2016 Sustainability Report by MRV_

- base year 2015 -

THE REPORT MRV Engenharia’s fifth Sustainability Report brings to light key results and initiatives in economic, social and environmental areas in 2015. Our sustainability concepts guide our approach along the entire value chain; and the report puts forth these initiatives and values to all stakeholders. The document follows Global Reporting Initiative’s (GRI) guidelines. For the second year running the G4 version is adopted, showcasing our ongoing search for improvements in the MRV Engenharia’s performance reporting process and our commitment to abide by the best practices in order to achieve significant results and generate value for our public – shareholders, clients, collaborators, communities, society, government and partners. When applicable, consolidated data from companies Prime and MRL Engenharia will also be reported. Log Commercial Properties, a company from the MRV Group, releases information regarding the year 2015 in a separate document. The 2015 Annual Report was not assessed by third parties.

G4-17, G4-28, G4-33 2

CONTENTS 04

Who we are Our business

Message from Management

Corporate Governance

MRV in figures

Responsible building

Materiality

Relationship with clients

Socio-environmental

commitment

People

MRV Institute

Partnership and trust

Financial Performance

Appendices

Summary of the GRI Content

WHO WE ARE The MRV Group was founded in 1979 and is made up of five companies: MRV Engenharia, Log Commercial Properties, MRL Engenharia, Prime Incorporações e Construções and Urbamais Desenvolvimento Urbano. Learn more about each of them and MRV Engenharia´s website.

OUR BUSINESS ALAGOAS: Maceió BAHIA: Camaçari, Feira de Santana, Lauro de Freitas, Salvador, Vitória da Conquista CEARÁ: Fortaleza, Eusébio, Maracanaú DISTRITO FEDERAL: Águas Claras, Ceilândia, Gama, Planaltina, Taguatinga ESPÍRITO SANTO: Cariacica, Serra, Viana, Vila Velha, Vitória GOIÁS: Aparecida de Goiânia, Goiânia, Valparaíso de Goiás MARANHÃO: São José do Ribamar, São Luís MATO GROSSO: Cuiabá, Várzea Grande MATO GROSSO DO SUL: Campo Grande 4

MINAS GERAIS: Belo Horizonte, Betim, Contagem, Juiz de Fora, Lagoa Santa, Montes Claros, Nova Lima, Santa Luzia, Sete Lagoas, Uberaba, Uberlândia, Vespasiano PARANÁ: Arapongas, Araucária, Cambé, Colombo, Curitiba, Londrina, Maringá, Ponta Grossa, São José dos Pinhais PARAÍBA: Campina Grande, Cabedelo, João Pessoa PERNAMBUCO: Cabo de Santo Agostinho, Camaragibe, Caruaru, Jaboatão dos Gurarapes, Olinda, Paulista, Recife PIAUÍ: Teresina RIO DE JANEIRO: Belford Roxo, Campos dos Goytacazes, Duque de Caxias, Itaboraí, Macaé, Niterói, Resende, Rio das Ostras, Rio de Janeiro, São Gonçalo RIO GRANDE DO NORTE: Natal, Parnamirim G4-3, G4-4, G4-5, G4-6, G4-8

CEARÁ

MARANHÃO

RIO GRANDE DO NORTE PARAÍBA

PIAUÍ PERNAMBUCO TOCANTINS

ALAGOAS SERGIPE

MATO GROSSO BAHIA

DISTRITO FEDERAL

GOIÁS

RIO GRANDE DO SUL: Canoas, Caxias do Sul, Gravataí, Novo Hamburgo, Porto Alegre, São Leopoldo, Sapucaia do Sul SANTA CATARINA: Itajaí, Jaraguá do Sul, Joinville, Palhoça, São José SÃO PAULO: Americana, Aparecida, Araçatuba, Araraquara, Araras, Barretos, Bauru, Birigui, Botucatu, Cajamar, Campinas, Campo Limpo Paulista, Catanduva, Cotia, Ferraz de Vasconcelos, Franca, Guarulhos, Hortolândia, Indaiatuba, Itapevi, Itaquaquecetuba, Itabita, Itu, Jacareí, Jundiaí, Limeira, Marília, Mauá, Mirassol, Mogi das Cruzes, Mogi Guaçu, Ourinhos, Paulínia, Pindamonhangaba, Piracicaba, Poá, Presidente Prudente, Ribeirão Preto, Rio Claro, Salto, Santa Bárbara D´Oeste, Santo André, São Bernardo do Campo, São Carlos, São José do Rio Preto, São José dos Campos, São Paulo, Sertãozinho, Sorocaba, Sumaré, Suzano, Tatuí, Taubaté, Votorantim

MINAS GERAIS MATO GROSSO DO SUL

ESPÍRITO SANTO

SÃO PAULO

RIO DE JANEIRO

PARANÁ

SANTA CATARINA RIO GRANDE DO SUL

SERGIPE: Aracaju, Barra dos Coqueiros TOCANTINS: Palmas 5

MESSAGE FROM THE PRESIDENTS’ OFFICE Since it was founded 37 years ago, MRV has launched more than 300 thousand units, making the dream of homeownership a reality for more than 1 million Brazilians. Year after year we fine tune our work, measured not just in financial results, but also in values added to society as a whole. As such, our concern goes beyond satisfying our clients. We believe in advancing people. In 2015 we intensified our actions in the Escola Nota 10 (Top School) Program, an investment in collaborator training, which helps raise talent retention rate and offers personal and professional development opportunities through education. Empowered as agents of transformation through acquired expertise, last year we invested R$110.7 million in urban development and in improvements in infrastructure surrounding our residential developments across Brazil. One more way we progress the well-being of people and uphold our sustainable and continuous commitment to society. This was also the year when we published our Sustainability Policy, systematizing the social, economic and environmental guidelines governing how we perform. The number of Environmental Preservation Areas grew, the Obra Verde (Green Building) and MRV + Verde (MRV Greener) accreditation seals arrived to warrant greater sustainability levels in our residential developments, and we adhered to the Brazil GHG Protocol Program, casting greater transparency in all our work to reduce the impacts from climate change. During its first year in existence, the MRV Institute initiated projects to advance knowledge, culture and leisure to hundreds of children and adolescents. By harvesting our partnerships with Junior Achievement, Endeavor and Instituto Atlântico and sponsoring the construction of the new Criança Esperança space, of Cidade dos Meninos (City of Children), and Jornada Solidária (Solidarity Journey), the MRV Institute changed the life not only of the recipients, but also of volunteers who discovered the joy of doing good, by joining volunteer work. In economic terms, there is no ignoring the challenges the market underwent in the past year. However, hardships present opportunities to make a difference and work more intelligently, sustainably and responsibly. We paid over R$ 690 million in salaries and R$ 330 million in taxes throughout 2015 and recorded sound operational and financial results. Annual cash generation was R$ 806 million, the largest in the MRV´s history. With 14 consecutive quarters ofcash generation, we have kept up the pace and balance of our operations, ensuring shareholders have a return on investment. Eduardo Fischer | Rafael Menin CEO / Presidents G4-1, G4-2 6

MRV IN FIGURES 2015

2014

2013

Net revenue (R$ million)

4,763

4,186

3,871

EBITDA (R$ million)

669

862

643

EBITDA Margin

14%

20.6%

16.6%

Net income (R$ million)

548

720

423

Taxes paid (R$ million)

397

338

265

Rate of indebtedness

10.4%

24.2%

30.4%

Added value (R$ million)

2,072

2,179

1,672

Pre-Sales (R$ million)

5,497

6,013

5,094

Contracted sales (units)

35,782

41,325

38,449

Launches (R$ million)

4,705

4,354

3,517

Launches (units)

31,871

29,297

25,516

Finished units

37,540

35.328

40,205

Works in progress

223

251

299

Number of employees

16,550*

22,979

27,764

*Reduction in the number of employees in 2015 is due to structure optimization and construction site industrialization.

Wealth generation (R$ million) Collaborators*

Taxes and contributions

Dividends

Suppliers

2015: 690.0

2015: 397.0

2015: 171.0

2015: 1,580

2014: 692.5

2014: 338.1

2014: 140.7

2014: 1,700

2013: 507.5

2013: 265.0

2013: 125.3

2013: 1,400

*Includes direct pay, benefits and FGTS.

MATERIALITY In 2015, MRV´s Materiality Matrix listing the most relevant topics for our stakeholders underwent review, with the support of third-party consultants. The most relevant matters were identified in conversations with the CEOs and internal public. Union members, suppliers, clients, shareholders and investors were also heard. Data obtained from the civil construction industry and MRV documents completed the materiality study. The result of this work is a list of ten topics concerning activities considered most important for the staff company’s internal and external publics, forming the basis on which this Report was produced. Seven material topics for 2015 were originally laid out in the prior matrix (2013). They were compiled or expanded for full integration with the subtopics and impacts identified by the process. Three topics – Return on Investments for Shareholders; Access to Housing, and Interactions with Government – were no longer included in the Materiality Matrix as they were not considered a priority for stakeholders or in the scope of management. The Supplier Management topic was included among the most significant.

