CVM Instruction No. 527 of October 4, 2012

CVM INSTRUCTION NO. 527, OF OCTOBER 4, 2012.

Provides for the voluntary disclosure of non-accounting information designated as LAJIDA and LAJIR.

The INTERIM PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Board, in a meeting held on October 2, 2012, based on item I, of the sole paragraph of art. 22 of Law No. 6,385, of December 7, 1976,

RESOLVED:

Art. 1 This Instruction governs the voluntary disclosure by publicly-held companies of information designated as LAJIDA (EBITDA) – Earnings Before Interest, Taxes on Income including Social Contribution on Net Profit, Depreciation and Amortization and LAJIR (EBIT) – Earnings Before Interest and Taxes on Income including Social Contribution on Net Profit.

Art. 2 The calculation of LAJIDA and LAJIR must be based on the figures presented in the general-purpose financial statements provided for in Technical Pronouncement CPC 26 – Presentation of Financial Statements.

§ 1 Values that do not appear in the financial statements referred to in the caput, especially in the income statement, cannot be part of the calculation of LAJIDA and LAJIR disclosed to the market.

§ 2 The disclosure of the calculation of LAJIDA and LAJIR must be accompanied by the reconciliation of the values contained in the financial statements referred to in the caput.

Art. 3 The calculation of LAJIDA and LAJIR cannot exclude any non-recurring, non-operational items or items from discontinued operations and will be obtained as follows:

I – LAJIDA - net result of the period, plus taxes on profit, net financial expenses minus financial revenues, and depreciation, amortization, and depletion;

II – LAJIR – net result of the period, plus taxes on profit and net financial expenses minus financial revenues.

Art. 4 The company may opt to disclose the LAJIDA and LAJIR values excluding net results linked to discontinued operations, as specified in Technical Pronouncement CPC 31 – Non-Current Asset Held for Sale and Discontinued Operation, and adjusted for other items that contribute to information on the potential for gross cash generation.

§ 1 The values referred to in the caput must be disclosed together with the values calculated in accordance with art. 3 of this Instruction.

§ 2 The other items referred to in the caput may only be used for adjustment when they appear in the accounting records that served as the basis for the preparation of the financial statements of the period.

§ 3 The disclosure of the values referred to in the caput must be accompanied by a description of their nature, as well as the method of calculation and the respective justification for the inclusion of the adjustment.

Art. 5 The disclosure provided for in art. 4 of this Instruction must always be identified by the term “adjusted”.

Art. 6 The company’s administrators must accord the disclosure of the non-accounting information addressed in this Instruction the same treatment given to the disclosure of accounting information.

Art. 7 All disclosure relating to LAJIDA or LAJIR must be made consistently and comparably with the presentation of previous periods, and in case of change, justification must be presented, as well as a complete description of the change introduced.

Art. 8 The disclosure of the LAJIDA or LAJIR values must be made outside the complete set of financial statements provided for in Technical Pronouncement CPC 26 – Presentation of Financial Statements.

Art. 9 The disclosure of the calculation of LAJIDA or LAJIR, as provided for in arts. 3 and 4 of this Instruction, must be subject to verification by the company’s independent auditor in accordance with standard NBC TA 720 issued by the Federal Council of Accounting.

Art. 10 This Instruction enters into force on the date of its publication, producing effects in disclosures relating to LAJIDA and LAJIR made from January 1, 2013.

Original signed by
LUCIANA PIRES DIAS
Interim President