRANSFORMED LOGISTICS ● extensive systematic of processes INVESTMENTS FOR IN THE INTO A LEVER OF Bolivia3 review, done in 2016 in all contries EXPANSIONS IN TURKEY, SUSTAINABLE COMPETITIVENESS, WITH ● ● ● 0.5 UNITED STATES AND PRACTICE A GOAL TO SAVE 2 in which we operate. Our Focus on WEEK R$ 45 MILLION A YEAR Excellence, with reduction expenses ● ● ● ● ● ● ● ● Argentina1 Uruguay4 actions and productivity increase, yielded, beyond better financial results, two notable milestones in Votorantim VOTORANTIM VOTORANTIM CIMENTOS Cimentos image: our award record CIMENTOS SOUTH AMERICA (43 in total) and increase in quality NORTH AMERICA indicators and customer loyalty. VOTORANTIM YACUSES – BOLIVIA ARGENTINA This long term perspective CHARLEVOIX – UNITED CIMENTOS EUROPE, Our first greenfield project In 2016, we advanced guided actions such as investments STATES VOTORANTIM ASIA AND AFRICA outside Brazil, the plant our project to expand maintenance in co-processing (which ISSUANCE OF THE IMPLEMENTATION RECORD NUMBER OF We will continue to CIMENTOS BRAZIL was inaugurated 15 days the capacity of the San will ensure raw-material saving $ 500 MILLION IN OF THE LEAN AWARDS. HIGHLIGHT: expand the unit with an SIVAS - TURKEY ahead of schedule and has Luis plant. Startup is BONDS BY VCNA MODEL THE MASTER already become a planned for 2019. aquisition and advances in sustaint- estimated investment PRIMAVERA – BRAZIL Our estimated AND EXTENSION IMPROVED THE IMOBILIÁRIO, of US$ 184 million. The The unit, inaugurated in investment of successful example of We also approved the ability indicators), the issue of US$ OF COMPANY’S MORTAR BUSINESS THE MOST IMPORTANT expansion, with startup May 2016, has strategic € 140 million in the planning and applying expansion of the Olavarría 500 million in bons in North America DEBT PROFILE PERFORMANCE IN AWARD IN THE scheduled for 2018, importance to serve the expansion of the unit the Company’s global plant. This will increase BRAZIL BY 26% BRAZILIAN REAL ESTATE (which better balanced the Company will put us in a good markets of the North will triple its production standards. This unit will its capacity by 175,000 MARKET debts among their plants) and the position to capitalize and Northeast capacity and increase enable us to produce up metric tons a year. continuity in our expansion cycle that, on opportunities in the of Brazil, regions with our network in eastern to five times more after the inauguration plants in Bolivia Great Lakes region. growth potential Turkey. cement in Bolivia. and Brazil in 2016, walks towards the expansion of the plants in USA, Turkey 4 2 18 9 14 8 1 2 8 1 1 and Argentina. 89 26 50 16 9 102 21 2 Our geographic diversification and long term planning promoted in the past resulted in a dynamic, sustainable CAPTION: NUMBER OF UNITS and competitive company. We are sure THE INDEX (NPS) THAT CREATION OF MAINTAINING OUR Cement plants Mills Concrete plants Aggregate units Mortar units that maintaing our DNA, our Beliefs, MEASURES CUSTOMER ENVIRONMENTAL LONG-TERM FOCUS, RECOMMENDATION PRODUCT WE APPROVED OUR our Values and our Purpose, we will OF OUR PRODUCTS DECLARATIONS 10-YEAR keep paving our path towards a even 1. Argentina: 49% stake in Cementos Avellaneda | 2. Chile: 16.7% stake in Cementos Bío Bío | 3. Bolivia: 51% stake in Yacuses, which holds 66.7% in Itacamba Cementos S.A. | 4. : 51% stake GREW 14 PERCENTAGE (EPD) IN BRAZIL AND STRATEGIC in Cementos Artigas | 5. Includes 100% of Suwannee’s annual installed capacity, which is not consolidated in the VCSA Financial Statements | 6. Does not include annual installed capacity of Bio Bio, more solid future. POINTS IN BRAZIL IN THE UNITED STATES PLAN Avellaneda and Suwannee, which are not consolidated in the VCSA Financial Statements. ZERO LOSS KEY-ACTIVITIES AND PRODUCTION PROGRAM

MANAGEMENT OF PROJECTS AND INDICATORS HARDENED CONCRETE Advocacy ADDITIVES GRINDINGRAW SOFT CONCRETE MILL CRUSHING MAIN ADDITIVES RESOURCES Investiment capacity CLINKER BURNING GRINDING MILL ADDITIVES SAND POZZOLANSLAG Human resources ASH CONCRETE KILN IRON ORE CLAY BAUXITE Natural resources

