INTEGRATED REPORT INDICATORS BOOK + LIMITED ASSURANCE REPORT Independent auditor's limited assurance report on information related to sustainability included in the 2016 Integrated Report

INDICATORS BOOK • Limited Assurance Report performance of additional procedures (d) applying analytical procedures to assurance engagement, the objective • Performance Table To the Management of when the independent auditor becomes quantitative information and making of which is the issuance of an opinion. • GRI Content index Votorantim Cimentos S.A. aware of matters that lead him to believe inquiries regarding the qualitative infor- Had we performed an engagement with • Material issues and GRI São Paulo - SP that the information taken as a whole mation and its correlation with the the objective of issuing an opinion, we aspects might present significant misstatements. indicators disclosed in the information might have identified other matters and • Correlations IIRC capitals included in the 2016 Integrated Report; possible misstatements in the infor- mation related to sustainability included • UN Global Compact MAIN PROCEDURES PERFORMED (e) with regard to the aforementioned in the 2016 Integrated Report. Therefore, • CSI Charter 6. The procedures selected are based on units whose managers were interviewed we do not express an opinion on these • Financial Statements our understanding of the aspects related face-to-face, verification, on a test basis, matters. INTRODUCTION (b) WBCSD/CSI (2011), The Cement CO2 conclusion on the sustainability infor- to the compilation and presentation of of the carbon dioxide emissions, which and Energy Protocol: CO2 and Energy mation included in the 2016 Integrated the information related to sustainability correspond to 9% of the total emissions 10. Non-financial data are subject to 1. We have been engaged by Votorantim Accounting and Reporting Standard Report, based on our limited assurance included in the 2016 Integrated Report, of the Company's clinker and cement more inherent limitations than financial Cimentos S.A. ("Company") to present for the Cement Industry, Guide to the engagement carried out in accordance other circumstances of the engagement, activities. The emissions of 33%, 20% data, due to the nature and diversity our limited assurance report on the Protocol, version 3.0, World Business with the Technical Communication CTO and our analysis of the areas in which and 27% of the total emissions of partic- of the methods used to determine, compilation and fair presentation of Council for Sustainable Development 01, "Issue of an Assurance Report related significant misstatements might exist. ulate matter, of NOx and SOx, respec- calculate and estimate these data. Quali- the information related to sustain- WBCSD/CSI; to Sustainability and Social Responsi- The following procedures were adopted: tively, of the clinker and cement activities tative interpretations of the relevance, ability included in the Company's 2016 bility", issued by the Federal Accounting were also verified; materiality, and accuracy of the data Integrated Report for the year ended (c) WBCSD/CSI (2014), Fuels and Raw Council (CFC), based on the Brazilian (a) planning the work, taking into consid- are subject to individual assumptions December 31, 2016. Materials: Guidelines for Co-processing standard NBC TO 3000, "Assurance eration the materiality and the volume of (f) comparing the financial indicators and judgments. Furthermore, we did Fuels and Raw Materials in Cement Engagements Other than Audit and quantitative and qualitative information with the financial statements and/or not consider in our engagement the RESPONSIBILITIES OF THE Manufacturing, version 2.0, WBCSD/CSI; Review", also issued by the CFC, which is and the operating and internal control accounting records. data reported for prior years, nor future COMPANY'S MANAGEMENT equivalent to the international standard systems that were used to prepare the projections and goals. (d) WBCSD/CSI (2013), Safety in the ISAE 3000, "Assurance engagements information related to sustainability 7. The limited assurance engagement 2. The management of the Company cement industry and Guidelines for other than audits or reviews of historical included in the 2016 Integrated Report; also included tests to assess compliance CONCLUSION is responsible for the preparation and measuring and reporting - Health and financial information", issued by the with the guidelines and the preparation fair presentation of the information Safety, version 4.0, WBCSD/CSI; International Auditing and Assurance (b) understanding the calculation criteria applicable to the compilation of 11. Based on the procedures performed, related to sustainability included in the Standards Board (IAASB). Those methodology and the procedures the information related to sustainability described in this report, no matter 2016 Integrated Report, in accordance (e) WBCSD/CSI (2012), Emissions standards require that we comply with adopted for the compilation of indicators included in the 2016 Integrated Report. has come to our attention that causes with the criteria defined in paragraph 3 Monitoring and Reporting: Guidelines ethical requirements, including indepen- through interviews with the managers us to believe that the information below, and for such internal control as for Emissions Monitoring and Reporting dence requirements, and perform our responsible for the preparation of the 8. We believe that the evidence we related to sustainability included in the it determines is necessary to enable the in the Cement Industry, version 2.0; engagement to obtain limited assurance information; obtained is sufficient and appropriate to 2016 Integrated Report of Votorantim preparation of information free from that the information related to sustain- provide a basis for our limited assurance Cimentos S.A. has not been compiled material misstatement, whether due to (f) WBCSD/CSI (2016), Land and Commu- ability included in the 2016 Integrated (c) Face-to-face interviews with the conclusion. and fairly presented, in all material fraud or error. nities: Environmental and Social Impact Report, taken as a whole, is free from managers responsible for the infor- respects, in accordance with the criteria Assessment (ESIA) Guidelines, version material misstatement. mation of: described in paragraph 3 above. 3. The criteria for assessing the infor- 1.0; - the corporate offices of Votorantim SCOPE AND LIMITATIONS mation in the 2016 Integrated Report of 5. A limited assurance engagement Cimentos in São Paulo (São Paulo - SP) the activities performed by the Company, (g) WBCSD/CSI (2014), Protocol for conducted in accordance with the and in Curitiba (Paraná - PR); 9. The procedures applied in a limited São Paulo, May 24, 2017 with respect to the measurement, Water Reporting, version 1.0; Brazilian standard NBC TO 3000 and - the corporate office of the concrete assurance engagement are substan- obtaining, compilation, calculations ISAE 3000 mainly consists of making area in São Paulo (SP); tially less detailed than those applied in and estimates, and the reporting of the (h) WBCSD (2010), WBCSD Manifesto inquiries of management and other - the corporate office of the aggregate a reasonable assurance engagement, sustainability information for 2016, were for Energy Efficiency in Buildings - Imple- professionals of the entity involved in unit in São Paulo (SP); the objective of which is the issue of PricewaterhouseCoopers based on the following documents: mentation Guide, WBCSD. the preparation of the information, as - the cement units in Sobral (Ceará - CE) an opinion on the sustainability infor- Contadores Públicos Ltda. well as applying analytical procedures to and Laranjeiras (Sergipe - SE). mation included in the 2016 Integrated CRC 2SP023.173/O-4 (a) GRI-G4 Reporting Principles and INDEPENDENT AUDITOR'S obtain evidence that allows us to issue Interviews through videoconference Report. Consequently, we were not able Standard Disclosures - Part 1, 2013, RESPONSIBILITY a limited assurance conclusion on the with the units of Jbel Oust, in , to obtain reasonable assurance that we issued by the Global Reporting Initiative information, taken as a whole. A limited and of Zaozhuang, in ; were aware of all significant matters Luciano Jorge Moreira Sampaio Júnior (GRI); 4. Our responsibility is to express a assurance engagement also requires the that might be identified in a reasonable Contador CRC 1BA018245/O-1 "S" SP

98 99 + PERFORMANCE TABLE CSI GRI 2014 2015 2016 % of new suppliers that were screened using 308-1 92% 97% 4%*** environmental criteria % of new suppliers that were screened using human 414-1 93% 86%** 80% rights criteria % of new suppliers that were screened using labor 93% 86%** 80% practices criteria INDICATORS BOOK *Results refer to VCBR operations. • Limited Assurance Report ECONOMIC PERFORMANCE **Values changed (from 96% to 86%) because the calculation method was modified. Until 2014 we consolidated only critical inputs to the • Performance Table production process, now, we consolidate all base suppliers (2014 - 400 suppliers / 2015 - 7.000 suppliers). This process brings maturity and • GRI Content index the need for evolution of our suppliers. Effectively we change the supply chain and the result must be seen as positive. • Material issues and GRI CSI GRI 2014 2015 2016 ***Calculation method modified by the suppliers re-registration. aspects • Correlations IIRC capitals ECONOMIC VALUE GENERATED AND DISTRIBUTED 201-1 RELATIONS WITH GOVERNMENT • UN Global Compact Revenues - Gross sales revenues of products and services. Political contributions (in R$)* 415-1 9,710,000 0 0 16,364,068 17,151,210* 15,408,645 other income and provision for credit (R$ Thousands) • CSI Charter * After the beginning of the Brazilian electoral reform, in late 2015, the financing of candidates by legal entities became a prohibited • Financial Statements Inputs acquired from third parties -7,748,287 -8,595,160* -8,048,244 practice. According to the new rule, in 2016 Votorantim Cimentos did not finance, and it will not finance, the election of candidates during Gross value added 8,615,781 8,556,050* 7,360,401 political campaigns. Net value added produced 7,800,715 7,568,593* 6,283,998 CONSUMER RELATIONS Total value added received in transfers 840,953 1,653,470* 2,240,358 102-43 Total value added available for distribution 8,641,668 9,222,063* 8,524,356 Net Promoter Score (NPS) survey results - 26% 40% 102-44 Distribution of value added 8,641,668 9,222,063* 8,524,356 * Weighted Results of the industrial. real estate and self-construction segments

NET REVENUE BY PRODUCT TYPE (R$ Thousands) 201-1 TOTAL NUMBER OF EMPLOYEES WHO RECEIVED ANTI-CORRUPTION TRAINING Cement 9,257,755 9,727,985 8,632,813 TOTAL NUMBER OF EMPLOYEES WHO RECEIVED ANTI- 205-2 Concrete 2,651,101 2,984,259 2,702,284 CORRUPTION TRAINING Aggregates 422,558 506,192* 456,760 President/Director 32 5 20 Complementary products 797,859 834,360 904,801 Manager/General Manager 60 137 40 Coordinator/Consultant 74 167 40 VALUE CREATION FOR VOTORANTIM AND KEY STAKEHOLDER GROUPS Technician/Analyst/Supervisor 98 76 33 Employee benefts (R$ thousands) 201-1 2,022,094 2,395,383* 2,357,847 Trainee 1 1 0 Value added for government (taxes) (R$ thousands) 3,293,412 3,015,642 2,493,664 Operator 13 60 0 Remuneration of third-party capital (R$ thousands) 2,193,615 3,010,195* 3,248,816 Intern 8 12 0 Remuneration of own equity (R$ thousands) 1,132,547 800,843 424,029 Total 286 735 133 Sales of cement (million metric ton) 39.67 37.24 33.8 Other regions 199 819 0 Sales of aggregates (million metric ton) 28.21 26.72 24.4 Grand total* 485 1,757 133 Sales of concrete (million m³) 11.2 10.21 9.2 * No justification was provided Sales of complementary products (million metric ton) 1.81 1.87 1.6 * Retrospective change in Mining and Construction balances for continued operation due to non-realization of asset sales TOTAL NUMBER OF LEGAL ACTIONS FOR UNFAIR COMPETITION. TRUST AND MONOPOLY PRACTICES AND THEIR OUTCOMES 206-1

SUPPLIERS Total number of legal actions 0 2 0 Proportion of spending with local suppliers at significant Value of legal actions (R$) - 1,565,646,000 - 204-1 operating locations Total amount spent with suppliers (R$) 3,761,621,473 2,424,639,554 1,868,096,653 Percentage of purchases from local suppliers Locations 50% 48% 52% Contracting of suppliers*

[GRI 102-48] [GRI 102-48] 100 101 + ECONOMIC PERFORMANCE ENVIRONMENTAL PERFORMANCE CSI GRI 2014 2015 2016 CSI GRI 2014 2015 2016