Supplier Management

Users’ health and well-being Quality and compliance of projects Client relationship and satisfaction

Waste generation and management Water consumption and management Rational consumption of materials

Respect for labor practices and worker’s human rights Impacts and investments in residential development surroundings Training and capacity building of workers

Importance Essential indicator for the operation Differentiator: Topic / indicator that particularizes the company Influencer: Topic through which the company’s performance influences the market

G4-19, G4-24, G4-25, G4-26

TOPIC

VALUE CHAIN

GRI G4 ASPECTS AND INDICATORS

PAGE

Waste generation and management

MRV suppliers (investors, collaborators, contractors, surrounding community)

Effluents and Waste Residues (G4-EN23)

31-32

Water consumption and management

Suppliers MRV Clients Surrounding Community

Water (G4-EN8, G4-EN10, G4-CRE2- Intensity of water use for building)

29-30

Rational consumption of Suppliers MRV materials Clients

Materials (G4-EN1, G4-EN2)

28-30

Respect for labor practices and human rights

Suppliers MRV

Employment (G4-LA2); Occupational Health and Safety (G4-LA6, CRE6 – Percentage of the organization operating in conformity with an internationally recognized health and safety management system); Diversity and equality of Opportunities (G4-LA12); Remuneration equality for men and women (G4-LA13); No discrimination (G4-HR3); Freedom of association and collective negotiation (G4-HR4); Forced or analogous to slave labor (G4-HR6); Assessment of impacts connected with human rights (G4-HR9)

49-56

Training and capacity building of workers

Suppliers MRV Surrounding Community

Training and education (G4-LA9, G4-LA10, G4-LA11)

53-56

Impacts and investments Suppliers in areas surrounding the MRV Clients projects

Indirect economic impacts (G4-EC7, G4-SO1); Local Communities (G4-SO2)

34-37

Supplier Management**

Suppliers MRV

Purchase practices (G4-EC9); Environmental Supplier Assessment (G4EN32, G4-EN33 ); Labor Practices Supplier Assessment (G4-LA14 , G4-LA15); Human Rights Supplier Assessment (G4-HR10, G4-HR11); Suppliers Social Impacts Supplier Assessment (G4-SO9 , G4-SO10)

61-62

Client relationship and satisfaction

Suppliers MRV Clients

Labeling of products and services (G4-PR5 – Results of client satisfaction surveys)

41-46

Users’ health and wellbeing

Suppliers MRV Clients

Clients’ Health and Safety (G4-PR1, G4-PR2)

42-44

Quality and conformity of projects

Suppliers MRV Clients

Labeling Products and Services (G4-CRE8); Compliance (G4-PR9)

23 e 33

Surrounding Community

G4-18, G4-20, G4-21, G4-27

CORPORATE GOVERNANCE 11

Shareholder Structure

Shareholders per country % of shares intended for free float 2015*

members of the Board of Directors, four of whom are independent plus three from the controlling group

Comitês de gestão Administrativo • Risks and Compliance Committee • Governance, Ethics and Sustainability Committee • Human Resources Committee • Commercial and Creditredit and Trade Committee • Real Estate Development Committee • Production Committee

444,139,684

shares traded on the stock market

35% 61%

Rubens Menin Teixeira de Souza

Other shareholders

Board of Directors and Executive Board

Treasury Shares

Main initiatives Review of the Code of Conduct

10%

28%

24%

52%

44%

48%

13%

20%

18%

2015

2014

2013

Brasil Brazil

Améric a (e America x (except Brazil)

Europe

Asia and Australia Continent

*Annual average equity share – last update on 31/Dec/2015

Canal Confidencial MRV

Implementation of Anticorruption Policy The Global Compact join

canalconfidencial.com.br/mrv

Corporate Governance Since its initial public offering in 2007, MRV has been listed in the Novo Mercado segment with shares traded on BM&F Bovespa (Brazilian Securities, Commodities and Futures Exchange). This in itself requires respecting strict corporate governance rules, and demands a transparent and ethical posture of us, with publication of clear and full information regarding our economic and financial performance.

As an added demonstration of its ethical commitment, since 2001 MRV has the Self-Regulation and Good Practices Code of the Brazilian Association of Public Companies (ABRASCA). The code lists a set of rules and guidelines on principles, and also provides guidance on how to improve our corporate governance actions.

Organizational structure At the top of MRV´s administrative structure is the Board of Directors made up of seven members, four of whom are independent plus three from its controlling group. The board meets quarterly, but will convene extraordinarily in response to CEOs or two board members’ calls. The Board members are elected by MRV shareholders during general meetings. It is their job to set strategic and commercial policies, elect directors, and also follow up and inspect management. The Board is backed up by six Management Committees, each with specific responsibilities. Topics considered to be critical or of considerable relevance for MRV are submitted to the Board of Directors by

the leaders and management. They are responsible for receiving, identifying, evaluating and taking sensitive issues for analysis by the company’s highest administration body. In 2015 there were no critical situations demanding the Board’s evaluation. The Executive Board collectively directs the Company’s affairs and management.. This group currently consists of nine professionals elected by the Board of Directors. Their term in office is two years, with the possibility of reelection. All the members of the Board of Directors and the Executive Board are Brazilian employees residing in areas locally where the company operates.

G4-7, G4-35, G4-38, G4-39, G4-47, G4-49 13

Upper management

RUBENS MENIN Chairman of the Board of Directors

RAFAEL MENIN CEO-President of Region I

EDUARDO FISCHER CEO-President of Region II Region I (MG,NE, CO, R J, ES)

JUNIA GALVÃO Chief Management and Shared Service Center Offic

LEONARDO CORRÊA Chief Financial Officer

Region II (SP/Sul)

HOMERO PAIVA Chief Legal Officer

MARIA FERNANDA MENIN Executive Director Legal

HUDSON GONÇALVES Chief Real Estate Development Officer

EDUARDO BARRETTO Chief Commerical Officer

JOSÉ ADIB Chief Real Estate Financing Officer

G4-34, G4-38, G4- 39 14

Board of Directors – Standing, from left to right: Marcos Alberto Cabaleiro Fenandez, Rubens Menin and Marco Aurélio de Vasconcelos Cançado. Seated, from left to right: Fernando Henrique da Fonseca, João Batista de Abreu, Rafael Menin and Levi Henrique

Shareholders per country % of shares intended for free float 2015* 7%

10%

28%

24%

52%

44%

48%

13%

20%

18%

2015

2014

2013

Committees Six in-house management committees advise on the Board of Directors’ decisions: Committee of Executives: Risks and Compliance Committee; Governance,Ethics and Sustainability Committee; Human Resources Committee; Commercial and CreditCommittee; Real Estate Development Committee; and Production Committee. Learn about the attributions and makeup of each one.

Ownership structure

Brasil Brazil

Améric a (e America x (except Brazil)

Europe

Asia and Australia

*Annual average equity share – last update on 31/Dec/2015

Check MRV’s ShareholderStructure.

Reach The scope of MRV´s operations is restricted to Brazil. However, the company attracts the interest of investors from different parts of the world, particularly countries on the American continent. The chart on the left shows the percentage of shareholders per region, in relation tothe free float.

Code of Conduct The MRV Group´s Code of Conduct provides relationship guidelines with the company´s different publics, including employees, shareholders, customers, partners, competitors, suppliers, communities, labor unions, the press public and government agencies.

At the offices, collaborators received e-learning training and underwent Code of Conduct content assimilation tests prior to updating the document´s endorsement signature.

In 2015, the document was fully reviewed to include new topics and approaches, adapting the contents to the most relevant aspects for the company and the market. To ensure efficiency, in addition to the traditional format, the Code included an illustrated version, distributed to construction sites’ publics. Printed editions of the material were provided at these places for consultation and disclosure of the MRV Code of Conduct Channel. Additionally, construction site management staffs underwent training to instruct their teams on the Code of Conduct. The Ethics Committee is responsible for evaluating all situations regarding the document and cases of conduct deviations and for supervising the communication channels created to clarify doubts and reports of irregularities in compliance with the guidelines. The G4-38, G4-39, G4-42, G4,50, G4-56, G4-58

committee members are Rubens Menin Teixeira de Souza, Rafael Menin Teixeira de Souza, Eduardo Fischer Teixeira de Souza, Júnia Maria de Sousa Lima Galvão and Maria Fernanda Nazareth Menin Teixeira de Souza Maia.

Anticorruption Policy In tune with the Code of Conduct, in the second half of 2015, MRV implemented its Anticorruption Policy, in order to orientate the conduct of all those involved in the Group´s business. The objective is to curb and eliminate all forms of corruption, fraud or illegal activity,preserving the company´s integrity before the Market and society. During the period of this report, no single case of corruption was recorded at MRV or at its controlled companies.

Sustainability Goals As of 2016, MRV´s top management´s variable remuneration will be linked to the accomplishment of thesustainability goals drawn up in 2015. They are: 1. Reducing the use / consumption of dumpsters by 5% per unit produced at the construction sites 2. Ensuring a 2% reduction in the relative consumption of water and electricity at MRV (per housing unit) 3. Maintaining the company´s sustainability certifications (OHSAS 18001, ISO14001) 4. Reducing Scope 1 Greenhouse gas emissions by 1% (per unit built) All employees will be involved, particularly theHealth, Safety and Environment department responsible for monitoring and managing goals.

Global Compact MRV joined the United Nations Global Compact, an initiative developed by the former Secretary-General of the United Nations, Kofi Anna, aiming to mobilize the international business community to adopt in its business practices fundamental and internationally accepted values in the fields of human rights, labor relations, environment and anticorruption. By adhering the pact, MRV joins with more than 12,000 signatory organizations articulated by around 150 networks around the world committed to do responsible business and to take strategic actions to achieve broader social goals, with an emphasis on collaboration and innovation.

