million OVER crazy fans SUSTAINABILIT Y REPORT 2010

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2 OUR HISTORY 1910 SEPTEMBER 1 - at 8:30 PM, under the light of a street lantern, at the corner of José Paulino and Cônego Martins streets, Sport Club Corinthians Paulista is founded by Anselmo Corrêa, Antônio Pereira, Carlos Silva, Joaquim Ambrósio and Raphael Perrone SEPTEMBER 17 first match in another city. In reality, two: in the morning, in Campinas, the team defeats Ponte Preta 1-0. In the afternoon, 3-1 against Corinthians Campineiro DECEMBER 29 the Club s first trophy, Unione Viaggiatori Italiani, in a 10-km foot race that takes place at Parque Antarctica, by the athletes Batista Boni, João Collina and André Lepre MARCH 30 Corinthians thrashes F. C. São Paulo (SP) 4-0 and qualifies for its first State Championship, promoted by the São Paulo Football League, in NOVEMBER 8 win over Campos Elyseos 4-0 guarantees the first State Championship title in Corinthians history. Corinthians is undefeated, with 10 wins in 10 matches With the promise of a spot in the State Association of Athletic Sports, Corinthians leaves the São Paulo Football League, but fails to play in either of them. It spends the entire year playing friendly matches in the State of São Paulo, undefeated DECEMBER 3 win over Americano 3-0 guarantees the second State Championship title, and Corinthians is undefeated again (eight wins in eight matches) The team plays the first unified State Championship. It finishes third MARCH 17 Ponte Grande field, the first Corinthians stadium, is opened, with a match against Palestra Itália. The friendly match ends 3-3. DECEMBER 1 first Corinthians match out of the State: win over Flamengo, in Rio, JANUARY 26 champion of the first One-Day Tournament at the start of the State Championship (Challenge Cup) JULY 11 the team s highest score in history, over Santos: 11-0, at Vila Belmiro, in the State Championship OCTOBER 23 the team scores the highest number of goals in a single match: 12, against Internacional from São Paulo, 12-2, in the State Championship FEBRUARY 4, 1923 win over Paulistano ensures the State Championship title in 1922, Brazil s first Independence Centennial. Corinthians is called the Champion of the Centennial SEPTEMBER 2 win over Associação Atlética São Bento 3-0 ensures the second championship in a row for the first time in the history of Corinthians (1922/23) JANUARY 11, 1925 new win over Paulistano 1-0 ensures the State Championship title of This is the first of three State Tri-championships won by Corinthians NOVEMBER 11 Corinthians plays a friendly match against the Brazilian National Team, which is preparing for the South American Cup in Buenos Aires. The match ends in a 1-1 tie President Ernesto Cassano buys a piece of land in Parque São Jorge, the name of a Tatuapé sub-district in the east zone of São Paulo and the current home of Corinthians Two State Championships are played: the Football Amateur League, which ends on July 10, and the State Association of Athletic Sports JULY 22 Parque São Jorge is opened, with a 2-2 tie between Corinthians, Champion of the Centennial in São Paulo in 1922, and América, Champion of the Centennial in Rio de Janeiro. NOVEMBER 25 Corinthians defeats Portuguesa 3-2 and wins its sixth State Championship title MAY 1 the first international win, 3-1 over Barracas, from Argentina, is the origin of the nickname Musketeer, coined by journalist Tomás Mazzoni. DECEMBER 1 high score over rival Palestra Itália 4-1, in its home field Parque Antarctica, ensures two State championships in a row. Corinthians is undefeated (seven wins in seven matches) JANUARY 4, 1931 high score over Santos 5-2, in Vila Belmiro, ensures the State Championship of 1930, three in a row for the second time in Corinthians history The top players in the champion team (Del Debbio, Filó, Rato and De Maria) leave for Lazio, Italy In the year of the Constitutionalist Revolution, only the first half of the State Championship takes place Professionalism is introduced in Brazil, and Corinthians signs its first paid head coach, Uruguayan Pedro Mazzulo. May 20 striker Zuza scores the most goals for Corinthians in a single match: six in the shootout against Sírio Corinthians signs Teleco, who scores 255 goals in 248 matches, over ten years of playing in the Corinthians jersey AUGUST 4 high scoring win over Palestra Itália 4-1, at Parque São Jorge, puts an end to five years without defeating the traditional rival in the State Championship Corinthians becomes one of a few clubs in the world to spend a full year without a single defeat. From December 1935 to March 1937, the team plays 31 matches (28 wins/ 3 drawn matches) DECEMBER 5 win over Estudantes 3-0 ensures the first professional title, and the start of another three State Championships in a row APRIL 25, tie against São Paulo ensures the State Championship title in 1938, the second in a row. This time Corinthians is undefeated for the fourth time in history DECEMBER 31 high scoring win over Santos 4-1 guarantees another State three championships in a row APRIL 28 the team participates in the opening ceremony of the Pacaembu Stadium. In the first match of the day, Palestra Itália defeats Coritiba 6-2; in the second, Corinthians defeats Atlético Mineiro SEPTEMBER 28 win over Santos 3-2, in Vila Belmiro, ensures another State Championship title for Corinthians MARCH 28 Corinthians defeats Palestra 4-1 to become the champion of the Quinela de Ouro Tournament, played by the three best teams of São Paulo (Corinthians, Palmeiras and São Paulo) and two best teams of Rio (Flamengo and Fluminense) JULY 1 Corinthians defeats Palmeiras 3-1 to win the São Paulo City Trophy for the second year running For the amount of 300 contos de réis (a South American record at the time), Corinthians signs defender Domingos da Guia from Flamengo, one of the world s all-time best defenders AUGUST 12 Corinthians defeats São Paulo 2-1, plus five balls hitting the post, to become the only team to defeat the State Champion during that year Corinthians wins 18 out of 20 matches in the State Championship. Nevertheless, it finishes as runner-up MAY 1 Corinthians defeats Portuguesa 2-1 and wins the São Paulo City Trophy once again JUNE 21 Corinthians is the only Brazilian team to defeat powerful Torino, four-time Italian champion, during its tour of Brazil: MAY 8 in a friendly match against Portuguesa, won by Timão 2-0, the team replaces its traditional uniform for Torino s claret shirts, following the team s tragic plane crash FEBRUARY 15 a 1-1 tie against Botafogo, at Pacaembu, ensures the title of the Rio-São Paulo Tournament JUNE 30 in its first match abroad, Corinthians defeats a Uruguayan combined team, 4-1, at Centenário Stadium in Montevideo JANUARY 13 with a high score win 4-0 over Guarani, at Pacaembu, Corinthians is State Champion again after ten years. The offensive line, with Cláudio, Luizinho, Baltazar, Carbone and Mário, is the first to score over 100 goals (it scored 103) in the professional era. AUGUST 27 after a shootout over Palmeiras 5-1, Corinthians retains the São Paulo City Trophy, having won it five times (1942, 1943, 1947, 1948 and 1952) JANUARY 25 Corinthians wins the State Championship of 1952, the second in a row. MAY 31 Corinthians wins the Rio-São Paulo Tournament once again. JULY 14 Corinthians defeats Barcelona, from Spain, 1-0, to win the Little World Cup in Caracas, Venezuela JULY 10 win over Palmeiras 1-0 ensures the second Rio-São Paulo Tournament title in a row, and third overall FEBRUARY 6 a 1-1 tie against Palmeiras ensures the title for the previous year, 1954, the 4th Centennial of São Paulo. Corinthians is now called the Champion of the Centennials. JULY 10 Corinthians defeats Benfica, from Portugal, 2-1 at Pacaembu, to become champion of the Charles Miller International Tournament DECEMBER 2 after a 2-2 tie against São Paulo, the team reaches a 25-match unbeaten streak, and holds the Trophy of the Undefeated for the first time NOVEMBER 3 with a lastminute equalizer, Corinthians- Santos ends 3-3, with the team reaching another 25-match unbeaten streak in the State Championship. The team retains the Trophy of the Undefeated Brazil becomes World Champion for the first time, in Sweden, with Corinthians players Gilmar (goalkeeper) and Oreco (left winger) on the winning team Corinthians finishes a series of 64 matches against foreign teams, playing in Brazil and abroad (47 wins/ 10 draws/ only 7 losses) For 8 million cruzeiros, Corinthians signs striker Almir Albuquerque from Vasco, nicknamed White Pelé FEBRUARY 25 inauguration of Parque São Jorge floodlights, in a 7-2 shootout against Flamengo JUNE 21 after a 3-3 tie against Santos, at Vila Belmiro, Corinthians wins the 1st São Paulo Trophy Runner-up in the Rio-São Paulo Tournament Corinthians wins the State Championship in the aspirant category (would win again in the two subsequent years) and introduces a top player to world football: Roberto Rivellino.

3 KICK OFF PLAYING FOR CORINTHIANS IS SOMETHING ELSE. IT IS NOT ABOUT A DISPOSABLE TEENAGE PASSION, NOR THOSE CERTAINTIES WE HAD AT THAT TIME. IT IS UNDISPUTED LOVE, THE SOUL MATE WE DREAM ABOUT EVER SINCE TESTOSTERONE TAKES OVER OUR BODIES... Sócrates Sport Club Corinthians Paulista, for the third year running, publishes its sustainability report, an essential initiative for transparency and accountability of the current management. Corinthians has been the first club in the world to produce this kind of publication, based on the guidelines proposed by the Global Reporting Initiative (GRI), a multi-stakeholder organization that sets the world standard for reporting information other than financial statements (FSs). Although this report is primarily intended for investors, financial institutions, business partners, labor entities, and other clubs, we have noticed an increasing interest in the publication from other audiences, which can be explained by the passion for football and everything related to Corinthians. PERIOD This report covers the period January 1 to December 31, 2010, in addition to material facts up to April Two annual reports have already been released, in relation to 2008 and SCOPE The facts reported cover all the activities of the club, especially in the Football Department, which includes the Training Centers of Parque Ecológico and Itaquera, districts in the East Zone of São Paulo. GRI GUIDELINES APPLICATION LEVEL G3 PROFILE G3 MANAGEMENT APPROACH INFORMATION G3 PERFORMANCE INDICATORS & SECTOR SUPPLEMENT INDICATORS Respond to items: 1.1; ; , ; , Not required BOUNDARY This report does not present any limitations, changes or restatements relating to information provided in the previous report that might affect its understanding and comparability. MATERIALITY The reporting process and the prioritization of the topics covered were conducted by the Corinthians Presidency and Finance Board, and were supported by other Directors and a consulting firm specializing in communication and sustainability. EXTERNAL ASSURANCE This report has been verified by an independent third-party, PricewaterhouseCoopers, with its economic-financial statements audited by BDO Trevisan. CONTACT For additional information on this report, please contact Raul Corrêa da Silva, Director of Finances, Corinthians, by at APPLICATION LEVEL In early 2011, GRI announced some changes in its Application Level system, and does not authorize the publication of related icons (A, B and C) anymore. Therefore, this issue of the report does not present the C level application logo, as published in the previous issues. The Sustainability Report Corinthians 2010 meets the requirements for GRI Application Level C, according to the parameters as presented in the chart below: Report at least 10 Performance Indicators, including at least one from each area: social, economic and environmental. GRI TABLE OF CONTENTS PROFILE ITEMS STRATEGY AND ANALYSIS ORGANIZATIONAL PROFILE REPORT PARAMETERS GOVERNANCE, COMMITMENTS AND ENGAGEMENT page Page 9, page 5 Page 39, 40, 41, 42, 43, 48, 49 PERFORMANCE INDICATORS ECONOMIC PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE (PRODUCTS) ENVIRONMENTAL PERFORMANCE EC Page 1 64 LA Page HR Page SO Page SO Page SO PR Page PR Page EN EN Page EN Page EN Page Page 47 GRI ITEMS:

4 CONTENTS MESSAGE FROM THE PRESIDENT A POSITIVE SCORE PROFESSIONAL, TRANSPARENT MANAGEMENT LED TO INCREASED REVENUES IN 2010, PLACING CORINTHIANS AT THE TOP AMONG BRAZILIAN CLUBS, TO THE PRIDE AND PASSION OF OUR LOYAL FANS INTRODUCTION MESSAGE FROM THE PRESIDENT 7 PROFILE ORGANIZATIONAL PROFILE 9 Parque são jorge 14 INFRASTRUCTURE 16 SPORTS PROFESSIONAL FOOTBALL 21 YOUTH FOOTBALL 24 OTHER SPORTS 26 FANS LOYAL FANS 30 CREDITS EDITORIAL COUNCIL Andrés navarro Sanchez Raul Corrêa da Silva Marcos Chiarastelli RESEARCH AND TEXT Report Comunicação CONTENTS CONSULTING Crowe Horwath RCS fernando pereira da silva Mário Cardoso Xavier COORDINATION Estevam Pereira CONSULTING Celso Unzelte PROJECT MANAGEMENT clarissa ramos EDITING Álvaro penachioni REPORTING adriana braz ART DIRECTION marcel votre MArcio Penna STRATEGY NEW STADIUM 34 CORINTHIANS BRAND NAME 36 GOVERNANCE AND MANAGEMENT MANAGEMENT 39 ORGANIZATIONAL CHART 41 COUNCILS 43 ECONOMIC PERFORMANCE 44 STAKEHOLDERS 48 COMMUNICATION Marketing 50 CELEBRATION 52 SOCIAL AND CULTURAL INVESTMENTS 54 INFOGRAPHIC marcus penna COVER lauro uezono OTHER PHOTOS agência corinthians, alexandre genga, gustavo scatena, jonathan nóbrega, josé idalgo lauro uezono PHOTO EDITING marcelo soubhia danilo grimaldi ENVIRONMENT PLAYING FOR THE ENVIRONMENT 56 FINANCIAL STATEMENTS OPINION OF INDEPENDENT AUDITORS 59 FINANCIAL STATEMENTS 60 ASSURANCE STATEMENT 65 MEMORY TIMÃO S MISSING LINK 66 FAIRLY PRESENTED 68 TRANSLATION ARTE COMERCIAL ASSESSORIAL EMPRESARIAL GRAPHIC PRODUCTION thais benite PRINTING AND FINISHING ipsis gráfica e editora THIS WORK HAS BEEN ENTIRELY DEVELOPED BY CORINTHIANS FANS, WITH PASSION AND PROFESSIONALISM. of the Centennial for Sport Club Corinthians THE YEAR Paulista was marked by significant achievements, on and off the playing field. The professional, responsible, transparent and accountable management model, which we implemented in 2007, was definitively consolidated in The results are noteworthy. For the third year running, the Club presented a surplus, spending less than it earned. In 2010 alone, the positive balance reached R$ 3.7 million. Global revenues reached R$ million, 17% more than 2009, and 81% over Not considering transactions with professional athletes, we recorded an 18% increase over 2009, and we jumped 182% over In addition, in 2010, our revenues were the highest among all Brazilian clubs. We have also noticed a significant change in the profile of our income over the last four years. In 2007, athlete transfers represented 53% of the revenues. In 2010, they were only 16%. The benefits derived from the diversification of income sources are quite evident and ensure stability for Corinthians, even if a specific source diminishes. The increased revenues from TV fees and ticket sales are the result of a policy to appreciate and respect our major asset: the Corinthians fans. Such a conclusion is easy to reach. A reputable, careful survey has shown that the Corinthians brand name is the most valuable among all Brazilian football clubs, at the top of the ranking with R$ million. Among hundreds of licensing agreements reached during the year of our Centennial, one segment is worth mentioning: the publication of books. Over ten titles were released, written by researchers, journalists and fans. All of them praised our glorious history, our beloved founders, and our incomparable passion. Of course, these achievements were not reached by chance, but by prudent management, recognized by all those who are involved with Corinthians: Club members, fans, partners, service providers, sponsors and investors. In this short period of our management, the number of those interested in connecting their names to that of Corinthians has progressively increased. Although we won no titles in the football field, we can certainly deem such an important year in the history of the Club as positive. In fact, the fans of our true Republic were deeply frustrated. We shall not ignore that several details still have to be corrected, but we cannot disregard the foundation of work that, if did not reach the top, came very close to it. This is the task of the manager: to have the serenity and wisdom to learn from mistakes, without ignoring the successes. In 2011, our professional team was reinforced with the arrival of the players Liédson and Adriano, aimed at winning more championships. gri items: 1.1 It is also worth highlighting the opening of our modern, wellequipped Training Center. It has been required for many years now, and we finally have it, which will be essential for the good performance and growth of our football team. But Corinthians means more than football. The Club had dozens of achievements in other games and though they are all equally significant and deserving of our recognition, we highlight the titles in futsal and swimming. Another piece of news that made the Corinthians Nation happy has to do with an old dream: the construction of the Corinthians stadium. The construction works for a capacity of 65 thousand people have already been approved by our Deliberative Council. The project, which is strategic for the Club, is in good progress. All pending issues have been resolved, with very favorable expectations. Finally, we point out the many festive events in honor of the hundredth anniversary of Corinthians. During 2010, we were excited by countless demonstrations of love, devotion and loyalty. We highlight two of them: the revitalization of the Club s foundation landmark, in the traditional district of Bom Retiro in São Paulo, in honor of our founders and deep veneration of our sacred history; and the Eve Party, at Vale do Anhangabaú in São Paulo, which gathered over 200 thousand Corinthians fans, a compelling collective demonstration made by our major asset the members of our People s Republic of Corinthians. We have come a long way since October 2007 to place Corinthians in a distinguished position in Brazilian football, and turn it into the world s greatest club. During this journey, our work has been guided by professional, ethical behavior, enhanced by transparency in the relationship with our fans, among other stakeholders. Nothing compares to the Corinthians fans loyalty, the main reason for the existence of our so-called Timão! ANDRÉS NAVARRO SANCHEZ PRESIDENT, SPORT CLUB CORINTHIANS PAULISTA 7

