I N T E G R A T E D R E P O R T - 2 0 1 5

São Paulo

● Peru

Uruguay4 ● ● ● ●

BRAZIL

● Bolivia3

0.2

● ● ● ●

33.3

● ● ● Chile2/6

2.2

● ● ● Argentina1/6

2.8 0.5

OUR BUSINESSES AND MARKETS

● CEMENT37,2 MILLION METRIC TONS IN 2015

Our biggest business area and main product is still cement.

APPLICATIONS: It is the basic component of concrete and mortars. Cement is used in construction in general, for industrial, commercial and residential surfaces and floors. It is used in all types of infrastructure construction.

● CONCRETE10,2 MILLION M3 IN 2015

In Brazil, we market concrete in 15 Brazilian states through our Engemix affiliate, a well-known brand name that specializes in concrete batching centers.

APPLICATIONS: Composed of a mixture of cement, sand, aggregates and water, it is the most common construction material. It is also used for paving outdoor areas.

● MORTAR1,8 MILLION METRIC TONS IN 2015

In Brazil, we produce three ranges of mortars: the Matrix brand, which is a range of standard mortars, the Votomassa brand, a range of adhesive mortars and Decoratta brand, a fine plaster for finishing masonry.

APPLICATIONS: It is used to join blocks or bricks, finish surfaces and lay ceramic tiles.

In Brazil, which is our main market, due to the political and economic scenario, we had to react quickly in 2015, with measures that would safeguard our operations and business activities.

At the same time, we conti-nued with our long-term invest-ment plan in order to increase our geographical diversifica-tion and consolidate our posi-tion in markets with high growth potential.

The economic recovery in the United States and the improved performance of our operations in North America, Europe, Africa and Asia offset the decline in consumption in Brazil. The deva-luation of the R$/US$ exchange rate also contributed positively to our consolidated results.

We were the first Brazilian company to make a bond issue in the international capital markets in 2015, in the amount of EUR 500 million.

For our employees, we are committed to creating an incre-asingly challenging internal envi-ronment. In 2015, we invested 20 million reais in the develop-ment of our teams. For our custo-mers, we improved the average service time and our product quality index in all segments.

Sustainability is one of the main drivers of our business activities. We developed a Sustainability Strategic Plan and established a series of commitments and targets to be achieved by 2020. In 2015, we participated in the COP 21 meeting in Paris and created a new area to seek new options for Alternative Fuels and Raw Materials (AFR).

We still have much to build for this and future generations.

● ● ● ● Spain

● ● ● Morocco

3.2

1.2

Florida5 ● ●

Great Lakes ● ● ● United States/Canada

0.8

VOTORANTIM CIMENTOS LATIN AMERICA

5 2/1 6/43 1/16 1/1 4 We signed a financing agreement for the construction of a new cement plant to be constructed in Santa Cruz Province, Bolivia. In Argentina, we approved an expansion project in San Luis, which will increase its production capacity to 993 thousand metric tons/year. Also in Argentina, we invested US$ 12.6 million in the modernization of a lime factory to serve the construction market. We started up operations at an adhesive mortar plant in Uruguay, with a capacity of 25 thousand metric tons/year.

VOTORANTIM CIMENTOS BRAZIL

17 10 104 18 9 2In 2015 we inaugurated three production units: a cement plant in Edealina (GO), with a capacity of 1 million metric tons/year; a mortar plant in Camaçari (BA); and an agricultural lime production plant in Arroio Grande (RS).

1. Argentina, participation of 49% (Avellaneda) | 2. Chile, participation of 16.7% (Bio Bio) | 3. Bolivia, participation of 67% (Itacamba) | 4. Uruguay, participation of 51% (Artigas) | 5. Includes 100% of the installed annual capacity of Suwanee, which is not consolidated in VCSA's financial statements | 6. Includes 100% of the installed annual capacity of Bío Bío and Avellaneda, which are not consolidated in VCSA's financial statements

A COMPANYBUILT TO LAST

5.2

INSTALLED ANNUALCEMENT CAPACITY OF OURCONSOLIDATED OPERATIONS 55,5 MILLION

METRICTONS/YEAR

1 MILLIONMETRIC TONS

83 MARACANÃSTADIUMS=

1. United Nations Global Compact (UNGC) – This is a United Nations initiative to encourage companies to respect human rights, support decent work, protect the environment and fight corruption;

2. Cement Sustainability Initiative (CSI) – This is an international cement industry protocol, signed by the 25 largest producers of building materials in the world, to promote the adoption of best practices in the cement sector;