Read more about the initiative and learn the 10 principles of Global Compact.

G4-38, G4-39, G4-42, G4,50, G4-56, G4-58, DMA EFFLUENTS AND WASTE, G4-LA12 17

RESPONSIBLE BUILDING 19

In line with its Mission, Vision and Values statements, MRV operates in the real estatedevelopment, homebuilding and sales. MRV is always seeking the best practices togenerate solids results.

38,762 key delivered

90%

of sales through â&#x20AC;&#x153;Simultaneous Salesâ&#x20AC;? System

BUSINESS Real Estate development, constructionand sales

MISSION Deliver the dream of homeownership by offering real estate to clients at a top cost/benefit ratio.

VISION

223

work sites

389

units on average at each one

Be the leader Company in lowerincomesegment developments, homebuildingand salesin Brazil.

VALUES Ethics and transparency Thinking like the client Generating value for the shareholder Committed Team Sharing success Sustainability

Turnkey In 2015 MRV Engenharia delivered 38,762 keys, volume 8.8% lower than the 42,505 keys delivered in 2014. The goal for 2016 is to deliver at least 38,000 keys to new clients. One process that allowed MRV to mitigate transaction risks and cancelations was the “Simultaneous Sales” System, which gained momentum in 2015. In partnership with Caixa Econômica Federal (CEF) and Banco do Brasil (BB) the real estate sale registration became synced immediately upon the buyer’s credit approval. Therefore business risk was mitigated as well as sales cancelations, ensuring MRV’s cash flow. In 2015 the Simultaneous Sales Process successfully represented 90% of the Company’s sales vs. 35% in 2014.

Compliance with norms All MRV projects built throughout 2015 are in conformity with the Building Performance Standard, a comprehensive regulation encompassing 250 Brazilian and international norms and codes ensuring elevated living standards for homeowners. The rules apply to enterprises whose projects were submitted for approval from the second half of 2013 on. To meet the required standards, MRV began a series of tests and trials in 2012, with the support

of consultants and partnership with institutions such as the Federal University of Minas Gerais (UFMG), and the Brazilian Acoustics Association. In their studies, experts explored different combinations of products and materials to maximize durability, climate control, and acoustic protection at cost-effective outcomes The first projects that will fully meet the specifications of the Building Performance Standard will be concluded in 2016.

Minha Casa Minha Vida (My House My Life) In 2015 89% of the units launched by the Company were eligible for the Minha Casa, Minha Vida (MCMV) program. In that year 30,772 units were released for sale through the financing system. The knowledge acquired throughout the years as real estate developer and homebuilder in the lower-income segment along with the recognized performance in real estate mortgagehave earned MRV the title of leading partner

with Caixa Econômica Federal and Banco do Brasil. MRV´s real estate credit team works together with financial officers to expedite financing and customize savings allocation, empowering clients’ ability to buy real estate. In spite of macro forecasts for weak employment and economic recession, MCMV3 program launched in January 2016 is calculated to drive sales in line with 2015’s performance.

With vast experience as homebuilder in the lower-income segment, MRV’s team is composed of eight operational directors, 53 supervisors, 449 engineers and thousands of on-site workers. In the base year of this report, 223 construction siteswere active in several different regions in Brazil, producing an average of 389 units per site.

DMA CUSTOMER HEALTH AND SAFETY, G4-PR1 23

SOCIOENVIRONMENTAL COMMITMENT 25

Planting trees

118,000 2015

R$ 5 millions

in renovation and construction of squares and parks

113,000 2014

Main initiatives Implementation of MRV Groupâ&#x20AC;&#x2122;s Sustainability Policy

R$ 1.9 million

in the construction of Wastewater Treatment Plants

Waste management optimization Launch of Obra Verde (Green Building) and MRV + Verde (MRV Greener) seal accreditations Adherence to the Brazil GHG Protocol Program

R$ 3 million

saved via sustainable construction sitewaste management

41%

reduction in electric energy consumption compared with last year*

* Registered consumption is 29,937.81 MWh, a figure to be reviewed by a third party. If revised, the updated figure will be publicized in Brazil GHG Protocol Program, in CDP, in MRV GHG inventory and in next yearâ&#x20AC;&#x2122;s Sustainability Report. G4-EN1, G4-CRE2, G4-EN23

Commitment to Sustainable Development In July 2015 the MRV Group’s Sustainability Policy was approved by the Board of Directors. The document brings together social, economic and environmental guidelines reinforcing the company’s commitment to sustainable development and to wellbalanced responsible operations. The Policy covers all MRV Group’s companies, collaborators, partners, suppliers and other relationship publics, such as shareholders, investors, clients, real estate agencies, registered brokers, among others.

Available for consultation online, the guide will be up for review in the first half of 2016, when the adoption of new directives will allow for a more complete and comprehensive update. Though our adherence to the Precautionary Principle is not formally stated, MRV continuously searches for new measures to reduce potential impacts in its operations, from initial planning to final product. Such procedures must also be put into practice by all MRV’s suppliers.

G4-14, DMA MATERIALS 27

Environmental care In 2015, MRV planted 118,000 trees throughout Brazil.

The company incorporates landscaping into all its projectsas well as in their surroundings. We are also committed to restoring parks and degraded areas in the regions in which we operate. Enjoying collaboration agreements with local municipalities and environmental authorities, the company actively invests in the preservation of local ecosystems and, also, provides funds for the maintenance of town squares, parks and greenways. In 2015, the program contributed to the improvements of three parks and thirteen squares across the country.

Sustainable performance In our offices, the paper products used at MRV pass through the same FSC certification inspection ensuring the preservation of native forests, soils, animals, and biodiversity for the well-being of workers, communities and indigenous peoples

In the last five years MRV planted more than 630,000 trees, an area equivalent to 420 soccer fields. In 2015 alone118,000 saplings were planted across the country. Responsible management of resources and reduction of environmental impacts are areas of constant attention in our residential developments. The sustainable use of water resources, for instance, is one of MRVâ&#x20AC;&#x2122;s priorities in all its activities. Atconstruction sites, the drain water from sinks and showers is reclaimed and diverted for final reuse by toilets. Similarly, decanted water from mortar mixers is reutilized to wash the equipment; in the same spirit that rainwater is collected and used by MRV to irrigate landscaping.

Another way MRV preserves water is by placing sand-filled PET bottles in toilet tanks at construction sites. The bottle displaces enough volume to save 1.2 liter of water every flush. Additionally, MRV is keen to observe strict sustainability criteria at construction sites regarding the consumption of wood. All wood materials used by MRV are certified as legitimate by-products of controlled reforestation by the Forest Stewardship Council (FSC), eliminating illegal logging of native species. And to reduce overall timber consumption, pergolas are constructed with concrete.

In 2015, 1.8 million cubic meters of water were consumed, representing an average expenditure of R$ 11 million for water and sewage services.

DMA WATER, G4-EN8, G4CRE2, G4-EN10 29

Intelligent developments Our environmental sustainability efforts do not end with greening of materials and construction practices on our side of the front door. With their first step across the threshold, new homeowners are empowered by MRV to do their part in preserving the environment. In 2015, the Morador Sustentável (Sustainable Dwelling) Project, tested in 2014, was expanded and, then, conducted in several units around the country. The initiative invites MRV projects’ residents to explore adequate lifestyle choices responsible to the environment and their resources. The Project begins by providing training programs and materials that present residents with simple solutions and tips for conserving energy, water and recycling waste. Beyond the front door, the residents can sort and recycle batteries, cooking oils, light bulbs, and recyclable and non-recyclable materials into neighborhood collection bins provided by MRV. The Sustainable Living project also educates the public through an information-packed website and email address - sustentabilidade@ mrv.com.br - dedicated to answering questions and providing support to residents and community leaders All unit development plans include lineup of differentiated sustainable devices and systems: • Stand-alone water meters in residential developments that reduce up to 50% in monthly consumption • Efficient dual flush toilet devices that offer choices in flush volume per circumstance demand. The device saves up to 20 liters of water per flush vs. conventional toilets. • Rainwater harvesting system that captures natural water to keep gardens green and supplement front entrance restroom water demands, among other uses. • Motion-activated lighting systems that illuminate areas only when used, saving electricity and costs when areas are unoccupied. • Sistema de controle de luz artificial, que fornece iluminação onde e quando é necessária, minimizando o consumo de energia elétrica.

MRV-installed dual flush devices save 362,000 liters of water in itsprojects. G4-CRE8, G4-CRE2, G4-EN10 30

Waste management In 2015 alone MRV recorded more than R$ 3 million in savings with its sustainable initiatives, donations, reutilization, recycling, sales and reverse logistics applied to the waste of the Companyâ&#x20AC;&#x2122;s construction enterprises. The figures result from year to year efforts at improving the management of all materials generated during construction processes. In order to maximize waste management processes, each construction sites has an employee designated to direct proper waste matter destination for minimal impact. By maintaining a practice started in 2014, MRV has saved R$60,000 in Personal Protective Equipment costs with the hygienization, sterilization and reutilization of 7,589 articles and reduced waste disposal volumes. Over the last few years MRV has strengthened partnerships with recycling cooperatives to handle the recycling of polystyrene, plastics, cement sacks,

metals, glasses and other materials. At construction sites, cementitious waste matters (Class A), such as powder, sand and crushed stones are upcycled to create a byproduct added to sub-flooring concrete and similar applications. If the waste is suitable for recycling or reuse, MRV outsources specialized companies with expertise in proper disposals in accordance with state and municipal legislation, norms and environmental codes. For example, excess construction sites plaster is directed to transshipment stations and sorting centers to be reinserted into production processes. In 2015, MRV adopted the reverse logistics system for hazardous waste matters, which were returned to their original manufacturers.