5 ORGANIZATIONAL PROFILE PROFILE ETERNALLY IN OUR HEARTS OVER ITS CENTENARY HISTORY, SPORT CLUB CORINTHIANS PAULISTA CONSOLIDATED ITS STRENGTH BY ATTRACTING 30 MILLION FANS AND WINNING A RECORD-BREAKING NUMBER OF STATE CHAMPIONSHIPS corinthians was able to celebrate its first Centennial in style. In 2010, the Corinthians spirit was present in the achievements of futsal Brazil Club Trophy of the Brazilian Under-20 Championship, of women s handball, table football, volleyball, judo, tae kwon do, Formula Truck, swimming and rowing. The professional football team finished fifth in the State Championship and third in the Brazilian Championship. Although Timão has not won a title, the 62.3% efficiency rate was higher than that of Over the last decade, Corinthians had a great performance in the field, by winning eight titles and reaching the finals and semifinals in almost all championships entered. With these achievements, Corinthians consolidated itself as the most winning club in the State of São Paulo in this century, ahead of all rivals in number of titles. This result also shows the continuity of this strength as, during the 1990s, Corinthians won seven titles, reaching the impressive milestone of 15 titles in 20 years. FOOTBALL AND MUCH MORE Great achievements were also made off the field. In the administrative area, the current Board s responsible management allowed the Club to reach record-breaking revenues from football, with ticket sales and sponsorship agreements. As well, for the first time the Corinthians brand name became the most valuable among all Brazilian clubs. The passion of Corinthians fans has been in their DNA, ever since September 1st, 1910, when five workers Joaquim Ambrósio, Carlos da Silva, Rafael Perrone, Antônio Pereira and Anselmo Correia joined another five guys to found Sport Club Corinthians Paulista, after watching a football match played by an English team. From a small club on the outskirts, like many others founded in the first decade of the 20th century, Corinthians grew to join the official football system, and became a professional team. The professionalization started in 1933, with the game itself, Corinthians raison d etre, and more recently, with its administration. Corinthians has evolved from its primary role as a social club into a true phenomenon, capable of rallying the attention of over 30 million fans spread all over Brazil and around 100 SELECTED HONORS In 2010, Corinthians was honored by the Brazilian Confederation of Clubs (CBC) for becoming a Centenary Club. With the honor, CBC recognizes the historic heritage of centenary clubs for their excellent track-record and for their contribution to the training of athletes. During the National Forum of Club Managers, CBC presented the Manager of the Year Award to honor three professionals that developed and implemented projects that resulted in positive results for their clubs. Sport Club Corinthians Paulista was awarded for the project Chute Inicial Corinthians, its football school for children, headed by Roberto Toledo, Manager, Land Sports Division. gri items:

6 profile PROFILE THE CLUB NAME OF THE ORGANIZATION Sport Club Corinthians Paulista NATURE OF OWNERSHIP Not-for-profit sports entity HEADQUARTERS Rua São Jorge, 777 Tatuapé São Paulo SP CLUB MEMBERS IN GOOD STANDING Primary 12,924 Dependents 8,806 EMPLOYEES 848 FANS Over 30 million Mascot Musketeer PATRON SAINT Saint George TOTAL ASSETS R$ million as of December 31, 2010 NET EQUITY R$ 62 million as of December 31, 2010 OPERATING REVENUES Football R$ 173,615 million as of December 31, 2010; Club R$ 39,018 million as of December 31, 2010» INTERNAL VIEW, PARQUE SÃO JORGE CHAPEL, OPENED IN NOVEMBER 1967 the world. Today, it draws the second largest crowd in the country, and the largest in São Paulo, Latin America s biggest economic and financial center. Today, as has been happening since 1910, Corinthians continues to be a synonym for football, the main attraction it has to offer to its fans and other audiences. It was the first FIFA Club World Champion, under the model established in It has won four Brazilian Championships, in 1990, 1998, 1999 and 2005, and three Cups of Brazil, in 1995, 2002 and The Club ended the 20th century with the largest number of State Championships, and has been keeping its leadership with a total of 26 titles. In the National Ranking of Clubs of the Brazilian Football Confederation (CBF), Corinthians is 2nd, with 2,137 points earned, considering the Brazilian Championship (since 1971) and Cup of Brazil (since 1989). Currently, the Corinthians professional team plays in the A1 Series São Paulo State Championship, promoted by São Paulo State Football Federation, and Brazilian Championship A Series, promoted by CBF. SACRED SOIL With 158 thousand sqm, Parque São Jorge, in the East Zone of São Paulo, is the largest social site of a Brazilian football club. There, the Corinthians team enjoys all the facilities necessary for physical and technical training of its professional players: the field of Alfredo Schürig Stadium, a modern academy, and the well-equipped Osmar de Oliveira Preparation and Rehabilitation Center. Our over 21 thousand Club members enjoy facilities to play the following Olympic sports: athletics, basketball, boxing, handball, judo, rowing, swimming, synchronized swimming, table tennis, tae kwon do, tennis, and volleyball, in addition to futsal (Paralympic) and football fields (men s and women s). FAMOUS FANS Adoniran Barbosa, singer and songwriter (in memoriam) Amácio Mazzaropi, motion picture actor, director and producer (in memoriam) Antonio Ermírio de Moraes, president, Grupo Votorantim Antônio Fagundes, actor Ayrton Senna, three-time Formula 1 champion (in memoriam) Cacá Rosset, theater actor and director Charles Miller, father of football in Brazil (in memoriam) Claudia Raia, actress Derico, musician and instrumentalist Daiane dos Santos, floor gymnastics world champion Dan Stulbach, actor and radio announcer Dom Paulo Evaristo Arns, emeritus archbishop of São Paulo Elis Regina, singer (in memoriam) Emerson Fittipaldi, two-time Formula 1 champion and two-time Indianapolis 500 winner Eva Wilma, actress Fábio Assunção, actor Fernando Henrique Cardoso, former President of the Republic Gabriela Duarte, actress Hortência Marcari, basketball world champion and Olympic silver-medalist Jânio da Silva Quadros, former President of the Republic (in memoriam) Leandro Barbosa, (Leandrinho), NBA basketball player Luciano Huck, TV announcer Luiza Possi, singer Luiz Inácio Lula da Silva, former President of the Republic Maguila, former boxer Marcelo Rubens Paiva, writer Marília Gabriela, TV announcer and actress Marta, five-time FIFA Women's Player of the Year Padre Marcelo Rossi, Catholic priest Paulo Betti, actor rappin' hood, singer and songwriter Rita Guedes, actress Rita Lee, singer and songwriter Rubinho Barrichello, holder of the record for most Formula 1 starts Serginho Groisman, TV announcer Silvio Santos, entrepreneur and TV announcer Toni Garrido, singer and songwriter Toquinho, singer and songwriter Washington Olivetto, publicist YOU, another crazy in the gang OUR TEAM COMPOSITION OF PERSONNEL (By employment type) Directors* 14 Advisors to the Board* 178 Managers 30 Heads/coordinators 36 Technicians/supervisors 94 Administrative 113 Operational 198 Professional football players 49 Amateur football players 95 Physicians, masseurs and physiotherapists 22 Apprentices 19 TOTAL 848 *Directors and advisors are unpaid positions. 848 IS THE NUMBER OF DEDICATED CORINTHIANS FANS THAT WORK IN THE CLUB FIGHT, SHAKE THE DUST, WAVE YOUR FLAG, SOVEREIGN TRIBE. MORE THAN BRAZILIAN, YOU ARE CORINTHIANS. YOU RE THE MOST BEAUTIFUL OF ALL NATIONS. EXCERPT OF THE SONG CORINTHIAN NATION, BY CARLINHOS VERGUEIRO, J. PETROLINO AND FAVECO 10 GRI INDICATORS: LA1 11

7 PROFILE PROFILE MAJOR HONORS FIFA CLUB WORLD CUP CHAMPION (2000) BRAZILIAN CHAMPION (1990, 1998, 1999, 2005) BRAZILIAN CHAMPION B SERIES (2008) CUP OF BRAZIL CHAMPION (1995, 2002, 2009) SÃO PAULO STATE CHAMPION 26 TIMES GALLERY OF HEROES Great stars have played for Corinthians. Names such as Neco, Filó, Luizinho, Cláudio, Baltazar, Dino Sani, Zé Maria, Wladimir, Biro- Biro, Ronaldo, Palhinha, Marcelinho Carioca and Neto, among others, played in our jersey. The following is a list of world famous players that defended our side. Amílcar (Amílcar Barby) center-forward. He was Timão s first great idol, along with Neco. He played for ten years, Baltazar (Oswaldo Silva) the Golden Little Head scored 267 goals for Corinthians, and played for Brazil in the 1950 and 1954 World Cups. Basílio (João Roberto Basílio) scored the championship-winning goal in 1977 after almost 23 years without the honor, and served as Timão s head coach four times. Biro-Biro (Antônio José da Silva Filho) Corinthians idol in the 1980s. He was part of the so-called Corinthians Democracy, and State Champion in 1982 and Chicão (Anderson Sebastião Cardoso) fullback. Joined Corinthians in early 2008, to strengthen the defense of the team that would play in the B Series Brazilian Championship. He is an excellent foul and penalty taker, who scored ten goals in the championship that promoted Corinthians back to the First Division. Cláudio (Cláudio Christovam de Pinho) top scorer in the Club s history, with 303 goals. He was part of the famous "100-goal offensive line" in Deco (Anderson Luis de Souza) midfielder with Porto, Barcelona, Chelsea and the Portuguese National Team. Del Debbio (Armando Del Debbio) first great fullback in Corinthians history, he was part of the first two São Paulo State Tri-championships (1922/23/24 and 1928/29/30). Dida (Nelson de Jesus Silva) goalkeeper with Milan, and World Cup champion with Brazil in Domingos da Guia (Domingos Antônio da Guia) defender with the Brazilian Team in the 1938 World Cup. Dunga (Carlos Caetano Bledorn Verri) World Cup champion defensive midfielder with Brazil in 1994, and former head coach of the Brazilian Team. Filó (Anphilóquio Marques) right winger. He joined Corinthians in 1929, in time to become champion in that year, and bichampion in the next. After the second title, he went to Lazio, in Italy. He played for Italy in the 1934 World Cup, to become the first player from Timão to win a World Cup. He was back with Corinthians in 1937 to win another State Championship. Gamarra (Carlos Alberto Gamarra Pavón) defender with the Paraguayan National Team. Garrincha (Manuel dos Santos) World Cup champion striker with Brazil in 1958 and 1962, and one of the all-time greatest football players. Gilmar (Gilmar dos Santos Neves) World Cup champion goalkeeper with Brazil in 1958 and Luizinho (Luís Trochillo) the Little Thumb played for the Club in the 1950s and 1960s, winning three State Championships and two Rio-SP Tournaments. He is the top scorer for Timão in the derbies against Palmeiras, with 21 goals. Neco (Manuel Nunes) Corinthians first great idol, defending the black-and-white side for 17 years. Together with Amílcar, he was also the first Corinthians player on the Brazilian National Team. Neto (José Ferreira Neto) offensive midfielder. He was a decisive player in the 1990 Brazilian Championship for scoring free-kick goals that were essential for winning the title and the support from the fans. Oswaldo Brandão (Oswaldo Brandão) the most charismatic of all Timão s head coaches, he won the São Paulo 4th Centennial title in 1954, and headed the Brazilian National Team in the qualifiers for the 1958 and 1978 World Cups. He was back with Corinthians in 1977 to put an end to a long title-losing streak, by winning the State Championship that year. Rincón (Freddy Eusébio Gustavo Rincón Valencia) midfielder with the Colombian National Team. Rivaldo (Rivaldo Vitor Borba Ferreira) World Cup champion striker with Brazil in Rivellino (Roberto Rivellino) World Cup champion offensive midfielder with Brazil in Roberto Carlos (Roberto Carlos da Silva) left winger with the Brazilian Team, Internazionale Milano, Real Madrid, and Fenerbahçe. Ronaldo (Ronaldo Luís Nazário de Lima) striker with the Brazilian Team, Real Madrid, Barcelona, Internazionale Milano, and Milan. Ronaldo (Ronaldo Soares Giovanelli) owner of Corinthians jersey no. 1 for 10 ALL TEAMS HAVE THEIR CROWDS. CORINTHIANS IS A CROWD THAT HAS A TEAM. José Roberto de Aquino, journalist years, Brazilian champion in 1990 and winner of the Cup of Brazil in Sócrates (Sócrates Brasileiro Sampaio de Souza Vieira de Oliveira) offensive midfielder and captain with the Brazilian Team in the 1982 and 1986 World Cups. Teleco (Uriel Fernandes) scored 251 goals in 246 matches for Corinthians, the Club s highest average, and was the State Championship top scorer five times. Tevez (Carlos Alberto Tevez) striker with Manchester United, Manchester City, and Argentina. Tupãzinho (Pedro Francisco Garcia) offensive midfielder. He was called Tupã, the God for scoring the goal of his lifetime (and the lives of many people), at the 1990 Brazilian Championship s final match, against São Paulo, to become the title s hero. Vampeta (Marcos André Batista Santos) World Cup champion midfielder with Brazil in Viola (Paulo Sérgio Rosa) World Cup champion striker with Brazil in Zé Elias (José Elias Moedim Júnior) midfielder with Bayern Leverkusen and Internazionale Milano, among other teams. He won the Cup of Brazil and São Paulo State Championship for Corinthians in Zé Maria (José Maria Rodrigues Alves) nicknamed "Super Zé", for his determination and physical vigor. He won four State Championships with the Club (1977, 79, 82 and 83) and played for Brazil in the 1970 and 1974 World Cups

