IR GLOBAL RANKINGS

BENCHMARK STUDY SAMPLE

IR GLOBAL RANKINGS
BENCHMARKING STUDY SAMPLE

SCOPE
The reliability, quality and accuracy of results offered by IRGR attracted to our Ranking an outstanding number of participants: There are more than 5 hundred companies around the world being analyzed annually. The Benchmark Study is the result of an investigative research among public traded companies in all six continents. IRGR Team examines, studies and compiles the world wide best practices for Investor Relations disclosure in a very complete book with examples of IR Websites, Online Annual Report, Financial Disclosure and Corporate Governance. This Study allows any Company to compare its disclosure program to industry peers and global benchmarks, so the company can identify clearly what needs to be done to improve its quality in each one of the four mentioned items above. In the next pages, there is an overview and an example of how the IRGR Team composes an extensive book of more than 200 hundreds pages.

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IR GLOBAL RANKINGS

WHAT IS THE IR GLOBAL RANKINGS?

IR Global Rankings (IRGR) was created in 1999 and is the most complete ranking system that analyzes IR websites, online annual report, financial disclosure procedures and corporate governance practices. Our methodology is based on an extensive and detailed technical evaluation of over one hundred items and is conducted by a team of Investor Relations specialists and verified by an independent committee. The results are transparent and accessible to participants as each company receives an individual feedback report with a detailed summary of the key finding and suggestions for improvements in all categories. The IRGR team is also available for individual conference calls with all participants if desired. As IR Global Rankings evaluates a large number of companies within various industries worldwide, participants also receive a best practices report with general key findings and best practices among the participating companies of each edition. IRGR ensures that winners are widely recognized through releases distributed to financial news broadcast agencies around the world. IR Global Rankings, supported by Arnold & Porter, KPMG, MZ and Sodali, is a unique external review of any companys communication process with analysts and investors. For more information, please visit our website www.irglobalrankings.com Overall Rankings Categories:

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IR WEBSITE
- Overview

As the main communication channel used by public traded companies to interact with the capital markets universe, it must to meet all investors need. IR Global Rankings analyzes more than 100 items and ranks the IR websites of its participants by using the following technical criteria:

Categories for IR Website

Content

Design & Navigability

Interactivity

Technology & Data Handling

Timeliness

Content (50 points)

Content is the most important factor for the analysis of IR websites. Simplicity, clearness, timeliness and relevance are the key words to follow.

Design and Navigability (15 points)

In order to reach the companys entire public, design and user-friendly navigability are key issues for a successful website.

Interactivity (10 points)

Some companies overlook the potential of tools that can be provided to enhance interactivity with its public. For example, providing spreadsheets with financial and operating results, Interactive price graphs, e-mail alerts and events calendar.

Technology and Data Handling (15 points)

This category basically rates how a company uses technology to further enhance interactivity with its public audience.

Timeliness (10 points)

A challenge for many companies is not building a great IR website, but rather keeping it up to date while attending ongoing investor solicitations. This is exactly what the Timeliness category evaluates. Websites are analyzed on the frequency if their updates for all sections and the response time for a simple material solicitation are scored.

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IR WEBSITE
- Overview IMPORTANT: The following examples are for illustration purposes only. The final study comprises several items and different benchmark examples with detailed description for each category, meeting the company's requirements.

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Online Annual Report

- Overview

Due its considerable importance as a communication tool, it is also evaluated separately by IR Global Rankings. Many investors enjoy online annual reports for their speed and access to latest information versus printing and flipping through large amounts of text. IR Global Rankings analyzes more than 70 items and ranks the Online Annual Report category similarly to the IR Website evaluation.

Categories for Online Annual Report

Content

Design & Navigability

Interactivity

Technology & Data Handling

Content (35 points)

The content of the Online Annual Report must meet the same requirements for the printed version. Make sure that the level of content details provided in the online and printed versions are consistent.

Design and Navigability (35 points)

For the online annual report, design and navigability is a key category as visual effects and creativity can make significant differences on the report. The design of the online annual report should reflect the printed version, demonstrating the companys image and values.

Interactivity (10 points)

Online annual reports can give viewers a better and more dynamic understanding of the company and in order to achieve this, interactivity comes into scene.

Technology and Data Handling (20 points)

There is no reason in developing an online annual report if it cannot be viewed by the widest audience possible. Thus, the correct and most efficient use of technology must be taken into consideration.

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Online Annual Report

- Overview IMPORTANT: The following examples are for illustration purposes only. The final study comprises several items and different benchmark examples with detailed description for each category, meeting the company's requirements.

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Financial Disclosure
- Overview
The Financial Disclosure Procedures ranking evaluated by IR Global Ranking is aimed at identifying and rating how companies disclose their financial information in terms of what is being disclosed and how the information is generally made available to the public. The analysis of more than 60 items is based on the quality of the information provided on each participants latest financial material, mainly quarterly financials, earnings releases and interim reports, within the categories below:

Categories for Financial Disclosure

Operating Information

Income Statement

Balance Sheet

Cash Flow Statement

Guidance

Conference Calls

Exemplary

Non-Financial Operating Information (15 points)

Providing non-financial operating information is very important as they can be a useful complementary tool for investors when evaluating a companys financial results as it gives investors a better understanding of the company as a whole. When analyzing this category, we verify that each company provides the necessary information according to its respective industry. In general terms, figures such as market shares, volumes and prices should be provided.

