The financial statements were prepared based on the accounting practices adopted in
Brazil and resolutions issued by CFC, observing the accounting guidelines based on Brazilian
Corporation Law (Federal Law 6,404/76), which include the provisions introduced,
amended and revoked by Law 11,638 of December 28, 2007 and Law 11,941 of May 27, 2009
(former Provisional Presidential Decree 449 of December 3, 2008). The Brazilian accounting
practices applied to the parent company financial statements differ from the IFRS only for
the measurement of investments in subsidiaries and affiliated companies through the
equity method of accounting, while these investments would be carried at fair value or
historical cost for IFRS purposes.