MONETARY VALUE OF SIGNIFICANT FINES AND THE TOTAL NUMBER OF NON-MONETARY SANCTIONS NUMBER OF UNITS INCLUDED IN THE ENVIRONMENTAL EVALUATION FOR NON-COMPLIANCE WITH LAWS AND REGULATIONS 419-1 Cement 33 46 48 No. tax legal actions 313 292 67 Aggregates 13 12 9 INDICATORS BOOK No. of labor and social security legal actions 1,220 1,469 1,403 Concrete 90 70 56 • Limited Assurance Report Value of tax legal actions (R$)* 420,390,746 582,283,333 41,342,513 Mortar - 3* 4 • Performance Table Value of labor and social security legal actions (R$) 269,902,515 301,971,612 316,213,715 Lime, sand and agricultural lime - 2* 2 • GRI Content index TOTAL NUMBER OF PROCESSES AND CONTINGENCY VALUE (CIVIL PROCESSES) 419-1 Corporate 3 3 3 • Material issues and GRI No. of civil legal actions 2,006 2,004 2,268 aspects * Adjusted data Value of civil legal actions (R$) 4,909,012,076 6,509,917,033 7,078,283,472 • Correlations IIRC capitals • UN Global Compact ENVIRONMENTAL INVESTMENTS AND COMPLIANCE TOTAL NUMBER OF INCIDENTS OF DISCRIMINATION RECEIVED BY THE OMBUDSMAN AND THE CORRECTIVE TOTAL ENVIRONMENTAL CAPEX AND OPEX. BY TYPE* G4-EN31 • CSI Charter ACTIONS TAKEN 406-1 Environmental investments (Capex) (R$) 67,804,164 93,081,451 27,326,246 • Financial Statements Race/color 4 8 5 Environmental expenses (Opex) (R$) 41,629,016 33,310,594 27,651,265 Age group 1 0 0 Waste disposal. treatment of emissions and remediation 37,875,439 39,660,845 29,065,215 Gender 3 1 0 costs Religion 2 1 2 Costs of environmental prevention and management 62,082,463 8,486,071 17,082,883 Political opinion or other opinion 0 0 0 Other environmental expenses 9,475,277 5,951,451 8,829,414 Nationality or social origin 2 1 5 * Data scope only considering Votorantim Cimentos Physical conditions 1 0 0 MONETARY VALUE OF FINES 307-1 War veterans 0 0 0 No. of legal actions judged against the company in the year - 13 3 Other incidents (discrimination) 0 1 0 No. of administrative sanctions received in the year 17 21 15 TOTAL NUMBER OF INCIDENTS RECEIVED 13 12 12 No. of TAC s or TCs received in the year - 9 0 Total value of legal actions (R$) 447,049 2,204,610 13,269,646 Analyzed and considered unfounded 11 11 7 Under analysis 0 0 3 REDUCTION OF CO eq EMISSIONS Considered valid 2 1 2 2 CEMENT Absolute gross CO emissions (million metric ton) 305-1 27.5* 25.9* 23.5 OMBUDSMAN 2 x Absolute net CO emissions (million metric ton) 27.0 25.4* 23 NUMBER OF REPORTS REGISTERED AND PROCESSED 2 x Specifc gross CO emissions (kg CO /metric ton cem prod) 305-4 652.6* 655.7* 647.6 Reports related to discrimination 406-1 13 12 12 2 2 x Specifc net CO emissions (kg CO /metric ton cem prod) 642.6* 641.9* 631.9 Reports related to environmental impacts G4-EN34 16 6 14 2 2 x % reduction of CO emissions (base 1990) (kg CO /metric Reports related to labor issues G4-LA16 371 241 196 2 2 305-5 15.8%* 15.9%* 17.2%* ton cem prod) x G4-HR12 Reports related to human rights 0 0 8 * 2015 values adjusted (fuel consumption and fuel lower heating from Brazil data). 2016 values already includes VCEAA, VCNA and Artigas Reports related to impacts on society G4-SO11 400 259 230 () units. REPORTS RESOLVED AGGREGATES Reports related to discrimination 406-1 12* 8 9 Absolute gross CO emissions (million metric ton) 305-1 0.014* 0.013* 0.009 Reports related to environmental impacts G4-EN34 0* 1 12 2 Specifc net CO emissions (kg CO /metric ton product) 305-4 1.28* 1.82* 1.75 Reports related to labor issues G4-LA16 209* 173 172 2 2 *2014 and 2015 data adjusted Reports related to human rights G4-HR12 0* 0 7 Reports related to impacts on society G4-SO11 221* 182 200

*Revised data

Note: G4-HR12: The indicator Human Rights (G4-HR12) related to sanitation and drinking water started to being tracked in 2016.

Note 2: G4-SO11: The indicator G4-SO11 is a consolidated result of indicators G4-EN34, G4-LA16, 406-1 and G4-HR12, due to the fact that we consider all the scopes of the cited indicators, as reports related to impacts on society.

[GRI 102-48] [GRI 102-48] 102 103 + ENVIRONMENTAL PERFORMANCE CSI GRI 2014 2015 2016 CSI GRI 2014 2015 2016

CONCRETE FUEL CONSUMPTION* 302-3 305-1 Absolute gross CO2 emissions (million metric ton) 0.043 0.029 0.02 Cement (MJ/metric ton of cementitious product) 3,063* 3,088* 2,659 305-4 Specifc gross CO2 emissions (kg CO2/m³ ) 10.4 9.9* 10.3 INDICATORS BOOK Aggregates (MJ/metric ton of product) 31* 38* 26 *2015 adjusted data • Limited Assurance Report Concrete (MJ/m3 concrete) 144 138* 139 • Performance Table MORTAR Mortar (MJ/metric ton of product) - 27 32 • GRI Content index Absolute gross CO emissions (million metric ton) 305-1 0.0012 0.0016 0.0017 Lime, sand and agricultural lime (MJ/metric ton of 2 1,372 1,393 1,230 • Material issues and GRI 305-4 product) Specifc net CO2 emissions (kg CO2/metric ton product) - 1.9 2.3 aspects * Data adjusted • Correlations IIRC capitals LIME AND AGRICULTURAL LIME TOTAL FUEL CONSUMPTION (TJ/Year)* 302-3 305-1 • UN Global Compact Absolute gross CO2 emissions (million metric ton) 0.14 0.13 0.22 Cement 113,039* 107,120* 96,594 305-4 • CSI Charter Specifc net CO2 emissions (kg CO2/metric ton product) 133.1 121.0 123.0 • Financial Statements Aggregates 231* 216* 130 CORPORATE Concrete 568* 395* 269 305-1 Absolute gross CO2 emissions (million metric ton) 0.00004 0.0008 0.0009 Mortar 18 23 24 Lime, sand and agricultural lime 1,448 1,454 2,212

INDIRECT CO2eq EMISSIONS * Data adjusted

ENERGY INDIRECT CO2 EMISSIONS (PURCHASED ENERGY) (MILLION METRIC TON) SPECIFIC CONSUMPTION OF ELECTRICAL ENERGY (kWh/Metric Ton) Cement 305-2 1.32** 1.25** 1.02 Cement (kWh/metric ton of cementitious product) 112.6* 113.2* 108.8 Concrete 0.0011 0.0007 0.0003 x Aggregates (kWh/metric ton product) 2.7 2.5 2.7 Aggregates 0.0039 0.0024 0.0011 Concrete (kWh/m³) 1.9* 1.8* 1.7 Mortar 0.0009 0.0011 0.0007 Mortar (kWh/t produto) - 10.1 10.5 Lime, sand and agricultural lime 0.0023 0.0020 0.0028 Lime, sand and agricultural lime (kWh/t produto) 15.9 14.8 18.9 Corporate 0.0006 0.0005 0.0003 * Data adjusted OTHER INDIRECT EMISSIONS - SCOPE 3 (MILLION tCO2) Transportation of inputs and final products* 305-3 0.404 0.423** 0.618 TOTAL ELECTRICITY CONSUMPTION (Total MWh/Year) * Includes Scope 3 GHG emissions for cement. concrete and aggregates units Cement x 4,415,248* 4,190,866* 3,953,880 ** Adjusted data Aggregates 28,881 18,566 13,745 Concrete 8,015 5,368 3,216 ENERGY Mortar 6,903 8,625 7,963 THERMAL ENERGY MIX OF CLINKER PRODUCTION 302-1 Lime, sand and agricultural lime 16,821 15,472 33,993 Fossil fuels (Coal, petroleum coke, heavy fuel oil, diesel oil, 90.7%* 90.3%* 88.2% natural gas, shale and lignite) * Data adjusted Alternative fossil fuels (waste oil, tires, plastic, solvents, ENERGY CONSUMPTION INSIDE THE ORGANIZATION (GJ) 302-1 contaminated sawdust, mixed industrial waste and others) 9.3%* 9.7%* 11.8% and biomass (dried sludge, dry sawdust, agricultural: x Cement 128,934,048* 122,207,486* 110,827,531 organic and other wastes) Aggregates 284,240* 242,726* 165,060 Thermal substitution rate (% thermal energy from 3,495* 3,543* 3,475 Concrete 597,027 414,449 280,166 alternative fuels and biomass) x Mortar 42,012 54,152 52,826 * Adjusted data Lime, sand and agricultural lime 1,440,491 1,431,391 2,329,994 ** Data does not consider Uruguay numbers Corporate 16,288 26,611 25,933 * Data adjusted Clinker factor (average % of clinker in cement) x 76.4%* 75.5%* 77.0%

[GRI 102-48] [GRI 102-48] 104 105 + ENVIRONMENTAL PERFORMANCE CSI GRI 2014 2015 2016 CSI GRI 2014 2015 2016

ENERGY CONSUMPTION OUTSIDE THE ORGANIZATION (GJ) 302-2 VOCS Transport and distribution 5,229,993 5,730,993 8,087,144 Number of furnaces reported 305-7 33 31 29 * Data adjusted Total emissions (metric ton/year) x 842 1.289* 2.021 INDICATORS BOOK Average specifc concentration (g/metric ton clinker) x 27 44* 74 • Limited Assurance Report ENVIRONMENTAL IMPACTS G4-EN30 (302/305) % Reduction of VOCs compared to the previous year 49,6% 62,8%* 69,2% • Performance Table QUANTITATIVE DATA FOR LOGISTICS: *Data adjusted • GRI Content index Energy consumption (GJ) 6,048,039* 6,236,190* 8,500,228 • Material issues and GRI DIOXINS/FURANS GHG emissions (tCO ) 462,471* 469,202* 649,744 aspects 2 Number of furnaces reported 305-7 29 34 30 • Correlations IIRC capitals * Data adjusted Total emissions (mg/year) x 470 443 2.688 • UN Global Compact **Logistics is the main impact, through greenhouse gases emissions and energy consumption Average specifc concentration (ng/metric ton clinker) x 15 15 98 • CSI Charter % Reduction of Dioxins/furans compared to the previous MATERIALS USED BY WEIGHT (METRIC TON) 301-1 -17,5% 0,1%* 554,7% • Financial Statements year Cement 59,692,854* 61,135,893* 49,924,734 *Data adjusted Other businesses 19,893,131* 13,932,185* 11,986,191 Total non-renewable materials 79,585,985* 75,068,078* 61,910,925 HM1 (CADMIUM + THALLIUM) Number of furnaces reported 305-7 30 35 28 OTHER ATMOSPHERIC EMISSIONS Total emissions (Kg/year) x 592 363 194 NOx Average specifc concentration (mg/metric ton clinker) x 19 12* 7 Number of furnaces reported 305-7 48 49 41 % Reduction of HM1 compared to the previous year -17,25%* -34,82%* -42,5% Total emissions (metric ton/year) x 61,004* 55,881* 56,381 *Data adjusted Average specifc concentration (g/metric ton clinker) x 1,941 1,890* 2,058 HM2 (ANTIMONY + ARSENIC + LEAD + CHROMIUM + COBALT + COPPER + MANGANESE + NICKEL + VANADIUM) % Reduction in NOx compared to the previous year -5.6%* -2.6%* 8.9% Number of furnaces reported 305-7 30 35 27 *Data adjusted Total emissions (Kg/year) x 26.142 41.409 21.613 Average specifc concentration (mg/metric ton clinker) 832 1.400* 789 SO2 x Number of furnaces reported 305-7 47 46 40 % Reduction of HM2 compared to the previous year 68,19% 68,38% -43,67% Total emissions (metric ton/year) x 20,735 19,990* 21,113 *Data adjusted Average specifc concentration (g/metric ton clinker) x 660 676* 771 MONITORING DATA % Reduction of SO compared to the previous year -7.22% 2.5%* 14% 2 Total monitoring coverage rate (KP1) – Total coverage 305-7 60,1% 57,5%* 50% *Data adjusted rate* x Continuous monitoring coverage rate (KP2) - PM. NOx PM 83,4% 84,4%* 90,9% and SO2 x 305-7 Number of furnaces reported 48 49 41 *Data adjusted Total emissions (metric ton/year) x 3,126 2,111* 1,750 ** Percentage of clinker produced in kilns covered by the monitoring system for Particulate Matter. NOx. SO2. VOC/THC. heavy metals (Hg. Average specifc concentration (g/metric ton clinker) x 99 71* 64 Cd. Tl. Sb. As. Pb.Cr. Co. Cu. Mn. Ni and V) and PCDD/F % Reduction of PM compared to the previous year -5.42%* -28.2%* -10.5%* *Data adjusted

MERCURY Number of furnaces reported 305-7 31 35 32 Total emissions (kg/year) x 250 224 345 Average specifc concentration (g/metric ton clinker) x 8 8* 13 % Reduction of mercury compared to the previous year -44.7%* -4.9%* 66.6%* *Data adjusted