LIMESTONE Mines COOLING PLASTER Electricity Water GRINDING MILL GRINDING MILL CRUSHING Firewood Gas HYDRATION HYDRATED LIMESTONE FILLER KILN STORAGE Fuel MIXER LIMESTONEADDITIVES FILLER Inputs PACKING DECORATTA FINISHING GRINDING CEMENT PACKING ADDITIVES Machinery/equipment MILL CEMENT AGRICULTURAL LIME Fleet and concrete-mixer trucks 1 2 3 4 MIXER LIME HYDRATED LIME Infrastructure Plants

PACKING STORAGE RESEARCH* CONSTRUCTION MINING PRODUCTION LIMEPAINT Concrete plants Distribution center OF PLANTS STANDARD MORTAR Technology center

ADHESIVE MORTAR STORAGE Media and marketing IT KEY-ACTIVITIES 1 2 3 4 5 6 7 8

MATERIALITY VALUE PROPOSITION Financial capital Credibility of the brand Efficient process management and reduction of red-tape Human capital Investments in sustaintability Social and Customer relationship 5 6 7 8 relationship capital Quality and variety in portfolio Technical expertise safety in the workplace LOGISTICS COMMUNICATION SALES AFTER-SALES Natural capital Inbound/outbound Services Mine closure Intellectual and IMPACTS BY ACTIVITY manufactured-goods capital Positive impacts Negative impacts STRATEGIC DRIVERS

ENVIRONMENTAL A Occupational health and safety Emission of GHG CUSTOMER FOCUS BEST IN CLASS OPERATION EMPOWERED PEOPLE SUSTAINABLE PRACTICES Emissions of NOx and SOx B Ethics and integrity in business Emission of particulate material C Climate change and GHG Waste generation STRATEGIC PARTNERSHIPS KEY-ACTIVITIES 1 2 3 4 5 6 7 8 emissions Co-processing of waste AND ALLIANCES D Customer relationship and Consumption of water and generation of effluents recommendation Impact on soil, biodiversity and suppression of vegetation ● Community/social license PERFORMANCE INDICATORS Management of biodiversity and restoration ● Universities E Economic performance ● Engagement with the community F L of degraded areas Vocational training schools ● Environmental institutes Reduction in emissions of NOx and SOx F Relationship with the community Archeological and Paleontological rescue K ● Governmental bodies 30% use of fossil fuels C H G Training, qualification and Impact on the communities ● Unions Safety (fatality rate) A development of employees Noise ● Government ● Water and biodiversity J M Trade associations H Energy management ● ECONOMIC Banks Ethical commercial practices (Code of conduct) B ● Suppliers I Innovation, research and Tax on contracting products and services AFR - Substitution target C H ● Equipment suppliers Ebitda E development Tax on sales of products and services ● Suppliers of coke (fuel and additives) Tax on mining ● Suppliers of equipment, alternative fuels Sustainability in the supply chain D N J Biodiversity preservation ● Provision of service in co-processing Reduction in CO emissions C Generation of Company’s value and maintenance 2 K Atmospheric emissions ● Carriers and self-employed drivers of the brand’s credibility Global Environmental Policy and Green Rules C H K M ● Army (explosives) (particulates, NOx and SO ) Cash Cost Process 2 Management of liabilities ● Cementitious L Sustainable and inclusive Cash generation ● Opinion makers/influencers Clinker/Cement factor C ● Customers/promoters IQP Processes D construction ● Newspapers, magazines, TV and websites SOCIAL NPS (Net Promoter Score) D M Water and effluent management ● Customers Generation of jobs and income OEE - Productivity and Quality I G ● Key accounts (Major construction N Supply Chain management Overloading of the local infrastructure companies and Home centers) Tmac - Customer Service D Truck traffic ● Technical laboratories Engagement Index O Employment and labor relations SOCIAL PERFORMANCE ECONOMIC AND FINANCIAL PERFORMANCE

When it comes to people, our mission is clear: to have the best team in the building materials industry. To fulfill this We worked on a series of initiatives throughout the year to ensure cost reductions, which included implementing zero- mission, we value our employees by offering training, stimulating their creativity through programs, and recognizing based budgeting, adapting our operations to market conditions, increasing operational efficiency in all regions in which our internal talent when filling positions. Given the Company’s accelerated growth outside Brazil over the last few we operate, and promoting greater geographical diversification through expansion projects outside Brazil. years, we have been working on our processes to globally align all our practices and policies. We are now a Company that is more efficient, leaner, and better positioned for an upturn of the Brazilian market and to take advantage of markets with high growth potential.

