Sustainability 2018 Report Word from 03 56 Internal public the President 06 Identity Customer 72 experience Scenario conception and Relationship 12 assertiveness 79 with other in demand stakeholders forecasting Ethics, 24 transparency and integrity 90 Recognition in business Sustainable 37 construction 95 About methods this report Environmental 104 GRI content index 53 solutions for 120 Preparation enterprises In 2018, we adopted the right strategy, based on organic growth with efficiency gains and Word from improved productivity, and we have achieved a higher profitability. The focus on the production of economic real estate, an important segment in the the President domestic context, with lower credit costs and higher demand than supply, contributed to our exceptional 102-14 | 102-15 performance and to maintain our position in the market. We obtained the best operating result in our history, with records of R$6.42 billion in launches and R$6.22 billion in sales, which increased our net revenue by 14.1% and net profit by 5.6% compared to the previous year. MRV | 2018 SUSTAINABILITY REPORT 3 Contributing to our In 2018, we did a great job to expand this concept that moves us, the Purpose Project, exceptional performance which involved all areas of MRV in order to redesign our values. We understand that the and to maintain a company’s sustainability depends on the our market position is soundness of its principles and values, but they need to be improved and updated since our focus on the the significant growth we have experienced throughout our path imposes a high degree production of economic of complexity in conducting business. It is real estate, an necessary that all employees assimilate and work in accordance with our values, especially important segment in according to ethics and respect for others and the environment. Thus, together, we the domestic context updated the purpose that symbolizes our corporate culture, a task that has resulted in In this context, what distinguished 2018 from the definition directing our actions: “Building previous years regarding the performance of Dreams that Transform the World.” the “green blood” team – an internal name used to identify employees engaged and In this sense, the past year has been one of committed to our corporate culture - was great achievements. Our commitment to the fact that we made significant progress sustainability was highlighted, for example, on several fronts. We achieved greater by our permanence in the portfolio of the convergence among the various areas of Corporate Sustainability Index (ISE) of the company, which resulted in a significant B3 S.A. – Brazil, Bolsa, Balcão (B3). In addition, improvement in our teams’ performance. we are signatories of Brazil Network in the United Nations Global Covenant (UN) since We can sum up the year of our 39th anniversary 2016 - aligned with its principles, as well in one word: Purpose. It is our inspiration as with the initiatives of the Sustainable for all that we accomplish and will come to Development Goals (SDGs). accomplish. We strengthen our commitment to ethics through a high level of governance, In September, the Global Covenant Brazil with the best sustainable practices and Network held the SDGs in Brazil – The Role the pursuit of excellence in the experience of the Private Sector in New York during the of our customers through technological 73rd United Nations General Assembly, in innovation in our products, our processes and which MRV presented the case “How SDGs our operations. The company’s results also generate value for MRV” and was one of 19 support the high satisfaction of employees, companies to show its initiatives aligned partners and suppliers, as well as the respect with the SDGs. MRV was chosen among 80 and interaction with our neighbors in the projects by an independent jury committee communities where we operate, providing of PricewaterhouseCoopers (PwC) based on improvements and achievements for all those specific criteria for the event. All of this is the involved with MRV. result of a journey of many years, developed with the collaboration of all those involved, with ambitious goals and objectives focused on all dimensions of sustainability. MRV | 2018 SUSTAINABILITY REPORT 4 Another area in which we have evolved We carried out and encouraged several projects considerably is that of consumer relations. We in Brazil and in the communities that received our expanded and consolidated the adoption of projects, impacting with their creation more than the Net Promoter Score (NPS) methodology, 325 thousand people directly and indirectly with which evaluates the client’s perception of each projects focused on improving education, and we stage of the relationship with the supplier. were able to change the realities of these people. We have strengthened the engagement of all internal areas and, along with our employees, Our challenge for the coming years is to be the we have enhanced the residents’ experience best real estate developer in the country. We before, during and after the acquisition of believe that Brazil is moving towards resuming our properties. Today, this is one of the most growth, especially if we are able to approve important projects, because we consider the reforms and changes our country needs; that purchasing a real estate goes beyond together with our continuous challenge to improve receiving its keys. It represents a lifetime dream management and indicators, we have a great for most people, involves expectations and responsibility in transforming our society. We emotions, which increases our responsibility and have taken a first step to consolidate a strategy distinguishes our performance. The Net Promoter that can be a major differentiator in the future in Score (NPS) methodology contributes to improve order to respond with innovative solutions to the our work and strengthen the partnership during changes involving society, providing a dignified the customer’s journey with us. life and better opportunities for all. This is our Purpose for the coming years: To build Dreams that During this period, we have attained Change the World. very positive results in compliance, which strengthened our controls and improved our risk management. In the area of technological innovation, we achieved excellent results through years of investment that made us the first sector’s construtech. With the advances made in 2018, we entered the industry 4.0 era, and we received awards that recognized our results, for example, our project in artificial intelligence to serve our customers. We permanently monitor the trends in real estate consumption of future generations to offer products and services in tune with their time, besides developing skills that will support new market demands. We are a consolidated and successful company, evolving and renewing Eduardo Fischer itself without losing its values and principles. MRV CEO Through the actions of the MRV Institute, we express the corporate vision that offering jobs is not enough; it is necessary to effectively contribute to the transformation of society. MRV | 2018 SUSTAINABILITY REPORT 5 Identity Profile 102-15 Those who visit MRV Engenharia e Participações S.A.’s headquarters in Belo Horizonte (MG) for the first time will find an attraction that calls their attention even before they enter the building: a photovoltaic energy tree for mobile phone charging and use of Wi-Fi that stands out in the landscape and says a lot about the company. The largest residential construction company in Latin America is also MRV | 2018 SUSTAINABILITY REPORT 6 the first to use solar energy on a large scale In 2018, the company invested R$50 million in the segment in which it operates, economic in innovation and maintained the allocation properties, in order to promote the use of clean of 1% of its budget to the MRV Institute, and inexhaustible energy in their enterprises through which it develops social projects – and should reach 100% of them by 2022. focused on the education of children and The tree also symbolizes the ramifications teenagers. Since 2017, we have replaced the that, in 39 years of history, have extended the Parque, Spazio and Village product lines – company’s presence to 159 Brazilian cities – in whose projects could no longer contain the 2018 it entered Manaus (AM) – in 22 states and innovations developed by the company – with the Federal District. the offer of the Eco, Bio, Award and Garden 102-1 | 102-2 | 102-3 | 102-4 | 102-6 | 102-7 | 102-10 models, created by experts attuned to the most advanced global trends. The concrete The stylized palm tree is also a representation wall construction method corresponded to of MRV’s commitment to the continuous the end of 2018, to 87% of all its enterprises. pursuit of excellence in sustainability management in all its dimensions – MRV ended 2018 with 22,494 direct employees governance, social and environmental. and 5,442 outsourced workers in its offices Member for three consecutive years of the and construction sites, achieving the portfolio of the Corporate Sustainability largest annual operational growth since its Index (ISE), signatory of the Brazil Network foundation. A total of 41,900 units were sold of the United Nations Global Compact (UN) and 143 projects launched, one of which led since 2016 and aligned with the Sustainable MRV to enter a new state, Amazonas. Development Goals (SDG) initiatives, the 102-4 | 102-7 | 102-8 company has adopted programs, measures and procedures for sustainable practices that span from decision-making at the highest level to the final end of its operations. 102-12 A publicly-held company, it participates, under the code MRVE3, in the Novo Mercado segment of B3 S.A. – Brasil, Bolsa, Balcão (B3), "To be green blood is to look to the future with optimism, which validates its commitment to the highest to believe that in fact we realize people’s dreams and to corporate governance practices.