3. Business Pact – "In the Right Direction" Program – By signing this pact the signatories commit to combating the sexual exploitation of children and adolescents along Brazilian highways;

4. SBE-VC-RBMA Technical Cooperation Agreement – This is a partnership among Votorantim Cimentos, the Brazilian Society for Speleology (SBE), and the Atlantic Forest Biosphere Reserve (RBMA) to develop social and environmental practices that contribute to the protection of caves and the Atlantic Forest biome;

5. Global Reporting Initiative (GRI) – This is an independent international organization that helps businesses, governments and other organizations to understand and communicate their impacts on critical sustainability issues such as climate change, human rights, corruption and many others;

6. Open Letter to Brazil on Climate Change (ETHOS Institute) – This is a Brazilian business sector initiative, coordinated by the ETHOS Institute, under which the company makes a number of commitments to combat climate change.

Voluntary commitmentsWe are signatories of the following voluntary global and national pacts and initiatives:

● AGGREGATES26,7 MILLION METRIC TONS IN 2015

We provide gravel and sands of different grain sizes for the construction industry, to meet the needs of the market segments for concrete producers, industries, infrastructure, paving and retail.

APPLICATIONS: Materials used mainly for the manufacture of concrete but also for: asphalt, pre-cast slabs, reinforced concrete structures, pre-cast concrete artifacts, cyclopean concrete, and materials for landfills, drainage, base and sub-base of highways and paved areas.

LIME

HYDRATED LIME A material with a plasticizing capability, used in construction and mortars.

LIME PAINT Economically attractive material, used to paint large areas at a lower cost.

● AGRICULTURALLIMESTONE

Used in agriculture and in animal husbandry in order to: correct soil acidity, neutralize aluminum toxicity, increase the efficiency of fertilizers and improve nutrient availability. Due to the high levels of calcium and magnesium in its composition it also provides these macro-nutrients for crop development.

Tunísia ● ●

Turkey ● ● ●

India ●

China ●1.8

3.0

1.2

5.9

VOTORANTIM CIMENTOS NORTH AMERICA

4/1 2 103/18 43Expansion of our Charlevoix plant in Michigan, United States. The production capacity of the plant will be increased from 1.3 to 1.9 million metric tons/year. Our plant in Bowmanville, Canada, received its first long-term government authorization to use low-carbon fuels.

VOTORANTIM CIMENTOS EUROPE, ASIA AND AFRICA

14 8 104 21 2 Expansion of our cement factory in Sivas, Anatolia, Turkey. The new production line, which has a planned capacity of 1.2 million metric tons/year, is expected to begin operations in early 2017. This investment, amounting to EUR 140 million, is the largest ever made by Votorantim Cimentos outside the Americas.

CementPlants

GrindingMills

Concrete BatchingCenters

AggregatesPlants

MortarPlants

LimePlants

NUMBER OF UNITS / NUMBER OF PARTICIPATIONS

KEY ACTIVITIES

KEY ACTIVITIES

KEY ACTIVITIES

PERFORMANCE INDICATORS

Community engagement

Reduction in emissions of NOx and SO2

Use 30% of alternative fuels

Security (fatality rate)

Water and biodiversity

Ethical business practices (conduct code)

AFR - Alternative fuels target

EBITDA

Sustainability in the supply chain

Reduction of CO2 emissions

Global Environmental Policy and Green Rules

Cash Cost process

Clinker / Cement Factor

IQP processes

Commercial NPS

OEE - Productivity and Quality

Tmac - Customer Service

Index of engagement

H

C

C

C K L

C NM OK L

C K L

ME

O QE

I

P

P

P

F G

A D

E B

IMPACTS BY ACTIVITY

SOCIALGeneration of Employment and IncomeModernization of Public Administration

Overloading of local infrastructureTruck traffic

ENVIRONMENTALSocial and environmental education

Archaeological and paleontological protectionRehabilitation of degraded areas

Removal of vegetationNoise

Emissions of particulate matterImpacts (soil, biodiversity and communities)

Biodiversity managementWaste

Co-processingCO

2 emissions

Other emissions (NOx,SO2,etc.)