The volume of waste recycled or reutilized soared from 86,600mÂł in 2014 to 247,000mÂł in 2015, which is enough to load 49,000 dumpsters that would, otherwise, be dumped into landfills.

With regard to wood waste from construction sites, two are the final destinations: pieces in good conditions

G4-EN1, DMA EFFLUENTS AND WASTE, G4-EN23 31

qualify for reuse in furniture making, andall other scraps go through a chipper to be used in energy generation in several different industry segments. MRV also fosters partnerships with universities and research institutes from a number of states to explore waste management solutions. These partnerships include: the Federal University of Paraíba (UEPB); the Federal University of Minas Gerais (UFMG); the Federal University of Bahia (UFBa); Universidade Salvador (Unifacs); Universidade de Uberaba (UNIUBE); Faculdade Multivix (ES); the Federal Institute of Education, Sciences and Technology of Rio Grande do Norte (IFRN); and the Mato Grosso Rural Research and Extension Company (EMPAER-MT). All partnerships are intended to produce studies and research focused on adding values and waste management. In order to better serve and care for communities in areas where it holds its activities, MRV established the Ponto de Entrega Voluntária (Volunteer Handover Point) - PEV, and Fale Conosco (Talk to Us) projects. The PEV offer education to community members on how to properly handle recyclable waste disposal and has recycling sites for receiving such materials. The Fale Conosco (Talk to Us) communication channel allows the community to be heard for questions, complaints and feedback to MRV about the company’s programs and performance. The volume of waste recycled or reutilized soared from 86,600m³ in 2014 to 247,000m³ in 2015, which is enough to load 49,000 dumpsters that would, otherwise, be dumped into landfills.

Certifications In July 2015 the company was recertified by two important norms: ISO 14001 (Environmental Management) and OHSAS 18001 (Occupational Health and Safety). Since 2001, the company has met norm PBQP-H Level A (Brazilian Quality and Productivity of Dwellings Program) codes and, since 2008, ISO 9001 (Quality Management) codes.

MRV Engenharia complies with all environmental licenses and authorizations required for its operations, thus confirming its commitment to environmental protection. If you have any questions or need clarifications, please get in touch with us at sustentabilidade@mrv.com.br. G4-EN1, DMA EFLUENTES AND WASTE, G4-EN23, G4-CRE6, DMA CUSTOMER HEALTH AND SAFETY 32

Accreditation seals In 2015 MRV inaugurated two accreditation seals that certify sustainable criteria compliance at its worksites and deliveredprojects. The Obra Verde (Green Building) sealensures the adoption of sustainable practices during construction, including efficient waste management and the use of certified reforestation wood and naturallight roof tiles in common areas for reduced energy consumption. Every single construction project initiated

after the seal was launched complies with the criteria established. The MVR+Verde (MRV Greener) seal accreditation ensures sustainability inprojects, even aftercompletion.. It certifies that all MRV’s projects are installed with a number of features, like individual water meters and faucet aerators, that reduce water consumption, among others. Created by MRV, both seals will be audited by third parties from 2016 on.

Greenhouse gas emission control Global climate change phenomena are gaining more and more relevance in corporate agenda and strategic planning of mindful companies around the world. In 2015, MRV adhered to the Brazil GHG Protocol Program, an online platform that helps organizations produce and publicize their gas emission inventories. The Protocol also allow for the disclosure of clearer data and promotes information exchange among companies in the industry. It also fosters raised awareness of climate change issues in our society. Upholding its sustainable practices, for the 5th year in a roll MRV has published its Greenhouse Gas Emission Inventory. Calculations are based on accurate operational data and are fully compliant with the Brazil GHG Protocol Program. GHG emissions figures comprise Scopes 1, 2 and 3. The latter is related to indirect emissions.

Following the Brazil GHG Protocol Program (WRI/WBCSD/CBEDS) stipulations, which include Equity Share and Control (operational or financial), MRV has opted for financial control as we understand it to be more appropriate to our activities, to the company’s business structure and to MRV’s asset management. Within this model all assets owned by MRV Engenharia are listed in Scope 1.

Absolute GHG emissions per scope – 2015* Scope

t CO2

t CH4

t N2O

t CO2e

Scope 1

10,846.04

186.21

1,09

15,827.69

Scope 2

3,604.57

Scope 3

88,277.26

543.50

101,871.65

* the GHG emissions considered in this estimate figure are those regulated by Kyoto Protocol: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); sulfur hexafluoride (SF2) and the hydrofluorocarbon (HFC) and perfluorocarbon (PFC) families, expressed in the common CO2 unit equivalent (CO2e). Direct and indirect emissions are accounted for (Scope 1, 2 and 3). The data has not been verified by third parties.

City improvements

R$ 1.9 million invested in Wastewater Treatment Plants across all regional offices.

More than just a supplier of quality apartments MRV endeavors to improve the quality of life beyond its buildings. In addition to all the details planned to deliver quality apartments, MRV seeks the creation of agreeable environments in the surroundings of itsproject. Be it through its own initiatives, or via social counterparts, last year the company invested R$ 103 million in infrastructure works in the cities where itoperates. Areas of improvement include healthcare centers, schools, roadways, and the construction of basic wastewater treatment plants. Another way MRV moves beyond homes to build communities is to carry out projects that promote well-being and conviviality among neighbors, such as landscaping areas in parks, gardens and squares. In the city of Americana (SP), MRV invested upwards of R$1.3 million to construct town squares throughout the city, providing residents with a greener infrastructure. In the city of Rio de Janeiro (RJ), R$ 378,000 were reverted into school renovations that led to significant enhancement of education and urban pride.

MRV invested nearly R$ 5 million in renovation and construction of parks and squares in cities where it operates. DMA INDIRECT ECONOMIC IMPACTS, G4-S7, G4-EC7 34

2015 grants and donations (in R$ million) 2015

2014

2013

Education

1.7

1.3

0.2

Health

0.2

2.4

Urban Development

110.7

88.2

80.0

Environment

15.8

13.9

10.6

TOTAL

128.1

103.5

93.3

* In 2015, the criteria to list grants and donations were reviewed. Consequently, some figures herein presented have been updated;

INDIRECT ECONOMIC IMPACTS, G4-S7, G4-EC7 35

MRV INSTITUTE 37

Focus of performance:

VOLUNTEER PROGRAMS

A whole year of existence MRV Institute has directly assisted more than

2,000

children, teenagers and adults.

R$ 1.4 million in educational initiatives

EDUCATION

Main initiatives Renovation of the Criança Esperança facilities in the Aglomerado da Serra Community of Belo Horizonte. More than 1,400 children enjoy benefits Consolidation of the volunteer program Partnerships with organizations, such as: Cidade dos Meninos São Vicente de Paulo; Instituto Minas Pela Paz; Fundação Inimá de Paula; ADCE – Associação de Dirigentes Cristãos de Empresas; Endeavor Junior Achievement; Amigos da Baleia; Jornada Solidária Estado de Minas; Instituto Atlântico.

G4-SO1 38

MRV Institute In its first year of existence, the MRV Institute launched a Volunteer Program, to promote the education and citizenship of children and youth in the city of Belo Horizonte, where the company’s head office is located, and in other cities across Brazil. Focusing on education via sports, cultural activities and environmental stewardship, the Institute works for a more sustainable future. Since its foundation, more than 2,000 children, teenagers and adults have enjoyed benefits. In 2015, a total of R$ 128 million was granted or donated to Education, Healthcare, Urban Developments agencies and institutions, exceeding our 2013 endowments.

“We’ve always had the conviction that successful companies must be responsible to society, and in MRV, as we are mindful of our social role, we have effectively contributed improving the quality of life of communities where we operate – in more than 140 cities in Brazil”. Eduardo Fischer, President of MRV Institute

DMA LOCAL COMMUNITIES 39

Main actions Criança Esperança In partnership with the state’s Heavy Construction Syndicate (Sindicato da Indústria da Construção Pesada do Estado de Minas Gerais - SICEPOT); UNESCO and Codeme Engenharia, MRV Institute renovated the Criança Esperança facilities located in the Aglomerado da Serra community in Belo Horizonte. The facilities were also expanded to better serve more than 1,400 youths in educational, sporting, and cultural activities. Partnerships for a better future In 2015, the Institute entered into a number of strategic partnerships aimed at expanding its initiatives to serve a wider number of people and institutions (see list below). Partner Institution

Descrição

Apoio Instituto MRV

Cidade dos Meninos Located in the city of Ribeirão das Neves, Cidade dos São Vicente de Paulo Meninos is a non-profit philanthropic institution intent on assisting at-risk youth by providing opportunities to study in Elementary and Junior High Schools. The institution offers (São Vicente de individual tutoring and vocational courses; sports, and cultural Paulo Children’s activities, focused on moral and civic education. Boarding Town) school students are offered accommodations and daily meals. Currently, Cidade dos Meninos hosts 192 youth, who are watched and cared by their Social Mother.