[GRI 102-48] [GRI 102-48] 106 107 + ENVIRONMENTAL PERFORMANCE CSI GRI 2014 2015 2016 CSI GRI 2014 2015 2016

BIODIVERSITY AND RESOURCE CONSERVATION Rainwater collected - - 192,921 Total number of mines Municipal water supplies or other water utilities - - 111,875 Cement and aggregates 120 115 122 Water Consumed (Cement) - L/metric ton - - 313.80 INDICATORS BOOK Number of areas of high biodiversity value* 304-1 Water Discharge (Cement) - M³/Year 306-1 • Limited Assurance Report Cement and aggregates x 70 65 74 • Performance Table Surface - - 2,594,511 Number of areas of high biodiversity value with G4-MM2 Over land - - 421,275 • GRI Content index biodiversity management plans (BMP) in place* Others - - 32,578 • Material issues and GRI Number of areas of high biodiversity value* x 4 4 4 aspects Domestic Sewage - - 250,764 G4- % of operations with closure plan* 3 • Correlations IIRC capitals MM10 Total water discharge - m /Year - - 3,299,128 • UN Global Compact Cement and aggregates x 78 85 86 • CSI Charter * Indicator includes information for VCBR (cement and aggregates), VCNA (cement and aggregates) and VCEAA (cement) WASTE MANAGEMENT AND RECYCLING • Financial Statements Waste (generated and discarted) (metric ton) Habitats protected or restored (in hectares)* 304-3 CEMENT Amazon rainforest - - 2,872,8 Waste Production 306-2 Caatinga - - 336,4 Total Non-Hazardous Waste (Metric Ton) Cerrado - - 2,847,7 Non-hazardous waste produced internally 1,331 48,777 293 Atlantic Forest - - 5,074,8 and co-processed Pantanal - - 168,5 Non-hazardous waste sent to industrial landfll 343,456 697,347 217,058 Pampas - - 422,2 Non-hazardous waste incinerated - 3,455 395 * Indicator includes information for VCBR (cement and aggregates) Non-hazardous waste sent for recovery 1,368 443 34,057 Non-hazardous waste sent for reuse/recycling 1,148,268 554,264* 246,270 Total number of IUCN Red List and national conservation list species with habitats in areas affected by operations* 304-4 Non-hazardous waste sent for composting 845 7,277 328 Threatened - - 119 Non-hazardous waste with other forms of disposal - 3,359* 5,029 Near Threatened - - 74 Total Non-Hazardous Waste 1,495,268 1,314,924* 503,428 Critically endangered - - 32 *Data adjusted Vulnerable - - 102 * Indicator includes information for VCBR (cement and aggregates). Total Hazardous Waste (Metric Ton) Hazardous waste produced internally and co-processed 54,493 1,983* 872 WATER Hazardous waste incinerated - 4,996 2,168 WATER WITHDRAWN (CONCRETE) - M³/YEAR 303-1 Hazardous waste sent to industrial landfll 4,821 18,366 1,983 Total water withdrawn - 647,741 517,940 Hazardous waste stored in the place where generated - 2,617 56 Groundwater - 401,562 354,613 Hazardous waste sent for recovery 141,145 3,765 130 Public water supply - 86,255 55,425 Hazardous waste sent for reuse/recycling 37,406 99,733* 662 Public/private water supply (truck) - 159,923 163,326 Hazardous waste with other forms of disposal - 6* - Water Consumed (Concrete) - L/Year - 231.56 133.91 Total hazardous waste 237,865 131,467* 5,870 *Data adjusted WATER WITHDRAWN (CEMENT) - M³/YEAR 303-1 Total water withdrawn - - 9,392,471 Surface water - - 6,570,818 Ground water - - 2,510,632

[GRI 102-48] [GRI 102-48] 108 109 + SOCIAL PERFORMANCE CSI GRI 2014 2015 2016 CSI GRI 2014 2015 2016

EMPLOYEES BY REGION 102-8 TREINAMENTO 404-1 Brazil 9,994 9,009 7,909 No. average hours of training per employee per year South America 307 314 397 MEN INDICATORS BOOK President/Director 27 29 17.77 • Limited Assurance Report 3,293 3,083 2,881 Manager/General Manager 35 37 53.20 • Performance Table Europe, Asia and Africa 2,185 2,882 2,546 Coordinator/Consultant 61 51 51.31 • GRI Content index *China is consolidated since 2015 Technician/Analyst/Supervisor 84 50 51.48 • Material issues and GRI aspects EMPLOYEE TURNOVER (%) 401-1 Trainee 100 602 180.80 • Correlations IIRC capitals BY REGION Operator 21 22 42.76 • UN Global Compact Brazil 17.5% 19.04% 18.01% WOMEN • CSI Charter Other countries 4.5% 5.2% 7.4% President/Director 5 9 65.25 • Financial Statements BY GENDER 401-1 Manager/General Manager 35 34 80.49 Women 3% 3% 5% Coordinator/Consultant 54 35 58.26 Men 19% 21% 21% Technician/Analyst/Supervisor 75 31 55.73 BY AGE GROUP 401-1 Trainee 144 602 207.50 Under 30 years old 7% 7% 9% Operator 39 40 27.25 Between 30 and 50 years old 12% 14% 13% AVERAGE HOURS OF TRAINING Over 50 years old 3% 4% 4% (men and women) 38 34 87

RATE OF NEW HIRES 401-1 TOTAL NUMBER OF EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS 102-41 BY REGION Employees covered by collective bargaining 12,210 11,208 9,720 Brazil 16.85% 10.84% 9.81% agreements Other countries 3.15% 2.72% 5.30% Total number of employees 15,779 14,601 13,735 BY GENDER 401-1 Percentage of employees covered 77.4% 76.8% 70.8% Women 2.60% 1.84% 3.44% Men 17.40% 11.72% 11.68% PROPORTION OF SENIOR MANAGEMENT* HIRED FROM THE LOCAL COMMUNITY** AT SIGNIFICANT LOCATIONS OF OPERATION 202-2 BY AGE GROUP 401-1 Percentage of senior management hired from local 9% 6.12% 8.13% 95% 93% 78% Under 30 years old communities Between 30 and 50 years old 10% 6.84% 6.14% Percentage of employees from the local community 99.86% 99.77% 99.46% Over 50 years old 1% 0.59% 0.84% * Includes senior managers, general managers, directors and the CEO. ** Employees born or naturalized in the country of operation are considered to be local hires. % WOMEN IN THE WORKFORCE 405-1 % Management and coordinator positions 1.38% 1.5% 1.80% OCCUPATIONAL HEALTH AND SAFETY % Operational positions 9.15% 10.84% 11.22% NUMBER OF FATALITIES - CEMENT, AGGREGATES AND CONCRETE* 403-2 % Women in the workforce 10.53% 12.34% 13.02% Employees (on-site) x 2 0 0 Employees (off-site) x 1 0 0 % EMPLOYEES OVER 50 YEARS OLD 405-1 % Management and coordinator positions 1.36% 1.66% 1.72% % Operational positions 16.57% 18.28% 17.41% % Employees over 50 years old 17.93% 19.94% 19.13%

[GRI 102-48] [GRI 102-48] 110 111 + SOCIAL PERFORMANCE GRI CONTENT INDEX CSI GRI 2014 2015 2016

EXTERNAL Contract staff (on-site) x 1 0 5 GRI DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) AND/OR RESPONSE ASSURANCE Contract staff (off-site) x 0 0 0 Third parties x 7 3 0 INDICATORS BOOK GRI 101: Foundation 2016 • Limited Assurance Report General Disclosures INJURY FREQUENCY RATE WITH LOST TIME (LTI FREQUENCY RATE) 403-2 • Performance Table ORGANIZATIONAL PROFILE Employees 1.14 1.12* 1.06 • GRI Content index x 102-1 Name of the organization 7 No, page 116 Contract staff x 0.77 0.46* 0.87 102-2 Activities, brands, products, • Material issues and GRI 4, 5, 42 e 43 No, page 116 and services aspects TOTAL - EMPLOYEES + CONTRACT STAFF 0.94 0.78* 0.97 102-3 Location of headquarters São Paulo/SP - Brazil No, page 116 • Correlations IIRC capitals 102-4 Location of operations 42 e 43 No, page 116 • UN Global Compact DAYS LOST DUE TO INJURIES (CALENDAR DAYS) 403-2 Votorantim Cimentos is a part of Votorantim S.A., one of the largest business 102-5 Ownership and legal form No, page 116 • CSI Charter Employees x 3,108 4,518* 2,246 conglomerates in Brazil, and 100% Brazilian-owned • Financial Statements Contract staff x 543 470* 1,105 102-6 Markets served 40, 41, 44 and 45 No, page 116 * Adjusted due reclassification 102-7 Scale of the organization 38 No, page 116 102-8 Information on employees 38 e 104 No, page 116 and other workers LOCAL COMMUNITY STAKEHOLDER ENGAGEMENT 413-1 102-9 Supply chain 88 No, page 116 BREAKDOWN OF SOCIAL INVESTMENTS (%) 102-10 Significant changes to the 10, 11, 52 and 88 No, page 116 ReDes Program (Support for structuring inclusive organization and its supply chain - 22 26.9 businesses) 102-11 Precautionary Principle or 62, 63, 64 and 65 No, page 116 Primavera Cooperation Agreement - 19 12 approach 102-12 External initiatives 39 No, page 116 Culture - 11 12.8 Health* - 7 - • WBCSD (World Business Council for Sustainabile Development). • CSI (Cement Sustainable Initiative), as founder member Sport - 6 3 • Global Compact. Signatory of The CEO water mandate and of Business and Biodiversity Pledge. Education - 6 4.2 • GRI (Global Report Initiative) - GOLD member and part of the pioneer implementation group of the GRI Standards VIA - Votorantim pela Infância e Adolescência - 6 6.6 • Ethos Institute - Climate Forum and signatory of the open letter to Brazil on climate (Votorantim for childhood and youth) change • CDP (Carbon Disclosure Project) Public Management Support Programs - 6 11.5 • Getúlio Vargas Foundation: GHG Protocol • Technical Cooperation Votorantim Cimentos - Brazilian Speleological Society and Atlantic 102-13 Membership of Local Supplier Development - 5 11.4 Forest Biosphere Reserve No, page 116 associations • Cebds (Brazilian Business Council for Sustainable Development) Corporate projects and logistics** - 5 6.2 • ECRA (European Cement Research Academy) Community Engagement and Volunteering - 4 4.1 • IBRAM (Brazilian Mining Institute) • ABCP (Brazilian Association for Portland Cement) Employment - 3 1 • ABESC (Brazilian Association of Concrete Service Companies) • ABRAMAT (Brazilian Association of Construction materials industry) Qualification of Social Organizations - - 0.3 • SINAPROCIM (National Sindicate of cement products industry) • IBRACON (Brazilian Institute of Concrete) * The values ​​that address the theme of Health are contained in the scope of the Technical Cooperation Agreement of Primavera - Primavera • SINDUSCON/SP (São Paulo state Civil construction Industry Sindicate) (Pará) and are related to the social investment to build a Health Center. • Portland Cement Association and Cement Association of Canada • SNIC (Industry National Sindicate) ** Category that in 2015 was classified as "Others"

102-14 Statement from senior 8, 9, 10 and 11 No, page 116 decision-maker ETHICS AND INTEGRITY 102-16 Values, principles, 39, 49 and 55 No, page 116 standards, and norms of behavior GOVERNANCE 102-18 Governance structure 52 and 53 No, page 116 STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups 62 No, page 116

[GRI 102-48] 112 113 + GRI CONTENT INDEX EXTERNAL GRI OMISSION EXTERNAL GRI DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) AND/OR RESPONSE DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) ASSURANCE STANDARD PART OMITTED REASON EXPLANATION ASSURANCE