Effluents

ECONOMICTaxes on contracted services

Taxes on mineral exploration (CFEM)Taxes on the acquisition of goods and services

Taxes on the sale of products and services

Positive impacts Negative impacts

VALUE PROPOSITION

Brand credibility and legacy Process improvement and bureaucracy reduction

Investments in sustainability Customer relations

Quality and variety of the product range Technical expertise and safety at work

MANAGEMENT OF PROJECTS AND INDICATORSAdvocacy

1RESEARCH* PLANT

CONSTRUCTION

2MINING

3PRODUCTION

4

INBOUND/OUTBOUNDLOGISTICS

5COMMUNICATION SALES

Services

7

OTHER STAKEHOLDERS

Shareholders

Investors

Financial institutions

Employees: own and third-party contract staff

Society

Local community

Class associations

REAL ESTATE Construction companiesINFRASTRUCTUREInfrastructure constructioncompanies

B2C

B2B

INDUSTRIALConcrete batching centersPrecast concrete industryConcrete artifacts industryFiber cement industryMortar industry

CUSTOMERSEGMENTS

MATERIALITY

Financial Capital

Human Capital

Social and relationship Capital

Natural Capital

A Ethics, transparency and integrity

B Occupational health and safety

C CO2 emissions

D Anti-corruption practices and compliance with the competition laws

E Regulatory risks

F Supply chain management

G Contribution to local development

H Economic performance: economic value generated and distributed

I Community relations

J Government relations

K Energy efficiency

L Alternative sources of electricity and fuels

M Air emissions (Particulate Matter, NOx and SO

2)

N Management and re-use of civil construction waste and reverse logistics for used cement bags

O Water consumption

P Customer satisfaction

Q Biodiversity conservation

1

1

2

2

3

3

4

4

5

5

6

6

7

7

8

8

STRATEGIC DRIVERS

CustomerFocus

SustainablePractices

OperationalExcellence

EmpoweredPeople

Water

Firewood

Gas

Infrastructure

Vehicle fleet and concrete mixers

People

Concrete batching centers

Distribution centers

Technology center

Fuel

Energy

Plants

Inputs

Machinery/equipment

Media and marketing

Mines

Investment capacity

Natural resources

IT

MAIN RESOURCES

PARTNERSHIPS ANDSTRATEGIC ALLIANCES

IG

AFTER-SALESSERVICEMine closure

8

● Community/Social license● Universities● Training Schools● Environmental Institutes● Government entities● Trade Unions● Government● Class Associations● Banks ● Suppliers● Equipment Suppliers● Coke Suppliers (fuel and additives)● Supplier of alternative fuels ● Co-processing services● Transport companies and independent truck drivers● Brazilian Army (explosives)● Cementitious products companies● Opinion leaders/influencers● Customers/promoters● Newspapers, magazines, TV and websites● Customers ● Key accounts (Large construction companies and Home Centers) ● Technical Laboratories

RETAILDistributors: smallretailers, home centers

* Geological research, Research and Development (R&D) and Market research

6

ECONOMIC PERFORMANCE

EBITDA R$ MILLION

1. Figures have changed since 2014 they now include China2. Includes R$ 117 million of derivative transactions

201412013 2015

2,679

3,483

414

302

8891

74

3,231

2,709

1,916

3,512

741373

483356

NORTH AMERICA

CONSOLIDATED

BRAZIL

LATIN AMERICA

EUROPE, ASIA AND AFRICA

AMORTIZATION PROFILE EXTENDED

We were able to accessfinancing lines at attractiveterms and interest rates,which enabled the companyto extend its debt profile,thus ensuring greater liquidity and reducing refinancing risk.

We were the firstBrazilian company tomake a bond issue in the global capital markets in 2015. We raised EUR 500 MILLIONwith a maturity date of2022 and an interest rateof 3.5% per year.

19,497 GROSS DEBT

4,734 CASH + FINANCIAL INVESTMENTS

14,6462

NET DEBT

DEBT ANDLEVERAGE ATYEAR-END 2015R$ MILLION

BRAZIL – In 2015 the economic and political crisis accelerated significantly, requiring a fast reaction on our part. We adapted our business structure to the new market conditions by focusing on operational excellence and cost optimization. According to the National Cement Industry Union (SNIC), the apparent cement consumption decreased by 9.5% in 2015 compared to 2014. The main factors causing the fall in consumption were increased unemployment, reduced credit availability and a deceleration in construction sector activity.

NORTH AMERICA – The recovery of the North-American market, combined with the devaluation of the R$/US$ exchange rate, helped us to offset the decline in our business in Brazil. The operating performance for the year was the best since our acquisition in 2001. According to the United States Geological Survey (USGS) and the Canadian Cement Association (CAC), the cement consumption in the Great Lakes Region, Florida and Ontario grew by 6.3%, 8.1% and 4.3% respectively.