8 parque são jorge INFRASTRUCTURE c A f D g k PARQUE SÃO JORGE Location: Rua São Jorge, 777 Tatuapé, East Zone of São Paulo (SP). area: 158 thousand sqm OUR HOME PARQUE SÃO JORGE IS THE LARGEST SOCIAL SITE OF A CLUB IN BRAZIL AND OFFERS ITS USERS ABUNDANT, DIVERSIFIED INFRASTRUCTURE l b h i j e A THE STADIUM Alfredo Schürig Stadium was opened on July 22, 1928, with the 2-2 match between Corinthians and América-RJ, which had an attendance of about 2 thousand. The stadium has hosted 484 Corinthians matches, with a highly positive balance: 356 won, 65 drawn, 63 lost. In these matches, the team scored 1,345 goals and conceded 491. The last match was held on August 3, 2002, when the team defeated 1-0 Brasiliense. Although the stadium capacity is 18 thousand now, the record attendance was 27,384, in the 1-2 match between Corinthians and Santos in It is currently used as a training field for the professional team, and the pitch was renovated at the end of The Club intends to remodel the stadium to expand its capacity to host major cultural events. New VIP boxes will be installed, and Corinthians will again host matches in the venue. B AMPHITHEATER The Corinthians amphitheater can hold 388 people in a very modern, multimediaequipped facility. In 2010, the place hosted a number of events. Since April 2011, Corinthians fans have also been able to enjoy Cine Timão. In partnership with Cinemagia, the space features diversified programming, including works from all nations, as well as new and classic movies for people of all ages. C SÃO JORGE FOUNTAIN The historical fountain of Parque São Jorge was already present before the acquisition of the lot on the borders of the Tietê River in the 1920s. Over time, it became traditional for parents to take their children there to drink its sacred water and to baptize them as Corinthians fans. An image of Saint George has been placed at the site. D CHAPEL The chapel was opened on November 26, 1967 from a project drafted in the 1950s. It can now be visited every day after being totally remodeled at the end of 2007, with a redecoration that allowed the beauty of the original frescos to be restored. An attraction of the chapel is the hand carved image of the team s patron Saint George, brought from the Vatican and blessed by Pope John Paul II. E SPORTS COURTS The Club offers its members a number of sports facilities. There are six clay tennis courts, 12 outdoor multi-sports courts, a mini-gymnasium for 500 people, a beach football pitch, a bocce court, a badminton court, a 7-a-side football field in artificial turf, a game parlor, and an official football field in artificial turf. F WOMEN S DEPARTMENT To cater to Corinthians female fans, the Women s Department has a familiar, cozy atmosphere in a space created exclusively for them. The place is well-tuned to the needs of female members and has been totally revitalized to hold courses and workshops involving essential daily issues in the 21st century. From craftsmanship to fine dining, female Club members can enjoy classes on painting, sculpture, health care, posture, dance, and other novelties. G GYMNASIUM The Parque São Jorge multi-sports gymnasium is Latin America s largest private indoor sports arena. To adapt to the requirements of the Statute of the Fan, its capacity, which used to be 15 thousand in the 1960s, was reduced to 7,086 people. The facility holds futsal, youth basketball, volleyball and other games. H MEGASTORE At the end of 2009, a Poderoso Timão megastore was opened at Parque São Jorge. It is the largest store in the chain, with over 400 sqm. I MEMORIAL Corinthians Memorial, located at the Parque São Jorge main entrance, represents a journey through 100 years of black-and-white history. It is over 1,500 sqm, with various resources, Corinthians memorabilia, and a lot of emotion. J WATER PARK Corinthians also boasts Brazil s largest water park, with seven pools, two of them heated (one with waves, one with a flume shaped like a half-moon, one for children under 5, and one with an island), five water slides, and two rides. K RESTAURANT With a modern and hospitable structure, the restaurant has capacity for 520 people, with a team of 30 employees. Totally computerized, it has four computers and five wide screens, in addition to an air conditioning system. With the options of self-service or à la carte, the black-and-white restaurant usually caters for 1,500 people at the weekends, but is structured to receive even more. L NOBLE ROOM The Noble Room at Sport Club Corinthians Paulista is 1,356 sqm and holds 2 thousand people for events in the auditorium format, 1,200 people for a cocktail party, and 1,000 people for dinner. The place offers air conditioning, bar, dance floor, wide screen, dressing rooms, equipped kitchen, cloakroom, sound and lighting control room, marble floor, 100 rectangular tables for four, 100 round tables for eight, 1,200 upholstered chairs, and parking lot for 800 cars CONSUMPTION DIRECT ENERGY Parque São Jorge CT Itaquera Parque Ecológico Antônio de Macedo Total water 17,612 GJ 382 GJ 15 GJ 4 GJ 18,013 GJ Parque São Jorge 23,553 cubic m CT Itaquera 14,630 cubic m Parque Ecológico 2,152 cubic m Antônio de Macedo 69 cubic m Total 40,404 cubic m 14 GRI INDICATORS: en3 en8 15

9 INFRASTRUCTURE INFRASTRUCTURE AREAS OUTSIDE OF PARQUE SÃO JORGE HYDROTHERAPY ROOM It offers bath tubs where players periodically perform immersion in ice to assist in muscular recovery. There is also a sauna. MEDICAL DEPARTMENT AND PHYSIOTHERAPY ROOMS Interconnected, they serve in the prevention and recovery of injuries in players. PODIATRY ROOM Place where athletes receive treatment for aesthetics and foot disorders. INFORMATION TECHNOLOGY ROOM (IT) Place where software applications are developed to control all information of the Football Department, such as performance of players, training, evaluations, medical attention, contracts, referees, opponents, materials, and costs, among others. COACHING STAFF LOCKER ROOM In this place the members of the coaching staff keep their personal belongings. Just like in the players room, each one has their own locker. PLAYER LOCKER ROOM Each player has his own locker, with his stylized picture, to keep his belongings. The facility is equipped with showers, an ice machine, used for immersion in bath tubs, and a scale.» ADRIANO, A NEW PLAYER WITH THE CLUB, PRACTICES AT THE CT DR. JOAQUIM GRAVA» HEAD COACH TITE GIVES IMPORTANT INSTRUCTIONS TO THE TIMÃO PLAYERS PARQUE SÃO JORGE IS THE LARGEST SOCIAL SITE OF A CLUB IN BRAZIL SWIMMING POOL With capacity for 12 athletes, the swimming pool is used for muscular recovery and physiotherapy. VIDEO EDITING ROOM This is the place where videos involving Corinthians and its opponents are edited. Information is sent to the coaching staff and used in the pre-game speeches. COACHING STAFF ROOM An ample space, with four desks, where the head coach does his work off the field: he analyzes data and information, writes reports and notes, and periodically meets other members of his staff and the Football Director. CLOTHES ROOM This is the storeroom for training material: shirts, shorts, socks, shin pads, shoes, vests, sweatshirts, cones, nets and poles, among other items. There is a machine to print names and numbers of players. WARM UP ROOM An ample space, where the players perform stretching exercises and warm up before training activities. BODYBUILDING ROOM Remodeled, with air conditioning and new decorations, it boasts the most advanced bodybuilding equipment in Brazil. ct itaquera The Itaquera Training Center is 197 thousand sqm and is home to all youth football categories: Under-16, Under-17 and the B-team (Under-9 to Under-15 practice at Parque São Jorge). The facility, modeled after a country club, offers lodging in 24 apartments (suites), cafeteria, heated swimming pool, bodybuilding and physiotherapy rooms, and even psychological research and care. three playing fields (a fourth in artificial turf is under construction) administration room medical department locker rooms room for speeches and video room for coaching staff cafeteria and industrial kitchen to serve 200 meals a day storeroom laundry room snack bar heated pool for physiotherapy and muscle relaxation sauna bodybuilding room physiotherapy room room for research and psychological and social assistance 24 suites, with capacity for four athletes each game and TV parlor security room THE ITAQUERA TRAINING CENTER, WITH 197 THOUSAND SQM, IS HOME TO THE MAIN YOUTH FOOTBALL CATEGORIES 16 17

10 INFRASTRUCTURE INFRASTRUCTURE ct joaquim grava In September 2010, Corinthians opened a modern training center at Parque Ecológico do Tietê, by the Ayrton Senna Highway in the East Zone of São Paulo. With 180 thousand sqm, the Center for Football Excellence and Training Dr. Joaquim Grava offers four official football fields, which have been named after former players Neto, Ronaldo (goalkeeper), Rivellino and Cláudio. The other facilities in the complex rehabilitation and physiotherapy center, swimming pool, whirlpool bath, bodybuilding equipment, and wide locker rooms for the athletes can be compared to those of major European clubs. In addition to professional football, the Club s youth football will also use the facility. Each area was named after an important person in Timão s history, such as the room for the head coach, called Oswaldo Brandão, the locker room, named after Basílio, and the Preparation and Recovery Center, called Dr. Osmar de Oliveira. The players have their personal lockers and make use of bodybuilding facilities and a physiotherapy room, with equipment featuring the latest technology. Besides the professional team, the Training Center will receive the team of amateur players. With this new work space, all areas in the Football Department will be able to develop new methods of work, processes and projects. four playing fields locker room press room hotel THE MODERN COMPLEX FOLLOWS THE STANDARDS ADOPTED BY MAJOR EUROPEAN CLUBS CORINTHIANS HAS NO FANS, CORINTHIANS HAS MILITANTS. GRI INDICATORS: en11 Luiz Inácio Lula da Silva, FORMER PRESIDENT OF BRAZIL, FOR THE BOOK TIMÃO: 100 YEARS, 100 MATCHES, 100 IDOLS, BY JOURNALIST CELSO UNZELTE 18 19

11 SPORTS PROFESSIONAL FOOTBALL THE CENTURY S BEST WITH EIGHT TITLES AND OVER 1,100 GOALS SCORED, CORINTHIANS HAS BEEN THE BEST TEAM IN SÃO PAULO OVER THE LAST TEN YEARS decade of the 21st century was marked by significant the first achievements for the professional football team. Timão won eight titles from 2001 to 2010, with an efficiency rate in excess of 55% in most of the years. Over the course of those ten years, the team had 328 wins, 175 draws, and 193 losses. In a decade of much happiness, 1,131 goals were scored, and 836 were conceded. In the period, Corinthians won three State Championships, one Rio-São Paulo Tournament, two Cups of Brazil, one B Series Brazilian Championship, and one A Series Brazilian Championship. Despite the lack of titles, 2010 was the best year of the decade. Except for 2008, when the team played in the B Series, Timão had the greatest number of wins, point efficiency, and goals scored in Also, the team conceded only 68 goals in 70 matches, that is, less than a goal per match. The team played 70 matches in the season, with 38 wins, 17 draws, and 15 losses, a 62.3% efficiency rate, higher than that of 2009 (57%). In 2010, Corinthians finished fifth in the State Championship, and third in the Brazilian Championship. PERFORMANCE OVER THE DECADE YEAR W D L Efficiency (%) Titles Source: Professional Football Department, Corinthians PERFORMANCE STATE CHAMPIONSHIP 5th place 19 matches / 10 won / 5 drawn / 4 lost / 32 goals for / 18 goals against BRAZILIAN CHAMPIONSHIP 3rd place 38 matches / 19 won / 11 drawn / 8 lost / 65 goals for / 41 goals against 8 TITLES IN THE LAST 10 years 21

12 SPORTS SCORING GOAL NUMBER 10 THOUSAND WAS A UNIQUE OCCASION. I WILL REMEMBER IT FOREVER. IT REPRESENTS A LOT FOR ME, A CORINTHIANS FAN SINCE I WAS A CHILD. Dentinho THE CLUB OF 100 Stars that scored over 100 goals Claudio (1945/57) winger, 305 goals Baltazar (1945/57) forward, 266 goals Teleco (1934/55) forward, 251 goals Neco (1911/30) forward, 235 goals Marcelinho Carioca (1994/2001) midfielder, 206 goals Servílio (1938/49) midfielder, 201 goals Luizinho (1938/67 and 69) midfielder, 175 goals Sócrates (1978/84) midfielder, 172 goals Flávio (1964/69) forward, 170 goals Paulo (1954/60) forward, 146 goals Rivellino (1965/74) midfielder, 144 goals Carbone (1951/57) midfielder, 135 goals Zague (1956/61) forward, 127 goals Rafael (1953/63) midfielder, 111 goals Vaguinho (1971/81) winger, 110 goals Viola (1988/95) forward, 105 goals Casagrande (1982/86 and 1994) forward, 103 goals The Football Department continues to invest in the formation of a strong, competitive team, by blending young players talents from youth football, such as André Vinicius and Taubaté with experienced ones, such as striker Liédson, who returned to our side in February In 2010, our group received Bobadilla, Thiago Heleno, Paulinho, Bruno César, Willian Morais and Elias Oliveira. Since October 2010, the team has been headed by coach Tite (Adenor Leonardo Bacchi), who had already served as Corinthians head coach in The achievements in 2010 encourage Timão to improve its performance in 2011 and start the new decade by playing high-level football. Honors will come naturally as a result of a job well done. The Club s management deeply believes that it made all efforts to achieve its main targets and it now expects to take another step toward its ambitious plan for internationalization, thus justifying, in the playing field, that Corinthians really is the champion of champions. PLAYERS 2011 THE GROUP BLENDS YOUNG ATHLETES WITH EXPERIENCED PLAYERS GOALKEEPERS Danilo Fernandes (Danilo Fernandes Batista 03/04/1988). With Corinthians since: youth football. Gauther (Gauther Martins Cardozo 24/01/92). With Corinthians since: youth football. Júlio César (Julio Cesar de Sousa Santos 27/10/84). With Corinthians since: youth football. Rafael Santos (Rafael de Carvalho Santos 14/03/89). With Corinthians since: youth football. DEFENSORES Chicão (Anderson Sebastião Cardoso 03/06/81). With Corinthians since: Diego Sacoman (Diego Alessandro Aparecido Sacoman Silva 15/12/1986). With Corinthians since: youth football. Leandro Castán (Leandro Castán da Silva 05/11/86). With Corinthians since: Lucão (Lucas Alves Araújo 22/07/92). With Corinthians since: youth football. Marcelo Oliveira (Marcelo Oliveira Ferreira 29/03/1987). With Corinthians since: youth football. Moradei (Daniel Moradei de Almeida 08/02/1986). With Corinthians since: Nenê Bonilha (Luís Otavio Bonilha de Oliveira 17/02/1992). With Corinthians since: Nikolas (Nikolas Mariano da Silva 04/03/93). With Corinthians since: youth football. Paulinho (José Paulo Bezzera Junior 25/07/1988). With Corinthians since: Paulo André (Paulo André Cren Benini 20/08/83). With Corinthians since: Ralf (Ralf de Souza Teles 09/06/84). With Corinthians since: Vinicius (André Vinicius Lima de Oliveira 30/07/91). With Corinthians since: youth football. Wallace (Wallace Reis da Silva 26/12/1987). With Corinthians since: MIDFIELDERS Anderson (Anderson Indalencio da Rosa 11/03/93). With Corinthians since: youth football. Alessandro (Alessandro Mori Nunes 10/01/1979). With Corinthians since: Bruno César (Bruno César Zanaki 03/11/1988). With Corinthians since: Danilo (Danilo Gabriel de Andrade 11/06/79). With Corinthians since: Denner (Denner Paulino Barbosa 21/11/93). With Corinthians since: youth football. Fábio Santos (Fábio Santos Romeu 16/07/1985). With Corinthians since: Fran (Francisco Teocharis Papaiordanou Filho 05/05/92). With Corinthians since: youth football. Moacir (Moacir Costa da Silva 14/02/1986). With Corinthians since: Morais (Manoel Morais Amorim 17/07/1984). With Corinthians since: Ramirez (Luis Roberto Ramirez 10/11/1984). With Corinthians since: STRIKERS Adriano (Adriano Leite Ribeiro 17/02/82). With Corinthians since: Dentinho (Bruno Ferreira Bonfim 19/01/89). With Corinthians since: youth football. Edno (Edno Roberto Cunha 31/05/1983). With Corinthians since: Jorge Henrique (Jorge Henrique de Souza 23/04/82). With Corinthians since: Liédson (Liédson da Silva Muniz 17/12/1977). With Corinthians since: Taubaté (Paulo Sérgio Rodrigues Theodoro 15/09/1991). With Corinthians since: Willian (Willian Gomes de Siqueira 19/11/1986). With Corinthians since: ARRIVED: Adriano (Roma-ITA), Anderson (youth football), Denner (youth football), Diego Sacoman (Ceará), Edno (Botafogo), Fábio Santos (Grêmio), Fran (youth football), Gauther (youth football), Liédson (Sporting-POR), Ramirez (Universitario-PER), Marcelo Oliveira (Grêmio Prudente), Nenê Bonilha (Paulista), Nikolas (youth football) and Wallace (Vitória). LEFT: Bobadilla (Olimpia-PAR), Boquita (Bahia), Defederico (Independiente-ARG), Dodô (Bahia), Edu Gaspar (retired), Elias (Atlético Madrid-SPA), Iarley (Ceará), Jucilei (Anzhi-RUS), Renato (Figueirense), Roberto Carlos (Anzhi-RUS), Ronaldo (retired), Souza (Bahia), Thiago Heleno (Palmeiras), William (retired) and William Morais (deceased)

13 SPORTS YOUTH FOOTBALL FUTURE STARS THE CLUB S YOUTH FOOTBALL REVEALS NEW TALENTS THAT PLAY ON THE MAIN TEAM TOGETHER WITH BRIGHT STARS INTERNATIONAL TALENTS Below are some players trained at Corinthians who are now playing in international football: Anderson (Lyon-FRA) Betão (Dynamo Kiev-UKR) Bobô (Besiktas-TUR) Carlão (Sochaux-FRA) Cris (Lyon-FRA) Edson (Nacional-POR) Fernando Baiano (Al Wahda-UAE) Jô (Galatasaray-UKR) Lulinha (Estoril-POR) Ronny (União Leiria-POR) Rubinho (Palermo-ITA) Sylvinho (Manchester City-ENG) Willian (Shakhtar Donetsk-UCR) Corinthians has a tradition of training future stars. This is the result of the work developed in youth football, essential to set up a strong, competitive team, which required investments close to US$ 6 million in 2010 alone. The preparation of the young boys starts very early, and is extended to all possible age brackets. Many players who started their career at Parque São Jorge are currently playing for international clubs seven of them are now on the Corinthians professional team, together with the famous stars that reinforce the team. André Vinicius and Taubaté were the revelations in 2010 and were promoted to professional football. Our capacity to train players is shown also on the playing field. In 2010, the Corinthians Under-18 squad was champion in the Club World Cup in Spain. The good performance of our youth football is the result of investments, as well as of the Club s excellent, modern facilities. Most activities take place at the Itaquera Training Center, in the East Zone of the city, in an area of 197 thousand sqm. The venue is home to the main youth football categories, from Under-15 to Under-20 (younger players stay at Parque São Jorge), and has lodging facilities to accommodate 60 players. The young players receive all the necessary guidance for personal and athletic development, by means of lectures and periodic assessments by the coaching staff that works with them every day. The professional work developed in the selection of young players includes talent scouts spread all over Brazil. Try-out sessions involving about 2 thousand boys in 2010 take place in São Paulo and other large cities in the country and, more recently, were extended to the students of the chain of Chute Inicial football schools. In the case of young players requiring longer time at the Training Center for assessment, the situation is always discussed with their parents. The Club is aware of the issue of possible involvement with child labor in its activities and, therefore, all contracts follow the rules as set forth in Brazilian and international laws. In line with this, the relationship of Corinthians with youth players follows the guidelines of the Child and Adolescent Statute, as well as the so-called Pelé Law. FIFA and the Brazilian law have a number of dispositions to protect youth players, and no employment contract can be signed by players younger than 16 year. It is possible to sign an Apprenticeship Contract with those players over 14. This has no employment ties, but it serves as evidence that the young player was trained in the Club s youth football categories. THE RELATIONSHIP OF CORINTHIANS WITH YOUTH PLAYERS FOLLOWS THE GUIDELINES OF THE CHILD AND ADOLESCENT STATUTE, AS WELL AS THE SO-CALLED PELÉ LAW. 24 GRI INDICATORS: hr6 so5