MRV Institute is one of the supporters aiding this institution and contributes with the construction of dorms and spaces for extracurricular activities for boarding school students.

Instituto Minas Pela Paz (Minas for the Peace Institute)

Minas pela Paz is an OSCIP (Organization of Civil Society of Public Interest) institute created by FIEMG’s strategy council with the goal of helping both the government and civilians in combating violence and reducing criminality in the State.

MRV Institute sponsors the Futebol Minas pela Paz (Minas for the Peace Soccer) project whose goal is to take youth off the streets during nonschool hours.

Fundação Inimá de Paula

The goal of this foundation is to provide support in art education for youth in Minas Gerais and spotlight the city of Belo Horizonte’s art scene among Brazil’s best art shows and initiatives. Each year, 15,000 children take part in the Museum’s educational and cultural events, exhibitions, and debates on the arts.

The MRV Institute sponsors this foundation.

ADCE - Associação de Dirigentes Cristãos de Empresa (Association of Christian Business Managers)

ADCE is a nonprofit civil society established to explore the value of Christian principles to the education and formation of business environments.

Sponsorship provided to the ADCE Uniapac World Congress and to FIEMG’s Sustainability Seminar, both in 2015.

Endeavor

Organization that promotes entrepreneurship, encourages start-ups and supports innovation to generate jobs and advance competitiveness in Brazil’s global business.

MRV Institute is the organization’s resource provider. Additionally, Rubens Menin, Chairman of the MRV Board of Directors, is one of the mentors of young entrepreneurs.

Junior Achievement

Begun in 1919, JA is a nonprofit educational association, supported by private enterprise, whose goal is to awaken entrepreneurial minds of youth while in school through mentoring and education, previewing a world of business to come through a responsible and ethical lens.

Guided by the organization, MRV volunteers teach entrepreneurship skills and employability courses to students from schools located near the company. In 2015 600 youths took part in “Our Community” and “Introduction to the Business World” courses.

Amigos da Baleia (Baleia’s Friends)

Amigos da Baleia are part of a solidarity, cooperation and fraternity network that works to improve service conditions in Belo Horizonte’s Baleia Hospital through volunteers’ efforts and donations, both material and financial.

MRV Institute sponsors a fund raising dinner organized by the hospital. The proceeds enable thousands of patients to be cared for every year.

Jornada Solidária Estado de Minas (Solidarity Journey)

The Jornada Solidária Estado de Minas (Estado de Minas Solidarity Journey) assists organizations providing psychological and support to children up to 6 years old to produce improvements in their learning skills and environment. The Journey also funds the acquisition of new assets, like furniture, electrical appliances, electronic devices, and pedagogical tools. Ever since the program was started, the Journey has worked with more than 10,000 institutions, providing benefits to more than 1,600,000 children in the city of Belo Horizonte alone.

MRV Institute sponsors the Journey program fund-raising events that are fundamental to keep the program working.

Atlântico Institute

A nonprofit entity exempt from political bonds and specialized in structuring and implementing projects aimed at projects to both economic and social modernization in the country.

MRV supports the Movimento Brasil Eficiente (Efficient Brazil Movement), to find tributary simplification with the Federal Government. The initiative is also supported by the Santa Catarina, Minas Gerais, São Paulo and Pernambuco state governments, by more than 200,000 citizens and by 130 different organizations.

In 2016, a 1st Projects Public Call will be held. It will select and support educational projects focused on sports, the environment or culture. Individuals or nonprofit institutions will be qualified to participate and have the opportunity to receive R$50,000 in funds to seed projects. PRODUCT AND SERVICE LABELING, G4-PR5 41

MRV Volunteers MRV encourages its employees to actively volunteer in the community where they work. Every month, MRV employees are allowed to dedicate 4 hours of their work schedule to take part in volunteer initiatives. In 2015, the institute’s portfolio listed more than 1,000 volunteers. Corrente do Bem (Chain of Good): MRV joined a countrywide campaign collecting aluminum can pull tabs to fund the donation of wheel chairs to the Association for Assistance of Children with Special Needs (AACD). Engaged to the cause, collaborators take their donations to company offices and collected, in 2015 alone, 140 PET bottles filled with pull tabs that were donated to buy a wheel chair in the city of São José dos Campos (SP). Direito de Saber (Right to Knowledge): MRV lawyers provide construction site workers with free legal consulting answering questions concerning consumer rights, human rights, family law, and other subjects. A total of 47 workers were given legal orientation in 2015. Livros do Bem (Goodwill Books): a campaign to collect books and magazines with the cooperation of collaborators from all MRV regional offices. The campaign successfully created 22 workplace libraries across Brazil in 2015. This initiative promotes greater knowledge, fun and culture among employees. Campanha de Natal (Xmas Campaign): the entire company donated toys, clothes, hygiene materials and food to communities in need, to daycare centers, schools and elderly care facilities. In 2015, more than 700 people benefited from this initiative.

Good practice In order to make it easier to get to MRV’s new head office and contribute improvements to city traffic, the Company promotes the Carona Solidária (Solidarity Ride) volunteer website, a ride share program, to help people offering and needing rides to organize their arrangements.

RELATIONSHIP WITH CLIENTS 45

52,661

8,24

257,831

178,424

309.465

5,033,044

calls to # 4005-1313 (monthly average), totaling 631,939 calls in a year.

275.000 Active clients

1,070 services rendered

via social networks in 2015

Relationship Portal communication services rendered

accesses to the Relationship Portal (monthly average).

client service satisfaction score, out of a 0 - 9 range, which means quality of 91.55%in services.

accesses by March 2016 to Conexão MRV (MRV Connection) videos, published on YouTube.

accesses to client history videos, available on YouTube.

80%

of clients received their keys during the Entrega dos Sonhos (Dream Delivery) event

97,3%

of Technical Assistance requests serviced in up to 30 days

Main Initiatives Volunteer agreement with the National Association of Consumers’ Public Ministry – MPCON. Revision of purchase and sale agreement Expansion of Na Palma da Mão (In the palm of your hand) project Inauguration of Mão na Roda (Come in Handy) project

DMA PRODUCT AND SERVICE LABELING, G4-PR5 46

Volunteer Agreement Taking an unprecedented initiative in its industry, MRV contacted MPCON - the National Association of Consumers’ Public Ministry in the first half of 2015 to find opportunities to make the Company’s market relationships more sustainable and to improve MRV’s client relationship. The Company then opted to make alterations and renew its purchase and sale agreement model so as to make it even more in tune with the legislation and the Consumers’ Code. After seven months of compliance project works a Term of Commitment was entered into by MRV and MPCON. The Term established the sustainable practices to be adopted in the relationship with consumers. The initiative is part of a set of corporate efforts to improve the relationship with entities defending consumers’ rights and to diminish law suits involving clients. In addition to being drafted in a simplified and objective language, the new model proposes changes to furnish clients even greater security, including, for example, the municipality’s Real Estate Registry number; the establishment of a residential development completion deadline; and the establishment of a fine in case the constructor does not meet its commitments. In 2015, MRV paid programmed visits to PROCONs (Consumer Protection and Rights authorities) in the cities where it operates. A total of 15 meetings were held to respond to clients’ complaints and questions, and make agreements. Representatives from Regional PROCON offices are directly connected with MRV’s client relationship team through a hotline, which makes required services quicker.

Entrega dos Sonhos (Dream Delivery) From January through December, MRV delivered38,762 keys to new homeowners, and 80% of them were contemplated by the Entrega dos Sonhos project. Growing year to year the project is making the key delivering moment into a conviviality event, where customized services are offered to new residents, while activities promoting integration among new neighbors are held. Along with the keys, client’s can access the Relationship Portal on which they will find the Owner’s Manual, virtual floor plans, explanatory videos on electrical and hydraulic systems, preventive maintenance tips, and relevant information for the adequate maintenance of the apartments. Having joined the Entrega dos Sonhos events since 2014, MRV leaders have been able to identify process improvement opportunities, while promoting a closer relationship with clients. Named Atendimento Executivo (Executive Service), the project had 37 participants in 2015. The volume keys deliveredbefore or at the deadline was 74.9%; a sign of how MRV’s construction works gained agility with the optimized processes and strategic planning developed and implemented by the Company.

Technical Assistance During the real estate warranty period - up to five years after the key deliver - clients have the right to request Technical Assistance services by reporting events and setting up technical visits and inspections. Overall, 1,500 collaborators, both MRV’s and outsourced, work to furnish the requested services. Since it was implemented in 2014, the Na Palma da Mão (In the palm of your hand) project, with improvements and increased agility in technical assistance services, has reduced costs and complaints. In 2015, the initiative reached all MRV regional offices in Brazil. Along the year, 160,000 units requested Technical Assistance services. The processes optimized by the project enabled MRV to supply 97.3% of services in up to 30 days following the requests.

Neighborhood network In April 2015, the MĂŁo na Roda (Come in Handy) project was started with the goal to create a hire and services network through which residents living in MRV residential communities, be them owners or tenants, can hire from or render services to other residents, thus starting a social sustainability chain in all regional offices, while fostering

entrepreneurship. By the end of the year, the MĂŁo na Roda Project had gathered more than 4,000 users, and featured more than 900 advertisements offering professional services of tutors, electricians, gardeners, and manicure and confectionery professionals, among others.