102-41 Collective bargaining 84 No, page 116 MATERIAL TOPICS agreements GRI 200 Economic Standard Series 102-42 Identifying and selecting 60 and 62 No, page 116 INDICATORS BOOK stakeholders ECONOMIC PERFORMANCE • Limited Assurance Report 102-43 Approach to stakeholder 103-1 Explanation of the material Votorantim Cimentos is a private held company 60, 84, 86, 88, 89, 90, 91 and 92 No, page 116 topic and its Boundary 60, 61, 62, 63, 64 and 65 which implemented the highest standards of cor- • Performance Table engagement porate governance, in compliance with the best practices required by the Brazilian regulatory au- 102-44 Key topics and concerns GRI 103: • GRI Content index 40, 60, 62, and 86 No, page 116 thorities, as well as the SEC. Votorantim Cimentos raised Management 103-2 The management approach have a strong management team committed to Approach 2016 and its components 39, 48, 49, 50, 51, 56, 57 and 92 the long term growth and its Board of Directors • Material issues and GRI REPORTING PRACTICE counts with three independent members in addi- aspects tion to the family and Votorantim executive mem- 130 103-3 Evaluation of the bers. This includes having a Board which gives overall guidance for the organization's long term • Correlations IIRC capitals •Calmit Industrial Ltda., Votorantim Cimentos N/NE S.A., Votorantim management approach 96, 97 and 98 Cimentos S.A., CRB Operações Portuárias S.A., Empresa de Mineração strategy and ensures the maintenance of its values • UN Global Compact and beliefs. Furthermore, the company’s Board Acariúba Ltda., Eromar S.A., Fazenda São Miguel Ltda., Interávia of Directors is supported by the Audit, Finance, • CSI Charter Transportes Ltda., Itacamba Cemento S.A., Votorantim Cement North Strategy & innovation and Organization, People & Compensation Committees, where all of them America, Inc., Cia. de Cimento Pinheiro Machado, Cimento Itaú do counts with independent members. Once a year • Financial Statements Paraná Ltda., Pedreira Pedra Negra Ltda., Lux Cem International S.A., 102-45 Entities included in the the company prepares its strategic plan exercise Seacrown do Brasil, Com. Import. e Participações S.A., SPCIM Indústria, with a 5 years term, taking in consideration the consolidated financial statements No, page 116 Com. e Participações S.A., Cementos Artigas S.A., Mondello S.A., macro-economic scenarios, besides the expected GRI 201: demand and price of ours products, including Petrolina Zeta Mineração Ltda., Mineração Potilider Ltda., Lidermac Economic 201-1 Direct economic value sustainability material issues as strategic drivers. 102 On the other hand, budgets are updated yearly, No, page 116 Indústria e Comercio Ltda., Votorantim Cementos Ltda., Inversiones Performance generated and distributed establishing short-term targets. In addition, all Votorantim Chile Ltda., Minerações e Construções Ltda., DL Mineração, 2016 employees have goals concerning company’s Votorantim Cimentos EAA Inversiones S.L.U, Votorantim Cimentos financial main ratios. The DVA focuses on value S.A., GB Minerales y Agregados S.A., Votorantim Cement creation and demonstrates the increase in wealthy of a particular company or entity. It is measured Trading, S.L, Votorantim Cimentos S.A., Silcar Empreend. Com. e Part. through tax paid and value distributed among Ltda., VOTO-Votorantim Over. Trad. Oper. V Ltda. stakeholders, including government, employees and investors. 102-46 Defining report content 60 No, page 116 and topic Boundaries MARKET PRESENCE 102-47 List of material topics 60 No, page 116 103-1 Explanation of the material In our licensing processes there are typically 102-48 Restatements of specifed issues related to investment in the im- Restatements were included at the Performance Table, page 102 to page 114 No, page 116 topic and its Boundary 60, 61, 62, 63, 64 and 65 information pacted communities. Votorantim has a policy of making a comprehensive evaluation of this process, seeking to incorporate the items to be 102-49 Changes in reporting 7 and 60 No, page 116 103-2 The management approach GRI 103: 39, 48, 49, 50, 51, 82, 83, 84 developed, issues related to the development 102-50 Reporting period January-December 2016 No, page 116 Management and its components of the community in relation to the possibilities Approach 2016 and 85 generated 102-51 Date of most recent report Votorantim Cimentos Integrated Report 2015 - June, 2016 No, page 116 by implementing the business activity, both with 103-3 Evaluation of the direct aspects, such as hiring local suppliers and 102-52 Reporting cycle Annual No, page 116 employees, and with indirect aspects, such as management approach 50, 51, 96, 97 and 98 those related to promoting the improvement of 102-53 Contact point for questions the educational quality of young children. At the 7 - [email protected] No, page 116 regarding the report consolidated operational level there is a corporate goal to foster the development of communities 102-54 Claims of reporting 202-2 Proportion of senior considered to be priorities. In these cases the or- This report has been prepared in accordance with the GRI Standards: Core GRI 202: Market in accordance with the GRI No, page 116 management hired from the local 102 ganization contributes to developing plans to im- No, page 116 option Presence 2016 prove public management and to other initiatives Standards community for the economic and social development of the community 102-55 GRI content index Page 113 to page 122 No, page 116

The indicators assured were determined by considering the level of assurance, INDIRECT ECONOMIC IMPACTS the materiality for Votorantim Cimentos and PwC’s internal studies on materiality in specifc sectors. A sampling procedure was used as the basis 103-1 Explanation of the material In our licensing processes there are typically 102-56 External assurance topic and its Boundary 60, 61, 62, 63, 64 and 65 specifed issues related to investment in the im- for defning the indicators to be audited, therefore some indicators were not pacted communities. Votorantim has a policy of included in its scope. The assurance was carried out in full accordance with the a making a comprehensive evaluation of this pro- NBCTO 3000 standard, which is the basis for PwC’s limited assurance process. cess, seeking to incorporate the items to be de- GRI 103: 103-2 The management approach veloped, issues related to the development of the Management and its components 39, 48, 49, 50 and 51 community in relation to the possibilities gener- Approach 2016 ated by implementing the business activity, both with direct aspects, such as hiring local suppliers 103-3 Evaluation of the and employees, and with indirect aspects, such as those related to promoting the improvement of management approach 96, 97 and 98 the educational quality of young children. At the consolidated operational level we have corporate goal to foster the development of communities considered to be priorities. In these cases the or- GRI 203: Indirect 203-1 Infrastructure investments ganization contributes to developing plans to im- Economic 102 prove public management and to other initiatives No, page 116 Impacts 2016 and services supported for the economic and social development of the community.

114 115 + GRI CONTENT INDEX GRI OMISSION EXTERNAL GRI OMISSION EXTERNAL DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) STANDARD PART OMITTED REASON EXPLANATION ASSURANCE STANDARD PART OMITTED REASON EXPLANATION ASSURANCE

PROCUREMENT PRACTICES GRI 300 Environmental Standards Series 103-1 Explanation of the material 60, 61, 62, 63, 64 and 65 All purchases up to three thousand reais are man- MATERIALS topic and its Boundary datorily made directly by the operating units with INDICATORS BOOK local suppliers. For higher values, the negotiation 103-1 Explanation of the material GRI 103: 103-2 The management approach 60, 61, 62, 63, 64 and 65 • Limited Assurance Report Management 39, 48, 49, 50, 51, 88 and 89 is conducted by the supply department, consider- topic and its Boundary All Votorantim Cimentos' raw materials are and its components ing the best total cost for Votorantim Cimentos. GRI 103: managed based on: a five year demand forecast Approach 2016 There are guidelines for the identification and de- 103-2 The management approach Management 39, 48, 49, 50 and 51 (strategic plan); available stocks of resources (re- • Performance Table 103-3 Evaluation of the velopment of local suppliers, in partnership with newable and non-renewable); management of 50, 51, 96, 97 and 98 Approach 2016 and its components management approach the Votorantim Institute. As an example we have licenses for mining and production; and produc- • GRI Content index the PDF project and the Productive Chaining. To 103-3 Evaluation of the tion capacity. The annual budget details the con- develop suppliers and establish a sustainable and 49, 96, 97 and 98 sumption for the next year and, during the current GRI 204: 204-1 Proportion of spending on management approach • Material issues and GRI Procurement 88, 89, and 102 lasting relationship with them, supplies use the Yes, page 98 year, sales planning and production is conducted local suppliers Management Program and supplier evaluation. GRI 301: 301-1 Materials used by weight or monthly to manage the material flows. aspects Practices 2016 102 Yes, page 98 Materials volume • Correlations IIRC capitals ANTI-CORRUPTION • UN Global Compact ENERGY 103-1 Explanation of the material • CSI Charter 60, 61, 62, 63, 64 and 65 103-1 Explanation of the material topic and its Boundary 60, 61, 62, 63, 64 and 65 topic and its Boundary • Financial Statements GRI 103: 103-2 The management approach Management 39, 48, 49, 50, 51, 54 and 55 GRI 103: The strategic plan defines the energy demand and its components 103-2 The management approach Approach 2016 Management 39, 48, 49, 50, 51, 72 and 73 by segment and the action plans to meet those needs with medium and long-term contracts. For The company's governance structure for fight- Approach 2016 and its components 103-3 Evaluation of the day-to-day management, the units have energy 50, 51, 96, 97 and 98 ing corruption includes: the Ombudsman; An- 103-3 Evaluation of the efficiency programs to optimize the use of inputs, management approach ti-corruption Policy; Policy for Transactions with 49, 96, 97 and 98 and the technology and development areas study Stakeholders; internal audit; internal controls; and management approach possibilities for new processes and new energy 205-1 Operations assessed for risks compliance. Training sessions on these policies are 102 sources. related to corruption held annually. All the stakeholders are informed No, page 116 302-1 Energy consumption within 72 and 102 The energy data (in GJ) reported in the 302-1 and Yes, page 98 about them through the Code of Conduct. We the organization 302-2 indicators are consolidated in Votorantim 205-2 Communication and training launched the update of the Code of Conduct. The GRI 302: Energy Cimentos using a protocol for energy and emis- about anti-corruption policies and 102 new version also includes the Compliance pro- 302-2 Energy consumption outside Yes, page 98 GRI 205: No, page 116 2016 72 and 102 sions. Anti-corruption procedures gram and a chapter on anti-corruption. of the organization 2016 Yes, page 98 Votorantim Cimentos did not 302-3 Energy intensity 102 205-3 Confirmed incidents of receive complaints related corruption and actions taken to corruption through the Yes, page 98 WATER Ombudsman channel 103-1 Explanation of the material 60, 61, 62, 63, 64 and 65 topic and its Boundary ANTI-COMPETITIVE BEHAVIOR GRI 103: 103-2 The management approach 103-1 Explanation of the material VCBR e VCSA - Votorantim Cimentos has im- Management 39, 48, 49, 50, 51, 74 and 75 Data related to the concrete and cement business 60, 61, 62, 63, 64 and 65 plemented an Anti-Corruption Compliance and Approach 2016 and its components of Votorantim Cimentos Brazil only. We plan to topic and its Boundary continue increase the scope of this indicator in Compliance Program for the Competition Law in 103-3 Evaluation of the GRI 103: 103-2 The management approach companies that have a stake in , Argentina 50, 51, 96, 97 and 98 the next years. Management 39, 48, 49, 50, 51, 54 and 55 and Uruguay. For Brazil, it trained 209 employees management approach Approach 2016 and its components in person, developed material to support M & A operations, hiring third parties, a Guide to Rela- GRI 303: 103-3 Evaluation of the 303-1 Water withdrawal by source 75, and 102 Yes, page 98 50, 51, 96, 97 and 98 tionship with the Public Authorities and general Water 2016 management approach guidelines in case of dawn raids. VCNA - Com- petition training provided by means of a webinar to all VCNA employees who have dealings with BIODIVERSITY competitors, customers, or pricing (a total of 245 employees in 2016). VCNA also periodically con- 103-1 Explanation of the material 206-1 Legal actions for anti- 60, 61, 62, 63, 64 and 65 GRI 206: ducts audits of the VCNA Antitrust and Competi- topic and its Boundary Anti-competitive competitive behavior, anti-trust, 102 tion Policy. An audit of selected business units was Yes, page 98 conducted in 2016. VCNA's employees are also GRI 103: Behavior 2016 and monopoly practices 103-2 The management approach At Votorantim Cimentos, we adopt for the man- expected to contact the Legal Department or to Management 39, 48, 49, 50, 51, 76 and 77 and its components agement of biodiversity the Cement Sustainability file competitior contact forms regarding contacts Approach 2016 Initiative (CSI) guidelines, in addition to consid- with competitors. 103-3 Evaluation of the ering our contribution to achieving the global 50, 51, 96, 97 and 98 management approach commitment set forth in the Aichi 2020 Goals. We apply these concepts to our Brazilian proper- 304-1 Operational sites owned, ties through cooperation with the Atlantic Forest Biosphere Reserve and the Brazilian Society of leased, managed in, or adjacent to, Speleology. protected areas and areas of high 76, 77 and 102 In 2016, we progressed in the identification of Yes, page 98 biodiversity value outside protected protected areas within our properties, between legal reserves and Permanent Protection Areas areas (APPs). GRI 304: 304-3 Habitats protected or We also consolidate, through our wildlife moni- Yes, page 98 Biodiversity 2016 76, 77 and 102 toring campaigns, the total number of species restored threatened with extinction. This has allowed us to know more about our biodiversity and how we 304-4 IUCN Red List species and can protect it. Yes, page 98 national conservation list species 76, 77 and 102 with habitats in areas affected by operations

116 117 + GRI CONTENT INDEX GRI OMISSION EXTERNAL GRI OMISSION EXTERNAL DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) STANDARD PART OMITTED REASON EXPLANATION ASSURANCE STANDARD PART OMITTED REASON EXPLANATION ASSURANCE