2014 2015 2016 NUMBER OF PROJECTS - 2016 TOTAL EMPLOYEES EBITDA BRAZIL – Despite a challenging DEBT AND LEVERAGE * *Starting in 2016, the numbers include 15,214 14,025 13,189* BUDGETED 81 IN MILLION R$ year, with political and economic IN DECEMBER 2016 employees from our operations in China EXECUTED 103 instability, the Company focused its IN BILLION REAIS efforts on financial management, FEMALE EMPLOYEES (IN %) 10.5 12.3 13.0 1 2014 3,483 cost optimization and efficiency OVER-50 EMPLOYEES (IN %) 17.93* 19.94* 19.13 INVESTMENT – (R$ MILLION) CONSOLIDATED 2015 3,231 gains, aiming to improve its * Revised data 15.5 2016 2,406 competitiveness and positioning. GROSS DEBT 8.4 We advanced in the implementation 7.5 5.3 OWN 7.6 THE VOTORANTIM INSTITUTE of optimization and cost reduction 6.8 1 2,679 NUMBER OF FATALITIES 2014 2015 2016 +THIRD-PARTY FUNDS 2014 initiatives in all areas, anticipating the 4.1 7 +TAX INCENTIVES CASH + FINANCIAL Cement, aggregates and concrete* BRAZIL 2015 1,916 challenges in the Brazilian market. INVESTMENTS CONTRACT STAFF 1 0 5 2016 965 We also worked on operational improvements, through, for example, CONTRACTORS 7 3 0 2014 2015 2016 the Lean methodology program, 11.8 20141 302 NET DEBT EMPLOYEES 3 0 0 FOR EACH R$1 DESTINED TO COMMUNITY, which generated a 26% performance NORTH 2015 741 R$4.54 RETURN TO VOTORANTIM AMERICA increase in the mortar business. CIMENTOS. Result of survey on social FREQUENCY RATE OF LOSS OF TIME 2016 834 investment return in our cement plant NORTH AMERICA – INJURIES Primavera, in Para, having as inspiration Our business in North America In Brazil, there was an increase in lost-time 1 the ROI methodology - Return on Investment. 2014 414 benefited from the solid growth injuries, an increase in frequency rates, and EUROPE, a reduction in non-lost-time accidents. In ASIA AND 2015 483 of the United States economy and AFRICA North America, there was a decrease in 2016 548 a milder winter. VCNA had a 33% lost-time accidents. In operations in Europe, increase in Ebitda in dollars, not Asia and Africa, there was a reduction in the considering the extraordinary effects 1 88 indicator of lost-time injuries. 2014 that occurred in 2015. In addition SOUTH 91 AMERICA 2015 to positive operating results, we 2016 58 implemented a series of efficiency measures that ensured cost ENVIRONMENTAL PERFORMANCE reductions and improved logistics performance by approximately EXTENSION OF NET REVENUE 12%. The continuation of our KG CO /METRIC TON OF CEMENTITIOUS PRODUCT AVERAGE DEBT SPECIFIC CO2 EMISSIONS 2 IN MILLION R$ zero-based budgeting initiative has MATURITY GROSS 652.6 655.7 647.6 AFR ECO-EFFICIENCY also borne fruit. NET 642.6 641.9 631.9 As important as replacing fossil 20141 13,129 In 2016, we advanced our fuels with materials such as tires EUROPE, ASIA AND AFRICA – liability management plan CONSOLIDATED 2015 14,053 OTHER ATMOSPHERIC EMISSIONS and biomass is understanding the VCEAA achieved a 6% increase in aiming to extend our debt AVERAGE SPECIFIC CONCENTRATION (g/ METRIC TON CLINKER) environmental impact of these 2016 12,697 Ebitda in euro in 2016 compared maturity profile, contributing NOx 1,941 1,890 2,058 initiatives. After measuring the to 2015, thanks to a strong to further strengthening impact of these practices in 2016, we SO2 660 676 771 20141 8,524 tibioperonial performance based our liquidity position. estimated that co-processing reduced on lower costs and higher volumes Through several initiatives, PM 99 71 64 BRAZIL 2015 7,795 our consumption of petcoke (a product in , Spain and Tunisia. We we further extended our CLINKER/CEMENT FACTOR 2020 TARGET - 72% 76.4% 75.5% 77% imported from the Gulf of Mexico) 2016 6,373 performed a series of actions that maturity profile, extending by 328,000 tons. To illustrate what resulted in cost reductions, involving the average debt term by ELECTRIC POWER CONSUMPTION 112.6 113.2 108.8 this volume represents, it would be 1 energy efficiency and the use of almost two years, from 9.0 KWh PER TON OF CEMENT PRODUCT - CEMENT BUSINESS 2014 2,290 necessary almost 10,000 trucks to NORTH alternative fuels. to 9.9 years. In this scenario, 2015 3,544 transport it. AMERICA VCNA and VCEAA were 2016 3,610 SOUTH AMERICA – Bolivia continues DENVIRONMENTAL ANALYSIS OF THE ECO-EFFICIENCY OF essential in the success to have strong economic growth of our Company's liability PRODUCT DECLARATIONS MORTARS BENEFITS OF AGRICULTURAL LIME 20141 1,974 prospects, especially in Santa Cruz management plan, which In 2016, we became the first Brazilian Our eco-efficiency area conducted a study to compare We invested in several fronts to transform EUROPE, de la Sierra region, our main market, ensured a better distribution Company in the construction industry to the environmental impact of using mortar mixed on- the waste generated in our units into ASIA AND 2015 2,308 AFRICA which justifies the expansion in the of the liabilities among the certify products following the international site versus industrialized mortar, which follows a more a product that can be used as a soil 2016 2,319 region we started up in December different regions where EPD program. These audited environmental efficient production process and reduces waste during corrective in agriculture. This initiative 2016. On the other hand, our we operate and the declarations quantify impacts throughout the construction. It was demonstrated that the use of brings important environmental benefits 20141 396 operation in Uruguay was impacted continuation of investment product life cycle. With this information, we industrialized mortar reduces water consumption by 30% (by providing a productive end use for SOUTH by the recession in the economies of plans with discipline. 2015 405 can better evaluate our production processes and reduces the emission of greenhouse gases by 68%. the material) and economic benefits (a AMERICA both Brazil and Argentina. 2016 340 from an environmental point of view, collecting In absolute figures, that means that 128 liters of water product that was previously unused now data that enables us to improve our processes are saved and 280 kg of carbon dioxide don’t end up in generates income), resulting in increased 1. Modified values due to China's inclusion. and act with transparency towards consumers. the atmosphere, for each cubic meter of mortar utilized. productivity in our plants. OUR GOALS FOR 2020 R&D AND QUALITY Sustainability is inherent to our acting proposition and our business, it also drives our Strategic Plan. To highlight and engage our teams PROJECTS in the change of attitude and constant pursue of sustainability and innovation in business, we established our Sustainability Commitments for 2020. NEW PRODUCTS