By the end of 2015, one out of every 250 Brazilians was an MRV client.

Customized services Following a project started in 2014, last year MRV developed new opportunities to strengthen the Company’s relationship with its clients. An example of that is the forwarding information base called Régua de Comunicação (Communications Ruler). This system provides network bridging and routing for more than 275,000 clients, furnishing information and timetables from the 220 construction enterprises in progress. In a proactive and segmented manner, the system sends explicative emails about every single step from contract to the real estate key handover. In 2015, in addition to adding more functions and expanding communications on the construction of the real estate unit, the tool was improved with the Régua de Sustentabilidade (Sustainability Ruler), an application that makes it viable to send messages with practical tips to owners, enabling them to optimize the use of water and electricity. MRV Client Relationship Portal continues to be one of the Company’s most important communication channels. In 2015, Meu Decorado 50

(My decorated residence) project featured among the main services offered by the Portal. The project was produced by MRV in partnership with the university Centro Universitário Newton Paiva. Guided by professors, a group of students from the Architecture school created sustainable home decor projects using MRV apartments as a base. The best 10 works were made available on the Portal to inspire new clients how to decorate their homes. Information like prices, where the products can be found, or even how to make each piece is also made available. Launched on the second semester, the home decor projects had totaled more than 46,000 accesses by the end of the year. Plans are that the project will be updated in 2016 with the participation of other educational institutions. The Portal also hosts the Conexão MRV (MRV Connection) videos. They answer the clients’ most frequently asked questions about investing in a preconstructionprojects. Altogether, 7 short videos featuring topics regarding financing, documents, key handover, among others, were published. By March 2016, the videos had totaled 178,424 accesses.

• Newton Paiva Partnership • Sustainable Home Decor Projects more than

74,000 accesses

Meu Mundo Melhor (My better world) The videos from the #meumundomelhor campaign tell true MRV clients’ stories when buying their first new apartment. They gained even more popularity in 2015, when 5 new stories from all over Brazil were launched. By March 2016, the channel had accounted for more than 5,033,044 views and 31,598 interactions on social networks, including shares, comments and likes.

By the end of 2016, 4 new videos will have been published.

Transparency In 2015, the online guide MRV sem Dúvida (MRV No doubt) started to definitely be a part of the Company’s communication mix. The interactive mix comprises MRV’s strategic themes, such as quality, warranty and sustainability. In addition to showcasing transparency in a client communication channel, the document provides information about MRV to its partners and stakeholders. From December 2014, when it was implemented, to March 2016, the page was accessed 82,428 times.

From December 2014, when it was implemented, to March 2016, the page was accessed 82,428 times. 51

PEOPLE 53

7,758

2,238

205

2.753

people trained

classroom training hours

operational directors

classroom training courses

virtual training hours

supervisors

Main initiatives 449

engineers

Revision of the Occupational Health Medical Control Program Creation of the Roda de Prosa (Chat Circle) project

Thousands

of workers in the field

Improvements in the Trainee Talent Retention Program Opening of new schools on the construction sites Revision of virtual training platform

G4-10, G4-LA9 54

Commitment to safety In spite of the country’s economic austerity scenario in 2015, MRV´s investments in safety remained stable, with no cuts or material changes. The Company pursued its awarenessraising campaigns on important safe practices in the working environment and enhanced all concepts disseminated during the In-House Week for Prevention of Accidents at Work (SIPAT). Fundamental topics concerning wellbeing and care with life, such as the correct use of Personal Protective Equipment (PPE), health, STDs (Sexually Transmitted Diseases), environment, sustainability, standards for working at

heights, among others, were addressed. In conformity with the legislation, the In-House Accident Prevention Commissions (CIPAS) continue to act systematically at all constructionsites, offices and the Company´s head office in Belo Horizonte.

14,704 professionals attended SIPAT meetings in 2015.

Another important mobilization tool was the Daily Health, Safety and Environment Dialogs (DSSMA), held at MRV´s construction sites across the country. In 2015, all the 17,215 collaborators working on construction sites attended meetings addressing topics in tune with MRV Group´s safety culture and best practices for reducing accident hazards at work.

G4-LA6, DMA OCCUPATIONAL HEALTH AND SAFETY 55

Continuous improvements All Safety Championships remained active in 2015. The program annually rewards the construction sitesthat both achieve exemplary performance in complying with Regulation Norms, and feature the best occupational safety conditions. Monthly in-house audits at construction siteswill determine the winner. Those scoring below 75% are handed an immediate action plan to eliminate non-compliances. In this reportâ&#x20AC;&#x2122;s base year, 119 inspections were realized by the Ministry of Labor and Employment at the Companyâ&#x20AC;&#x2122;s constructionsites and offices, of which, 77% did not receive notifications (74% in 2014). All occurrences recorded were dealt with and shared in order to strengthen MRVâ&#x20AC;&#x2122;s continuous improvement of management for safety at work. However, despite regular campaigns to raise awareness on care in transit, there were three fatal accidents en route involving company employees. MRV followed up the investigations and provided support to the families.

G4-LA6 56

Health Governed by the Ministry of Labor and Employment Regulatory Norm NR-7, the Company takes in-house actions to promote its collaborators’ health and quality of life. In 2015, a series of studies, legislation consultations and meetings with medical associations, MRV restructured its Occupational Health Medical Control Program (PCMSO). After reviewing the relevance of certain medical tests done by its employees, the company standardized the program and produced, to all regional offices, a unified orientation featuring one single list of tests valid for all. MRV’s cost effectiveness strategy, with an eye towards the employees’ healthcare and well-being, led to R$ 1.8 million in savings in 2015.

In addition to periodical occupational medical examinations, the company also held immunization campaigns last year. In all, 3,241 collaborators were administered Influenza (H1N1), TDAP, TD, MMR and Tetanus toxoid vaccines. With the support of municipal healthcare departments, construction workers took part in awareness-raising campaigns explaining the importance of keeping their vaccine cards up to date. At MRV head office in Belo Horizonte, initiatives promoted blood pressure measurements, body fat control, fitness assessments, and lectures on breast and prostate cancer, and other diseases.

3,241

collaborators were administered Influenza (H1N1), TDAP, TD, MMR and Tetanus toxoid vaccines

G4-LA6 57

Closer and closer

117

Roda de Prosa (Chat Circle) meetings held in regional offices.

MRV Engenharia is fully in conformity with occupational health and safety requirements, as it is committed to Occupational Health and Safety. In case of doubt, or if any clarifications are needed, get in touch through the email address: SSMA@mrv.com.br

An Organizational Climate survey conducted at construction sites in 2015 uncovered new opportunities to promote conviviality among collaborators and engineers responsible for construction sites, and, for doing so, the Roda de Prosa (Chat Circle) project was created. Inspired by the Daily Health, Safety and Environment Dialogs and based on participative management, the project proposes the entire production team meet quarterly. The meetings are yet another channel for collaborators to deal with their day-to-day topics, such as suggestions for work environment improvements, and the clarification of doubts concerning rights and duties. The engineers in charge of leading the meetings were trained and empowered to respond to the teams. Should it not be possible to clarify a doubt during the meeting, they have ten days to give the collaborator an answer. The Human Development sector utilizes the minutes from the meetings to monitor the organizational climate, sensitive points and possibilities for improvements at each construction site.

Caring for people MRV´s relationship with its employeesand collaborators is governed by respect, ethics and a myriad of efforts in search of increasingly substantial results and values. MRV People Management values the development of collaborators and an ever improving work environment. Remuneration and benefits follow the industry´s course. There is no salary discrepancy because of gender. MRV complies with all collective agreements entered into with the workers’ trade union. Since 2013, when an agreement between MRV and the Justice and Labor Public Ministry was signed to start an insourcing process for its workforce, MRV has adapted to fully meet the Term of Conduct Adjustment (TAC). All construction site workers, be them MRV’s or outsourced, are capacity trained according to norm NR-18, compulsory for construction sites. According to their job position, each professional is also given training in other Regulating Norms, such as NR-10, NR-33 and NR-35. In the second half of 2015, norm NR-12, which deals with machinery and equipment, was the main focus. The norm, which is already part of compulsory training, underwent reformulations that were replicated in training programs and courses held by MRV for its staff. DMA EMPLOYMENT, G4-LA2, DMA EQUAL REMUNERATION FOR WOMEN AND MEN, G4-LA13

Trainee Program Last year, 22 professionals from different industries joined the company through the Trainee Program, which has recruited young talents for four years now. Selected trainees work on several different fronts for at least 18 months, supervised and monitored by the Human Development area and Executive Management Offices. At the end of this period trainees are requested to produce a project for improvements in processes in their area of activity based on the knowledge acquired.

Program reformulations carried out in 2015 provided for cost reductions, local labor valorization and a reduction in the participant dropout rate. As it is now a more comprehensive selection process, it has been adopted by every single MRV regional office (and not just at the company head office in Belo Horizonte). All professionals chosen in different states are sent to Minas Gerais for a six-month training period and then return to work in their home regions.

Housing and conviviality In all, 4,658 collaborators used the accommodation offered by MRV in 2015. The figure is 7% lower than in 2014, and is a trend for coming years as a result of a strategic prioritization of local labor at construction sites. In conjunction with the National Employment System (SINE), and other recruitment agencies, the company looks for workers in the cities where the construction sitesare located, only displacing collaborators from other areas when no local alternatives are available. In the base year of this report, MRV updated its housing unitâ&#x20AC;&#x2122;s data base and added an even more accurate and systematized control over information gathered from people accommodated.