EMISSIONS SUPPLIER ENVIRONMENTAL ASSESSMENT 103-1 Explanation of the material 103-1 Explanation of the material 60, 61, 62, 63, 64 and 65 60, 61, 62, 63, 64 and 65 INDICATORS BOOK topic and its Boundary topic and its Boundary GRI 103: 103-2 The management approach GRI 103: 103-2 The management approach Management 39, 48, 49, 50, 51, 70 and 71 Management 39, 48, 49, 50, 51, 87, 88 and 89 • Limited Assurance Report and its components and its components Approach 2016 Approach 2016 Through the invitation to the approval process, • Performance Table 103-3 Evaluation of the All the parameters regarding authorizations for 103-3 Evaluation of the the supplier will send specific documents required 49, 50, 51, 96, 97 and 98 50, 51, 96, 97 and 98 management approach the emission of gases and particulate matter com- management approach for the category of supply and / or provision of • GRI Content index ply strictly with the applicable legislation and the service. These will be analyzed by following the 305-1 Direct (Scope 1) GHG numerical values specifed in their licensing pro- 308-1 New suppliers that were homologation matrix as parameter. If they agree, • Material issues and GRI 70 and 102 cesses. We have a corporate goal of seeking to Yes, page 98 they can be registered with SAP and be our part- emissions reduce emissions per metric ton produced in all GRI 308: Supplier screened using environmental 88 and 102 ners. Otherwise, they will be blocked. Yes, page 98 aspects processes, especially those related to greenhouse criteria 305-2 Energy indirect (Scope 2) Environmental 102 gases. Yes, page 98 Assessment • Correlations IIRC capitals GHG emissions Votorantim Cimentos continuously monitors the 308-2 Negative environmental emissions of its major pollutants (particulate mat- 2016 impacts in the supply chain and 102 Yes, page 98 • UN Global Compact 305-3 Other indirect (Scope 3) GHG 102 ter, NOx and SO2). It also monitors, on a non-con- Yes, page 98 actions taken GRI 305: emissions tinuous basis, using third-party isokinetic mea- • CSI Charter Emissions 2016 surements, the emissions from major and minor 305-4 GHG emissions intensity 102 pollutants (metals, dioxins and furans, THC etc.) Yes, page 98 • Financial Statements MINING AND METALS 305-5 Reduction of GHG emissions 102 Yes, page 98 103-1 Explanation of the material 60, 61, 62, 63, 64 and 65 305-7 Nitrogen oxides (NOx), sulfur topic and its Boundary At Votorantim Cimentos, we adopt for the man- oxides (SOx), and other significant 70 and 102 Yes, page 98 GRI 103: 103-2 The management approach agement of biodiversity the Cement Sustainability air emissions Management 39, 48, 49, 50, 51, 76 and 77 and its components Initiative (CSI) guidelines, in addition to consid- Approach 2016 ering our contribution to achieving the global 103-3 Evaluation of the commitment set forth in the Aichi 2020 Goals. EFFLUENTS AND WASTE 50, 51, 96, 97 and 98 We apply these concepts to our Brazilian proper- management approach ties through cooperation with the Atlantic Forest 103-1 Explanation of the material 60, 61, 62, 63, 64 and 65 Biosphere Reserve and the Brazilian Society of topic and its Boundary The number and percentage of Speleology. In 2016, we progressed in the identification of GRI 103: total sites identified as requiring 103-2 The management approach protected areas within our properties, between Management 39, 48, 49, 50, 51, 74 and 75 biodiversity management plans and its components GRI G4-MM2 102 legal reserves and Permanent Protection Areas Yes, page 98 Approach 2016 according to stated criteria, and the (APPs). 103-3 Evaluation of the We comply with all legal requirements concerning number (percentage) of those sites We also consolidate, through our wildlife moni- 50, 51, 96, 97 and 98 effuents and waste and with the values specifed with plans in place toring campaigns, the total number of species management approach in the licensing process. threatened with extinction. This has allowed us to know more about our biodiversity and how we 306-1 Water discharge by quality 102 Yes, page 98 Number and percentage of can protect it. GRI 306: and destination GRI G4-MM10 102 Yes, page 98 Effluents and operations with closure plans 306-2 Waste by type and disposal Waste 2016 102 Yes, page 98 method GRI 400 Social Standards Series ENVIRONMENTAL COMPLIANCE EMPLOYMENT 103-1 Explanation of the material Votorantim Cimentos has a centralized manage- 60, 61, 62, 63, 64 and 65 ment system for operating licenses, which con- 103-1 Explanation of the material Votorantim Cimentos' guidelines and policies for topic and its Boundary 60, 61, 62, 63, 64 and 65 trols the deadlines and the budget for legal issues topic and its Boundary human resources include: 1) Recruitment: values GRI 103: 103-2 The management approach and licensing operations. In the event of fines, a competence, with fair and equitable opportunities Management 39, 48, 49, 50, 51 and 55 technical analysis is undertaken, and, when ap- GRI 103: 103-2 The management approach for all groups 2) Career management: values mer- Approach 2016 and its components propriate, an appeal is made to the appropriate Management 39, 48, 49, 50, 51 and 82 itocracy, pragmatism, excellence, open dialogue judicial bodies. In addition, the company's internal Approach 2016 and its components in relation to all issues and a sense of belonging. 103-3 Evaluation of the Career management includes: short and long term 50, 51, 96, 97 and 98 policies dictate that fines and other legal process- 103-3 Evaluation of the management approach es must be quantifed and the respective amounts 96, 97 and 98 goals; management of pipeline of employee op- allocated in the balance sheet, following the IFRS management approach portunities and training, including the corporate GRI 307: 307-1 Non-compliance with accounting rules, and in accordance with the cri- university (Votorantim Academy) 3) Terminations: Environmental 102 teria for establishing whether a loss is possible/ Yes, page 98 employee completes a questionnaire on level of environmental laws and regulations GRI 401: 401-1 New employee hires and Compliance probable or remote in the case of legal action. Employment 82 and 102 satisfaction and reasons for termination (involun- No, page 116 employee turnover tary and voluntary), in order to understand and 2016 improve career management.

OCCUPATIONAL HEALTH AND SAFETY 103-1 Explanation of the material 60, 61, 62, 63, 64 and 65 topic and its Boundary GRI 103: 103-2 The management approach Votorantim Cimentos seeks to use best practices Management 39, 48, 49, 50, 51, 66 and 67 for the efficient management of the health and Approach 2016 and its components safety of its employees and third parties. In 2016, in order to disseminate our Global Health and 103-3 Evaluation of the 49, 50, 51, 96, 97 and 98 Safety Policy, “Rules for Life” safety program and management approach the Safe Behavior program, we mobilized our em- ployees to participate in the event Global Safety GRI 403: 403-2 Types of injury and rates Day which is a permanent feature in the compa- Occupational of injury, occupational diseases, ny’s annual calendar of events. 66 and 102 Yes, page 98 Health and lost days, and absenteeism, and Safety 2016 number of work-related fatalities

118 119 + GRI CONTENT INDEX GRI OMISSION EXTERNAL GRI OMISSION EXTERNAL DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) STANDARD PART OMITTED REASON EXPLANATION ASSURANCE STANDARD PART OMITTED REASON EXPLANATION ASSURANCE

TRAINING AND EDUCATION CHILD LABOR 103-1 Explanation of the material Each unit develops training plans based on tech- 103-1 Explanation of the material 60, 61, 62, 63, 64 and 65 topic and its Boundary 60, 61, 62, 63, 64 and 65 nical and management needs of its operation. topic and its Boundary INDICATORS BOOK Performance evaluations are carried out annually. Objectives and the goals to be achieved during GRI 103: 103-2 The management approach • Limited Assurance Report the current period are defned for each position. Management 39, 48, 49, 50, 51, 54 and 55 GRI 103: 103-2 The management approach In January each year, the results are evaluated Approach 2016 and its components Child labor and forced or compulsory labor is not Management and its components 39, 48, 49, 50, 51 and 84 using a standard format. The manager and the tolerated by the organization. • Performance Table 103-3 Evaluation of the Approach 2016 employee reach a consensus on performance, 50, 51, 96, 97 and 98 The issues related to these topics are addressed in • GRI Content index which is classifed in terms of a percentage (%). management approach the Code of Conduct and also by operational con- 103-3 Evaluation of the This serves as a parameter in the calculation of trol audits. Complaints involving such incidents the employee's bonus. In Brazil, 2016 was a year should be sent to the Ombudsman • Material issues and GRI management approach 96, 97 and 98 of implementation of first and middle leadership 408-1 Operations and suppliers at GRI 408: Child aspects development programs, completing the leaders significant risk for incidents of child 85 Yes, page 98 school, and trainee development program. In Labor 2016 404-1 Average hours of training per addition to face-to-face actions, these programs labor • Correlations IIRC capitals 84 and 102 No, page 116 year per employee also count on online development actions, which • UN Global Compact contribute to the trained hourly chart. In business, the focus remained on capacity building, although GRI 404: Training FORCED OR COMPULSORY LABOR • CSI Charter and Education some units have been reduced. 404-3 Percentage of employees The corporate technical training had a great vol- 2016 103-1 Explanation of the material • Financial Statements receiving regular performance and 84, 85 and 102 ume of courses, which for the first time were No, page 116 60, 61, 62, 63, 64 and 65 career development reviews planned and defined through a workshop that topic and its Boundary studied demands vs strategy, giving focus to train- GRI 103: 103-2 The management approach ing that would lead to better results. Management 39, 48, 49, 50, 51, 54 and 55 Approach 2016 and its components Child labor and forced or compulsory labor is not tolerated by the organization. DIVERSITY AND EQUAL OPPORTUNITY 103-3 Evaluation of the The issues related to these topics are addressed in 50, 51, 96, 97 and 98 management approach the Code of Conduct and also by operational con- 103-1 Explanation of the material 60, 61, 62, 63, 64 and 65 trol audits. Complaints involving such incidents topic and its Boundary should be sent to the Ombudsman GRI 409: Forced 409-1 Operations and suppliers GRI 103: 103-2 The management approach Management 39, 48, 49, 50, 51 and 83 or Compulsory at significant risk for incidents of 85 Yes, page 98 and its components All new Votorantim Cimentos' hires are based on Approach 2016 criteria for competence and there is no distinction Labor 2016 forced or compulsory labor 103-3 Evaluation of the between genders, age groups, minorities, ethnic 96, 97 and 98 groups, or other forms of discrimination. In some management approach companies, specifc diversity committees seek to broaden the understanding of the topic, expand- LOCAL COMMUNITIES GRI 405: Diversity ing opportunities. 103-1 Explanation of the material and Equal 405-1 Diversity of governance 83 and 102 No, page 116 60, 61, 62, 63, 64 and 65 Opportunity bodies and employees topic and its Boundary 2016 GRI 103: 103-2 The management approach Management 39, 48, 49, 50, 51, 90 and 91 One of Votorantim Cimentos' sustainability princi- Approach 2016 and its components ples is to engage and contribute to development the communities in which it operates. The compa- NON-DISCRIMINATION 103-3 Evaluation of the ny keeps a Stakeholder Engagement process and 50, 51, 96, 97 and 98 management approach a methodology to evaluate social risks. There is an 103-1 Explanation of the material annual review of the objectives and initiaves to be Votorantim Cimentos monitors the data gener- 60, 61, 62, 63, 64 and 65 developed in each community and the priorities topic and its Boundary ated in the Ombudsman system on a daily basis. 413-1 Operations with local for action are defined. GRI 103: This information is reported monthly to the Audit GRI 413: Local community engagement, impact 103-2 The management approach Committee, and bimonthly to the Conduct Com- Communities 90, 91 and 102 Yes, page 98 Management 39, 48, 49, 50, 51, 54 and 55 assessments, and development Approach 2016 and its components mittee, as a basis for the discussion of the strat- 2016 egies to be adopted. Cases related to harassment programs 103-3 Evaluation of the 50, 51, 96, 97 and 98 and abuse of power are directed to the area of management approach Human and Organizational Development area, which is responsible for the implementation of SUPPLIER SOCIAL ASSESSMENT training for managers. This training aims to im- GRI 406: Non- 406-1 Incidents of discrimination 54 and 102 prove the organizational climate and decrease Yes, page 98 103-1 Explanation of the material discrimination and corrective actions taken complaints/reports received 60, 61, 62, 63, 64 and 65 topic and its Boundary We implemented a WEB platform, which per- forms the capture, analysis and control of docu- GRI 103: 103-2 The management approach Management 39, 48, 49, 50, 51, 87, 88 and 89 ments. The documents requested in the process FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING Approach 2016 and its components vary according to the service provided, supplied material, defined by an approval matrix. Labor 103-1 Explanation of the material 103-3 Evaluation of the documents such as CNDs and FGTS are verified, 60, 61, 62, 63, 64 and 65 50, 51, 96, 97 and 98 topic and its Boundary management approach among other documents. In addition, contract suppliers attest that they do not have child labor, GRI 103: 103-2 The management approach Votorantim Cimentos' Code of Conduct respects forced or similar to slave labor, and 100% of our Management 39, 48, 49, 50, 51 and 84 free association, recognizes trade unions as legal GRI 414: suppliers are verified in the Ministry of Labor list of and its components Supplier Social 414-1 New suppliers that were Approach 2016 representatives of employees and seeks, in a man- 88 and 102 companies identified as child labor, forced or slave Yes, page 98 103-3 Evaluation of the ner consistent with its values and management Assessment screened using social criteria labor practices (in this case are blocked). 96, 97 and 98 beliefs, to encourage open dialogue among the 2016 management approach company, its employees and their union repre- sentatives. The company negotiates directly with GRI 407: 407-1 Operations and suppliers unions, and employees may also participate at the Freedom of in which the right to freedom negotiating table Association 84 and 102 No, page 116 and Collective of association and collective Bargaining 2016 bargaining may be at risk