 Target achieved  Target on schedule  Target behind schedule SAFETY   Sustainable products and Ensure the effective adoption of the services: promote the launch of new sustainable products, solutions, SELF-LEVELING READY-MIX Global Health and Safety Policy and UNDERLAYMENT the Rules for Life. services and innovations – achieve a clinker/cement factor of 72%. In Brazil, we developed a product for the same purpose using fluid mortars which  does not need to be applied manually or Implement standards that ensure  transported through cranes, cargo lifts CO emissions: reduce our CO sustainability in our logistics and 2 2 and wheelbarrows. procurement operations. emissions per ton of cement by 25% compared to 1990.  PRODUCT IMPROVEMENT Promote healthy and safe working  conditions for all employees. Achieve PM NOX SOX lost-time accident (LTI*) rate lower Atmosferic emissions: reduce than 0.4 among direct employees. emissions of particulate matter, NOx,

and SO2, to 65g, 1,950g and 750g per ton of clinker, respectively. ETHICS AND COMPLIANCE   Ethical Business Practices: Ensure Water and biodiversity: implement CHANGE IN THE COLOR OF that all our operations are run in an a water management plan in our POZZOLAN ADDED TO CEMENT ethical manner and in accordance business units located in areas of One of the additives used in our cements with the Votorantim Cimentos Code scarcity. that reduces production costs and CO2 of Conduct. emissions is pozzolan made from red clays.  These pozzolans have great quality, but ECO-EFFICIENCY AND Water and biodiversity: ensure causes rejection from consumers that all our mines have a plan for and generates distrust on the product. INNOVATION the rehabilitation and management Therefore, we developed a pioneering of local biodiversity and for sensitive process to change the color of red clays  regions. during calcination. Environmental Policies: Ensure the implementation of our Global COMMUNITY ENGAGEMENT Environmental Policy and Green Rules COST REDUCTION   Ensure the implementation of Supply chain standards: Promote community engagement plans in sustainable supply chain standards communities in which we operate throughout our business units. that have a high degree of social vulnerability.  *LTI (Lost-time injury) is defined as an incident that Non-fossil fuels: Reach a 30% level results in fatalities, from a lost-time personal accident (employee or third party). of non-fossil fuels use in our cement USE OF NICKEL SLAG AS plants. POZZOLAN We reuse acidic slag, a waste from the nickel industry that is rich in DOWNLOAD THE COMPLETE VERSION OF THE INTEGRATED REPORT FROM: magnesium silicate, as a pozzolan http://www.votorantimcimentos.com/en-US/sustainability/pages/integrated-report.aspx addition to the cement produced in our Edealina plant in Brazil. QUESTIONS: SEND AN E-MAIL TO [email protected]

Period of this report analysis: from January to December 2016.