corinthians!!! sport club corinthians paulista

Transcription

1 This is corinthians!!! Sustainability Report 2011

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 Club athletes Batista Boni, João Collina and André Lepre win the Club's first trophy, Unione Viaggiatori Italiani, in a 10-km hiking competition that takes place at Parque Antarctica March 30 Corinthians thrashes F. C. São Paulo 4-0 and qualifies for its first State Championship, organized by the São Paulo Football League, in November 8 the team beats Campos Elyseos 4-0 and wins the first State Championship title in Corinthians's history, going undefeated, with 10 wins in 10 matches With the promise of a spot in the championship organized by the São Paulo State Association of Athletic Sports (Apea), Corinthians abandons the São Paulo Football League, and ends up not playing in either of the leagues. The team spends the entire year playing exhibition matches in the interior of the State of São Paulo, going undefeated December 3 the win over Americano 3-0 guarantees the second State Championship title, once again going undefeated (eight wins in eight matches) The team plays in the first unified State Championship, finishing third March 17 Inauguration of the Ponte Grande field, Corinthians s first stadium, with a match against Palestra Itália. The exhibition match ends in a tie, 3-3. December 1 Corinthians s first out-of-state match: win over Flamengo in Rio, January 26 champion of the first São Paulo State Kick-Off Tournament (Challenge Cup) July 11 the team s highest score to date, over Santos: 11-0 at Vila Belmiro for the State Championship October 23 the team sets its record for the most goals scored in a match: 12, crushing Internacional from São Paulo, 12-2, for the State Championship February 4, the win over Paulistano ensures the State Championship title in 1922, Brazil s first Independence Centennial. Corinthians is nicknamed the Champion of the Centennial September 2 the win over Associação Atlética São Bento 3-0 ensures the first two-time State championship title in Corinthians s history (1922/23) January 11, 1925 the new win over Paulistano 1-0 ensures the title of the 1924 State Championship. This is the first of three times in which Corinthians would become a three-time State Champion November 11 Corinthians plays an exhibition match against the Brazilian National Team, which is training for the South American Cup, in Buenos Aires. The match ends in a 1-1 tie Club president Ernesto Cassano buys the land for Parque São Jorge, the name of a Tatuapé sub-district in the East side of São Paulo. This is Corinthians s current home Two State Championships are played: one for the Amateur Football League, which ends on July 10, and one for the São Paulo State Association of Athletic Sports July 22 Parque São Jorge is inaugurated with a 2-2 tie between Corinthians, São Paulo schampion of the 1922 Centennial, and América, Rio de Janeiro s Champion of the 1922 Centennial. November 25 Corinthians defeats Portuguesa 3-2 and wins its sixth State Championship title May 1 the team s first international victory (3-1 over Barracas from Argentina) gives rise to the nickname Musketeer, coined by journalist Tomás Mazzoni. December thrashing of the team s rival, Palestra Itália, at its home, Parque Antarctica, ensures two back-to-back State Championships; Corinthians is undefeated (seven wins in seven matches) January 4, 1931 the 5-2 triumph over Santos in Vila Belmiro ensures the 1930 State Championship. It is the second time in its history that the team has won three consecutive championship titles The top players on the threetime champion team (Del Debbio, Filó, Rato, and De Maria) leave for Lazio, Italy In the year of the Constitutionalist Revolution, the State Championship is played in a single round 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 thrashing of Sírio, Corinthians signs Teleco, who scores 255 goals in 248 matches over the ten years wearing a Corinthians s jersey August rout of Palestra Itália at Parque São Jorge puts an end to the five-year no-win