120 121 + GRI CONTENT INDEX MATERIAL ISSUES AND GRI ASPECTS GRI OMISSION EXTERNAL DISCLOSURE PAGE NUMBER(S) AND/OR URL(S) VC MATERIAL ISSUES GRI ISSUES INDICATORS STAKEHOLDERS STANDARD PART OMITTED REASON EXPLANATION ASSURANCE

Health and Safety Occupational Health and Safety 403-2 Employees and shareholders PUBLIC POLICY 205-1 103-1 Explanation of the material Anti-Corruption 205-2 Employees and society 60, 61, 62, 63, 64 and 65 topic and its Boundary 205-3 Ethics and Integrity on Business INDICATORS BOOK GRI 103: Competitors shareholders 103-2 The management approach After the beginning of the Brazilian electoral re- Anti-competitive Behavior 206-1 Management 39, 48, 49, 50, 51 and 93 form, in late 2015, the financing of candidates and society • Limited Assurance Report and its components Approach 2016 by legal entities became a prohibited practice. Public Policy 415-1 Government and society • Performance Table 103-3 Evaluation of the According to the new rule, in 2016 Votorantim Ci- 96, 97 and 98 mentos did not finance, and it will not finance, the Employees, suppliers, • GRI Content index management approach election of candidates during political campaigns. Economic Performance 201-2 shareholders, government and society GRI 415: Public 415-1 Political contributions 93 and 102 No, page 116 • Material issues and GRI Policy 2016 305-1 aspects Climate Change and GHG Emissions 305-2 • Correlations IIRC capitals SOCIOECONOMIC COMPLIANCE Emissions 305-3 Environment and society • UN Global Compact 103-1 Explanation of the material 305-4 60, 61, 62, 63, 64 and 65 305-5 • CSI Charter topic and its Boundary GRI 103: In the event of fines, a technical analysis is under- 102-43 103-2 The management approach Customer relations and satisfaction General Content Customers • Financial Statements Management 39, 48, 49, 50, 51, 54 and 55 taken, and, when appropriate, an appeal is made 102-44 Approach 2016 and its components to the appropriate judicial bodies. In addition, the company's internal policies dictate that fnes and Employees, suppliers, 103-3 Evaluation of the 50, 51, 96, 97 and 98 other legal processes must be quantifed and the Economic Performance Economic Performance 201-1 shareholders, government management approach respective amounts allocated in the balance sheet, and society following the IFRS accounting rules, and in Employees, shareholders accordance with the criteria for establishing Market presence 202-2 GRI: 419: 419-1 Non-compliance with laws whether a loss is possible/probable or remote in and society Socioeconomic and regulations in the social and 102 the case of legal action. Yes, page 98 203-1 Indirect Economic Impacts Compliance economic areas 203-2 Community Engagement 413-1 413-2 Society MINING AND METALS Local communities G4-MM6 103-1 Explanation of the material The Ombudsman, which is global, receives the 60, 61, 62, 63, 64 and 65 G4-MM7 topic and its Boundary reports and directs them to the segments respon- sible for the reported topic, for the appropriate Resettlement G4-MM8 GRI 103: negotiations. 103-2 The management approach 404-1 Management 39, 48, 49, 50 and 51 The Ombudsman can be accessed by the internal Training, qualification and Approach 2016 and its components public (employees, third parties working for VC) Training and education 404-2 Employees and external (customers, suppliers, consumers and development of employees 103-3 Evaluation of the 404-3 50, 51, 96, 97 and 98 other stakeholders) to address doubts, concerns management approach or suspicions of Code of Conduct violations - such 302-1 as harassment, discrimination , abuse of power, 302-2 corruption or any other unethical behavior. Energy Management Energy Environment and customers The issues are dealt with impartially and confiden- 302-3 tially, preserving the identity of those involved. 302-4 The extent to which grievance The Ombudsman's Office is linked to Internal Environment, customers mechanisms were used to Audit, which reports to the Board of Directors Innovation, research and development resolve disputes relating to land through the Audit Committee and, administra- and society GRI G4-MM7 102 tively, to the global CEO of Votorantim Cimentos. Yes, page 98 304-1 use, customary rights of local The remediation actions are overseen by the Busi- communities and indigenous ness Ethics Council, a governance body formed Biodiversity 304-2 Environment peoples, and the outcomes. by the CEO and global heads of Internal Audit, 304-3 Legal and People. All reports are verified, gener- Biodiversity Preservation G4-MM1 ating corrective and educational actions, as the Biodiversity case may be. G4-MM2 Environment and society Closure plans G4-MM10 Emissions (Particulate material, NOx Emissions 305-7 Environment and society and SOx) Sustainable and inclusive construction Environment and customers Water 303-1 Water and Effluents management Environment Effluents and Waste 306-1 Procurement Practices 204-1 Employees and suppliers 308-1 Employees, suppliers, Supplier Environmental Assessment customers, society and 308-2 environment Supply chain Management Freedom of association and collective bargaining 407-1 Employees Child labor 408-1 Society Forced or compulsory labor 409-1 Employees, suppliers, Supplier social assessment 414-1 customers and society Employees, society and Employment 401-1 government Employment and Labor Relations Diversity and equal opportunity 405-1 Society Relation between employees and the governance G4-MM4 Employees

122 123 + CORRELATIONS IIRC CAPITALS CSI CHARTER MATERIAIS ISSUES CAPITAL STATUS 2016 Health and Safety Human capital CO2 AND CLIMATE PROTECTION Ethics and Integrity on Business Social and relationship capital Use the tools set out in the CSI CO and Energy protocol 2 Protocol used by all plants of our cement business Climate Change and GHG Emissions Natural capital to define and make public our baseline emissions

Customer relations and satisfaction Social and relationship capital Develop a climate change mitigation strategy, and publish See our Sustainability Commitments for 2020 INDICATORS BOOK http://www.votorantimcimentos.com/en-US/sustainability/strategic-drivers/paginas/subho- Economic Performance Financial capital targets and progress • Limited Assurance Report me.aspx Community Engagement Social and relationship capital See our Integrated Report 2016 Report annually on CO emissions in line with the protocol • Performance Table 2 Training, qualification and development of employees Human capital http://www.votorantimcimentos.com/en-US/sustainability/Paginas/Integrated-Report.aspx • GRI Content index Energy Management Natural capital Participate in and contribute agreed datasets to the Get- • Material issues and GRI ting the Numbers Right global cement database system of Data uploaded every year Innovation, research and development Intellectual and Manufactured-goods capital CO and energy information aspects 2 Biodiversity Preservation Natural capital • Correlations IIRC capitals Emissions (Particulate material, NOx and SOx) Natural capital RESPONSIBLE USE OF FUELS AND RAW MATERIALS • UN Global Compact Sustainable and inclusive construction Natural capital Apply the Guidelines for Co-Processing Fuels and Raw • CSI Charter Changing internal procedures Water and Effluents management Natural capital Materials in Cement Manufacturing • Financial Statements Supply chain Management Relationship capital EMPLOYEE HEALTH AND SAFETY Employment and Labor Relations Human capital Apply the Health and Safety in the Cement Industry: Ongoing Customer relations and satisfaction Social and relationship capital Guidelines for Measuring and Reporting Biodiversity Preservation Natural capital Report to the CSI annually on employee safety data in line with See our Integrated Report 2016 - http://www.votorantimcimentos.com/en-US/sustainabili- the guidelines developed for measuring and reporting (fatality ty/Paginas/Integrated-Report.aspx data to be reported to the CSI as of the year of joining)

EMISSIONS REDUCTIONS Apply the Guidelines for Emissions Monitoring and Reporting used by all plants of our cement business Reporting in the Cement Industry

Make emissions data publicly available and accessible to See our Integrated Report 2016 - stakeholders http://www.votorantimcimentos.com/en-US/sustainability/Paginas/Integrated-Report.aspx

Set emissions targets for main pollutants (NOx, SOx, dust) See our Sustainability Commitments for 2020 http://www.votorantimcimentos.com/en-US/sustainability/strategic-drivers/paginas/subho- and report publicly on progress THE UN GLOBAL COMPACT PRINCIPLES me.aspx

LOCAL IMPACTS ON LAND AND COMMUNITIES Apply the Environmental and Social Impact Assessment HUMAN RIGHTS Guidelines and develop tools to integrate them into Ongoing decision making processes 1. Support and respect the protection of internationally proclaimed human rights; and Apply the Guidelines on Quarry Rehabilitation Ongoing 2. Make sure that they are not complicit in human rights abuses. LABOR WATER Apply the Protocol for Water Reporting for the Cement 3. Uphold the freedom of association and the effective recognition of the right to collective bargaining; In process of implementation Industry 4. The elimination of all forms of forced and compulsory labor; 5. The effective abolition of child labor; and REPORTING AND COMMUNICATIONS Report publicly on all agreed CSI Key Performance See our Integrated Report 2016 - 6. The elimination of discrimination in respect of employment and occupation. Indicators (KPIs) on an annual basis http://www.votorantimcimentos.com/en-US/sustainability/Paginas/Integrated-Report.aspx

ENVIRONMENT See our Code of Conduct - http://www.votorantimcimentos.com/en-US/company/gover- Publish a statement of business ethics nance/Pages/code-of-conduct-and-ethics.aspx 7. Support a precautionary approach to environmental challenges; Establish a systematic dialogue process with stakeholders See our Integrated Report 2016 - 8. Undertake initiatives to promote greater environmental responsibility; and to understand and address their expectations http://www.votorantimcimentos.com/en-US/sustainability/Paginas/Integrated-Report.aspx 9. Encourage the development and diffusion of environmentally friendly technologies. Report progress on developing stakeholder engagement See our Integrated Report 2016 - programs http://www.votorantimcimentos.com/en-US/sustainability/Paginas/Integrated-Report.aspx ANTI-CORRUPTION Develop documented and auditable environmental See our Global Environmental Policy - http://www.votorantimcimentos.com/Shared%20 Documents/Cartilha%20Politica%20Ambiental%20e%20Regras%20Verdes_ingles.pdf 10. Work against corruption in all its forms, including extortion and bribery. management systems at all plants and Integrated Management System (Integrated Report 2016)