EUROPE, ASIA AND AFRICA – In Europe, Asia and Africa, we have different dynamics for each market. The highlights of the year were the economic recovery in Spain, the high rate of capacity utilization registered in our operations in North Africa and Turkey, and the impact of the devaluation of the R$/EUR exchange rate on the consolidated results. At year-end we consolidated the results of our operations in China, due to IFRS requirements. Previously, since 2012, these assets had been accounted for as assets for sale. However, we have no intention to hold these assets in China and will continue to seek buyers.

LATIN AMERICA – We only consolidate the results of our operations in Bolivia and Uruguay. All these countries, especially Bolivia, are emerging markets that have growth potential. According to estimates published in The Global Cement Report, the consumption for Bolivia and Uruguay in 2015 increased by 7.9% and 4.3% respectively.

NET REVENUE R$ MILLION

14,046

7,831

3,544

2,308

405

+7%

-8%

+55%

+17%

+19%340

13,130

8,545

1,974

2,290NORTH AMERICA

GLOBAL

BRAZIL

LATIN AMERICA

EUROPE, ASIA AND AFRICA

20141 2015

Our long-term strategy, which focuses on geographic diversification, commitment to improve operational excellence and financial discipline (cost reduction, divestiture of non-strategic assets, extended debt profile and an adequate level of liquidity), demonstrates the company's capacity to adapt to any scenario, including, principally, unfavorable situations, such as that experienced in Brazil. These actions enabled us to maintain our leadership position in the Brazilian market and to consolidate our position in other countries where we operate, without impacting the investors' confidence in the company.

TOTAL EMPLOYEES * Figures have changed since 2014 they now include China

16,756 15,779 15,288*

WOMEN EMPLOYED 11.7% 10.5% 12.3%

EMPLOYEES OVER 50 YEARS OLD * Figures do not include China

9.9% 17.9% 19.9%*

ENGAGEMENT INDEX BRAZIL - 73% 76%

SOCIAL PERFORMANCE

ENVIRONMENTAL PERFORMANCE

FOR EVERY R$ 1.00 INVESTED IN SOCIAL PROJECTS INTHE COMMUNITY, VOTORANTIM CIMENTOS GENERATED A RETURN OF R$ 4.54.Result of a study on the return on social investment at our cement plant in Primavera (PA), using the Return on Investment (ROI) methodology.

ENVIRONMENTAL CAPEX AND OPEX – R$ MILLION 2013 2014 2015

CAPEX Environmental investments 79 67.8 93.1

OPEX Environmental expenses 51.2 41.6 33.3

SPECIFIC CO2 EMISSIONS – kg CO

2 /METRIC TON OF CEMENTITIOUS PRODUCT

GROSS 657.1 657.3 659.3

NET 649.6 646.8 647

OTHER AIR EMISSIONS – METRIC TONS/YEAR

NITROGEN OXIDES (NOX) 65,407 61,005 56,997

SULFUR DIOXIDE (SO2) 22,665 20,735 22,149

PARTICULATE MATTER 3,302 3,126 1,977

CLINKER FACTOR – TARGET 2020 - 72% 76.1% 74.7% 73%

SPECIFIC CONSUMPTION OF ELECTRICITY kWh PER TON OF CEMENTITIOUS PRODUCT

109.4 112.2 109.1

PRODUCT LIFE-CYCLE ASSESSMENTS

We prepared five environmental product

declarations for existing products selected

from the cement, concrete, and mortar

product ranges. We used the methodology

defined by ISO 14025 (EPD) and ISO 14040

(LCA), and a software package developed

by the Cement Sustainability Initiative

(CSI). These declarations are of particular

interest to companies seeking certification

under the Leadership in Energy and

Environmental Design (LEED) standard.

ENVIRONMENTAL PRODUCT DECLARATIONS

We created a new business unit focused on Alternative Fuels and Raw Materials (AFR), aimed at increasing co-processing and the use of alternative fuels to replace fossil fuels. At a global level we increased our rate of utilization of alternative fuels from 7.8% in 2014 to 8.9% in 2015. This was an important initiative for reducing carbon dioxide emissions.

In a year which saw a sharp downturn in the Brazilian market, we revised our organizational structure, with the challenge of seeking a balanced budget and at the same time, preserving the knowledge base and maintaining the company in a state of preparedness for an upswing in the economy. We recorded a significant improvement in our Organizational Climate Survey indicators, in several countries, as a result of the strengthening of our corporate image as a global company.