The data base is updated daily to allow fast and consistent measurements and searches, whenever a collaborator is to be searched for. The implementation of the Accommodation Deployment, Management and Maintenance Course was a further innovation. Online trainings were set up to guide safety technicians, engineers and construction managers with instructions ranging from housing deployment to space management, also including legislation and required documentation. The training program also focuses on residents, providing them with small printed booklets with day-today tips that promote good conviviality among colleagues.

Capacity building and recruiting The company understands that training and capacity building are paths to offer increasingly better work and achieve distinct quality results. That is why MRV increased the number of onsite schools, from 97 in 2014 to over 119 last year. As a result, the number of staff capacitated on literacy and vocational courses also increased from 1,750 students to over 3,500 in 2015. To this end, MRV conducted studies in every region to identify the main manpower demands at each location and implement strategic courses in conjunction with SESI and SENAI.

Capacity building programs cover digital inclusion, electrician and plumber courses, among others. Through the federal governmentâ&#x20AC;&#x2122;s National Program for Access to Technical Schooling and Employment (PRONATEC), MRV is giving professional capacity building courses to 80 inmates and young offenders from the metropolitan areas of Belo Horizonte and Rio de Janeiro. The 18-month Computing and Safety Technician courses are a proposal for future resocialization as they increase their chances in the job market.

G4-12, DMA TRAINING AND EDUCATION 61

Training Also in 2015, MRV online course platform, Construir (Building), was updated. It now features a new modern and interactive learning environment. In 2015, two non-compulsory courses were offered as an experiment: Time Management and Development Management. Simultaneously, the Human Development area produced new courses to be offered in the first half of 2016, the Top 11 training program. Divided up into 11 modules, like the name says, it lists all technical and legal instructions regarding the main stages of a constructionsite. Produced with the support of MRV experts and made available for quick reference, the material can be accessed from mobile devices and clarify doubts to professionals atconstruction sites.

Benefits MRV´s collaborators are given a series of benefits, extended to their dependants. Among them are medical and dental services, discount agreements with drugstores, collective life insurance, meal vouchers, transportation vouchers and cesta básica (a set of food products considered essential to Brazilian diet: rice, beans, soy oil, sugar, salt and others). For management staff from MRV’s offices and construction sites, benefits also include Profit Sharing annual payments.

More than

800

800 staff had taken part in the Time Management and Development Management training by March 2016.

G4-LA2, DMA TRAINING AND EDUCATION 62

TRUST AND TEAMWORK 65

75%

of products and services rendered by local suppliers

R$ 1.58 billion in purchases and contracts in 2015

Valorization of local suppliers: Project Northeast Fort (Pronef) Project Midwest Fort(Procof) Project Rio (Prorio)

Objective: To list local suppliers with potential to meet demands for products and services

8,000

thousand active suppliers throughout the country

183

professionals make up the team responsible for hiring equipment and strategic services with higher added value (foundations, demolitions, earthworks, paving, power grids etc)

2,596

supplier negotiations producing R$133 million in savings 66

Main initiatives For the first time, the Supplier Management topic featured in MRVÂ´s materiality matrix Launching of Supplier Relationship Policy â&#x20AC;&#x201C; in Portuguese and English Advancements in supplier evaluation regarding sustainability New projects aimed at valorizing local suppliers (Pronef, Procof, Prorio)

Suppliers For the first time, the topic Supplier Management was included in this report´s materiality matrix, confirming the relevance of this relationship front for MRV. Last year alone, the company spent about R$ 1.58 billion on purchasing and hiring 34,000 items from the company’s 8,000 active suppliers across Brazil. Thirtytwo different teams, totaling 183 professionals, are in charge of hiring equipment and strategic services with higher added value (foundations, demolitions, earthworks, paving, power grids etc). To further enhance relationships, the company is standardizing its supplier’s sustainability assessment. Sustainability assessment visits paid during the year reported enable the identification of opportunities to improve processes. By diagnosing each supplier´s shortcomings, MRV offers guidance and monitors performance improvement initiatives aimed at the pinpointed issues. In 2015, MRV placed orders with its suppliers every 22 seconds on average. To ensure purchases boast economy of scale, the Company does not enter into exclusive contracts and continuously carries out studies to

seek the best business opportunities. Therefore, initiatives to valorize local suppliers were hatched last year. Pronef (Project Northeast Fort), Procof (Project Midwest Fort) and Prorio (Project Rio) were created to identify local suppliers with potential to meet demands for products and services. Once listed, MRV furnishes suppliers with orientation on the company´s standards and support on how to comply with them. A practice that not only strengthens and valorizes local entrepreneurs, but also enables MRV to avoid transportation over long distances, thus reducing costs, time and pollution emissions.

R$ 1,58

billion in purchases and contracts in 2015

Supplier selection follows strict legislation criteria, such as the prohibition of discriminatory practices, and slave or child labor. A further provision determines that MRV’s own and third party staff must have the same working conditions, there including meals, accommodation and careful health and safety management. In the event the law is not complied with, contracts provide for penalties which even include severance of ties. In 2015, no human rights violation or negative occurrence relating to labor practices was recorded.

In 2015, the Supplier Relationship Policy was implemented. The document, made available both in Portuguese and English, features information on MRV, its values, sustainability guidelines, supplier registry and hiring criteria, norms and required documents.

DMA PROCUREMENT PRACTICES, G4-EC9, DMA SUPPLIER ENVIRONMENTAL ASSESSMENT, G4-EN32, G4-EN33, DMA SUPPLIER ASSESSMENT FOR LABOR PRACTICES, G4-LA14, DMA FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING, DMA FORCED OR COMPULSORY LABOR, G4-NR6, DMA SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY, G4-NR10, DMA SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY, G4-SO9

Trade unions

75% of products

and services hired from local suppliers.

Collective agreements and deals entered into with trade unions from all the states where MRV operates guide the companyÂ´s actions regarding health, safety, and occupational medicine and hygiene. Regulatory norms also orient the management of programs like Occupational Medical Control and Environmental Hazard Protection. In the base year, no cases of jeopardizing rights to freedom of association and collective bargaining were recorded.

Investors As 61% of MRVÂ´s stocks are concentrated with Brazilian and foreign investors, the Company maintains close contact with analysts and representatives from the financial sector across the world, through conferences, meetings and visits. Listed on the Novo Mercado segment at BM&F Bovespa (Brazilian Securities, Commodities and Futures Exchange), MRV also provides a page on its website dedicated to investors, on which financial and legal information, quarterly and annual reports, as well as business news, are published.

Government A close relationship with governments and public institutions is listed in MRV´s management model to deal with matters concerning the Company’s business and sustainability. Therefore, MRV is a member of forums and discussion groups involving matters of interest, such as labor laws and the Minha Casa Minha Vida program. The Company also takes active part in decision-making on aspects affecting the construction industry.

Regarding municipal level matters, contact is made directly with municipality authorities. Matters at state and federal levels are dealt with in conjunction with employers´ syndicates, such as the Construction Industry Employers´ Syndicates (Sinduscons); in a regional context, with the Brazilian Association of Real Estate Developers (ABRAINC); and in a nationwide context, with the Brazilian Construction Industry Chamber (CBIC).

FINANCIAL PERFORMANCE Although sales reduce by 8.6% in 2015, dropping from R$6 billion to R$5.5 billion, MRV achieved a historic cash generation record. Such accomplishment was a result of the companyâ&#x20AC;&#x2122;s focus: the lowerincome real estate segment, and on an enhanced business austerity achieved with process optimizations and efficiency. Net operating revenue in 2015 was R$4.7 billion â&#x20AC;&#x201C; a 14.3% increase compared to R$4.1 billion in 2014. Consolidated net income also fell, from R$720 million in 2014 to R$548 million in 2015.

INSS employer, Cofins, ISSQN, IRPJ/CSLL, PIS, management fee, ICMS and others

Rate of indebtedness (net debt / equity)

30.4%

171

397 24.2%

338

2014

2013

141 125

265

2015

Dividends paid (R$ million)

10.4%

2015

2014

2013

2015

2014

2013

G4-16, DMA ECONOMIC PERFORMANCE, G4-EC1 70

APPENDICES Awards and Recognition in 2015 1st place in ITC Ranking 2015 For the fourth year running, MRV was appointed Brazil’s Leader Homebuilder Company by magazine Inteligência Empresarial da Construção (Corporate Construction Intelligence). Dinheiro Magazine “The Best” Award The best public company in homebuilding industry Edison Zenóbio Real Estate Communications Award Winner for the second year running. The award, offered by Diários Associados and the Câmara do Mercado Imobiliário (Real Estate Market Chamber), expresses the recognition of MRV’s advertising strategies as the most efficient in the real estate market. All published in Estado de Minas newspaper and on Lugar Certo website. Top of Mind 1st place – Top of Mind – Mercado Comum (Common Market) Successful Brands – Minas Gerais State – 2014/2015 Construction For the seventh year running, awarded at the Top of Mind Uberlandia event as the most remembered brand in the Residential Construction category. For the tenth year running, awarded at the Top of Mind Ribeirão Preto event by Jornal Comércio de Franca. For the tenth year running, awarded at the Top of Mind Ribeirão Preto event by Jornal Tribuna. For the tenth year running, awarded at the Top of Mind São José do Rio Preto event by the Melhores & Cia Group 6th PINI Award for Real Estate Developer of the Year 1st place – Category: Corporate behavior regarding society and the environment Survey IMPAR (Favorite Brands and Regional Affinity Index) Winner in the Northern Region of Santa Catarina as the most remembered and favorite brand. Best Company in the Real Estate Segment in Cariacica Survey done by TV Gazeta, CBN and Instituto Futura.

