Fact Sheet

A Paranapanema

We are the largest non-integrated producer of refined copper, rods, wires, laminates, bars, tubes, connections and its alloys, responsible for 100% of refined copper (cathodes) production volume in Brazil. Our operations are located in three industrial units, one of refined copper or Primary Copper in Dias d’Ávila (state of Bahia), and two Copper Products and alloys plants, one in Santo André (São Paulo state) and one in Serra (Espírito Santo state). The product distribution logistics is made through the controlled company CDPC – Centro de Distribuição de Produtos de Cobre (Copper Products Distribution Center), with units in Bahia and Rio de Janeiro.

Capital Markets

We are listed at B3 since 1971 under the PMAM3 ticker, being a part of the Novo Mercado level of Corporate Governance since February 2012. We are a corporation, with no shareholder individually holding more than 24% of the Company’s shares, with no shareholder agreement or control group.

Strategy

To be the most efficient copper producer in Brazil, so as to sustain increasing returns on invested capital. Paranapanema’s strategy is based on the following value levers:

1 . Improvement of operating margins:

• Improve net premiums upon sale of copper products;
• Reduce transformation costs;
• Reduce sales, administrative and general expenses.

2. Asset productivity:

• Capital expenditure (Capex);
• Improve operating efficiency.

3. Capital structure management:

• Reduce the Company’s net debt / EBITDA ratio.

Financials

Corporate Governance

Our corporate governance model values the commitment to ethics in decision-making processes. All practices are based on relevant reference documents, such as the Company Code of Ethics and the Bylaws, always following the guidelines of corporate responsibility, accountability, transparency, equity and collective decision making aimed at a consensus among the parties involved, always looking at the long term.

Our governance structure is composed at the General Shareholders’ Meeting, which is responsible for electing the members of the Board of Directors and the Fiscal Council. The Board of Directors is composed of 7 members, 1 independent, with a mandate of 2 years, and which is assessed by 4 Committees: Audit Committee; Finance Committee, Risk and Contingencies, People Management and Sustainability Committee; and Strategy Committee. The Fiscal Council is composed of 3 members, with a one year mandate.

Among its responsibilities, the Board of Directors is responsible for electing the Executive Board, composed of 4 statutory members and 2 non-statutory members.

In order to guide our business and operating principles, we have adopted a Code of Ethics, which was reviewed and approved by the Board of Directors on 07/31/2014. We also have an Internal Audit area, responsible for complying with the annual schedule for monitoring.

Our Policies are tools to formalize standards and processes, based on the best practices of Corporate Governance. The following are available for reference and consultation on our website: The Securities Trading Policy; the Disclosure Policy; the Related Party Transactions and the Conflict of Interest Policy; the Corporate Governance Policy; the Information Security Policy; the Sustainability Policy; the Donations and Sponsorship Policy; the Market Risk Management Policy and the Anti-Corruption Policy.

We have an Investor Relations department, responsible for interaction with shareholders, investors, analysts, regulators, and other entities from the capital market. We hold annual public meetings with investment analysts, shareholders and other stakeholders. We disclose our financial results and have used IFRS (International Finance Reporting Standard) since 2010, and we hold quarterly teleconferences in Portuguese and English with the capital market on the disclosure of results and other matters of interest.

Sustainability

We always seek the sustainable development of our industrial activities with respect and balance between economic, social, environmental and corporate governance aspects, trying to create in our employees the awareness of attention and respect for the world we live in, in order to keep the trust of clients, shareholders, partners, neighbors, and society as a whole. With this ethical behavior, the relationships last longer and grow more reliable, and by following its code of ethics, Paranapanema consolidates its brand in the market.

Social management is one of the major focus of attention of Paranapanema, besides seeking constant improvement in the quality of life of employees, seeking to offer better conditions well outside the work environment.

The Primary Copper Unit in Dias d’Ávila (BA) develops since 1989 the PAC – Programa de Apoio à Comunidade (Community Support Program), in communities at the cities surrounding the plant. The program reflects the importance of Paranapanema’s social responsibility role and strengthen its image in society based on the practical solutions of socio-economic issues in a participatory manner, in partnership with local government and community representative through education, health, income and work generation and environment programs. The practice of strategic thinking is the main process to plan the direction and positioning of Paranapanema, allowing reaction with agility and organization, in order to anticipated changes in key success factors, identifying critical variables that influence the business scenario, a fundamental element for sustainable development.

Sustainability management is driven by transparency in business and in the disclosure of information to the market. At Paranapanema, it is enhanced by the adhesion to the Novo Mercado level of corporate governance at B3, by the responsible management of the environmental variables related to the industrial processes, by the focus on safety, occupational health and quality of life of the employees and by the management of the influence on neighborhood communities.

Certification