14 SPORTS OTHER SPORTS MANY WINS IN OTHER FIELDS FROM FUTSAL TO FORMULA TRUCK, SIGNIFICANT TITLES ENHANCED THE CELEBRATIONS OF THE CORINTHIANS CENTENNIAL «THIAGO PEREIRA IS A SWIMMING HIGHLIGHT, HAVING WON THE 2010 WORLD CUP 14 GAMES ARE PLAYED BY CORINTHIANS TEAMS 70 GOLD MEDALS WERE PRESENTED TO OUR JUDO ATHLETES IN 2010 ALONE THE VARIOUS sports played at Corinthians have brought a number of trophies to Parque São Jorge. At the Club s Centennial, judo, swimming, futsal, volleyball, handball, tae kwon do, table football and Formula Truck had an excellent performance, as a result of investments made in a number of activities, an attitude that highlighted the Club s position in collective and individual games, Olympic or not. In 2010, the adult futsal team was the champion of the Brazilian Club Trophy, an honor we had not had for 36 years. The team was also champion in the State and Metropolitan Championships. In 2010 alone, 70 gold medals were presented to our judo athletes. Our women s volleyball was distinguished by winning two major championships, just like our table football. And the Corinthians tennis team has been better ranked: it jumped from the 23rd place to the 13th in the ranking of the São Paulo State Tennis Federation. In swimming, Thiago Pereira, who debuted in the Pan-American Games Rio 2007, with seven medals, won the 2010 World Cup. In February 2011, the athlete won the gold medal in the Swimming Grand Prix in Missouri, USA. World champion Poliana Okimoto distinguished herself with three titles, as champion of the Marathon Swimming World Cup, Travessia dos Fortes, and Travessia Rainha do Mar Another important investment is made in youth swimming. The categories Mirim, Child, Juvenile and Senior have achieved a number of titles. Corinthians also makes investments in rowing. There are over 50 male and female athletes. Corinthians rowing took part in the Tietê River crossing, at Virada Esportiva, during the Club s Centennial celebration. In October 2011, the team will participate in an international competition in Poland. The return on investments in land and water sports is felt not only in the athletic results achieved in the year. The schools for basketball, volleyball, futsal, handball, tennis and judo, among others, generated an income of over R$ 316 thousand for the year. At the end of 2010, a group of 447 students were part of the courses offered to members and non-members in those games. Also in 2010, Corinthians started investing in car racing, with teams in Stock Car, GT3 and Formula Truck. By winning five times, driver Roberval Andrade became the champion in Formula Truck. In 2011, Ticket Car Corinthians Motorsport will have Andrade and rookie Luiz Lopes in the Formula Truck season. To finish the Centennial celebration, Fernanda Passos, representing Corinthians, was elected the Muse of the State Championship. 7-A-SIDE FOOTBALL In three years of partnership with Self Transportes, our 7-a-side football team won the São Paulo State Championship in 2009, the State's top category. AMERICAN FOOTBALL The Corinthians Steamrollers had an excellent performance in The Club s team was champion in the Vote Cataratas Tournament in Foz do Iguaçu, vice-champion in the São Paulo State Championship (eight teams) and 5th in the Brazilian Championship (16 teams). BADMINTON Over 80 athletes from the Club participated in the four circuit stops held in 2010, to become overall club vice-champions. BASKETBALL The Corinthians basketball division has been investing in youth categories, six of them men s basketball. In 2010, the Pre-Mini category finished third in the Metropolitan Championship, and Mini finished fifth in the State Championship Gold Series. The Mirim team achieved second place in the State Championship Bronze Series, while Infantile finished fourth in the Gold Series. The Infantile-juvenile category finished third in the State Championship Gold and Silver Series, and the Cadet finished 2010 as third and fourth, respectively, in the Gold and Silver Series. BEACH FOOTBALL Beach football was another game that brought a trophy to Parque São Jorge. The stars with the Brazilian Team Beach Soccer World Champion Benjamin, Mão, Buru and head coach Alexandre Soares won the Vila Velha Cup. BOCCE The Club has four bocce teams, consisting of six players each. They participate in Federation Championships, and in the famous Weekend tournament for several categories. CANINDÉ Canindé is a department for the Club members who play football. There are 12 groups, with about 100 members each, which play football at the weekends in the Parque São Jorge fields. CIFAC More than 500 children participated in the Internal Championship of Football Association (CIFAC), divided in four categories: Under-11, Under-13, Under-15 and Under-17. The competitions took place in Parque São Jorge during The final matches were played at the Fazendinha stadium. In addition to the internal championship, the Club set up a selection in each category to play in the Inter-Club Tournament, which attracts the most traditional clubs in São Paulo. FUTSAL (MEN S) Men s futsal had an excellent performance in Headed by Paulo César de Oliveira, the team brought the trophies of the Metropolitan Championship and the Brazil Cup to Parque São Jorge. The adult team finished third in the Futsal League, with the best performance in The very well-structured team relies on the partnership of São Caetano 26 27

15 sports OTHER SPORTS do Sul City Hall and Unip. The youth categories also had an excellent performance. Under-20 athletes served as the basis for the teams that won the World University Futsal Championship, in Serbia. The São Paulo State Team won the Brazilian Championship of State Teams, the Metropolitan Championship, and the State Championship, and the Under-17 team won the 4th Brazil Trophy. The other seven younger categories won five titles out of six played in the State Championship. FUTSAL (WOMEN S) Corinthians maintains its women s futsal team in partnership with Universidade Paulista (Unip) and São Caetano do Sul City Hall. In 2010, the girls became champions of the Open Games and São Paulo University Games, and finished as vicechampions in the Regional Games. HANDBALL The women s handball team had good results in 2010, by winning the State Championship (Mirim) and the European Tournament (Juvenile). Three men s categories (Mirim, Infantile and Cadet) and six women s (Mirim, Infantile, Cadet, Juvenile, Junior and Adult) participated in championships held by the São Paulo State Handball Federation. The adult team relies on a partnership agreement with the São Caetano City Hall and Unip. HANG GLIDING At the end of 2010, Corinthians set up its own Hang Gliding team, aimed at participating in a number of championships. The team consists «BEACH SOCCER AND AMERICAN FOOTBALL ATHLETES BECAME CHAMPIONS IN THE HANG GLIDING TEAM WAS SET UP IN LATE 2010 of three athletes: Michel Fernandes Louzada, Eduardo Jacinto de Oliveira and David de Almeida Brito Filho. The pilots have been flying for over ten years, having won Brazilian and São Paulo State championships. They have also set distance records, flying for more than 400 km in the Brazilian Northeast backwoods. The team aims at becoming one of the best in the world, taking the Corinthians name to places never imagined before. JUDo Corinthians judo teams in several categories won dozens of gold medals in Over 90 athletes represented the Club in state, national and international competitions. TABLE FOOTBALL The Corinthians table football team won the Brazilian Championship, considered the most important tournament of the game. The Club maintains a school with table football weekly classes, attended by a number of students. TAE KWON DO The Club hosts important competitions of this game, such as the Brazil Open, with six champions in The athletes that play this Olympic game have already won a number of medals. In 2010, they became champions in other tournaments, such as the Pan-American Open Qualifier (three champions), Pan-American Closed Qualifier (two), São Paulo State Championship (six), Regional Games (two), Corinthians Open (12), Open Games (two) and Brazilian University Games (two). TAMBURELLO In 2010, the Club athletes participated in individual and team tournaments. TENNIS Club members and students at children s schools have in Parque São Jorge excellent facilities for playing tennis. The athletes participate in several tournaments, in men s and FOOTBALL (YOUTH) São Paulo State Champions Under-15 FORMULA TRUCK Roberval Andrade, Corinthians driver, champion FUTSAL (ADULT) Brazil Trophy State Championship Metropolitan Championship FUTSAL (YOUTH) Metropolitan Championship Special Division Under-9 and Under-17 4th Brazil Trophy Under-17 State Championship Gold Series Under-9, Under-11, Under-13 and Under-17 HANDBALL (WOMEN S) Mirim Category São Paulo State Championship Juvenile Category European Tournament JUDO Yokichi Kimura Trophy three gold medals Judo São Paulo Cup five gold medals Juvenile and Junior ten gold medals Brazilian Regional Championship women s categories. In 2010, the Club jumped from 23rd to 15th place in the ranking of the São Paulo State Tennis Federation. The target is to become and stay among the ten best in the State. VOLLEYBALL Men s and women s categories represented the Club in several ACHIEVEMENTS IN 2010 six gold medals City of São Paulo Cup (Infantile, Infantile-juvenile, Pre-Juvenile, Juvenile and Junior) seven gold medals Juvenile State Championship one gold medal Junior State Championship one gold medal São João Tennis Club Tournament seven gold medals Minas Judo Cup six gold medals Junior State Championship Special Division and Mirim, Pre-Juvenile and Juvenile (Aspirant Division) three gold medals Paralympic Judo Infraero Grand Prix one gold medal Mirim State Championship one gold medal Judo Quebec Open in Montreal, Canada ten gold medals Inter-Delegacies Qualifier São Paulo eight gold medals VI Judo Olympic Center Cup two gold medals MUSE OF THE SÃO PAULO STATE CHAMPIONSHIP Fernanda Passos, representing Corinthians, was elected the Muse of the State Championship. SWIMMING Mirim Team: Inter-clubs Championship Mirim Winter and Summer Circuit Douglas Machado Team Child Team: Southeast Winter Festival Winter State Championship Southeast Summer Festival Summer State Championship Juvenile Team: Juvenile 1 Summer State Championship Junior and Senior Teams: São Paulo Upstate Open and Regional Games SWIMMING: INTERNATIONAL HIGHLIGHTS Poliana Okimoto: Marathon Swimming World Cup Travessia dos Fortes Travessia Rainha do Mar 2011 Thiago Pereira: World Cup /200 Medley world record holder TABLE FOOTBALL Teams: Interstate Tournament and Brazilian Championship Individual: Cup of Brazil (Adult Category) Gold and Bronze Series tournaments held in The women s team Mirim won the São Paulo State Silver Championship. The women s Master was the champion in four of them: Santos Master Championship, Curitiba Open, Saquarema Open, and Adult Sindclube Championship. The men s Master team won the Opening Tournament of the State Championship. Open Tournament Athletes won two tournaments Integration Tournament Athletes won one tournament TAE KWON DO São Paulo State Championship six champions Pan-American Open Qualifier three champions Pan-American Closed Qualifier two champions Regional Games two champions Corinthians Open 12 champions Brazil Open six champions Open Games two champions Brazilian University Games two champions VOLLEYBALL Mirim Category São Paulo State Silver Championship VOLLEYBALL (MASTER MEN S) State Championship Opening Tournament VOLLEYBALL (MASTER WOMEN S) Santos Master Championship Curitiba Open Saquarema Open Sindclube Adult State Championship 28 29

16 FANS LOYAL FANS A NATION OF CRAZY FANS THE LOYAL FANS, THE SECOND LARGEST CROWD IN BRAZIL, CREATES THE PEOPLE S REPUBLIC OF CORINTHIANS, WITH BIRTH CERTIFICATE, IDENTITY CARD AND PASSPORT The passion of Corinthians fans is contagious. The gang of crazy fans has been increasing year after year, surpassing 30 million loyal fans around the country. At this size, Corinthians fans are like a nation, so that in the Club s Centennial year, the People's Republic of Corinthians was created. It is the only group of fans in the world that has a birth certificate, identity card and passport, in addition to a magna carta and an embassy. The documents are numbered, and passports receive a stamp whenever the fans attend a match in the stadium. Corinthians comes 2nd in the national preference for the Brazilian clubs, with 13.4% and the leadership seems to be very close. The fourth Lance!-Ibope Survey, published in 2010, showed that only 3.8 points, or 7.4 million people, separate the two largest crowds in the country. Flamengo, with 17.2%, has been losing fans since 2004, while Timão has received new fans: over 1.8 million from 2004 to The difference between Flamengo and Corinthians has not been so small since the first survey was published in The titles are among the factors that would explain the change. Over the last years, Flamengo has not won many important national titles, except in Corinthians, however, won the FIFA Club World Cup in 2000 and the Brazilian Championship in 1990, 1998, 1999 and 2005, not to mention the 26 titles in the State Championship won throughout its centenary history. The survey shows that there are 28.5 million Corinthians fans, but we estimate that number has already topped 30 million, a true nation. Yes, a lot of people. We, Corinthians fans, are so numerous that we traditionally ensure the best audiences for the TV stations broadcasting live football matches. At the stadiums, we do the same. We are always at the top in attendance. In 2010, the grandstands of the Pacaembu Stadium hosted 897,731 blackand-white fans for matches of the State Championship, Brazilian Championship, and Cup of Brazil, not counting those attending matches in opponent s stadium, both near to and far away from São Paulo. These facts justify the fame of the loyal fans and produce phenomena that astonish those involved with football. GRI INDICATORS: pr5 CORINTHIANS KIT T-shirt of the People s Republic of Corinthians Birth certificate Identity card Passport Magna Carta 31

17 LOYAL FANS FLAMENGO WAS MY CHILDHOOD TEAM. THEN I BECAME AN ADULT THREE YEARS AGO AND NOW I M A CORINTHIANS FAN. ronaldo, THE PHENOMENON, SHOWING THAT A MAN CAN BECOME A MATURE PERSON AFTER 30 ON TV MATCHES BROADCAST BY TV* TO SÃO PAULO IN 2010: CORINTHIANS 66 SÃO PAULO 55 PALMEIRAS 46 BRAZIL NATIONAL TEAM 9 SANTOS 49 OTHER TEAMS** 63 * GLOBO, BAND, SPORTV 1 AND 2, PFC AND BAND SPORTS ** BOTAFOGO, FLAMENGO, FLUMINENSE, VASCO, ATLÉTICO, CRUZEIRO, GRÊMIO, INTERNACIONAL 12.3 % OF THE CORINTHIANS FANS INTERVIEWED HAVE MONTHLY INCOME ABOVE 10 MINIMUM WAGES LOYAL FAN The Loyal Fan Program was launched at the end of 2008 to offer a series of conveniences for those enrolled. They can buy tickets in advance, at special fares, for the home matches played by Corinthians, in addition to benefits in official stores. They also receive kits with exclusive items, in addition to special cards that identify them as members and through which they can make all transactions. Enrollment in the program is made through the Corinthians website and tickets can be bought online as well. CROWD EVOLUTION 13.2% 13.4% 10.8% 11.1% Source: 4th Lance!-Ibope Survey WHILE FLAMENGO LOSES FANS, TIMÃO ADDS NEW LOYAL FANS. THESE ADDI- TIONS NUMBERED OVER 1.8 MILLION FROM 2004 TO

