2. About CAPITAL ABERTO  We are a monthly magazine, launched in 2003, which covers capital markets related issues like: Investor Relations, Corporate Governance, Legislation, Accounting, Institutional Investments, IPOs, etc.

3. What is corporate governance about? This is about people. This is about choices.

4. What is corporate governance about? This is about people. This is about choices. And what is corporate governance for? For preventing unexpected facts that can damage a company’s sustainability and shareholders profits.

5. What is corporate governance about? This is about people. This is about choices. And what is corporate governance for? For preventing unexpected facts that can damage a company’s sustainability and shareholders profits. So, why reporting on corporate governance?  To alert our readers about possible bad surprises in the future.  To show companies we have an eye on them (and push for better practices).

6. How do we, in Capital Aberto, investigate and report on corporate governance? 1 ) Questioning practices: when we don’t have all the information, but we do have enough not answered questions. Ex: Is it all just for show? Aracruz case threatens the effectiveness of the takeover analysis committees suggested by the CVM (July, 2009)

7. How do we, in Capital Aberto, investigate and report on corporate governance? 2 ) Getting investors to pay attention: sometimes information is disclosed, but no one pays attention. We can be the ones to highlight it. Ex: They got round the law National companies issue BDRs and find a way of not complying with Brazilian Corporate Law (September, 2007)

8. How do we, in Capital Aberto, investigate and report on corporate governance? 2 ) Getting investors to pay attention: sometimes information is disclosed, but no one pays attention. We can be the ones to highlight it. Ex: Between the lines Balance sheets show special conditions for controlling shareholders on earnings distribution (BrasilAgro pays management fees; Family members charge TAM for brand rights) (May, 2006)

9. How do we, in Capital Aberto, investigate and report on corporate governance? 3 ) Exposing corporate governance risks: investors are not unhappy, but we are Ex: Creative solution The acquisition of Sadia by Perdigão is welcomed by minority shareholders. But, in fact, it creates a precedent for a dangerous control premium formula (June, 2009)

10. How do we, in Capital Aberto, investigate and report on corporate governance? 4 ) Preventing excessively relaxed views on CG: investors seem comfortable, but we cannot share their feelings. Ex: Far from perfection Despite being listed on Novo Mercado, companies choose practices that are not recommended by CG codes (March, 2007)

11. How do we, in Capital Aberto, investigate and report on corporate governance? 5 ) Campaigning for better practices: sometimes regulators ignore relevant aspects of corporate governance because these are “other people’s problems”. We try not to do the same Ex: It’s all hidden Brazilian companies give very little information about their managers’ compensation (October, 2006)

12. How do we, in Capital Aberto, investigate and report on corporate governance? 6 ) Reminding companies of their own policies: when companies say one thing, but do the opposite Ex: What about facing the subject? Political storm creates the opportunity for companies to reflect about their codes of ethics and decide if they really want to comply with them (October, 2005)

13. How do we, in Capital Aberto, investigate and report on corporate governance? 7 ) Analysing companies’ disclosure initiatives Ex: Neutral Disclosure Carbon Disclosure Project shows poor transparency standards of Brazilian companies when reporting about climate change (December, 2008)

14. How do we, in Capital Aberto, investigate and report on corporate governance? 8 ) Doing some research on sophisticated aspects of corporate governance Ex: Our board members are very busy Does directors’ presence on many boards have a bad impact on management supervision? (July, 2007)

15. How do we, in Capital Aberto, investigate and report on corporate governance? 9 ) Regular investigation of companies’ CG practices Annual Review of Corporate Governance

16. How do we, in Capital Aberto, investigate and report on corporate governance? 9 ) Regular investigation of companies’ CG practices Monthly section Comply or Explain approach

17. Ho w do we, in Capital Aberto, investigate and report on corporate governance? 10 ) Space for debate about unclear points Ex: Anthitesis Does directors’ presence on many boards have a bad impact on management supervision? (January, 2010)

18. How do we, in Capital Aberto, investigate and report on corporate governance? 11 ) Regular space for good initiatives Good Idea!

19. Tools  Good sources: relationship (regulators, investors, lawyers, academics)  Knowledge: to have CG stories you need to ask CG questions (“why”, “why not” and “how” questions are very useful)  Research skills (some time to read and research)  Patience (to look at the detailed numbers and words)  Share ownership (in Brazil, one share allows you to go to the shareholders meeting, for example).  International outlook  Credibility

20. Achievements  Pushing companies to change their behavior  Developing consciousness of CG issues  Alerting investors  Being a conduit for whistle blowers  Increasing standards by describing international best practice

21. Plans for the future Dig deeper over time