1. Eco-efficiency of the cement produced on Rio

Branco unit (PR) (2005 to 2014) - In a comparative

analysis, the cement produced in 2005 is more ecoefficient

than the 2014, however, the performance of our product

has improved in the last few years, being necessary 9%

less cement for the same cubic meter of concrete. The final

results put the 2014 concrete in a more ecoefficient position

than the 2005 concrete. Besides that, the production cost

of Rio Branco's cement in 2014 is lower compared to 2005.

2. The environmental and economic

performance of a rigid concrete pavement

and a flexible asphalt pavement for the

construction and maintenance of a highway

over a period of twenty years. The rigid concrete

pavement, which is currently used in only 4%

of Brazil's highway network, is 53% more

eco-efficient and costs 54% less, considering

the costs of construction and maintenance.

We conducted two studies to assess the environmental performance of our products, considering the impacts throughout their life cycles, from the extraction of natural resources to their final disposal or recycling.

SOCIAL INVESTMENTS – R$ MILLION

OWNTHE VOTORANTIM INSTITUTE +THIRD-PARTY FUNDS +TAX INCENTIVES

2014 2015

6.87.6

7.58.4

LOST TIME RATE FRENQUENCY 0.74 (number of injuries with lost time compared to millions of man-hours worked, included injuries to third parties. We recorded the lowest global injury frequency rates in the last ten years.

NUMBER OF SOCIAL PROJECTS – 2015

BUDGETED

EXECUTED

112110

NUMBER OF FATALITIES VCBRCement, aggregates and concrete*

CONTRACT STAFF 9 7 3

THIRD PARTIES 8 3 1

EMPLOYEES 3 1 0

2013 2014 2015

2013 2014 2015

OUR TARGETS FOR 2020

SAFETY

To ensure the effective adoption of the Global Health and Safety Policy and the Life Saving Rules.

To implement sustainable supply chain standards.

Promote healthy working conditions and zero harms environment for all our employees. To reach zero fatalities and a LTI* Rate for direct employees of less than 0.4.

ETHICS AND COMPLIANCE

Ethical Business Practices: to ensure that all of our operations are carried out in an ethical manner and in conformity with the Votorantim´s Code of Conduct.

ECO-EFFICIENCY AND INNOVATION

Environmental Policies: to ensure the implementation of our Global Environmental Policy and Green Ruless.

Supply chain standards: to promote sustainable supply chain standards by way of our business units.

Non-fossil fuels: to use 30% non-fossil fuels in our cement plants.

Sustainable products and services: to promote the implementation of new sustainable solutions, products, services and innovation – achieve a clinker/cement factor of 72%.

CO

2 emissions: to reduce our CO

2

emissions per ton of cement by 25% compared to 1990 levels.

PM NOx SO

2

Air emissions: to reduce particulate matter, NOx and SO

2 emissions per ton

of clinker to 65g, 1950g and 750g / ton of clinker, respectively.

Water and biodiversity: to implement water management plans for scarcity areas in our business units.

Water and Biodiversity: to ensure that all of our quarries have rehabilitation and biodiversity management plans for local and sensitive biodiversity regions.

COMMUNITY ENGAGEMENT

To ensure the implementation of a community engagement plan in communities where we operate that have a high degree of social vulnerability.

MAIN R&D AND QUALITY

PROJECTS

ACTIVATED POZZOLANProduction of activated pozzolan from

the calcination of kaolin clay and

limestone, aimed at improving cement

quality and reducing costs.

ZERO LOSS I Aims to re-use concrete by the

addition of stabilizers.

MANGANESE SLAGManganese slag is used to improve

cement quality and reduce costs.

NEW PRODUCTS

COST REDUCTION

DECORATTA Development of a surface finishing

product, aimed at a practical form of

application and a fast drying time. Up to

30% reduction in the application time.

PERVIOUS CONCRETE Development of a concrete with a high

degree of porosity for use in pavements,

that has a a number of benefits.

Target achieved Target on schedule Target behind schedule

Sustainability is inherent to our business approach and activities. It is also one of the main drivers of our strategic plan. To highlight its importance and to stimulate a change of attitude in our employees, encouraging them to constantly pursue sustainability and innovation in doing business, we established our Sustainability Commitments for 2020.

DOWNLOAD THE COMPLETE VERSION OF THIS REPORT AT: www.votorantimcimentos.com/pt-BR/sustainability/Paginas/Integrated-Report.aspx

Period of analysis for this report: January to December 2015.

E-MAIL FOR CONTACTS: ri@vcimentos.com.br

* (LTI Lost-time injury) is defined as an occurrence which results in a fatality, permanent disability or lost time at work for a shift or more.