Endeavor

INDICATORS, SOURCES AND CALCULATION FORMULAS Determinant Regulatory Environment Subdeterminant Proccess Time • Indicator Time to open a business (in days) Calculation Method Total time, in days, necessary to start a business, according to the responsible agencies, and considered the following processes: the act of filing (Board of Trade); emission CNPJ (IRS); state registration of issue (the State Government); business license (City Hall); fire station license (Military Police). Source SEDI — Year 2014 ____ • Indicator Time to get electricity (in days) Calculation Method Average time, measured in days, necessary to get low and high voltage, according to the local utility. Source SEDI — Year 2014 ____ • Indicator Approval time for architectural projects (in days) Calculation Method Total time measured in days, required to approve architectural plans and issue building permit, according to the local municipality. Source SEDI — Year 2014 ____ • Indicator Time to obtain real estate records (in days) Calculation Method Total time measured in days, necessary for land records, according to registry offices and local municipality. For all cities, the following cases were considered: certificates emissions (Office of Real Estate); issue of ITBI (City Hall); deed, property registry and annotations between the parties (Office of notes). Source SEDI — Year 2014 ____ • Indicator Court congestion charges (*) Calculation Method Average congestion charge considering the effectiveness of the court in the period, taking into account the total number of new cases filed, downloaded cases and the stock outstanding at the end of the period before the base period. Average index between the State Court of Justice, the Regional Labor Court and city's respective Federal Court. State data. Source CNJ — Year 2013 ____________________________________________ Subdeterminant Tax Cost • Indicator Effective Taxes on Small and Medium Businesses (*) Calculation Method The effective tax rate of the National Simple Tax System, according to simulation of Sebrae/CNI on micro and small enterprises (with turnover of up to R$ 3.6 million) operating in the following sectors: industry, trade and services. State data. Source Sebrae and CNI — Year 2012 ____ • Indicator Average property tax rate Calculation Method Average property tax in three standard types of companies for all cities: retail sales of apparel and accessories such with space of 50 m 2 and market value equal to R$ 275,000 (sector: trade); restaurants and other food services and drinking establishments, with space of 150 m 2 and market value equal to R$ 825,000 (sector: services); manufacture of garments, except underwear, with space of 500 m 2 and market value equal to R$ 2.75 million (sector: industry). Source Municipalities — Year 2014 Determinante Infraestrutura Determinant Infraestructure Subdeterminant Intercity Transportation • Indicator Density of Road Transport (*) Calculation Method Total paved road network in the state, under estudual and federal jurisdiction, in kilometers; divided by the total area of the state. State data. Source DNIT / IBGE — Year 2012/2010 ____ • Indicator Number of direct flights Calculation Method Logarithm of the total number of aircraft takeoffs and landings in domestic and international flights at airports with commercial flights in the metro- politan region of the city. Source Infraero — Year 2013 ____ • Indicator Distance to the closest port (in kilometers) Calculation Method Logarithm of the total distance in kilometers from the center point of the city to the port with the nearest freight terminal. Source IRS and Google — Year 2014 ____________________________________________ Subdeterminant Urban conditions • Indicator Access to internet Calculation Method Local administrative area of population per- centage who accessed the Internet in the last 3 months. Source Microdata of PNAD (IBGE) — Year 2013 ____ • Indicator Average cost of m 2 (in R$) Calculation Method Average price per m 2 , used residential apart- ments — published in Exame Magazine (Issue 1065 — 14.05.2014). Source FIPE — Year 2014 ____ • Indicator Cost of electricity (in R$ and kwH) Calculation Method Value of residential rates charged by local utilities and approved by ANEEL, measured in R$ per kilowatt-hour. Do not include taxes and other elements that are part of the bill, such as ICMS, public lighting fee and Emergency Capacity Charge. Source Aneel — Year 2014 ____ • Indicator Commute time Calculation Method Percentage of the local population declaring take thirty (30) minutes or more to travel the path home to work. Source Microdata of PNAD (IBGE) — Year 2013 ____ • Indicator Vehicle theft rates Calculation Method Total motor vehicle thefts in the city, for every 1,000 vehicles. Source Denatran — Year 2013/2014 Determinant Market Conditions Subdeterminant Economical Development • Indicator Total GDP Calculation Method Logarithm of the total Gross Domestic Product of the city, in reais. Source IBGE — Year 2011 ____ • Indicator GDP's Real Growth Calculation Method Average growth of GDP of the municipality, in real terms, by municipality, between 2009 and 2011. Source IBGE — Year 2011 ____________________________________________ 95

• Cover