streak against its traditional rival in the State Championship Corinthians becomes one of a few clubs in the world to have spent a full year undefeated. From December 1935 to March 1937, the team plays 31 undefeated matches, with 28 wins and three draws December win over Estudantes ensures the first professional title and the first of three consecutive State Championships April 25, tie against São Paulo ensures the 1938 State Championship. Corinthians becomes two-time State Champion, going undefeated, for the fourth time in its history December thrashing of Santos gives the team another three-time State championship April 28 the team participates in the opening ceremony of the Pacaembu stadium. In the preliminary match, Palestra Itália trounces Coritiba 6-2; in the second match, Corinthians defeats Atlético Mineiro September 28 the win over Santos 3-2, in Vila Belmiro, ensures another State Championship title for Corinthians March 28 Corinthians thrashes Palestra 4-1 and wins the Quinela de Ouro Tournament, played by the three major teams in São Paulo (Corinthians, Palmeiras, and São Paulo) and the two major teams in Rio (Flamengo and Fluminense) July 1 Corinthians defeats Palmeiras 3-1 and becomes two-time City of São Paulo Trophy champion For 300 contos de réis (a South American record at the time), Corinthians signs Flamengo defender Domingos da Guia, one of the world s alltime best defenders August 12 Corinthians defeats São Paulo 2-1, with an additional five shots hitting the goal post, and becomes the only team to defeat the State Champion that year Corinthians wins 18 out of 20 matches in the State Championship. Even so, it finishes second 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 the powerful Torino squad, four-time Italian champion, in its Brazilian tour: May 8 in an exhibition match against Portuguesa, won by Timão 2-0, the team switches its traditional uniform for the red Torino jersey following the team s tragic plane accident February 15 the 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 combined Uruguayan team, 4-1, at Centenário stadium in Montevideo January 13 the 4-0 crushing of Guarani, at Pacaembu stadium, gives Corinthians another State Championship title after ten years. The offensive line, with Cláudio, Luizinho, Baltazar, Carbone, and Mário, is the first to score over 100 goals (scoring 103) in the professional era. August 27 after pounding Palmeiras 5-1, Corinthians retains the City of São Paulo Trophy indefinitely, now won five times (1942, 1943, 1947, 1948, and 1952) January 25 Corinthians wins the 1952 State Championship, 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, and wins the Little World Cup in Caracas, Venezuela July 10 the win over Palmeiras 1-0 gives the team back-toback titles in the Rio-São Paulo Tournament, its third overall February 6 the 1-1 tie against Palmeiras ensures the title for the previous year, 1954, the 4 th Centennial of São Paulo. Corinthians is now called the Champion of the Centennials. July 10 Corinthians defeats Benfica from Portugal, 2-1, at Pacaembu, and becomes champion of the Charles Miller International Tournament December 2 after a 2-2 tie against São Paulo, the team reaches a 25-match undefeated streak, and wins the Undefeated Trophy for the first time November 3 with a last minute equalizer, Corinthians- Santos ends 3-3, with the team reaching another 25-match undefeated streak in the State Championship. The team retains the Undefeated Trophy Brazil becomes World Champion for the first time, in Sweden, with Corinthians players Gilmar (goalkeeper) and Oreco (left-winger) on the team Corinthians ends a series of 64 matches against foreign teams, playing in Brazil and abroad, with 47 wins, 10 draws, and only 7 losses For 8 million cruzeiros, Corinthians signs Vasco striker Almir Albuquerque, nicknamed White Pelé February 25 inauguration of Parque São Jorge s lighting, with a 7-2 thrashing of Flamengo June 21 after a 3-3 tie against Santos, at Vila Belmiro, Corinthians wins the first São Paulo Trophy Second place in the Rio-São Paulo Tournament.