SUMMARY OF THE GRI CONTENT This report follows the GRI G4 guidelines on its ESSENTIAL model as summary below. GENERAL STANDARD DISCLOSURES

Pg./Reference

External Verification

G4-1 Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.

G4-2 Provide a description of key impacts, risks, and opportunities.

Strategy and Analysis

Organizational Profile G4-3 Report the name of the organization. G4-4 Report the primary brands, products, and services.

G4-5 Report the location of the organization’s headquarters.

G4-6 Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.

4 and 5

G4-7 Report the nature of ownership and legal form.

G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).

4 and 5

G4-9 Report the scale of the organization, including: Total number of employees; Total number of operations, Net sales (for private sector organizations) or net revenues (for public sector organizations); Total capitalization broken down in terms of debt and equity (for private sector organizations); Quantity of products or services provided.

G4-10 Report the total number of employees by employment contract and gender; Report the total number of permanent employees by employment type and gender; Report the total workforce by employees and supervised workers and by gender; Report the total workforce by region and gender; Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors; Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).

7 and 54

G4-11 Report the percentage of total employees covered by collective bargaining agreements.

100%

G4-12 Describe the organization’s supply chain.

G4-13 . Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including: Changes in the location of, or changes in, operations, including facility openings, closings, and expansions; Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations); Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination.

The recorded changes are No related to the dynamics of competitions , there have been no significant changes

Commitments to external initiatives G4-14 Report whether and how the precautionary approach or principle is addressed by the organization.

G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

G4-16 List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: Holds a position on the governance body; Participates in projects or committees; Provides substantive funding beyond routine membership dues; Views membership as strategic.

Identified material aspects and limits G4-17 List all entities included in the organization’s consolidated financial statements or equivalent documents. 2 Report whether any entityincluded in the organization’s consolidated financial statements or equivalent documents is not covered by the report.

GENERAL STANDARD DISCLOSURES

Pg./Reference

External Verification

G4-18 a. Explain the process for defining the report content and the Aspect Boundaries. Explain how the organization has implemented the Reporting Principles for Defining Report Content.

G4-19 List all the material Aspects identified in the process for defining report content.

G4-20 For each material Aspect, report the Aspect Boundary within the organization, as follows: Report whether the Aspect is material within the organization; If the Aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either: The list of entities or groups of entities included in G4-17 for which the Aspect is not material or – The list of entities or groups of entities included in G4-17 for which the Aspects is material; Report any specific limitation regarding the Aspect Boundary within the organization.

G4-21 For each material Aspect, report the Aspect Boundary outside the organization, as follows: Report whether the Aspect 9 is material outside of the organization; If the Aspect is material outside of the organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified; Report any specific limitation regarding the Aspect Boundary outside the organization.

G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

Changes in information and data provided in previous editions are explained throughout the report in footnotes or the text itself.

G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

There wasn’t in 2015

G4-24 Provide a list of stakeholder groups engaged by the organization.

G4-25 Report the basis for identification and selection of stakeholders with whom to engage.

G4-26 Report the organization’s approach to stakeholder engagement, including frequency of engagement by type 8 and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

G4-28 Reporting period (such as fiscal or calendar year) for information provided.

G4-29 Date of most recent previous report (if any).

2016 (base year 2015)

Stakeholder Engagement

Report Profile

G4-30 Reporting cycle (such as annual, biennial).

Anual

G4-31 Provide the contact point for questions regarding the report or its contents.

Expediente

This report follows the GRI G4 guidelines in its essencial model as summary below.

G4-34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.

G4-35 Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.

G4-38 Report the composition of the highest governance body and its committees by.

13 to 17

GRI content index G4-32 . Report the ‘in accordance’ option the organization has chosen. Report the GRI Content Index for the chosen option (see tables below).Report the reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.

Assurance G4-33 Report the organization’s policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. Report the relationship between the organization and the assurance providers. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization’s sustainability report.

Governance

GENERAL STANDARD DISCLOSURES

Pg./Reference

External Verification

G4-39 Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement).

13 to 17

G4-42 Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.

G4-47 Report the frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities.

G4-49 Report the process for communicating critical concerns to the highest governance body.

G4-50 Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.

16 and 17

G4-58 Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and 16 and 17 matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.

Ethics and Integrity

G4-56 Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

PERFORMANCE INDICATORS

ECONOMIC Material aspects

ECONOMIC PERFORMANCE

INDIRECT ECONOMIC IMPACTS

PROCUREMENT PRACTICES

Management approach and indicators

Pg./Reference

DMA

7 and 70

Omission

External Verification

G4-EC1 Direct economic value generated and distributed

7 and 70

DMA

34 and 35

G4-EC7 Development and impact of infrastructure investments and services supported

34 and 35

DMA

66 and 67

G4-EC9 Proportion of spending on local suppliers at significant locations of operation

66 and 67

ENVIRONMENTAL MATERIALS

WATER

DMA

G4-EN8 Total water withdrawal by source

26, 31 and 32

DMA

G4-EN 8 Total de retirada de água por fonte.

G4-EN10 Percentage and total volume of water recycled and reused 29, 30 G4-CRE2 Water in construction

EFFLUENTS AND WASTE

26, 29 and 30

DMA

17, 31 and 32

G4-EN23 Total weight of waste by type and disposal method

26, 31 and 32

ENVIRONMENTAL Material aspects

SUPPLIER ENVIRONMENTAL ASSESSMENT

Management approach and indicators

Pg./Reference

DMA

66 and 67

G4-EN32 Percentage of new suppliers that were screened using environmental criteria

66 and 67

G4-EN33 - significant actual and potential negative environmental impacts in the supply chain and actions taken

66 and 67

DMA

G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation

58 and 62

DMA

G4-LA5 Percentage of total workforce represented in formal joint managementâ&#x20AC;&#x201C;worker health and safety committees that help monitor and advise on occupational health and safety programs

100% of employee are represented

Omission

External Verification

SOCIAL

EMPLOYMENT

OCCUPATIONAL HEALTH AND SAFETY

TRAINING AND EDUCATION

G4-LA6 Type of injury and rates of injury, occupational diseases, lost 55, 56 and 57 days, and absenteeism, and total number of work-related fatalities, by region and by gender

G4-CRE6 Percentage of the organization operating in verified compliance with an internationally recognized health and safety management system

DMA

61 and 62

G4-LA9 Average hours of training per year per employee by gender, and by employee category

DMA

MRV hires its employees and partners in accordance with technical criterion, regardless of gender, age, religion and sexual orientation.

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

12 and 17

DMA

G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation

DMA

G4-LA14 Percentage of new suppliers that were screened using labor practices criteria

DIVERSITY AND EQUAL OPPORTUNITY

SOCIETY EQUAL REMUNERATION FOR WOMEN AND MEN

SUPPLIER ASSESSMENT FOR LABOR PRACTICES

SOCIETY Material aspects

Management approach and indicators

Pg./Reference

DMA

MRV does not tolerate any kind of discrimination on its Business conduct

G4-HR3 Total number of incidents of discrimination and corrective actions taken

There was not

DMA

G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights.

There was no operations identified in 2015

DMA

G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor

NON-DISCRIMINATION

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

FORCED OR COMPULSORY LABOR

SUPPLIER HUMAN RIGHTS ASSESSMENT

Omission

External Verification

DMA

G4-HR10 Percentage of new suppliers that were screened using human rights criteria

Management approach and indicators

Pg./Reference

DMA

CATEGORIA SOCIAL: Direitos Humanos Material aspects

LOCAL COMMUNITIES

SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY

Omission

External Verification No

G4-SO1 Percentage of operations with implemented local community 38-42 engagement, impact assessments, and development programs

DMA

G4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society

DMA

23 and 32

G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

PRODUCT RESPONSIBILITY

CUSTOMER HEALTH AND SAFETY

PRODUCT AND SERVICE LABELING

COMPLIANCE

G4-PR2-Total number of incidents of non-compliance with regulations There wasn’t in 2015 and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

DMA

46 and 41

G4-PR5 Results of surveys measuring customer satisfaction

46 and 41

G4-CRE8 Type and number of sustainability certification, rating and labeling schemes for new construction, management, occupation and redevelopment

DMA

G4-PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

There wasn’t in 2015

EXPEDIENT Realization: Institutional Relations Board/ MRV Engenharia Tecnical coordination: Simone Maia Editorial and graphic production: BH Press Comunicação (Texts: Letícia Raquel. Edition: Dulcemar da Costa and Lilian Ribas. Graphic Design: Danilo Fonseca) Specific and further information can be obtained at www.mrv.com.br or by e-mail comunicação@mrv.com.br/ (31) 3615-7100

Av. Professor Mรกrio Werneck, 621 Buritis - Belo Horizonte - MG (31) 3615-7100 www.mrv.com.br