18 STRATEGY THE CONSTRUCTION of the highly-anticipated Corinthians Stadium is part of the current management s strategic plan. In August 2010, the Club and Construtora Odebrecht signed a protocol of intentions to build a stadium in Itaquera, a popular district in the East Zone of São Paulo, estimated at R$ 335 million. For the current Board of Directors, having its own stadium is essential for several reasons, among them an increase in future revenues, projection of the Corinthians brand name to the world, and use of the stadium in a number of national and international competitions. With initial capacity for 48 thousand people, the project is undergoing adjustments to FIFA specifications to host 2014 World Cup matches. In line with this, the stadium will hold a seating attendance of 65 thousand. This will increase its cost by R$ 170 million. In March» PROJECT FOR THE NEW CORINTHIANS STADIUM, TO BE BUILT IN ITAQUERA THE DREAM WILL COME TRUE THE LONG-AWAITED CORINTHIANS STADIUM WILL BECOME A REALITY TO HOST 2014 WORLD CUP MATCHES THE SEVEN PILLARS (1) Absolute respect for our identity (2) Respect for our culture (3) Respect for our differences (4) Respect for our traditions (5) Dissemination of the values of our nation (6) Involvement of the crowd with the team (7) Involvement of the crowd with the Club THE STADIUM WILL ATTRACT THOUSANDS OF PEOPLE, WILL STIMULATE THE GAME. IT IS A CULTURAL MATTER. Andrés Navarro Sanches 2011, the FIFA World Cup Organizing Committee sent Corinthians the stadium agreement to host matches of the 2014 FIFA World Cup in Brazil. Besides hosting matches of the next World Cup, the stadium will host the Copa America in 2015 and Olympic football matches in The construction works will start in May 2011 and its opening is forecast for November 2013, with a match between Corinthians and the Brazilian National Team. The Corinthians current management has been working actively to make the Club a modern and efficient company. It all began in October 2007, when Andrés Navarro Sanchez was elected President of Sport Club Corinthians Paulista. Upon taking over, the new Board of Directors found a worrisome economic and financial situation but, more than that, it was necessary to redeem the credibility of the Club before its major stakeholders: along with the loyal fans, the team itself, athletes, employees, sponsors, the media, banks, Club members and suppliers. To meet the challenges ahead of the new management, the strategy adopted by the new Board was renovation. A professional management structure was set up, covering corporate governance, with transparency in rendering accounts, a presidential regime, and the development of work in collegial form, with regular exchanges of information (more in the chapter Management and Governance). The tactical actions used were severe: orthodox treatment, analysis of expenses aiming at their reduction, analysis of all contracts for services, departmental budgetary appropriateness, regular meetings with the Vice-presidents and Directors to discuss the numbers, and hiring of experienced professionals in key areas. In parallel, actions were taken for management, which included the development of a strategic plan, implementation of cash flow, with a horizon of fixed costs of 60 days, and very detailed budget planning. In line with this, the Club was divided into three business units: football, land and water sports, and social club. Managerial accounting was also implemented, with monthly monitoring. The activities and results began to be disclosed monthly and the control structure and processes have been improved. Focusing on the fans and the football team, the main reason for Corinthians, the current management has developed strategic actions specific for the brand/image, professional football, fans, and the Club. This management model has proved efficient, and can be measured by good financial results in recent years. For instance, revenues reached R$ million in 2010, an 81% increase over Ticket sales reached an income of R$ 29.4 million, a 77% growth over In 2007, the income from ticket sales had totaled R$ 7.5 million (more in the chapter Economic-Financial Performance). STRATEGIC ACTIONS NEW STADIUM IMAGE/BRAND NAME To enhance the Corinthians Nation s selfesteem, giving it a full address there is no more Marginal Avenue with no number. To enhance the brand name, nationally and internationally. To bring famous fans together. To associate the Corinthians brand name with cutting-edge companies, such as Nike, Bozzano, Neo Química, etc. PROFESSIONAL FOOTBALL To set up a competitive, successful team. To hire a competent head coach. To sign players with reliable professional history. To enter partnerships with owners of federative rights, thus acquiring participation in some athletes. To use criteria of ongoing investment in team, thus eliminating the beginning, middle and end of the investment process. CLUB A master plan for construction works has been prepared for the benefit of Club members and professional athletes, including a professional football gymnasium, remodeling of restaurants, and roof for a tennis court, as well as other works to restore our property. FANS To turn the fans into part of the management, through the following actions: Marketing: commemorative T-shirts, Loyal Fan program, Timão TV, and a car in the Superleague; Transparency: to share our realities and problems with fans, release accounting figures, the players federative rights, and the ticket sales of our matches; Participation: the Corinthians fan is much more than a simple football fan. Thus, Corinthians have started to participate in a number of other sports, such as women s football, futsal, swimming and American football

19 STRATEGY CORINTHIANS BRAND NAME THE MOST VALUABLE THE CORINTHIANS STRENGTH, PROVEN BY SURVEYS, PLACES OUR NAME AT THE TOP OF THE RANKING AS THE MOST VALUABLE BRAND IN THE BRAZILIAN FOOTBALL MILLIONAIRE BUSINESSES LARGEST SPONSORSHIP AGREEMENTS IN 2010 (IN R$ MILLION*) Liverpool (ENG) 53.6 ** Manchester Utd (ENG) 53.5 Real Madrid (SPA) 52.1 Bayern Munich (GER) 49.9 Corinthians (BRA) 45.8 Source: Survey by Sport+Market, a German sports marketing company. * Values converted into R$ as of April 8, 2011 (1 euro = R$ ). ** Liverpool received only part of this amount in The rest will be provided by mid CHAIN EXPANSION GROWTH OF PODEROSO TIMÃO STORES 2008/2011* stores stores stores stores * Total stores by March. Corinthians has the most valuable brand name among all Brazilian football clubs. This strength was confirmed by a survey conducted by consultants Crowe Horwath RCS, which showed that the Club s name was valued at R$ million in In 2004, the estimated value was R$ 286 million a % evolution over only six years. By 2009, our brand name was second in the ranking to Flamengo. This appreciation is the result of successful strategic planning, implemented by our Marketing Department during the last three years, involving a number of actions on and off the playing field such as licensing the brand name to racing teams in Stock Car, Formula Truck and GT3 Brazil; expanding significantly the chain of Poderoso Timão franchised stores; and launching a number of licensed products with the Corinthians brand name, which total more than 2,000 items now, including books, refrigerators, cosmetics, beef, games for children, etc. There is ongoing work toward strengthening the Corinthians brand name. With a comprehensive, bold action plan, a number of initiatives have been created, developed and reinforced over the last three years. As part of the initiatives, we should mention the establishment of a new standard of business and relationships with sponsors, which has come to serve as a model for other Brazilian teams. The Loyal Fan program, which offers discounted ticket prices and distributes exclusive kits to members, has also experienced significant growth in 2010, thus reinforcing the strategy of working toward the fans. Launched in December 2008, the program evolved progressively and has now over 70 thousand fans enrolled, 33 thousand of them in good standing. The Poderoso Timão chain of stores followed the same pace of growth. From 12 units in 2008, the chain jumped to 104 stores in The expansion continued in 2011, with the opening of new stores bringing the total to 104 units by March and reaching the states of Paraná, Mato Grosso do Sul and the Federal District, in addition to cities in upstate São Paulo. Since its inception in October 2008, the Poderoso Timão chain of stores has recorded total revenues in excess of R$ 109 million. The virtual store ( did not lag behind. In the year of the Centennial, revenues reached R$ 11 million, with R$ 1.4 million in royalties. The Club considerably expanded the revenues associated with its brand name, with a significant increase in ticket sales, from R$ 5.5 million in 2003 to R$ 29.4 million in 2010, a significant increase of 435%. The income from TV rights, in turn, reached R$ 55 million in 2010, a 36% increase over 2009 and 114% when compared to Among so many achievements and initiatives, we have to highlight the sponsorship agreements with the groups Hypermarcas and Silvio Santos, and the TIM telephone company. In December 2010, aiming at expanding the power of its brand, Corinthians joined PoupaFarma a pharmacy chain offering medicines at popular prices to create FarmaTimão, its first franchise. Therefore, the Club opened at Parque São Jorge the first pharmacy of a football team in the world. A total of 15 franchised units are expected by the end of FIRST IN THE RANKING (IN R$ THOUSAND) MOST VALUABLE BRANDS IN THE BRAZILIAN FOOTBALL Club Corinthians 286, , ,785 São Paulo 339, , ,276 Flamengo 322, , ,494 Palmeiras 208, , ,291 Internacional 82, , ,681 Grêmio 67, , ,839 Vasco da Gama 78, , ,488 Santos 105, , ,428 Cruzeiro 70, , ,706 Atlético-MG 59,056 91, ,210 Fluminense 53, , ,719 Botafogo 41,158 97,085 82,686 VALUES AT A HIGH REVENUES PROVIDED BY MARKETING (IN R$ MILLION) PRODUCT TV /Still ads Nike Uniform Loyal fan Licensing Ticket sales Total MILLION REAIS. THAT IS THE VALUE OF THE CORINTHIANS BRAND NAME, THE MOST VALUABLE IN BRAZILIAN FOOTBALL 36 37

20 GOVERNANCE AND MANAGEMENT MANAGEMENT SPEAKING FRANKLY WITH THE FANS TRANSPARENCY IN DISCLOSING INFORMATION, EFFICIENCY AND DEMOCRATIZATION CHARACTERIZE THE ACTIONS OF THE CLUB'S CURRENT MANAGEMENT in October 2007, the current UPON TAKING OFFICE Board was committed to efficient and transparent management, with ongoing provision of accounts the financial statements are available on the internet and involvement of the members in the daily activities of the Club. To fulfill this mission, we carried out a profound change in the administrative area and instituted new rules of governance. We reformulated the statute, in force as of September 2008, to establish direct voting by Club members for President and a three-year mandate with no reelection, among other modernization measures. The redesign of the statute, one of the most modern and democratic in the world, became a milestone in the history of the Club. The document has created the legal bases to strengthen the process for professional management, making it more transparent and efficient. In this period, important results were achieved, and historical errors were corrected. Another significant aspect of the current governance model at Corinthians is the fact that the Board and executive committees are made up of independent, non-paid members. Management is split into five levels, structured according to the parameters set forth in the Social Powers (see the box on page 41). The statute sets forth the basis for permanent accountability and appreciates the involvement of fans with the team and the Club, an aspect that is part of the seven pillars established by the current management body when it took over in 2007 (more in the chapter Strategy). In line with this, in 2009 the new Cultural Director s area was created with the aim of researching remarkable facts of the Club s 100-year history and promoting significant events for Club members and fans at large. The Deliberative Council consists of both lifelong members and members elected for three-year mandates. The Council is in charge of electing the effective members and their stand-ins for the Council of Orientation (Cori), Fiscal Council, Ethics and Discipline Committee, and lifelong councilors. The Council is also in charge of voting on the annual budgetary allocation, as well as requests for supplemental funds requested by the Board; assessing the annual accounts of the Board and the opinions of the Fiscal Council and Cori; and assessing the President s general report. THE PRESIDENT GOES,THE STATUTE STAYS The statute establishes the direct election of President and Vicepresidents for mandates of three years, without the right to consecutive reelection. By the same token, reelection of participants in the Ruling Committee of the Deliberative Council (CD) and Cori for the same positions is forbidden for consecutive terms. The objective is to prevent directors from remaining in positions for long periods of time, thus disrupting the regime of castes that has caused much harm to Corinthians along its history. Therefore, power alternation is ensured, with relatives of presidents also forbidden to run for the immediate succession of their family member. If a former president wants to return, he/she will only be able to run for the position after two terms of successors. 38 GRI ITEMS:

21 GOVERNANCE AND MANAGEMENT ORGANIZATIONAL CHART THE STATUTE, IN FORCE AS OF SEPTEMBER 2008, ESTABLISHES DIRECT VOTING BY CLUB MEMBERS OF PRESIDENT, FOR A THREE-YEAR MANDATE and NO REELECTION Consisting of ten members, the Council of Orientation is in charge of assisting the President and supervising the administration; approving and enforcing the Internal Rules and Regulations, with the right to review their texts in the first quarter of the year; giving opinions to the Deliberative Council on the Board report for the budgetary allocation for each year and supplemental funds; authorizing the President ad referendum of the Deliberative Council to sign contracts; examining monthly interim balance sheets and recommending any possible measures deemed necessary for their perfect organization; and allocating funds, among other responsibilities. In the Fiscal Council, the main duties of the three effective members and their alternates are to verify the Club s general bookkeeping, by examining the relevant documents, at least once a month; review the monthly interim balance sheets of the Treasury Department; inform the President of possible irregularities; submit them to the Cori when they refer to financial matters; give an annual opinion to the Deliberative Council on the balance sheet and the statement of revenues and expenses, which will be attached to the annual report of the Board; advise on the budgetary allocation and issue an opinion on the coverage of additional credits to the budget, in view of the compensation funds; and monitor compliance with existing sports legislation. 1st VICE- PRESIDENT DELIBERATIVE COUNCIL COUNCIL OF ORIENTATION PRESIDENT DIRECTORS 2nd VICE- PRESIDENT SECRETARY- GENERAL FISCAL COUNCIL 1st VICE-PRESIDENT ROBERTO DE ANDRADE SOUZA CLUB MEMBER SINCE 1997 President andrés navarro sanchez CLUB MEMBER SINCE nd VICE-PRESIDENT MANOEL FELIX CINTRA NETO CLUB MEMBER SINCE 1975 INTERNATIONAL AFFAIRS FINANCES LAND SPORTS PROFESSIONAL FOOTBALL PROPERTY CULTURAL MARKETING LEGAL AFFAIRS DIRECTORS YOUTH FOOTBALL ADMINIS- TRATIVE PROFESSIONAL FOOTBALL roberto de andrade e souza CLUB MEMBER SINCE 1997 YOUTH FOOTBALL Fernando Alba Braghiroli CLUB MEMBER SINCE 1983 FINANCES Raul Corrêa da Silva CLUB MEMBER SINCE 1959 WATER SPORTS SOCIAL AS PART OF ITS TRANSPARENT MANAGEMENT, CORINTHIANS HAS BEEN PUBLISHING REPORTS SINCE IN 2010, THE REPORT WAS A FINALIST IN THE ABRASCA AWARD FOR BEST ANNUAL REPORT, PRESENTED BY THE BRAZILIAN ASSOCIATION OF OPEN COMPANIES PROPERTY Jorge Alberto Aun CLUB MEMBER SINCE 1965 WATER SPORTS oldano gonçalves de carvalho CLUB MEMBER SINCE 2001 Marketing Luis Paulo Rosenberg CLUB MEMBER SINCE 1999 LAND SPORTS Fausto bittar filho CLUB MEMBER SINCE 2006 LEGAL AFFAIRS Sérgio Mendonça de Alvarenga CLUB MEMBER SINCE 1993 SECRETARY-GENERAL elie werdo CLUB MEMBER SINCE 1959 ADMINISTRATIVE André Luiz De Oliveira CLUB MEMBER SINCE 1995 Social Waldir Rozante CLUB MEMBER SINCE 1987 Cultural Duilio Noccioli Monteiro Alves CLUB MEMBER SINCE 1978 SOCIAL POWERS GENERAL ASSEMBLY (AG) It consists of all Club members over 18, admitted for more than five years and in good standing with statutory obligations. The AG elects the President, Vice-presidents and two-thirds of the Deliberative Council. DELIBERATIVE COUNCIL Consisting of 300 councilors 200 elected by the AG for triennial terms, and 100 with lifelong tenure the CD supervises the accounts and actions of the Board. The CD is in charge of electing the members of the Cori, Fiscal Council, Ethics and Discipline Committee, and lifelong councilors. It must watch over the ethics in the Club, vote on the budget, supervise the annual accounts of the Board of Directors and the opinions of the Fiscal Council and Cori, and assess the President s general report. COUNCIL OF ORIENTATION It consists of ten members elected by the CD from their own councilors the last two presidents, and of those who have the status of native members. Councilors have a three-year term, without consecutive reelection, and shall not simultaneously hold the position of Director. The councilors supervise the Club s management and accounts, preparing opinions for the CD on the Board of Directors budgetary report, in addition to following up the budget execution. FISCAL COUNCIL Participants are three effective members and three stand-ins, elected by the CD for three-year terms. Its members cannot be part of the CD, Cori, or Board of Directors, and cannot be relatives of Directors. In addition to assessing and preparing an opinion on the budgetary project for the year, the Fiscal Council supervises its execution and examines monthly interim balance sheets to advise the President on possible irregularities. DIRECTORS It is an administrative body consisting of the President, Andrés Navarro Sanchez, 1st Vice-president, Roberto de Andrade Souza, and 2nd Vicepresident, Manoel Felix Cintra Neto, who were elected for three-year terms with no reelection in the General Assembly held in February They were all elected by direct secret vote, for the first time in the Club s history, using voting machines. The President, Vice-presidents and Directors are not remunerated. The President is entitled to nominate and dismiss, at his/her own discretion, the Secretary-General and the 12 Directors