3 kick-off All teams have their crowds. Corinthians is a crowd that has a team. José Roberto de Aquino journalist SPORT CLUB CORINTHIANS PAULISTA, for the fourth consecutive year, publishes its report, an essential initiative for transparency and accountability of the current management. Corinthians was the first Club in the world to publish this kind of report, based on the guidelines of the Global Reporting Initiative (GRI), a multistakeholder organization that provides global standards for reporting information that is not exclusively financial. Although this report was originally intended for investors, financial institutions, business partners, trade associations, and other clubs, we have noticed a growing interest of other audiences in the publication, which can be explained by the passion for football and everything that refers to Corinthians. PERiOD This report covers the period between January 1st to December 31st, Published on an annual basis, three reports have already been released for 2008, 2009, and SCOPe The information reported covers all Club activities, especially in the Football Department, which includes the Training Centers (CCT) of Parque Ecológico and Itaquera, districts in the East side of São Paulo. BOUNDARIES This report does not contain, in relation to the previous report, any boundaries, changes or restatements that might affect its understanding or comparability of the information. MATERIALITY The process to define the content of the report and the prioritization of the topics covered was conducted by Corinthians s Presidency and Finance Department. This process was supported by the other departments and by a consulting company specializing in communication and. EXTERNAL ASSURANCE This report was verified by PricewaterhouseCoopers, an independent third party, and the economic-financial statements were audited by Grant Thornton. CONTACT For additional information on this report, please contact Raul Corrêa da Silva, Chief Financial Officer for Corinthians, by at [email protected]. APPLICATION LEVEL In early 2011, GRI announced some changes to its Application Level system, with the publication of the related icons (A, B and C) no longer being authorized. Therefore, this and the 2010 edition of the report do not contain the C-level application icon, published in the 2008 and 2009 editions. The 2011 Corinthians Sustainability Report meets the requirements for GRI Application Level C, according to the parameters presented in the Table of Contents (see page 74). GRI Indicators:

4 summary Fight, shake off the dust, raise your flag, sovereign tribe. More than Brazilians, you are Corinthian. You are the most beautiful among nations. Excerpt of the song Corinthian Nation, by Carlinhos Vergueiro, J., J. Petrolino, and Faveco. Introduction Message from the president 8 Profile Organizational profile 10 Parque São Jorge 16 Infrastructure 18 sports Professional football 20 Youth football 26 Other sports 30 fans Fiel 34 Strategy New stadium 38 The Corinthians brand 42 Governance and management Management 44 Credits Editorial council Andrés Navarro Sanchez Raul Corrêa da Silva Marcos Chiarastelli Research and text Report Comunicação Content Consulting bdo RCS Coordination Estevam Pereira Project management sueme matuzawa Editing Adriana Braz Reporting Mario Rocha Art direction mentes design Infographic Marcus Penna Photos Agência Corinthians marcelo soubhia rogério assis Fábio Castor/FolhaPress (page 24) Airtom Clerman (logistics coordinator for aerial photos) Proofreading ASSERTIVa PRODUçÕES EDITORIAIS Composition of boards 48 Organizational chart 49 Economic performance 50 Stakeholders 54 Communication Marketing 56 Social and cultural investments 58 Environment Playing for the environment 62 Memory Fountain at Parque São Jorge 64 Financial statements Independent auditor s statement 67 Financial statements 68 Assurance report 73 GRI Table of Contents 74 Graphic production Caroline Gonçalves thais benite Printing and finishing ipsis Translation into English Gotcha Idiomas Print Runs: 15,000 Copies Paper: Matte Couche (pages) and Duodesign (COVER) Text printed in the Amplitude and Titling Gothic font families This work has been entirely developed by Corinthians fans, with passion and professionalism. To minimize the environmental impact of this publication, all inks used for printing are vegetable-based, and the laminate on the cover is biodegradable.

