Return on capital expenditure (roce) and return on equity (roe)

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Period ROCE ROE
Fiscal year 2006 23% 28%
Fiscal year 2007 18% 20%
Fiscal year 2008 - Law 6.404 19% 26%
Fiscal year 2008 - Law 11.638 19% 25%

The Return on Capital Expenditure increased one percentile point in relation to December 2008, as a result of the increase in profitability already mentioned, surpassing the increase in capital expenditure through raising of new financing and the exchange variation on indebtedness.

The Return on Equity increased six percentile points as a result of the increase in revenues and the better financial results.

The definition of the amounts recorded as provisions per company is based on the legal rules established in Official Letter 31/2008/SE/MME, of January 9, 2008, and Official Letter 694/2007/MP/SE/DEST, of December 31, 2007, which establish the application of 4,17% of the consolidated net income before employee and management profit-sharing, and minority interests, observing the prevailing laws and regulations.

Management participation in the profits or results will be subject to approval at the General Shareholders’ Meeting to be held on April 8, 2009, in accordance with articles 41 and 56 of the Company’s bylaws and specific federal regulations.