22 GOVERNANCE AND MANAGEMENT COUNCILS... TO PLAY FOR CORINTHIANS IS TO RESPECT A CULTURE, a PEOPLE, A NATION. TO TAKE INTO ACCOUNT THAT EVERY SECOND OF OUR LIVES SHALL SERVE A CAUSE, NOT MAKE USE OF IT... IN THE CORINTHIANS CURRENT GOVERNANCE MODEL, THE BOARD OF DIRECTORS AND EXECUTIVE COMMITTEES CONSIST OF NON- REMUNERATED MEMBERS Sócrates Among many duties, the Board of Directors is responsible for managing Corinthians; resolving issues relating to admission, transfer, licensing, dismissal and readmission of members; dealing with official sports competitions that will be held in a place not belonging to Corinthians; and providing the Cori and CD with all information and documents it may require. In turn, the Ethics and Disciplinary Commission has to know about, investigate and report on disciplinary proceedings relating to members of the CD itself, the Board, Cori, and the Fiscal Council and may, thus, collect evidence, take testimony and request information from all powers of Corinthians, as well as gather new evidence, take new testimonies, add new documents, and request information from the Board for the reliable accomplishment of its duties. The final opinion of the Disciplinary Commission is submitted to the CD for assessment. The President is in charge of the social administration, with broad powers to direct the organization of services; appoint permanent or temporary commissions, required to maintain and develop the social activities; constitute a commission to investigate violations; convene the CD, Cori, the Board of Directors and the Fiscal Council; authorize the opening of credits granted by the CD and carry out the financial operations, in view of relevant administrative need and respecting the statutory provisions; authenticate documents of social responsibility and sign papers; manage the social interests, as well as demand, enforce, hire, renew or terminate obligations, by consulting with the Board; represent Corinthians in Court and outside it; submit to the CD, annually, the budgetary allocation for the following year, the balance sheet and statement of revenues and expenses of the previous year, and the General Report on the Club s activities, with the opinions of the Fiscal Council and Cori; view bills before their payment, or delegate this authority to the Director of Finances; report to Cori the development of the Club s social life, providing accounts of the measures adopted; disseminate Corinthians thinking, or delegate this authority to the Board of Directors; respect and enforce the statute and other internal rules of the Club, as well as the deliberations of the Public Authority or other high-ranking sports bodies; sign players and coaching staff members; and hire, dismiss and punish employees, determine salaries and wages, grant licenses and perform all legal acts the employer is subject to, among other assignments. COMPOSITION OF THE COUNCILS DIRECTORS Andrés Navarro Sanchez President Roberto de Andrade Souza 1st Vice-President Manoel Felix Cintra Neto 2nd Vice-President Roberto de Andrade Souza Director, Professional Football Raul Corrêa da Silva Director, Finances Jorge Alberto Aun Director, Property and Works Fausto Bittar Filho Director, Land Sports André Luiz de Oliveira Director, Administrative Fernando Alba Braghiroli Director, Youth Football Sérgio Eduardo M. de Alvarenga Director, Legal Affairs Oldano Gonçalves de Carvalho Director, Water Sports Waldir Rozante Director, Social Department Luis Paulo Rosenberg Director, Marketing Duilio Noccioli Monteiro Alves Director, Cultural Elie Werdo Secretary-General DELIBERATIVE COUNCIL Carlos João Eduardo Senger President Alexandre Husni Vice-President Coryntho Baldoino Costa Neto 1st Secretary Luiz Gonzaga Neto Ad-Hoc Secretary FISCAL COUNCIL Francisco Bomtempi President Antonio Abdo Coryntho Baldoino Costa Councilors Munir Abdo Baarini Jamil Carlos Rosa Stand-ins COUNCIL OF ORIENTATION Antonio Roque Citadini President José Alves dos Santos Filho Vice-President José Campizzi Busico Secretary Ademir Benedito de Carvalho Alexandre Husni André Luis Barone Andrés Navarro Sanchez Carlos Jão Eduardo Senger Eduardo Nesi Curi Guilherme Gonçalves Strenger Manoel Félix Cintra Marco Aurélio Repetto Marlene Colla Matheus Mauro de Oliveira Gasparian Miriam Athie Oswaldo Abrão José Roberto de Andrade Souza Rubens Elias Rubens Gomes da Silva Junior Wadih Helu Wagner Caetano Acedo Waldemar Pires Wilson Bento Junior Effective Councilors Marlene Colla Matheus Mauro de Oliveira Gasparian Wadih Helu Waldemar Pires Native Councilors LIFELONG COUNCILORS Abdo Antonio Hadade Ademir de Carvalho Benedito Adib Geraldo Jabur Alcindo Ornelas Alenio Calil Mathias Alessio Calil Mathias Alex Calil Mathias Alexandre Husni Álvaro Vaseli Amado Tatari André Luiz Barone Andrés Navarro Sanchez Angel Lopez Abad Antoine Gebran Antonio Abrão Haj Antonio Alarcon Ramon Antonio Arenas Antonio Carlos Soveral Antonio de Paiva Monteiro Filho Antonio Ermírio de Moraes Antonio Gimenez Lopes Antonio Goulart dos Reis Antonio Jorge Rachid Junior Antonio Roque Citadini Antonio Vicente Estorino da Silva Ariovaldo Freire Armando Samaritano Aurélio de Paula Bento da Cunha Calil Leôncio Mathias Carla Dualib S. Serra Carlos Alberto de Sousa Carlos Alberto Klocke Carlos Borges Cano Carlos João Eduardo Senger Carlos Nujud Nakhoul Carlos Pereira da Silva Carlos Roberto de Mello Célia Laura Monti de Castro Bigi Celso Luiz Limongi César Romeu Gonçalves da Silva Cláudio Marcon Cláudio Vieira Campos Helou Clodomil Antonio Orsi Coryntho Baldoino Costa Neto Cyro Dualib Sonnewend Dalton Gioia Damião Garcia Daniel Espindola da Cunha Décio Damásio Delphino Russo Deovaldo do Amaral Carvalho Edson Aparecido Geanelli Edson Médici Dualib Edson Real Dualib Eduardo Bittencourt Carvalho Eduardo Nesi Curi Elie Werdo Emerson Piovesan Emilio Françolin Junior Eugênio Barganhão Fábio Nesi Curi Fernando Capez Flávio Adauto Iório Lopes Flávio Faloppa Flávio Ferrari Florindo Barban Francis Selwyn Davis Francisco Alfredo Trindade Francisco Cuano Filho Francisco Teocharis P. Jr. George Menezes Gomes Geraldo Euclides Araújo Xavier Germano Augusto Guido Aquino Guilherme Gonçalves Strenger Hagop Chamlian Heleno Haddad Maluf Henrique Aldrighi Henrique Aparecido Alves Henrique Navajas Godoy Hermenegildo Matheus Pernias Idel Aronis Ilmar Schiavenato Irineu Ramos Moreno Isac Waynszteyn Ivaney Cayres de Souza Ivo de Almeida Jacinto Antonio Ribeiro Jamil Helu João Antonio Helou João Martins Perez João Paulo Brazil Menezes Garcia João Serino Jorge Agle Kalil Jorge Carduz Junior José Alves dos Santos Filho José Augusto Cardoso Mendes José Campizzi Busico José Carlos Carnevale José Edgard Soares Moreira José Fernandes Cabrera José Gianoccaro José Lucas de Oliveira José Machado Carqueijo José Mansur Farhat José Muradian José Onofre de Souza Almeida José Roberto Menezes Garcia José Romão Sampere Julio Moura Leonardo Romanholi Filho Luciano Ferreira Leite Luis Antonio Vasconcelos Boselli Luiz Antonio Fleury Filho Luiz Cezar Leão Granieri Luiz Fernando Menezes Garcia Luiz Inácio Lula da Silva Luiz Paulo Teixeira Ferreira Luiz Sergio Scarpelli Esteban Manoel Felix Cintra Neto Manoel Ramos Evangelista Manrico de Camilo Marcelo Ackel Dualib Marcelo Fernandes Atala Marco Aurélio Reppeto Marcos Surjan Trofo Filho Maria Aparecida Gomes Filippini Mario Cardoso Xavier Mario Mendes da Silva Marlene Colla Matheus Mauro de Mello de O. Gasparian Michel Helu Miguel de Jesus Guerrero Miguel La Motta Miriam Athie Moacir Sebastião de Oliveira Nelson Luiz da Silva Nelson Real Dualib Nelson Sacho Newton David Ferrari Nuno Pereira Neto Octavio Godoy Osmar Stábile Osnaide Jorge Oswaldo Jorge Paschoal Nobis Paulino Tritapepe Neto Paulo Sergio Mendes Pinhal Paulo Sergio Menezes Garcia Pedro Antonio Fabiano Pedro Brazil Garcia Pedro Mudrey Basan Raif Kurban Renato Camargo Ricardo Chialastri Roberto de Andrade Souza Romeu Tuma Jr. Rubens Approbato Machado Rubens Diniz Rubens Gomes da Silva Junior Rubens Tavares Aidar Ruy Marco Antonio Filho Serafim Ruiz Sergio Panes Rodrigues Silvio dos Santos Amaral Toufic Jamil Akari Tufi Jubran Vicente Torralba Wadih Helu Wagner Caetano Acedo Waldemar Nascimento Cepeda Waldemar Pires Waldir Vieira de Campos Helu Walter Costa Junior Wanda Gomes Carneiro Wanderlei Wagner Bonfanti Wanderley Correa Raymundo William Sesso Wilson Abussamra Bugarib Wilson Bento Wilson Canhedo QUADRENNIAL COUNCILORS Airton Luiz da Silva Alcir José Teodoro Alexandre de Souza Alexandre Vivanco Blanco Antonio Carlos Cedenho Antonio Carlos Cruz Antonio Chamorro Filho Antonio Craveiro Silva Armando da Costa Pacheco Antonio Fairo Musketo Filho Antonio Paulo de Souza Antonio Roberto Maia Simões Antonio R. de Oliveira Neto Antonio Sérgio Albino Ariovaldo Brandespim Ariovaldo Carrera Dias Augusto da Silva Junior Caio Cotait Maluf Carlos Donoso Vidal Carlos Eduardo B. Carvalho Carlos Magno de Souza Guedes Carlos Roberto Auricchio Carlos Roberto de Sillos Carlos Roberto Elias Celso Michel Jorge Celso Tiuzzi Claudemir Barcellos Claudio Mozas Olivares Cleber Metta Cristiane Gambaré Franco Daniel Ziron Gomes Darci Pannocchia Filho David Pedro Najar Dawilson Everaldo de Branco Denis Nieto Piovezan Denise Laís Lopes Domenico Carnevalli Domingos Gonçalves Perrotti Douglas Fernando Gomes Edeiner Pezzuol Edgard Alcides Ortiz Edmilson Parra Navarro Edna Murad Hadlik Edson Sydney Tritapepe Eduardo Almeida Losi Eduardo da Rocha Azevedo Elisabeth Fonseca Emerito Ângulo Eneas Julio Massaglia Erasto Oliva Eudes Paschoal Trimboli Fausto Di Toti Garcia Farid Zablith Filho Gilmar Lopes Hailton dos Santos Cunha Helenio Marchelli Nunes Helio Nasri Abou Madi Hortência de Fátima Marcari Humberto Primo Garbin Neto Izaki Abdo Neto Jair Celso Calvo James de Oliveira Lima Jamil Padui João Carlos da Costa Pacheco João Matheus João Nastari Sobrinho João Romero João Waldyr Molter Jonas Rabelo dos Santos Jorge Neme Neto José Antonio Aguilla Barreiras José Antonio Avenia Neri José Antonio Tucci José Augusto Monteiro José Carlos Chibily José Carlos de Mattos José Carlos Pozo José Chaves de Andrade José Maria da Silva José Domingos José Edgard Soares Moreira Filho José Joaquim de C. Pinto Jr. José Luiz Pereira Bouços José Maria Pereira Rio José Matheus José Oliva José Percival A. Nogueira Jr. José Ricardo Gazzanel José Roberto Siman Lamartine Zanzini Laudecir Carlos da Silveira Leonel Valdir de Oliveira Luiz Antonio Achoa Mezher Luiz Augusto San Juan França Luiz Barban Luiz Carlos Lopes de Almeida Luiz Carlos da Silva Bezerra Luiz Gonçalves Neto Marcelo Bastos de Melo Marcelo Gama Peinado Marcelo Mariano dos Santos Marcilio Dias Marcio Paulo Troise Marcio Roberto Camarotto Marco Antonio de Mattos Marco Meserlian Marcos Antonio Calif Marcos Evangelista dos Santos Marcos Ribeiro Caldeirinha Maria de Lourdes Jacob Mattaro Maria Regina Ferrer Cano Maria Tereza do Amaral Mario Hernandes Rodrigues Mario Iório Lopes Mauricio Antonio Haj Mauricio Kuhn Mauricio Soares de Siqueira Mauro Tadeu Silva Miguel de Deus Rodrigues Milton Andreoti Milton dos Santos Milton José Barban Milton José Ribas Milton Santander Santiago Nelson Barba Nildo Masini Osmar Basílio Osmar Toso Osmar Abrão José Osvaldo Paloma Paulo Marcelo Vélez Paulo Roberto dos Santos Paulo Roberto Martinez Gonzalez Pedro Fiúza Fabiano Pedro Leite Fernandes Pedro Wilson Bugarib Reginaldo Monteiro Valério Ricardo de Mattos Roberto Augusto Felix Roberto de Cerqueira César Roberto de Lima Roberto Garcia Parisi Roberto Teixeira de Almeida Rogério Cione Rogério Mollica Romildo Monteiro Alves Ronie Nieto Piovezan Rubens Elias Salvary Fernandes Rocha Sérgio Coelho Montes Sérgio Siqueira Palomares Silvestre Fabri Sulivan João Correia Tales Baptista Manchon Valdevino Bispo Santos Valmir Arlete Gonçalves Wagner Luiz de Paula Waldemar Pereira da Costa Waldir Luiz dos Santos Waldomiro Bochichi Walter Eugenio de Campos Walter Jorge Walter Richi de Castro Willian Cardoso Wilson Bento Junior 42 43

23 ECONOMIC PERFORMANCE ECONOMIC PERFORMANCE CORINTHIANS EBITDA GREW BY 42 % WHEN COMPARED TO 2008 CONSTANT EVOLUTION RESPONSIBLE MANAGEMENT LED CORINTHIANS TO CLOSE 2010 WITH RECORD-BREAKING FIGURES, AND GROWTH IN ALL SOURCES OF INCOME economic and financial performance THE EXCELLENT presented by Corinthians is the result of responsible, effective management, as carried out by the current Board of Directors. Corroborating this is the fact that the Club has closed 2010 with recordbreaking figures and growth in all revenue sources. Total revenues amounted to R$ million, an increase of 17% over 2009 and 81% when compared to For the third consecutive year, the Club presented a surplus for the year. In the period , Corinthians totaled R$ 20.4 million in surplus thus evidencing a situation quite different from that observed three years ago, when it accumulated R$ million in deficit for the years 2005 to EBITDA, which represents the surplus obtained by the Club before interest, taxes, depreciation and amortization, reached R$ 41.1 million in 2010, evolving 8% over 2009 and 42% when compared to the amount for The positive result indicates the Club s operating cash generation capability, that is, the resources Corinthians generates with its activity, with no consideration of financial and tax effects. In 2010, Corinthians total assets had grown by 19.9% to R$ million, well above the R$ million recorded in the year before. At the end of the year, Timão s net worth reached R$ million, 6% higher than The new management model has also allowed the Club to regain the confidence of partners, investors and others interested in associating their brands with Corinthians. According to a survey conducted by the auditing and consulting firm Crowe Horwath RCS in 2010, the Corinthians brand name was valued at R$ million, which led the Club to hold the first place in the ranking of the most valuable brands among Brazilian clubs. Due to the importance and significant appreciation of the brand name, in 2009 the Club decided to hire auditors and attorneys that specialize in the preservation of the rights of official partners in the fight against piracy. Professional football LEADERSHIP IN FOOTBALL continues to be the Club s major source of income, totaling R$ 212 million. In 2010, it has also recorded a surplus, of R$ 3.5 million, while the social club and amateur sports presented a positive balance of R$ 215 thousand. This growth is even more noteworthy when revenues with athlete transfers are not considered. The Club s revenues without athletes reached R$ million in 2010, jumping 182% against 2007 (see chart). Other sources of revenue have also grown. This is the case of social club and amateur sports, which together accounted for R$ 39 million in 2010, or 24% over 2009 and 55% when compared to The amount received from rights to matches broadcast on TV reached R$ 55 million, a 36% increase over 2009 and 114% over Revenues from sponsorship and advertising totaled R$ 47.3 million in 2010, a 26% growth over the previous year, and 92% when compared to In 2010, Corinthians was the Brazilian club that sold the most tickets, for an income of R$ 29.4 million, almost as much as the combined total reached by São Paulo, Palmeiras and Santos. The amount represents a 6% growth over 2009 and 77% over This growth is even more significant if compared to the tickets sold in 2007, which stayed at R$ 7.5 million. INDEBTEDNESS UNDER CONTROL While debt has grown, the expansion of revenues kept the performance indicators of the Club at an excellent level, such as the ratio of debt versus (divided by) revenues without athletes. The indicator, which was 0.66 in 2009, rose to 0.69 in In 2007, it was In 2010, the Club s net debt reached R$ million, a 22% increase over the previous year NET DEBT INDICATOR REVENUES OTHER THAN PLAYER TRANSFERS IN 2010, THE CLUB INVESTED OVER 46 MILLION REAIS, OF WHICH: 25 WERE USED TO SIGN ATHLETES AND OTHERS 21 WERE USE IN THE WORKS OF DR. JOAQUIM GRAVA TRAINING CENTER 44 45