5 Message from the president// OUR HOUSE IN ORDER After four years of the current administration, Timão has once again become a financially solid Club, as a result of the multiple titles conquered and the construction of the long-awaited stadium, Arena Corinthians Our loyal fans tirelessly celebrated Timão s achievements in 2011: the professional football team won the 2011 Brazilian Championship for the fifth time, and once again will play the Libertadores da América Cup. The swim team also made us proud in 2011, winning six gold medals in the Pan American Games in Guadalajara, among other achievements. Since 2007, the main football team has won four titles for the Club: Brazilian Champion, Series B (2008), Brazil Cup Champion (2009), São Paulo State Champion (2009), and Brazilian Champion (2011). More than four years ago, when I took over the Presidency of Sport Club Corinthians Paulista, the financial situation was chaotic. In order to restore trust, especially in relation to the Corinthians fans, we implemented a professional, responsible, and transparent management model. Actions such as the publication of the Club s balance sheet, the continuation of sponsorship agreements, the launch of more affordable products, the direct communication between the Presidency and fans, and the retention of the coaching staff made it possible to restore the Club s credibility. In 2008, we democratized management by supporting the approval of a statute that does not allow reelection and ensures direct elections. The great advantage is the fact that it is a ten-year project intended to make Corinthians the best known and most powerful team in the world, with skillful players, in addition to the highest income and revenue, regardless of who takes over the Presidency. We have already accomplished part of this project. This includes the construction of the Joaquim Grava Training Center, which has become one of the most modern sports centers in the world, and in which we have invested over R$50 million. For the fourth consecutive year, the Club ended the fiscal year in the black, spending less than it earned. In 2011 alone, the positive balance reached R$ 5.3 million. Global revenue totaled R$290.5 million, 36.6% more than in 2010 and 147.2% more than in We recorded, in 2011, the highest revenue among all Brazilian Clubs. In the last four years, we have also noticed a significant change in the revenue profiles. In 2007, transfers of athletes accounted for 53% of resources. In 2011, transfers accounted for only 21%. The benefits in terms of the diversification of income sources are evident and ensure Corinthians s financial soundness, even with the eventual decline of a specific source. The increased revenues from TV and ticket sales result from a policy of appreciation and respect toward our major asset: the Corinthians fan also consolidated the evolution and leadership of Corinthians s black-and-white brand among the 12 major Brazilian teams for the second consecutive year. A respectable and detailed survey has revealed that the value of the Corinthians brand increased by 16% compared to 2010, reaching R$ 867 million and leading the ranking of the major Brazilian football brands. In addition, over 100 Poderoso Timão stores For the fourth consecutive year, the Club ended the fiscal year in the black, spending less than it earned. In 2011 alone, the positive balance reached R$ 5.3 million are present in various cities, with over 2,000 licensed products priced for all social classes. All this adds to the strengthening of the Corinthians brand. We also have the challenge of strengthening the brand in other sports. Thus, we have made heavy investments in futsal, swimming, Formula Truck, Stock Car Racing, among others. Therefore, we have tried to meet the expectations of the Corinthians fans, who support and are passionate about other sports as well, while opening new market opportunities to promote the Club in other types of sports. The highly anticipated Corinthians stadium has definitely gotten off the drawing board, and will be completed by December The project for the construction of the new arena must comply with standards, using solutions and technologies that ensure the rational use of natural resources, such as water conservation, rainwater harvesting, reduction and recycling of the waste generated, and use of natural ventilation and lighting. The stadium shall be critical for the economic and social development of São Paulo s East side. For the Club, the legacy will be the revenue after the World Cup matches that will transform Corinthians into one of the largest Clubs in the world. The revenue before, during, and after the event will also come from boxes (rent, via online auction), permanent seats, restaurant, parking, cafeteria, and second line of advertising. Putting an end to problems associated with the dismissals of coaches and players is a goal that still has not been reached. The kids playing in the youth football categories, who do not have a training center due to the construction of the stadium, must also receive more investments so that we are able to develop strong youth football teams and assign as many players to the professional team as possible. Undoubtedly, this practice will continue in the coming years, since our new youth football Training Center is already under construction. Just as the construction of the new stadium has required the rational use of resources, drives our decisions. Since we took office, we have developed over ten social activities, most notably Chute Inicial (Kick-Off) and Time do Povo (People s Team), geared towards