About this Report

Algar Telecom has been reporting on a yearly basis since 2006, its performance within the scopes of economic, social and environmental aspects. For the seventh year running, its annual report discloses financial, social and environmental information, in accordance with the international Global Reporting Initiative (GRI) guidelines, version G3 – Level C. This format represents a step forward towards drawing up an increasingly consistent document, capable of conveying Algar Telecom`s future vision in a transparent manner to all of its stakeholders: clients, shareholders, associates, suppliers, the community and the government.

The information contained herein covers the performance of Algar Telecom and its six subsidiaries: CTBC Celular, CTBC Multimídia Data Net, Image, Algar Tecnologia, Engeset and Algar Mídia, over the period between January 1 and December 31, 2012. The compilation of the financial data, audited by KPMG Auditores Independentes, complies with the criteria set out by the International Financial Accounting Standards (IFRS). The social and environmental performance indicators were compiled and validated internally only, that is, not subject to external assessment. Certain indicators, such as EN4, EN8 and EN16 required reclassifications, which led to the re-presentation of the data disclosed in former reports, so as to reflect the change in the measurement criteria. The GRI indicators are provided individually throughout the text and summarized in a specific reference table included in this report.

The Company's commitment to sustainability, encompassing all its distinct aspects - economic, social and environmental - has been evidenced in the disclosure and format of the present report, which has made available both in Portuguese and in English, in an electronic format and in our website downloadable in PDF application. Priority has been given to themes that focus on management systems and operations that are internally considered of utmost interest to all stakeholders. It is worth mentioning that the process of preparation of this report relied on the dedication of both the Company's and its subsidiaries' associates, engaged in the compilation and validation of the data provided.