2012 Annual Sustainability Report

Organized as a privately-held holding company headquartered in Uberlândia, Minas Gerais State, and present throughout Brazil, Grupo Algar is one of Brazil's most solid private-sector business conglomerates. It went into business in 1929 and currently encompasses nine top companies in the industries of IT/Telecom (Algar Telecom, Algar Tecnologia, Algar Mídia and Engeset), agribusiness (Algar Agro), services (Algar Aviation, Algar Segurança and Comtec) and tourism (Rio Quente Resorts).

The Company's brand name comes from the initials of its founder, Mr. Alexandrino Garcia, whose ideals gave rise to the pillars of consistent Corporate Governance and Sustainability practices as a management concept pervading all the group's companies. The entrepreneur's legacy of values and beliefs, which comprise an ethical commitment to future generations and Brazil among others, is reflected in an ongoing effort to serve society, build excellent relationships and produce innovative solutions that, in addition to creating value for shareholders, contribute to sustainable development.

A benchmark for professionally-managed family businesses, Grupo Algar is present throughout Brazil. At the close of 2012, the Group's companies had about 21,000 associates serving over 2 million direct individual and corporate clients using its products and services in the whole of Brazil. Grupo Algar's consolidated operations generated a net value added of R$2,025 million.

At Algar, we believe that business is fleeting whereas principles and values last forever. That is what distinguishes and what brings its different businesses and thousands of associates together. That explains our ongoing effort to safeguard the Algar way of being – "People Serving People" – anywhere our companies are present, thus ensuring that the Group's mission of "developing relationships and sustainable businesses which generate perceived value" is fulfilled.