children, for whom sports are good socialization tools. In the environmental area, the project Jogando pelo Meio Ambiente (Playing for the Environment) has involved the planting of approximately 45,000 tree seedlings in its two years of existence; this initiative has also contributed to a reduction in greenhouse gas emissions and consequently the effects of global warming. I must say that I leave office knowing that I have fulfilled my duties with the precious help of the entire Renovação e Transparência (Renewal and Transparency) team in a mission that has been very gratifying and full of accomplishments. This mission started in October 2007 and ends on February 11th, In this long journey, we managed to make Corinthians assume a prominent place in Brazilian football and transform the Club into one of the largest in the world. This has been a work driven by ethical and professional conduct and strengthened by a transparent relationship with fans and other stakeholders. The loyalty of the Corinthians fan is unparalleled. It is the soul of the Club and the main reason for Timão s existence! The Corinthians brand is worth 867 million Andrés navarro sanchez President, Corinthians brazilian reais gri indicator: 1.1 gri indicator:

6 profile// the next 10 years Corinthians excels in 2011, and wants more: to become the world s most powerful team future facilities of the training center for the youth football team From 2008 to 2011, Corinthians s road was paved with major achievements, averaging a championship title a year: Brazilian Champion, Series B, in 2008, undefeated São Paulo State Champion and Brazil Cup Champion in 2009, and its fifth Brazilian Champion title in Timão was also vice champion of the Brazil Cup and of the State Championship in 2008 and 2011, respectively. In 2012, Timão will play in the Libertadores Cup for the third consecutive year. This excellent performance has resulted from a project extending through the next 10 years, which was conceived by the current Board of Directors and can be carried on by its successors. The conquest of another championship also reflects the commitment to structuring a competitive team, and to maintaining and increasing the Club s assets. In line with this idea, the Club built CT Joaquim Grava, one of the most advanced training centers in the world, and implemented a comprehensive renovation at Parque São Jorge. The amateur football department has been undergoing a professional renovation, which should yield important results in the short and medium terms. Financial revenues will only tend to increase with the marketing and management strategies implemented. The new statute ensures democratic and political stability within the Club. The future is promising in all senses because of the construction of Timão s new stadium, in Itaquera. gri indicator:

7 profile// The Club Corporate name Sport Club Corinthians Paulista Legal classification Non-profit sports entity Headquarters Rua São Jorge, 777 Tatuapé São Paulo SP Brazil Club members in good standing Primary: 4,759 Dependents: 9,582 Employees 859 Fans Over 30 million Mascot Musketeer Patron saint Saint George Total assets R$ 756 million on December 31 st, 2011 Net equity R$ 67 million on December 31 st, 2011 Operating Revenue Football: R$ 258 million on December 31 st, 2011; Club: R$ 32 million on December 31 st, 2011 The plans for the future are ambitious - to become the best known and most powerful team in the world, with the most widely recognized brand, the best players, and the highest income - but feasible And Fiel s gang of crazy fans continues to grow in number and to offer increasing support. The plans for the future are ambitious to become the best known and most powerful team in the world, with the most widely recognized brand, the best players, and the highest income but feasible. The cornerstone to enable this project has been laid. Timão s strength is reflected in the enormous loyalty of its immense number of fans, who are present in overwhelming numbers at the matches and go out on the streets wearing the Club s colors. Throughout its history, this has always been Corinthians s main characteristic. The People s Team was founded on September 1 st, 1910 by five blue collar workers Joaquim Ambrósio, Carlos da Silva, Rafael Perrone, Antônio Pereira, and Anselmo Correia by the light of a lantern. During its 101 years of existence, history, and passion, Corinthians has gone from an amateur football team, which played in suburban fields, to a Club with over 22,000 members, owner of an area of more than 500,000 m 2 in the East side of São Paulo, and winner of a FIFA Club World Cup (1), Brazilian Championship (5), Brazil Cup (3), and State Championship (26). With over 30 million fanatical fans, the largest crowd of supporters in Brazil along with Flamengo (RJ), Corinthians stands out for its football team. However, the Club also provides its members with the opportunity to practice other sports, such as athletics, basketball, boxing, handball, judo, swimming, synchronized