24 ECONOMIC PERFORMANCE ECONOMIC PERFORMANCE SOURCES OF REVENUES PROFILE OF REVENUES MORE INVESTMENTS SOURCES OF REVENUES TV BROADCAST SPONSORSHIP AND ADVERTISING Over the last four years, there has been a significant change in the profile of the revenues earned by Corinthians. In 2007, athlete transfers accounted for 53% of the overall amount received by the Club, and were down to 16% in The share of Club revenues and amateur sports has doubled in the period, from 9% to 18%. The TV fees grew from 17% to 26%; ticket sales grew from 6% to 14%; and sponsorship and advertising increased from 14% to 22%. TICKET SALES 6% TV QUOTAS 17% NEGOTIATION FOR ATHLETES 53% 2007 SPONSORSHIP AND ADVERTISING 14% Corinthians invested heavily in The resources were used especially in the professional team and in the works for the Dr. Joaquim Grava Training Center, which have increased the debt. In 2010, the Club invested over R$ 43.7 million, of which 23.5 million were used for signing athletes, and another R$ million were used in the Training Center works. INDEBTEDNESS 140, , ,000 80,000 60,000 40,000 20, ,550 12,699 INVESTMENTS MADE 97,237 25,078 99,821 38, , , NEGOTIATION FOR ATHLETES TICKET SALES SOCIAL AND AMATEUR 9% NO FINES OR SANCTIONS SOCIAL AND AMATEUR LOYAL FAN PROGRAM, LOTTERIES, OTHERS 2% TICKET SALES 14% 2010 PRIZES IN CHAMPIONSHIPS 1% In 2010, Corinthians recorded no incidents resulting in significant fines or penalties from the São Paulo State Football Federation, CBF and FIFA. The Club did not receive any significant fines for noncompliance with the Statute of the Fan, environmental laws and regulations, including non-monetary penalties, or labor-related laws and regulations. LOYAL FAN PROGRAM, LOTTERIES, OTHERS PRIZES IN CHAMPIONSHIPS 3.0 NEGOTIATION FOR ATHLETES 16% TV FEES 26% SOCIAL AND AMATEUR 18% SPONSORSHIP AND ADVERTISING 22% 46 GRI INDICATORS: so8 pr9 en28 47

25 STAKEHOLDERS STAKEHOLDERS NETWORK OF RELATIONSHIPS GET TO KNOW THE CORINTHIANS STAKEHOLDERS SUPPLIERS 7,268 in total. The area of suppliers is under restructuring. EMPLOYEES 848 in total. RELATIONSHIP CHANNELS: specific Directors and Administrative. of Corinthians with its various stakeholders has intensified over the recent THE COMMUNICATION years. In line with this, a wide, well-structured network of relationships was set up to dialogue with the various stakeholders. We have been maintaining specific relationship channels with each one of them fans, employees, Club members, suppliers, the media, banks, TV stations, the professional staff, and players agents. The most recent initiative was to launch TV Corinthians (more in the Chapter Communication). A priority in the Marketing Department, the project is aimed at strengthening the relationship with our loyal fans, by using the internet as a major tool. FANS 30 million Corinthians fans. RELATIONSHIP CHANNELS: website and ombudsman. ORGANIZED FAN GROUPS There are dozens of fan groups. The leading ones are: Camisa 12, Coringão Chopp, Corinthianos Obsessivos, Estopim da Fiel, Garra Corinthiana, Gaviões da Fiel and Pavilhão 9 RELATIONSHIP CHANNELS: Directors and the President. INTERNET FIGURES Our portal in the World Wide Web gathers all significant information for communication with the entire black-andwhite crowd. When accessing it, users and fans easily find the most convenient and transparent communication channels to communicate with directors. The website gathers significant institutional information, the latest news on sports, promotions and online shopping through the virtual store. Complete and diversified, the website is now one of the better structured and most accessed portals amongst all Brazilian sports clubs. It offers interactivity and the web 2.0 concept is totally embedded within it. The portal is also available in Spanish and English static versions another way to promote the internationalization of the Corinthians brand name. 7,430,039 hits 27,203,956 page views 3,246,689 visitors 374,617 Twitter followers 558,894 Facebook friends CLUB MEMBERS IN GOOD STANDING 21,730 members. RELATIONSHIP CHANNELS: official website, monthly magazine, and O Fiel newsletter. The President is also the major interlocutor of the Board in the relationship with Club members, through personal contact, messages in the suggestion boxes distributed throughout the Club, or by via the website. In the administrative agenda, the President reserves a time slot for meetings with Club members. ENTITIES Brazilian Football Confederation, South American Football Confederation, Clube dos 13, FIFA, São Paulo State Football Federation, and amateur sports entities. RELATIONSHIP CHANNELS: institutional contacts are made by Directors and the President. BANKS Bradesco, Bic Banco, Caixa Econômica Federal and BMG. RELATIONSHIP CHANNELS: Director of Finances and the President. MEDIA Dozens of journalists from newspapers, magazines, radio, TV and the internet are registered, but the Corinthians exposure in the media surpasses their daily coverage. RELATIONSHIP CHANNEL: press agency PROFESSIONAL TEAM 18 coaching staff members and 57 professional athletes. RELATIONSHIP CHANNELS: direct access to the Director of Football and the President. SPONSORSHIP Neo Química, Perdigão, Life Fitness, Coca-Cola, Nike, Volkswagen Trucks and Buses, Bradesco, Warner Music and Grupo Silvio Santos. RELATIONSHIP CHANNELS: Director of Marketing and the President. TV Broadcast rights are negotiated by Clube dos 13. RELATIONSHIP CHANNELS: Director of Marketing and the President. PLAYERS AGENTS The list of players agents is published on our website. RELATIONSHIP CHANNELS: Director of Football and the President. 48 GRI ITEMS:

26 COMMUNICATION marketing TV WORTH A NATION WITH ADVANCED EQUIPMENT AND INTERNATIONAL STANDARDS, ANOTHER COMMUNICATION CHANNEL WITH THE FANS IS ON AIR: TV CORINTHIANS fans have just received BLACK-AND-WHITE another media vehicle to follow Timão: TV Corinthians (TVC), with a programming grid totally focused on the Club. Stay tuned to channel 20 with the TVA cable operator to watch live broadcasts of the professional team training sessions, post-practice press conferences, including in real time, as well as volleyball and youth football matches. Created in partnership with TV+, the channel went on air for the first time on March 1st, With its facilities installed on the second floor of the Parque São Jorge administrative building, TVC boasts advanced equipment and international standards, with a team of about 50 people. The Club continues to invest in printed material as well. In 2010, it launched Nação Corinthians, a bimonthly magazine with a circulation of 10 thousand copies, covering everything that is happening at Parque São Jorge. The new publication joins another three: Chute Inicial, about the football schools for children; Corinthians Mag, focused on the Club; and the weekly newsletter O Fiel, all of them first released in RULES OF CONDUCT» AT THE AWARD CEREMONY OF THE 36th YEARBOOK OF THE SÃO PAULO CREATION CLUB, F/NAZCA WAS PRESENTED A SILVER MEDAL FOR THE MAGNA CARTA OF THE PEOPLE'S REPUBLIC OF CORINTHIANS (REPRODUCED ON THE OPPOSITE PAGE). THIS ITEM WAS THE ONLY ONE HONORED IN THE TEXT CATEGORY. ARTICLE 1 Always stay tuned, as a priority, to TV Corinthians. ARTICLE 2 Never change TV Corinthians for the soap opera at 6, 7 or 8 PM. If your spouse blackmails you, refer to article 6. ARTICLE 3 You are allowed to change only when a live match is broadcast by a channel other than TV Corinthians. ARTICLE 4 Demand TV Corinthians from as many cable TV operators as possible. This is the famous reverse telemarketing. ARTICLE 5 You have to know everything that happens at Corinthians, in all categories. From kids to seniors. article 6 If your spouse blackmails you, refer to article 1. article 7 Find at least one Corinthians fan not familiar with TV Corinthians and introduce it effusively to him/her. article 8 Understand that, during matches not broadcast by TV Corinthians, the screen will be temporarily black. In this moment, please go and support Timão in another channel. article 9 Also watch futsal, swimming, basketball broadcasts, etc. involving our beloved Club. Football is good, but Corinthians is more than that. article 10 Be another crazy fan in the gang. Be part of a gang of crazy TV viewers. article 11 Never be irritated by any pseudo-impartial football commentator again. Keep calm, everyone is a Corinthians fan here, my brother

27 COMMUNICATION CELEBRATION OUR PARTY SHOWS, REVITALIZATION OF OUR LANDMARK, A LOYAL EMBRACE AND RELEASE OF A STAMP AND MEDAL MARKED THE CELEBRATION OF CORINTHIANS 100 YEARS CORINTHIANS ON THE SUBWAY Corinthians has a new cultural space: the Memorial at the Corinthians- Itaquera Subway Station opened in December The Corinthians Space displays the history of the most popular football club in the city of São Paulo. At the station, videos pay homage to Corinthians fans and there are exhibitions of trophy replicas and on the brightest stars, featuring outstanding athletes that have played for the Club of Parque São Jorge ever since its foundation. of the first century in the THE CELEBRATION history of Corinthians involved a number of events. The First Show of the Centennial took place at the Parque São Jorge Gymnasium, with performances by the percussion group of the Gaviões da Fiel samba school, group Beijo na Trave, and duos Henrique & Diego and Fernando & Sorocaba, which were attended by thousands of Corinthians fans. On August 31, 2010, the unforgettable Eve Party took place at Vale do Anhangabaú, downtown São Paulo, attended by over 200 thousand people with performances by a number of bands and artists Exaltasamba, Maria Cecília & Rodolfo, Ronaldo e os Impedidos, Badauí and Japinha from CPM22, Paula Lima, Xis, Rappin Hood, Negra Li, Nuwance and Unified Percussion Bands of Fan Groups. At the intermission, former players, current players and other Club idols paid their homage to Timão s Centennial. Seconds before midnight, all those in attendance kicked off a countdown to celebrate September 1st the Corinthians Day. On September 1st, President Andrés Sanchez, Cultural Director Duilio Noccioli, and Marketing Director Luis Paulo Rosenberg inaugurated the new Corinthians foundation landmark, at the corner of Cônego Martins and José Paulino streets in the district of Bom Retiro. Under the light of a street lantern, the monument was revitalized, and received a protective fence and new signposts. At least 5 thousand Corinthians fans attended the ceremony, in addition to former players Neto and Biro-Biro. Next, a motorcade left for Parque São Jorge to hold the Loyal Embrace, attended by approximately 15 thousand fans. As a chain, they formed two lines along the Club s parking area, and embraced Parque São Jorge until meeting at the other side of Marginal Tietê Avenue. With the chain closed, the loyal fans embraced the Club to watch the colorful fireworks that lit up the sky in the East Zone of São Paulo. The Parque São Jorge Gymnasium hosted the singer Roberto Carlos for a twohour performance that touched about 8 thousand people who attended the show by the King. Before the event, the Corinthians Stamp was released. Issued by the Brazilian Post Office, the new stamp has two versions: the first, a regular postage stamp, highlighting the Club values and illustrated with the official Centennial image; the other, a stamp made in fabric with a limited circulation of 100 thousand units. The Centennial Medal, produced by the Brazilian Mint, was also released. It features the official 100-year logo and the loyal fans on one side, and the first Corinthians emblem on the other side. At the end of September, the singer Roberto Carlos held another performance at the Anhembi Convention Center, exclusively for Corinthians guests. The event was attended by players, idols and famous fans, including Ronaldo, the Phenomenon, left winger Roberto Carlos, Dentinho, Elias, Adilson Batista, Biro-Biro, Wladimir, Basílio, Rivellino, Neto and head coach Mano Menezes, in addition to the country s then-first Lady Dona Marisa. Before the performance, the auditorium looked like a stadium. At the time, a movie was shown in tribute to the Club s 100 years, children waved flags on the stage, the crowd s screams echoed through the hall, and a large Centennial flag covered up the entire audience, which awaited the performance by the famous star. As part of the celebration agenda, the Estopim da Fiel fan group prepared a different act: 100 flags were unfurled over the crowd in the Corinthians-Goiás match, on September 4, 2010, at the Pacaembu Stadium. Marcelinho Carioca, Sócrates, Neto, Vladimir, Luizinho, Cláudio, Ronaldo, Vicente Matheus, and Ayrton Senna, among others who were part of Timão s history, were depicted on the flags, which measured three by three and a half meters. In addition to personalities, the flags showed unforgettable teams, such as that of 1977, and the evolution of the Club s emblem. The Cultural Department promoted a meeting of the American pop group Jonas Brothers and Ronaldo, the Phenomenon, the team s number 9. The Club was also visited by Mister M, the illusionist who became famous for revealing the secrets of the great tricks. The Corinthians Theater exhibited Além da Vida, a psychographic play by Chico Xavier and Divaldo Franco. At the Club s Noble Room, the Cultural Multiethnic Party was held, with folk performances representing some of the countries participating in the 2010 World Cup. The Club and the tourism operator CVC promoted a party to launch the Corinthians Ship. With capacity for 1,900 passengers, the transatlantic ship left the Port of Santos (São Paulo) for Itajaí and São Francisco do Sul, two cities in the state of Santa Catarina. THE EVE PARTY ATTRACTED OVER 200 THOUSAND PEOPLE TO THE PERFORMANCES BY VARIOUS BANDS AND ARTISTS AT VALE DO ANHANGABAÚ, DOWNTOWN SÃO PAULO» EVE PARTY, AT VALE DO ANHANGABAÚ 52 53

28 SOCIAL AND CULTURAL INVESTMENTS SOCIAL AND CULTURAL INVESTMENTS MORE ACTIONS BY CORINTHIANS» GROUP OF CHILDREN VISITING PARQUE SÃO JORGE, AS PART OF THE PEOPLE S TEAM PROJECT WITH AN EYE ON THE FUTURE THE CLUB ENCOURAGES PROJECTS THAT CONTRIBUTE TO EDUCATION OF YOUNG PEOPLE, WITH SPORTS AS ITS MAIN TOOL CORINTHIANS BLOOD In two years, the Corinthians Blood Campaign has already saved about 60 thousand lives. The project, held nationwide, was conceived and promoted by fans with institutional support from the Club. The campaign is aimed at making people aware of the importance of donating blood. In 2011, 50 collection posts were spread all over Brazil. Corinthians is aware of its social responsibility and of its role in the shaping of a new generation of fans, who are already part of the largest and most passionate association in the world: the Corinthians Nation. Among the social projects implemented by the Club are Chute Inicial, honored by the CBC, and the People s Team. Chute Inicial is Brazil s largest network of licensed football schools. They total 62 schools, with revenues to the tune of R$ 1.06 million in 2010, an amount 10% higher than that of the previous year. The initiative is aimed at using sports as a tool to socialize our students, using its values to build their characters. Our mission is to enable students, through sports, to learn to win and lose, interact harmoniously, engage in an enjoyable and healthy activity, learn to respect rules and identify with our Club. The recognized initiative People s Team is aimed at taking to the stadium fans who cannot afford to attend a match, especially children aged The «THE PLAYER DENTINHO AND RAPPER RAPPIN HOOD ARE SPONSORS FOR THE PEOPLE S TEAM PROJECT initiative involves visits to the Club s social site, including the Corinthians Memorial. The project relies on partnerships from Nissan and Telethon. In 2010, the project benefitted 1,387 people 1,134 children and 253 adults. The player Dentinho and rapper Rappin Hood are sponsors for the project, which includes partnerships with destitute communities, day care centers and associations, always considering the Corinthians' social responsibility for a new generation of fans. The Club offers the round trip in a specially rented bus; tickets for the Special Orange Grandstands for children and adults; support staff with Club volunteers and community leaders; lunch; a snack; a project T-shirt; and giveaways. In October 2010, a group of children from the Association for Assistance to Disabled Children (AACD) participated in the project, in partnership with Telethon 2010, a TV marathon for the benefit of the entity. They attended a training session with the professional team, at the CT Dr. Joaquim Grava, and were introduced to the players, who gave them Corinthians toys. After the training session, the children and parents went to Parque São Jorge, to have lunch and visit the Corinthians Memorial. The Corinthians players also donated an official autographed jersey to be auctioned by AACD, thus helping raise funds for Telethon 2010, which, once again, was supported by Corinthians. With the funds raised, AACD builds and maintains hospitals in several Brazilian cities, such as Recife, Uberlândia, Joinville, and Porto Alegre, among others. The TV announcer Hebe Camargo and singer Daniel were sponsors for the project, which was fully supported by SBT TV network. The communities and organizations that participated in the People s Team Project include: Creche Frei Frederico; Comunidade Anita Garibaldi; Emef Rural Terezinha Pereira da Silva; Associação Maria Helen Drexel; Associação Beneficente Unidos de Vila Carioca; Instituição Sitio Agar; Comunidade Jardim Utinga; Apae de Caieiras; Comunidade de Vila Prudente; Associação Comunitária Meninos de São Miguel; Comunidade Parque Dorotéia; Ação Vida NGO; Comunidade de Diadema (Estopim da Fiel Social Department); Mais que Vencedor Football School for Children; Projeto Despertai; and Cáritas Santa Suzana NGO. Show 100 do Bem Everyone against Pedophilia Food items collected at the event were donated to charitable institutions that are part of the project. VOLUNTARY ACTION IN THE COMMUNITY OF ACHIROPITA Campaign for voluntary work held by Kraft Foods in the community of Achiropita. The athletes participated in sports workshops with children from the Bate Bola project and Dom Orione Educational Center. WARM CLOTHES CAMPAIGN The Club supported the Secretariat for Public Security and the Fund for Solidarity and Social and Cultural Development with the State of São Paulo to hold a great show. Tickets were sold at R$ 15, and the funds were used to purchase blankets for the campaign. FUNDAÇÃO CASA PROJECT In partnership with the National Council for Justice, in 2010 Corinthians launched a social responsibility project allowing young inmates with Fundação Casa in the State of São Paulo to attend sporting activities on the premises of the Club. The partnership offering 100 openings aims at supporting the social reintegration of young people. 54 GRI INDICATORS: so1 55