Income Statement (40 points)

A comprehensive line-by-line income statement should be provided, along with a well elaborated management and discussion analysis (MD&A) of the results. In this category, companies that provide other details such as the breakdown of its cost structure, revenue split and margins per business segment are highlighted as we believe this kind of information provides investors with more precise details on the companys operations and trends.

Balance Sheet (10 points)

A comprehensive balance sheet must also be provided as it is an important tool that shows the financial health of a company since it illustrates a snapshot of the balance between what the company owns (assets), what it owes (liabilities) and the value of the business to its shareholders (shareholders equity). Companies should also provide comments on the main figures of its balance sheet and explain major changes and trends. Key figures would usually be net debt and working capital, although other particular accounts may be of interest to further explanations. -8-

Financial Disclosure
- Overview Cash Flow Statement (10 points)
The cash flow statement, which measures the movement of cash in and out of a business over a period of time is also analyzed by IR Global Rankings for the Financial Disclosure ranking. IR Global Rankings does not perform any kind of auditing to any of the financial statements provided, however, we verify if the key accounts and information are being disclosed to investors.

Guidance (10 points)

Although providing earnings guidance is not legally required, most companies provide financial guidance one way or the other. We believe that not only financial guidance, but also information on trends and how they may impact a companys business and industry should also be provided to investors. All guidance information should be formalized, easily accessible and updated in its financials/earnings releases or through its website.

Conference Calls & Presentations (5 points)

For this category, IR Global Ranking evaluates if there is an actual earnings call and how long after the earnings release date it occurred. In addition, users should also be able to download the earnings presentation.

Exemplary Disclosure (10 points)

Publicly traded companies should also respect the principle of Exemplary Disclosure, which is the proper disclosure of financial information to all markets. IR Global Rankings evaluates that all filings are released simultaneously in terms of announcement (wires vs. IR website) and eventual gaps between disclosures in local language and English. In addition, accounting principles are also taken into consideration.

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Financial Disclosure
- Overview IMPORTANT: The following examples are for illustration purposes only. The final study comprises several items and different benchmark examples with detailed description for each category, meeting the company's requirements.

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Corporate Governance
- Overview

How companies comply with good corporate governance practices has quickly become one of the key issues in the decision-making process of investors. IR Global Rankings evaluates corporate governance according to a companys ability in creating, maintaining and managing value, while balancing shareholder interests. The Corporate Governance Questionnaire is modulated and constantly revised by Sodali, an independent and conflict-free consultancy, exclusively dedicated to advising Boards and the Management of companies on shareholder response and one of the Global Coordinators of IR Global Rankings, with the aim of better aligning to the best financial market practices currently available. The IR Global Rankings Team is proud to work jointly with Sodali, and to always offer to its clients the hottest trends in the financial markets.

Remuneration & Performance

One of the main aspects of corporate governance is to promote the alignment of interests between shareholders and managers. To achieve that goal, the regulation of the Board of Directors and of the Executive Management should be carefully established. Regarding the Executive Management, one of the hot topics is remuneration, particularly related to stock options, and how their performance is evaluated. Information on both, as well as how the company avoids conflicts of interest regarding short and long-term performance are all important. The procedures for the appointment of managers and their terms, as well as their business background are also evaluated.

Board Structure
The evaluation of the Board Structure category aims to analyze how independent are the companys board members, their financial skills and relevant industry experience, the procedures for the election of its members and their terms, which committees are in place, among other information.

Board Accountability
Procedures of the company about the responsibilities of the managements and the Board, commitment and succession plan.

Capital Structure
The concentration/pulverization and the total float of the shares should be analyzed to provide for enough liquidity and avoid concentration of voting and share pricing powers.

Shareholder Protection
It is not uncommon in certain markets that controlling shareholders have ruling powers that may be prejudicial to shareholders. IR Global Rankings evaluates the efforts taken by companies to avoid prejudicial situations to their shareholders. - 11 -

Shareholder Meetings
IR Global Rankings evaluates the existence of certain procedures that can facilitate the exercise of shareholders rights, like summoning an extraordinary meeting, proxy voting and determining minimum quorum and approval rates.

Internal Control Mechanisms

IR Global Rankings also analyzes other items such as the existence of a proper dividend policy, what are the services executed by the company auditors and how related-party transactions are approved.

Financial Statements and Disclosure

Investors need reliable information to make their investment decisions, so both the quality of the financial information and its fair disclosure to all market participants are relevant. For this category, IR Global Rankings requests companies to inform how their filings are executed and what accounting principles are used.

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IR Global Rankings Team

irgr@irglobalrankings.com Luar Huber l.huber@irglobalrankings.com Kassia Orsi k.orsi@irglobalrankings.com Sofia Couto s.couto@irglobalrankings.com New York: + 1 (212) 813-2975 Sao Paulo: + 55 (11) 3529-3777 www.irglobalrankings.com

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