swimming, rowing, taekwondo, table tennis, tennis, volleyball, futsal, peteca (hand shuttlecock), and bocce, in addition to football. In competitions, Corinthians s presence is increasingly strong in swimming, tennis, and futsal. Distinguished supporters Anderson Silva, MMA (mixed martial arts) fighter Adoniran Barbosa, singer and songwriter (in memoriam) Amácio Mazzaropi, actor, film director and producer (in memoriam) Antonio Ermírio de Moraes, president, Grupo Votorantim Antônio Fagundes, actor Ayrton Senna, three-time Formula 1 world champion (in memoriam) Cacá Rosset, actor and theater director Charles Miller, godfather of football in Brazil (in memoriam) Claudia Raia, actress Derico, musician and instrumentalist Daiane dos Santos, world champion gymnast Dan Stulbach, actor and radio announcer Dom Paulo Evaristo Arns, archbishop emeritus of São Paulo Elis Regina, singer (in memoriam) Emerson Fittipaldi, two-time Formula 1 world champion and two-time Indianapolis 500 winner Eva Wilma, actress Fábio Assunção, actor Fernando Henrique Cardoso, former president of Brazil Hortência Marcari, basketball world champion and Olympic silver medalist main honors Jânio da Silva Quadros, former president of Brazil (in memoriam) Leandro Barbosa, Leandrinho, NBA player Luciano Huck, TV host Luiza Possi, singer Luiz Inácio Lula da Silva, former president of Brazil Maguila, former boxer Marcelo Rubens Paiva, writer Marília Gabriela, TV host and actress Marta, five-time FIFA Women's Player of the Year Padre Marcelo Rossi, priest Paulo Betti, actor Rappin' Hood, singer and songwriter Rita Guedes, actress Rita Lee, singer and songwriter Rubinho Barrichello, holder of the record for the most Formula 1 Grand Prix starts Serginho Groisman, TV host Silvio Santos, entrepreneur and TV host Sônia Braga, actress Toni Garrido, singer and songwriter Toquinho, singer and songwriter You, another crazy fan FIFA CLUB WORLD CUP CHAMPION (2000) BRAZILIAN CHAMPION A series (1990, 1998, 1999, 2005, 2011) BRAZILIAN CHAMPION B series (2008) BRAZIL CUP CHAMPION (1995, 2002, 2009) SÃO PAULO STATE CHAMPION 26 times Corinthians doesn t have fans, Corinthians has militancy. Luiz Inácio Lula da Silva Former president of Brazil, for the Book Timão: 100 Years, 100 Matches, 100 Idols, by journalist Celso Unzelte our team Staff (By employment type and gender) Job M F Directors* 14 0 Advisors to the Board* Managers 25 7 Heads/coordinators 8 1 Technicians/supervisors Administrative positions Operational positions Professional football players 48 0 Amateur football players Physicians, masseurs and physiotherapists 13 0 Interns 10 6 Subtotal TOTAL 859 *Directors and advisors to the Board hold non-remunerated positions. gri indicators: LA1 gri indicators:

8 profile// Playing for Corinthians is to respect a culture, a people, a nation. It s to take into account that every second of our lives shall serve a cause, not make use of it. Sócrates Gallery of heros 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, have worn our jersey. Below a list of internationally renowned football players that have defended our colors. Amílcar (Amílcar Barby) center forward. He was Timão s first star player, along with Neco. He played for ten years, between 1913 and Baltazar (Oswaldo Silva) nicknamed Cabecinha de Ouro, he scored 267 goals for Corinthians and played for the Brazilian national team in the 1950 and 1954 World Cups. Basílio (João Roberto Basílio) in 1977, scored the goal that ended a dry spell of almost 23 years without championship titles. He was Timão s head coach on four occasions. Biro-Biro (Antônio José da Silva Filho) Corinthians s star player in the 1980s. He was part of the Corinthian Democracy, and State Champion in 1982 and Chicão (Anderson Sebastião Cardoso) center back. Joined Corinthians in early 2008 to strengthen the defense of the team that would play in the B Series of the Brazilian Championship. Cláudio (Cláudio Christovam de Pinho) top scorer in the team s history, with 303 goals, he was part of the famous "100- goal offensive line" in Deco (Anderson Luis de Souza) midfielder for Porto, Barcelona, Chelsea and the Portuguese National Team. Del Debbio (Armando Del Debbio) first star center back in Corinthians s history, he was part of the team that was the three-time São Paulo State Champion on two occasions (1922/23/24 and 1928/29/30). Dida (Nelson de Jesus Silva) Milan goalkeeper, and World Cup champion with the Brazilian National Team in Domingos da Guia (Domingos Antônio da Guia) Brazilian National Team defender in the 1938 World Cup. Dunga (Carlos Caetano Bledorn Verri) defensive midfielder in the 1994 World Cup and former head coach of the Brazilian National Team. Filó (Anphilóquio Marques) right-winger. He joined Corinthians in 1929 and became champion in that year and two-time champion in the following year. After the second title, he went to play for Lazio in Italy. He played for Italy in the 1934 World Cup and became the first player from Timão to win a World Cup. He