29 ENVIRONMENT PLAYING FOR THE ENVIRONMENT» OPPOSITE PAGE: SEEDLINGS ARE PLANTED AT THE CORINTHIANS BANCO CRUZEIRO DO SUL FOREST RESERVE IN SALTO DE PIRAPORA, UPSTATE SÃO PAULO A GOAL WORTH ONE HUNDRED THE PROJECT IN PARTNERSHIP WITH BANCO CRUZEIRO DO SUL AIMS AT RAISING AWARENESS OF CORINTHIANS FANS OF A GLOBAL CONCERN: CLIMATE CHANGE warming has become a major global concern. Caring for the global environment and ensuring the future of next generations has become a significant issue, a duty for all. In partnership with Banco Cruzeiro do Sul, in 2010 Corinthians launched the project Playing for the Environment. The program includes several activities aimed at tackling global warming by mobilizing Corinthians fans and Club members, as well as employees and customers with the bank. According to the initiative, for every goal scored by Corinthians teams in any competition 100 trees will be planted. The results of the activities can already be measured. Corinthians finished 2010 with a total of 23 thousand seedlings planted. Out of that total, 7 thousand represent the matches during the year (70) and another 11.9 thousand correspond to the goals scored (119). In addition, the other 4.1 thousand trees refer to the carbon neutralization of the Club and the financial institution. The planted trees form the Corinthians Banco Cruzeiro do Sul Forest Reserve, a 103 thousand sqm area located in Salto de Pirapora, in upstate São Paulo. Using football as a vehicle because it is a game that stirs up the masses, the project Playing for the Environment has been educating the black-and-white fans, as well as the public at large, often in a good-humored way, about the importance of thinking more deeply about climate change and global warming. In October 2010, a survey conducted by Perfil Urbano Institute, of 412 fans who attended the classic match between Corinthians and Palmeiras at the Pacaembu Stadium in the Brazilian Championship, demonstrated the efficiency of the project in disseminating environmental issues among the Corinthians fans. According to the survey, in general all fans agree totally or partially that the project contributes to preserving the environment. There is also a high level of knowledge and interest in the global warming issue. In addition, 71% of those interviewed said they had more interest in the topic of the environment after they learned about the project, and a significant part 56% said they had modified an aspect of their behavior after learning of the project s activities. The initiative was also shown to be very positive, winning an average score of 9.7, out of 10 possible points. In 2011, in addition to continuing to plant trees, Corinthians will seek greater engagement. In line with this, some activities have already been planned, such as a gymkhana (contest) for Corinthians fans. At the competitions, those presenting the best performance will also receive tickets for the Club matches. Please refer to the website to follow the score of the trees, and for news and tips on how to care for the environment. 23 THOUSAND TREES PLANTED IN 2010 ALONE 5,400 TREES PLANTED BY APRIL 18,

30 FSs OPINION OF INDEPENDENT AUDITORS SPORT CLUB CORINTHIANS PAULISTA FINANCIAL STATEMENTS AS OF DECEMBER 31, 2010 AND 2009 CONTENTS OPINION OF INDEPENDENT AUDITORS CHART 1 - BALANCE SHEETS CHART 2 - STATEMENT OF INCOME CHART 3 - STATEMENT OF CASH FLOWS CHART 4 VALUE ADDED STATEMENTS CHART 5 STATEMENTS OF CHANGES IN NET EQUITY OPINION OF INDEPENDENT AUDITORS ON THE FINANCIAL STATEMENTS TO ADMINISTRATORS, COUNCILORS AND MEMBERS OF SPORT CLUB CORINTHIANS PAULISTA We have audited the financial statements of Sport Club Corinthians Paulista, which comprise the balance sheets as of December 31, 2010, and the related statements of income, changes in net equity, cash position, and value added for the year then ended, as well as a summary of the main accounting practices and other accompanying notes. MANAGEMENT S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Club s management is responsible for the preparation and fair presentation of these financial statements in accordance with the accounting standards adopted in Brazil and for the internal control relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. RESPONSIBILITY OF THE INDEPENDENT AUDITORS Our responsibility is to express an opinion on these financial statements based on our audits, conducted in accordance with Brazilian and international standards on auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatement. An audit involves performing selected procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Club s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Club s internal control. An audit also includes evaluating the appropriateness of accounting standards used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. OPINION In our opinion, the financial statements referred to above present fairly, in all material respects, the property and financial position of the Club on December 31, 2010, as well as its operating performance and cash flows for the year then ended, in accordance with the adopted accounting standards. EMPHASIS As described in accompanying note no. 10, on December 26, 2007, the Club filed its request for adherence to Timemania lottery rules, under the terms of Laws no /06 and no /07 and Decree no. 6187/2007, which provide that the remuneration paid to participating clubs must be used to pay tax obligations to the Social Security and the Federal Revenue Service. In spite of the understanding of the Club s management and its legal counselors regarding the adherence of the Club to the referred lottery, the formal and definitive certification of the request for adherence to Timemania is still under consideration by the relevant management body. OTHER MATTERS We have also reviewed the value added statements for the year ended December 31, 2010, whose presentation is required by the Brazilian corporate law for open companies. These statements were subjected to the same auditing procedures described above and, in our opinion, are fairly stated in all material respects, in relation to the financial statements taken as a whole. Sao Paulo, January 31, 2011 Eduardo Augusto Rocha Pocetti Accountant-partner CRC 1SP105866/O-5 BDO Auditores Independentes CRC 2SP013439/O-5 59



33 FSs STATEMENTS OF CHANGES IN NET EQUITY FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 (VALUES IN THOUSANDS OF BRAZILIAN REAIS) Assurance Report Assurance Report Independent Auditor s Limited Assurance Report on the Sustainability Report for 2010 of Sport Club Corinthians Paulista - SCCP EQUITY CAPITAL RESERVE/ DONATIONS ACCUMULATED DEFICIT OTHER COMPREHENSIVE RESULTS AS OF DECEMBER 31, (48,844) 101,309 52,496 REVALUATION RESERVE REALIZATION - - 2,756 (2,756) - SURPLUS FOR THE YEAR - 1 5,825-5,827 AS OF DECEMBER 31, (40,263) 98,553 58,323 REVALUATION RESERVE REALIZATION - - 2,731 (2,731) - SURPLUS FOR THE YEAR - - 3,692-3,692 AS OF DECEMBER 31, (33,840) 95,822 62,014 Andrés Navarro Sanchez President Marcos Chiarastelli Superintendent, Finances THE ACCOMPANYING NOTES ARE PART OF THE FINANCIAL STATEMENTS. ACCESS THEM AT Raul Corrêa da Silva Director, Finances Mauro Túlio Garcia Accountant CRC 1SP /0-9 total To the Managers, Councilors and Members of Sport Club Corinthians Paulista SCCP Introduction We have been engaged to provide assurance on the Sustainability Report for 2010 of Sport Club Corinthians Paulista SCCP ( Club ), prepared under the responsibility of the Club's management. This responsibility includes designing, implementing and maintaining internal controls over the proper preparation and presentation of the Sustainability Report. Our responsibility is to provide a limited assurance report on the information disclosed in the Sustainability Report of Sport Club Corinthians Paulista SCCP for the year ended December 31, Criteria adopted in preparing the sustainability report The Sustainability Report for 2010 was prepared in accordance with the guidelines for sustainability reports of the Global Reporting Initiative (GRI-G3) for Application Level C+. Following these guidelines, Sport Club Corinthians Paulista SCCP has reported 12 essential and additional performance indicators. Procedures Applied Our limited assurance engagement was performed in accordance with the Brazilian standard for assurance engagements other than audit and review (NBC TO 3000) issued by the Federal Accounting Council (CFC). This standard requires compliance with ethical standards and planning and performing the service to obtain limited assurance that no issue has been brought to our attention that may lead us to believe that the Sustainability Report for 2010 is not in accordance with the criteria described below (Scope and Limitations), in all material respects. The procedures to obtain evidence in a limited assurance engagement are more restrictive than those of a reasonable assurance engagement; accordingly, the assurance level is lower than that which would be obtained in a reasonable assurance engagement. The procedures selected depend on the independent auditor s judgment, including the evaluation of risks that the Sustainability Report does not significantly meet the criteria defined below (Scope and limitations). Within the scope of our work, the procedures conducted included the following, among others: (i) planning the work, taking into consideration the materiality and the volume of information presented in the Sustainability Report for 2010; (ii) obtaining an understanding of the internal controls; (iii) examining, on a test basis, evidence that supports the quantitative and qualitative data in the Sustainability Report; and (iv) interviewing the managers responsible for the information. Therefore, the procedures applied were deemed sufficient to allow a level of limited assurance and, consequently, do not include all those required for issuing a broader assurance report, as set forth in said standard. Our limited assurance engagement also included verifying the application of the requirements established in GRI-G3 for Application Level C+ reports. Scope and Limitations The objective of our engagement was to verify whether the data included in the Sustainability Report for 2010, with respect to obtaining qualitative information and measuring and calculating quantitative information, is presented in accordance with the criteria and guidelines for sustainability reports from the Global Reporting Initiative (GRI-G3). Opinions, historical information, descriptive information and information resulting from subjective evaluations are not included in the scope of the work performed. The financial statements of Sport Club Corinthians Paulista SCCP, for the year ended December 31, 2010, were audited by other independent auditors, who issued their unqualified audit opinion on January 31, 2011, but with the following matter of emphasis paragraph: As described in Note 10 to the financial statements, on December 26, 2007, the Club filed a request to enroll in the lottery program Timemania, as provided by Laws 11345/06 and 11505/07 and Decree 6187/07, which prescribes that the remuneration of the Clubs that join the lottery be compulsorily used for the payment of tax obligations with the Social Security and the Brazilian Federal Revenue. Despite the understanding of the Club's Management and legal advisors that the Club has enrolled in that lottery, the formal and definitive approval of the request to enroll in Timemania is in the process of approval by the respective management body." The social and environmental performance indicators based on accounting information and presented in the Sustainability Report for 2010 of Sport Club Corinthians Paulista SCCP were extracted from these financial statements, which were not subject to assurance procedures for the purposes of this review. Conclusion Based on our limited assurance engagement, we are not aware of any significant modification that should be made to the information included in the Sustainability Report of Sport Club Corinthians Paulista SCCP for the year ended December 31, 2010, for that information to be fairly presented, in all material respects, in accordance with the criteria and guidelines for sustainability reports under the Global Reporting Initiative (GRI) for Application Level C+. São Paulo, May 13, 2011 PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5 Manuel Luiz da Silva Araújo Contador CRC 1RJ039600/O-7 S SP 64 65

34 MEMORY MEMORY TIMÃO S MISSING LINK THE 100-YEAR HISTORY OF SPORT CLUB CORINTHIANS PAULISTA HAS ALWAYS BEEN MARKED BY SIGNIFICANT ADVANCEMENTS. THE EVOLUTION OF ITS EMBLEM IS ALSO PART OF THIS GLORIOUS PROCESS have always been fascinated with CORINTHIANS FANS the Club s emblem. The first emblem dates back to It was unsophisticated and had only the superimposed letters C and P hurriedly embroidered onto the players shirts for them to fight for a spot in the São Paulo State Football League. The emblem resembled the lines of a heart. From there, the emblem underwent changes until adopting the anchor and the two oars, in The late Lourenço Diaféria author of the book Coração Corinthiano, in the series Great Clubs in the Brazilian Football and their Greatest Idols, published by Nestlé Foundation of Culture tells the history. The oars and anchor are in red, and the circle was turned into a stylized ring buoy. The first oars were longer than the current ones. Slowly, they have been aesthetically harmonized with the whole, until reaching today s format. The anchor and oars were created when the Club acquired a huge piece of land in the East Zone of São Paulo in 1926, thus moving the Club s site from the district of Bom Retiro to the borders of Tietê River. With the change, Corinthians discovered the pleasure and glory of rowing. In these waters, many generations learned to swim and became great champions. Portuguese Antônio Ferreira de Souza, a.k.a. Scafanhask, member no. 10, who paid himself 10 thousand réis to contribute to the acquisition of Fazendinha (Little Farm) an affectionate nickname given by the members to those new, distant lands was part of the group of Ernesto Cassano, Costa Mano, Sá Ferros and Floresto Bandechi. He is said to have painted the first picture of Parque São Jorge, and one of those who added the oars and anchor to the Corinthians emblem.» WHILE CORINTHIANS PLAYED AMATEUR FOOTBALL FROM , THE SHIRTS DID NOT HAVE EMBLEMS. THE FIRST ONE WAS CREATED IN A HURRY, TO FIGHT FOR A SPOT IN THE SÃO PAULO STATE FOOTBALL LEAGUE. IT WAS QUITE SIMPLE: SUPERIMPOSED C AND P IN CAPITAL LETTERS, RESEMBLING THE LINES OF A HEART. The emblem s artwork was drawn by Francisco Rebollo Gonzalez in However, his relationship with Corinthians is much older. As a boy, he used to take a lunch box to his brother José, wall painter and a friend of Antônio Pereira s, one of the five workers who founded the Club in the district of Bom Retiro. From a family of Spanish immigrants, Rebollo was born next to Parque Dom Pedro II, where Charles William Miller used to play with the first ball introduced in Brazil. He started working when he was only 12. A year later, in 1915, he became a decorating apprentice, and painted details in the churches of Santa Cecília and Santa Ifigênia. While working at Dante Alighieri School, he saw some students playing with a ball. He liked it so much that he decided to do the same. In 1917, he signed a semi-professional contract with Associação Athletica São Bento. Antônio Pereira, who was his friend and appreciated his skill with the ball, invited him to play for Corinthians in Rebollo played as right winger in the team that won the State Championship in the year of Brazil s Independence Centennial, and stayed with the Club until He was very fond of Corinthians and demonstrated his artistic vocation: he turned the Corinthians emblem into a joyful, popular graphic jewel. Later, Rebollo became a modernist painter, and he painted a picture especially for a prize drawing to raise funds for Corinthians. It took some years for the new emblem to be used regularly on the shirts of Corinthians players. The new, definitive emblem was gradually incorporated into the team s shirts, but it had long been painted on the Club walls and in the hearts of fans. An example is a Club document dated June 26, 1927, showing the emblem on the Corinthians letterhead. THE ANCHOR IS THE SYMBOL OF HOPE. THE OARS ARE OURSELVES, CORINTHIANS FANS. FOR CORINTHIANS FANS ARE NEVER IN A HURRY. THEY CAN WAIT FOR 20 YEARS. OUR HOPE IS MADE OF STEEL, OUR HOPE IS TIMELESS. CORINTHIANS FANS ARE TIRELESS, ALWAYS ROWING, DOWN OR UPSTREAM, BUT NEVER GIVING UP. THIS IS THEIR BEST, THEY ARE BRAVE. THERE IS ALSO A FLAG IN THE CORINTHIANS EMBLEM. LOOK, THE FLAG IS BILLOWING. CORINTHIANS FANS ARE SO HOPEFUL, ALWAYS ROWING, THAT THEY NEVER PUT THEIR FLAGS DOWN, WHILE THE MATCH IS STILL GOING ON. BECAUSE CORINTHIANS FANS KNOW THAT THE BALL HAS A HEART, AND IT IS ALSO A CORINTHIANS FAN AFTER ALL. Antônio Fagundes, ON GLOBO TV, WHEN THE TEAM WON THE STATE CHAMPIONSHIP IN 1988» MORE RUSTIC THAN THE CURRENT ONE, THE CORINTHIANS EMBLEM DATED 1926 TICKLED POPULAR TASTE» BESIDES THE ANCHOR, THE TWO OARS IN RED, AND THE STYLIZED RING BUOY, THE CURRENT EMBLEM FEATURES A BILLOWING SÃO PAULO STATE FLAG, ADDING DYNAMISM AND ACTION TO THE EMBLEM» THIS CLUB S LETTERHEAD BEARS THE EMBLEM WITH THE OARS AND ANCHOR. THIS DOCUMENT BROUGHT THE TEAM TO A MATCH IN THE AMATEUR FOOTBALL LEAGUE

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