124 125 + CSI CHARTER STATUS 2016 CSI PERFORMANCE INDICATOR 2014 2015 2016 ASSURANCE Dust - coverage rate (%) 99.1% 100.0% 100.0% CO2 EMISSIONS DATA Companies will carry out assurance at least once every two NOx - coverage rate (%) 99.1% 100.0% 100.0% years using recognized, independent third party assurance Carried out every year by PwC SO2 - coverage rate (%) 95.3% 92.7% 95.4% INDICATORS BOOK practitioners VOC/THC - coverage rate (%) 70.9% 64.8% 70.4% • Limited Assurance Report Assurance practitioners will decide on the number of sites Decided By PwC PCDD/F - coverage rate (%) 61.8% 70.7% 71.4% • Performance Table to be visited Hg - coverage rate (%) 67.0% 72.2% 74.7% • GRI Content index Assurance statements will explicitly mention the number Included in PwC assurance statement of sites visited and the corresponding % CO2 emissions Sum of Cd and Tl - coverage rate (%) 65.3% 72.2% 64.5% • Material issues and GRI covered Sum of Sb, As, Pb, Cr, Co, Cu, Mn, Ni, V - coverage rate (%) 65.3% 72.2% 60.6% aspects SAFETY DATA Dust - specific emissions (grams / metric ton clinker) 99.44 71.39 63.88 • Correlations IIRC capitals Companies will carry out assurance at least once every NOx - specific emissions (grams / metric ton clinker) 1,940.85 1,889.88 2,057.39 • UN Global Compact three years using recognized, independent third party Carried out every year by PwC assurance practitioners SO - specific emissions (grams / metric ton clinker) 659.69 676.05 770.23 • CSI Charter 2 NOX, SOX, AND DUST EMISSIONS DATA • Financial Statements VOC/THC - specific emissions (grams / metric ton clinker) 26.78 43.60 73.77 PCDD/F - specific emissions (ng / metric ton clinker) Companies will carry out assurance at least once every 14.97 14.99 98.13 three years using recognized, independent third party Carried out every year by PwC Hg - specific emissions (mg / metric ton clinker) 7.95 7.56 12.60 assurance practitioners Sum of Cd and Tl - specific emissions (mg / metric ton clinker) 18.85 12.29 7.06 Sum of Sb, As, Pb, Cr, Co, Cu, Mn, Ni, V - specific emissions (mg / metric ton 831.70 1,400.43 788.90 clinker) CSI PERFORMANCE INDICATOR 2014 2015 2016 Dust - absolute emissions (kmetric tons / year) 3.130 2.110 1.750 NOx - absolute emissions (kmetric tons / year) 61,000 55,880 56.371 CLIMATE PROTECTION SO2 - absolute emissions (kmetric tons / year) 20,740 19,990 21,113 Total CO emissions - gross (million metric tons) 27.5 25.9 24 2 VOC/THC - absolute emissions (metric tons / year) 841.77 1,289.30 2,021.16 Total CO emissions - net (million metric tons) 27.0 25.4 23 2 PCDD/F - absolute emissions (mg / year) 470.43 443.17 2,688.37 Specific CO emissions - gross (kg / metric ton cementitious material) 652.6 655.7 648 2 Hg - absolute emissions (t / year) 0.25 0.22 0.35 Specific CO emissions - net (kg / metric ton cementitious material) 642.6 642.0 632 2 Sum of Cd and Tl - absolute emissions (t / year) 0.59 0.36 0.19 Sum of Sb, As, Pb, Cr, Co, Cu, Mn, Ni, V - absolute emissions (t / year) 26.14 41.41 21.61 RESPONSIBLE USE OF FUELS AND RAW MATERIALS Specific heat consumption of clinker production (MJ/metric ton clinker) 3,495 3,543 3,475 LOCAL IMPACTS ON LAND AND COMMUNITIES Alternative fossil fuel rate (%) 4.67% 6.31% 7.36% Percentage (%) of sites with community engagement plans in place 17% 22.15% 32.29% Biomass fuel rate (%) 3.06% 3.53% 5.00% Percentage (%) of sites with quarry rehabilitation plans in place 78% 85% 86% Alternative raw materials rate (%) 6.73% 8.37% 8.39% Number of quarries within, containing, or adjacent to areas designated 70 65 74 Clinker/cement ratio (%) 76.40% 75.50% 77.0% for their high biodiversity value, as defined by GRI 304-1 Percentage (%) of quarries with high biodiversity value where biodiversity 5.71% 6.15% 5.40% SAFETY management plans are actively implemented Number of fatalities (directly employed) 3 0 0 Number of fatalities per 10,000 directly employed 2.11 0 0 Number of fatalities (indirectly employed) 1 1 5 Number of fatalities (third party) 7 3 0 Number of days lost due to injuries (calendar days/employees) 3,108 4,517 2,246 TOTAL NUMBER OF DAYS LOST DUE INJURIES 3,651 4,972 3,351 Lost time injuries per 1 million man-hours (directly employed) 1.14 1.12 1.06

EMISSIONS REDUCTION Emissions reductions Overall coverage rate: percentage (%) of clinker produced 60.1% 57.5% 50.0% with monitoring of all pollutants mentioned in the emissions guidelines Coverage rate continuous measurement: percentage (%) of clinker produced 83.4% 84.4% 90.9% with continuous monitoring of main pollutants, dust, NOx and SO2

126 127 Entities included in the consolidated financial statements: Calmit Industrial Ltda., Votorantim Cimentos N/NE S.A., Votorantim FINANCIAL STATEMENTS Cimentos S.A., CRB Operações Portuárias S.A., Empresa de Mineração Acariúba Ltda., Eromar S.A., Fazenda São Miguel + Ltda., Interávia Transportes Ltda., Itacamba Cemento S.A., Votorantim Cement North America, Inc., Cia. de Cimento Pinheiro Machado, Cimento Itaú do Paraná Ltda., Pedreira LIABILITIES AND PARENT COMPANY CONSOLIDATED Pedra Negra Ltda., Lux Cem International S.A., Seacrown do Brasil, Com. Import. e Participações S.A., SPCIM Indústria, STOCKHOLDERS' EQUITY 2016 2015 2016 2015* Com. e Participações S.A., Cementos Artigas S.A., Mondello S.A., Petrolina Zeta Mineração Ltda., Mineração Potilider Ltda., Lidermac Indústria e Comercio Ltda., Votorantim Cementos CURRENT LIABILITIES BALANCE SHEET Chile Ltda., Inversiones Votorantim Chile Ltda., Minerações e Construções Ltda., DL Mineração, Votorantim Cimentos EAA Borrowings 1,392,828 1,199,185 952,164 1,880,820 INDICATORS BOOK Inversiones S.L.U, Votorantim Cimentos Argentina S.A., GB YEARS ENDED DECEMBER 31 Minerales y Agregados S.A., Votorantim Cement Trading, S.L, Derivative financial instruments 200,601 201,224 200,601 201,224 • Limited Assurance Report Votorantim Cimentos S.A., Silcar Empreend. Com. e Part. Ltda., IN THOUSANDS OF REAIS Voto-Votorantim Over. Trad. Oper. V Ltda. Confirming payables 318,227 283,441 601,236 578,224 • Performance Table Trade payables 224,405 249,945 1,112,627 1,249,071 • GRI Content index Salaries and social charges 162,386 179,940 394,184 428,809 • Material issues and GRI PARENT COMPANY CONSOLIDATED Taxes payable 83,171 94,084 226,999 286,777 aspects ASSETS Advances from customers 5,951 6,040 26,705 37,025 • Correlations IIRC capitals 2016 2015 2016 2015* Dividends payable 245,028 165,715 246,900 168,656 • UN Global Compact Use of public assets - - 30,908 28,471 • CSI Charter CURRENT ASSETS Other liabilities 282,914 308,605 439,588 482,775 • Financial Statements Cash and cash equivalents 828,620 1,529,129 2,312,499 3,035,652 Financial investments 1,246,281 1,533,309 1,798,438 1,697,733 2,915,511 2,688,179 4,231,912 5,341,852 Trade receivables 349,590 248,082 838,425 1,461,063 Inventories 435,132 443,018 1,448,083 1,585,693 NON-CURRENT LIABILITIES Taxes recoverable 497,128 314,651 621,998 531,772 Borrowings 11,117,742 16,339,319 14,528,217 17,615,800 Advances to suppliers 2,895 6,931 81,535 94,708 Derivative financial instruments 316,776 - 316,776 - Dividends receivable 3,189 68,676 7,252 12,602 Deferred taxes - - 496,311 574,955 Other assets 59,686 28,651 240,989 335,923 Related parties 523,215 625,249 52,965 169,551

3,422,521 4,172,447 7,349,219 8,755,146 Provisions 488,401 462,004 843,932 885,349 Assets classified as held for sale - 381,069 - 413,705 Payables to investees 44,242 51,607 - - 3,422,521 4,553,516 7,349,219 9,168,851 Use of public assets - - 470,518 448,547 Pension liabilities - - 177,527 171,907 Other liabilities 95,054 76,347 255,750 184,436 NON-CURRENT ASSETS 12,585,430 17,554,526 17,141,996 20,050,545 LONG-TERM RECEIVABLES

Derivative financial instruments 85,187 318,700 85,187 318,700 TOTAL LIABILITIES 15,500,941 20,242,705 21,373,908 25,392,397 Taxes recoverable 133,404 155,428 305,706 235,935 Deferred taxes 415,860 1,025,182 1,012,585 1,762,953 STOCKHOLDERS' EQUITY Related parties 121,677 84,337 73,061 71,315 Capital 3,730,875 2,730,875 3,730,875 2,730,875 Judicial deposits 132,469 112,545 204,661 168,655 Retained earnings 3,221,648 2,930,984 3,221,648 2,930,984 Other assets 49,848 52,358 571,864 354,764 Other comprehensive income 331,769 1,606,804 331,769 1,606,804 Total equity attributable to owners of the parent 7,284,292 7,268,663 7,284,292 7,268,663 938,445 1,748,550 2,253,064 2,912,322 Non-controlling interests - 574,572 683,295 Investments in associates and joint ventures 12,634,104 15,239,168 1,034,131 1,275,806 - Property, plant and equipment 5,034,429 5,114,137 12,642,268 13,052,901 Intangible assets 755,734 855,997 5,954,090 6,934,475 TOTAL STOCKHOLDERS' EQUITY 7,284,292 7,268,663 7,858,864 7,951,958

18,424,267 21,209,302 19,630,489 21,263,182 TOTAL LIABILITIES AND STOCKHOLDERS' 22,785,233 27,511,368 29,232,772 33,344,355 EQUITY TOTAL ASSETS 22,785,233 27,511,368 29,232,772 33,344,355

*2015 values here presented refers to the values published on the Financial Statements of 2016. [GRI 102-45] 128 129 FINANCIAL STATEMENTS + PARENT COMPANY CONSOLIDATED INCOME STATEMENT 2016 2015 2016 2015* YEARS ENDED DECEMBER 31 Weighted average number of shares, thousands 6,126,939 5,421,511 6,126,939 5,421,511 IN THOUSANDS OF REAIS Basic and diluted earnings per thousand shares, reais 60,39 136,86 60,39 136,86 From continuing operations INDICATORS BOOK Basic and diluted earnings per thousand shares, reais 60,39 136,86 59,78 136,86 • Limited Assurance Report PARENT COMPANY CONSOLIDATED From discontinued operations • Performance Table 2016 2015 2016 2015* Basic and diluted losses per thousand share, reais - - 0,61 - • GRI Content index • Material issues and GRI CONTINUING OPERATIONS aspects Revenue of goods sold and services rendered 4,718,039 5,821,227 12,696,658 14,052,796 • Correlations IIRC capitals Cost of goods sold and services rendered (3,379,769) (3,684,508) (9,578,311) (10,093,565) • UN Global Compact Gross profit 1,338,270 2,136,719 3,118,347 3,959,231 • CSI Charter STATEMENT OF COMPREHENSIVE INCOME • Financial Statements OPERATING INCOME (EXPENSES) Selling (727,184) (684,455) (1,090,700) (1,063,449) YEARS ENDED DECEMBER 31 General and administrative (475,398) (564,553) (926,226) (985,056) IN THOUSANDS OF REAIS Other operating income (expenses), net 234,531 (191,734) 354,311 223,895 (968,051) (1,440,742) (1,662,615) (1,824,610) Operating profit before equity results and net financial PARENT COMPANY CONSOLIDATED 370,219 695,977 1,455,732 2,134,621 results 2016 2015 2016 2015* RESULTS OF INVESTEES Equity in the results of associates and joint ventures 798,164 1,235,538 133,583 201,884 NET INCOME FOR THE YEAR 369,977 741,993 424,029 800,843 Realization of other comprehensive income on disposal Other components of comprehensive income to be 25,007 - 44,133 - of investments subsequently reclassified to the statement of income 823,171 1,235,538 177,716 201,884 Currency translation of investees abroad investees (2,223,182) 2,889,978 (2,338,648) 3,034,221 Hedge accounting of net investments abroad, net of 1,003,811 (1,970,946) 1,003,811 (1,970,946) FINANCIAL RESULTS, NET income tax and social contribution Financial income 727,387 420,238 872,412 565,302 Realization of comprehensive income on disposals of (25,007) - (44,133) - Financial expenses (1,455,242) (1,542,145) (1,674,566) (1,768,448) investments Derivative financial instruments (761,492) 278,627 (770,015) 278,627 Loss due to change in shareholding (30,406) - - - Exchange variations, net 575,185 (477,247) 561,210 (439,921) Interest in other comprehensive income of investees 19,386 (58,232) 13,389 (56,970) (914,162) (1,320,527) (1,010,959) (1,364,440) Other componets of comprehensive income that will Profit before taxes 279,228 610,988 622,489 972,065 not be subsequently reclassified to the statement of income INCOME TAX AND SOCIAL CONTRIBUTION Remensuraments of retirament benefits (19,637) 13,907 (19,637) 13,907 Current 182,957 109,168 (82,941) (184,501) Other comprehensive income (loss) for the year (1,275,035) 874,707 (1,385,218) 1,020,212 Deferred (92,208) 21,837 (119,232) 13,279 Total comprehensive income (loss) for the year (905,058) 1,616,700 (961,189) 1,821,055

Profit for the year from continuing operations 369,977 741,993 420,316 800,843 COMPREHENSIVE INCOME (LOSS) FROM Continuing operations (964,902) 1,821,055 DISCONTINUED OPERATIONS ------Loss from discontinued operations - - 3,713 - Discontined operations - - 3,713 - - - (961,189) 1,821,055 Net income for the year 369,977 741,993 424,029 800,843 COMPREHENSIVE INCOME (LOSS) Net income attributable to the owners of the parent 369,977 741,993 369,977 741,993 ATTRIBUTABLE TO Net income attributable to non-controlling interests - - 54,052 58,850 Owners of the parent - - (905,058) 1,616,700 Non-controlling interests (56,131) 204,355 Net income for the year 369,977 741,993 424,029 800,843 - - - - (961,189) 1,821,055

*2015 values here presented refers to the values published on the Financial Statements of 2016. 130 131 + FINANCIAL STATEMENTS ATTRIBUTABLE TO OWNERS OF THE PARENT STATEMENT OF REVENUE RESERVES CHANGES IN EQUITY OTHER NON- TOTAL IN THOUSANDS OF REAIS PROFIT RETAINED CAPITAL SOCIAL TAX INCENTIVE LEGAL RETENTION EARNINGS COMPREHENSIVE TOTAL CONTROLLING STOCKHOLDERS INDICATORS BOOK INCOME INTERESTS EQUITY • Limited Assurance Report • Performance Table At January 1, 2015 2,730,875 953,037 473,623 811,324 732,097 5,700,956 437,455 6,138,411 • GRI Content index • Material issues and GRI Comprehensive income for the year aspects Net income for the year 741,993 741,993 58,850 800,843 • Correlations IIRC capitals Other comprehensive income 874,707 874,707 145,505 1,020,212 • UN Global Compact 741,993 874,707 1,616,700 204,355 1,821,055 • CSI Charter • Financial Statements Contributions by and distributions to stockholders Increase in non-controlling interest - Yacuces 55,012 55,012 Increase in non-controlling interest - Itacamba 53,011 53,011 Deliverable dividends canceled 116,722 116,722 116,722 Allocation of net income for the year Tax incentive reserve 149,494 (149,494) Legal reserve 37,100 (37,100) Dividends approved and paid (R$ 0.03 per share) (165,715) (165,715) (66,538) (232,253) Profit retention 389,684 (389,684) 149,494 37,100 506,406 (741,993) (48,993) 41,485 (7,508)

At December 31, 2015 2,730,875 1,102,531 510,723 1,317,730 1,606,804 7,268,663 683,295 7,951,958

At January 1, 2016 2,730,875 1,102,531 510,723 1,317,730 1,606,804 7,268,663 683,295 7,951,958

Comprehensive income (loss) for the year 2,730,875 1,102,531 510,723 1,317,730 1,606,804 7,268,663 683,295 7,951,958 Net income for the year 369,977 369,977 54,052 424,029 Other comprehensive loss (1,275,035) (1,275,035) (110,183) (1,385,218) 369,977 (1,275,035) (905,058) (56,131) (961,189)

Contributions by and distributions to stockholders Capital increase 1,000,000 1,000,000 1,000,000 Allocation of net income for the year Tax incentive reserve 97,529 (97,529) Capital reduction (232) (232) Legal reserve 18,499 (18,499) Dividends approved (R$ 0.01 per share) (79,313) (79,313) (52,360) (131,673) Profit retention 174,636 (174,636) 1,000,000 97,529 18,499 174,636 (369,977) 920,687 (52,592) 868,095

At December 31, 2016 3,730,875 1,200,060 529,222 1,492,366 331,769 7,284,292 574,572 7,858,864

132 133 + FINANCIAL STATEMENTS PARENT COMPANY CONSOLIDATED CASH FLOW STATEMENT 2016 2015 2016 2015* YEARS ENDED DECEMBER 31 IN THOUSANDS OF REAIS Cash provided by operations activities 1,061,321 879,787 2,600,930 3,233,601 INDICATORS BOOK Interest paid on borrowing and use of public assets (1,108,547) (1,175,663) (1,249,977) (1,236,601) • Limited Assurance Report Premium paid on the partial repurchase of Bond - (97,993) - (97,993) Income tax and social contribution paid - (1,551) (240,450) (222,905) • Performance Table PARENT COMPANY CONSOLIDATED • GRI Content index 2016 2015 2016 2015* Net cash provided by (used in) operational (47,226) (395,420) 1,110,503 1,676,102 • Material issues and GRI activities aspects • Correlations IIRC capitals CASH FLOW FROM OPERATING ACTIVITIES CASH FLOW FROM INVESTMENT ACTIVITIES Profit before income tax and social contribution 1,160,124 610,988 1,361,402 981,965 • UN Global Compact Proceeds from disposals of property, plant and Profit from discontinued operations (4,003) (9,900) 11,781 35,761 130,231 120,805 • CSI Charter equipment and intangible assets • Financial Statements Dividends received 66,071 203,223 67,623 73,345 ADJUSTMENTS OF ITEMS THAT DO NOT REPRESENT CHANGES IN CASH AND CASH EQUIVALENTS Acquisitions of property, plant and equipment (349,726) (566,608) (1,864,578) (1,844,856) Depreciation, amortization and depletion 415,380 357,938 1,076,403 987,457 Acquisitions of intangible assets (817) (15,191) (7,529) (24,161) Equity in the results of associates and joint ventures (798,164) (1,235,538) (133,583) (201,884) Capital increase in investees (100,000) - - - Realization of other comprehensive income on (25,007) - (44,133) - disposal of investment Proceeds from sale of investments 565,970 141,636 636,970 381,404 Interest, indexation and exchange variations 355,910 1,258,257 45,198 2,021,630 Net cash provided by (used in) investment Impairment provision of advances to suppliers, other 193,279 (201,179) (1,037,283) (1,293,463) assets, property plant and equipment and intangible 60,944 231,487 102,928 261,367 activities assets Loss (gain) on sale of property, plant and equipment CASH FLOW FROM FINANCING ACTIVITIES 693 (10,636) (87,051) (35,310) and intangible assets New loans and financing 798,900 4,134,417 4,317,683 5,302,393 Gain on sales of investments, net (296,915) - (296,915) (264,853) Payments of loans and financing (2,767,863) (3,062,306) (5,675,728) (4,263,251) Allowance for doubtful accounts, net of reversals 22,351 16,123 24,415 51,226 Derivative financial instruments (220,348) 175,921 (220,348) 175,921 Provision 24,273 5,480 14,700 10,712 Capital reduction - VCEAA 375,228 295,025 - - Fair value adjustment - Resolution 4131 (26,247) 9,852 (26,247) 9,852 Receipt of capital reduction - VCNA - 98,697 - - Discounts on repurchase of bond (171,160) - (171,160) - Capital increase 1,000,000 - 1,000,000 - Fair value adjustment of derivative instruments 770,015 (278,627) 770,015 (278,627) Increase in non-controlling interest in Yacuces - - - 55,012 611,301 965,324 1,900,772 3,533,635 Increase in non-controlling interest in Itacamba - - - 53,011 Dividends paid - - (10,386) (66,538) DECREASE (INCREASE) IN ASSETS Related parties (32,479) 25,708 11,579 (112,719) Financial investments 520,143 (113,593) 183,401 (147,862) Trade receivables (24,123) 41,366 746,122 (385,015) Net cash provided by (used in) financing (846,562) 1,667,462 (577,200) 1,143,829 Inventories 7,886 (10,793) 142,561 (305,260) activities Taxes recoverable 22,655 (1,409) 23,111 (47,852) Related parties (72,484) 79,876 (129,911) 275,197 Increase (decrease) in cash and cash equivalents (700,509) 1,070,863 (503,980) 1,526,468 Other accounts receivable and other assets (44,413) 40,358 (207,594) (248,800) Effect of foreign exchange on cash (219,173) 268,581 Cash and cash equivalents at the beginning of the INCREASE (DECREASE) IN LIABILITIES 1,529,129 458,266 3,035,652 1,240,603 year Trade payables (25,540) 33,884 (136,444) 468,533 Salaries and social charges (17,554) 12,943 (34,625) 112,141 Cash and cash equivalents at the end of the year 828,620 1,529,129 2,312,499 3,035,652 Advances from customers (89) 1,027 26,522 11,534 Taxes payable (10,913) (108,816) (59,778) (110,171) Other accounts payable and other liabilities 94,452 (60,380) 146,793 77,521

*2015 values here presented refers to the values published on the Financial Statements of 2016. 134 135 + FINANCIAL STATEMENTS PARENT COMPANY CONSOLIDATED CASH FLOW STATEMENT 2016 2015 2016 2015* YEARS ENDED DECEMBER 31 IN THOUSANDS OF REAIS INPUTS ACQUIRED FROM THIRD PARTIES INDICATORS BOOK Raw materials and other production inputs (2,044,813) (2,332,119) (5,529,218) (5,699,413) • Limited Assurance Report Materials, energy, oustourced services and other (994,810) (1,168,358) (2,416,098) (2,634,380) Impairment provision for goodwill, property, plant and • Performance Table PARENT COMPANY CONSOLIDATED (60,944) (231,487) (102,928) (261,367) equipment, intangible assets and other assets • GRI Content index 2016 2015 2016 2015* (3,100,567) (3,731,964) (8,048,244) (8,595,160) • Material issues and GRI aspects MAIN NON-CASH TRANSACTIONS GROSS VALUE ADDED 3,618,443 4,153,734 7,360,401 8,556,050 • Correlations IIRC capitals Transfer of assets classified as held for sale - 381,069 - 697,053 Depreciation, amortization and depletion (415,380) (357,938) (1,076,403) (987,457) • UN Global Compact Deliverable dividends canceled - 116,722 - 116,722 NET VALUE ADDED GENERATED BY THE COMPANY 3,203,063 3,795,796 6,283,998 7,568,593 • CSI Charter Transfer of liabilities related to assets held for sale - - - 104,876 • Financial Statements Investee incorporation VC in VCEAA - (6,383,000) - - VALUE ADDED RECEIVED THROUGH TRANSFER Capital increase in investee VCEAA due to VC Spain - 6,383,000 - - incorporation Equity in the results of investees 823,171 1,235,538 177,716 201,884 Silcar assets spin-off - 417,182 - - Financial income and exchange gains 1,816,484 1,095,168 2,062,642 1,451,586 Proceeds from disposals of assets of Barauna of including 2,639,655 2,330,706 2,240,358 1,653,470 - - - 30,000 property, plant and equipment Dividends received without cash effects for Avellaneda - - - 1,402 TOTAL VALUE ADDED TO BE DISTRIBUTED 5,842,718 6,126,502 8,524,356 9,222,063 Loans from FINAME for acquisition of property, plant - 10,853 - 11,851 and equipment DISTRIBUTION OF VALUE ADDED Securitization program of the accounts receivable - - 198,339 - PERSONNEL AND SOCIAL CHARGES VCNA - Direct remuneration 450,537 496,142 1,560,196 1,599,118 VCEAA's share premium distribution 835,377 - - - Pension plan 14,747 18,611 Bond settlement with VCEAA's share premium (835,377) - - - Social charges 243,426 276,893 444,805 469,488 Benefits 150,612 151,424 338,099 308,166 844,575 924,459 2,357,847 2,395,383 TAXES AND CONTRIBUTIONS Federal 529,612 546,559 699,905 1,040,148 State 1,170,070 1,394,526 1,657,216 1,964,222 STATEMENT OF VALUE ADDED Municipal 15,754 22,394 17,311 24,551 Deferred taxes 92,208 (21,837) 119,232 (13,279) YEARS ENDED DECEMBER 31 1,807,644 1,941,642 2,493,664 3,015,642 IN THOUSANDS OF REAIS THIRD-PARTY CAPITAL REMUNERATION Financial expenses and exchange losses 2,730,646 2,415,695 3,073,601 2,816,026 Rentals 89,876 102,713 175,215 194,169 PARENT COMPANY CONSOLIDATED 2,820,522 2,518,408 3,248,816 3,010,195 2016 2015 2016 2015* OWN CAPITAL REMUNERATION Non-controlling interests 54,052 58,850 REVENUE Dividends 79,313 165,715 79,313 165,715 Sales of products and services 6,395,390 7,831,202 14,928,895 16,717,174 Reinvested profits 290,664 576,278 286,951 576,278 Other operating income (expenses), net 345,971 70,619 504,165 485,262 Profit from discontinued operations 3,713 Allowance for doubtful accounts, net (22,351) (16,123) (24,415) (51,226) 369,977 741,993 424,029 800,843 6,719,010 7,885,698 15,408,645 17,151,210 VALUE ADDED DISTRIBUTED 5,842,718 6,126,502 8,524,356 9,222,063

*2015 values here presented refers to the values published on the Financial Statements of 2016. 136 137 www.votorantimcimentos.com