returned to Corinthians in 1937 and won another State Champion title. Gamarra (Carlos Alberto Gamarra Pavón) defender for the Paraguayan National Team. Garrincha (Manuel dos Santos) striker in the 1958 and 1962 World Cups won by the Brazilian National Team and one of the greatest football players of all time. Gilmar (Gilmar dos Santos Neves) goalkeeper in the 1958 and 1962 World Cups won by the Brazilian National Team. Luizinho (Luís Trochillo) nicknamed Tom Thumb, he 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 s first great star player, he defended the blackand-white team for 17 years. Together with Amílcar, he was also the first Corinthians player on the Brazilian National Team. Neto (José Ferreira Neto) midfielder. He was a decisive player in the 1990 Brazilian Championship, scoring freekick goals that were essential for winning the title and Fiel s support. Oswaldo Brandão (Oswaldo Brandão) the most charismatic of all Timão s head coaches, he won the São Paulo IV Centennial title in 1954, and coached the Brazilian National Team in the qualifiers for the 1958 and 1978 World Cups. He returned to Corinthians in 1977 to put an end to the dry spell of championship titles by winning the State Championship that year. Rincón (Freddy Eusébio Gustavo Rincón Valencia) midfielder with the Colombian National Team. Rivaldo (Rivaldo Vitor Borba Ferreira) striker in the 2002 World Cup won by the Brazilian National Team. Rivellino (Roberto Rivellino) attacking midfielder during the 1970 World Cup won by the Brazilian National Team. Roberto Carlos (Roberto Carlos da Silva) left winger for the Brazilian National Team, Internazionale Milano, Real Madrid, and Fenerbahçe. Ronaldo (Ronaldo Luís Nazário de Lima) striker for the Brazilian National Team, Real Madrid, Barcelona, Internazionale Milano, and Milan. Ronaldo (Ronaldo Soares Giovanelli) owner of Corinthians s number 1 jersey for 10 years, he was the Brazilian Champion in 1990 and the Brazil Cup Champion in Sócrates (Sócrates Brasileiro Sampaio de Souza Vieira de Oliveira) attacking midfielder and captain of the Brazilian National Team in the 1982 World Cup. Teleco (Uriel Fernandes) he scored 251 goals in 246 matches for Corinthians, the Club s highest all-time average, and was the top scorer in the State Championship for five times. Tevez (Carlos Alberto Tevez) striker for Manchester United, Manchester City, and the Argentinean National Team. Tupãzinho (Pedro Francisco Garcia) midfielder. He was nicknamed Deus Tupã ( Tupã, the God ) for scoring the goal of his lifetime (and of many people s), in the final match of the 1990 Brazilian Championship, against São Paulo, to become the hero of the title. Vampeta (Marcos André Batista Santos) defensive midfielder in the 2002 World Cup won by the Brazilian National Team. Viola (Paulo Sérgio Rosa) striker in the 1994 World Cup won by the Brazilian National Team. Wladimir (Wladimir Rodrigues dos Santos) left-winger. He played 806 matches wearing Timão s jersey and is the Corinthians player who took part in most matches in the Brazilian Championship (268). Zé Elias (José Elias Moedim Júnior) he was defensive midfielder for Bayern Leverkusen and Internazionale Milano, among other teams. He won the Brazil Cup and the 1995 State Championship for Timão. Zé Maria (José Maria Rodrigues Alves) nicknamed "Super Zé" for his determination and physical vigor, he won four State Championship titles playing for the Club (1977, 79, 82, and 83) and played for the Brazilian National Team in the 1970 and 1974 World Cups

9 Infrastructure// our home Parque São Jorge is the largest Club headquarters in Brazil and provides its users with extensive and diversified infrastructure Corinthians s physical space has grown immensely in the last few years. Currently, Club members have 534,170 m 2 to call their own. This area is divided into three separate locations. The most traditional and well known is Parque São Jorge, with an area of 158,170 m 2, including 44,113 m 2 of built-up area. Members who use the Club s facilities can easily spot the changes that have resulted from the renovation of the facilities. Squares, restrooms, kitchens, the aquatic complex, the mini-gymnasium, locker rooms, the fitness center, food courts, the playground, sports courts, the central plaza, and landscaping have undergone renovation. The Club is also in compliance with the Brazilian accessibility norms, providing ramps for wheelchairs. The second location is Parque Ecológico do Tietê, with 200,000 m 2 for football. The Joaquim Grava Training Center is located in this area, where the future amateur football Training Center will be built. Timão s third site is still under construction; however, the works are proceeding at an accelerated pace. This is a 200,000 m 2 area located in the district of Itaquera, where Corinthians s new stadium is being built. c A A FAZENDINHA/STADIUM Alfredo Schürig Stadium opened on July 22 nd, 1928, with a match between Corinthians and América RJ. The 2-2 score was witnessed by 2,000 fans, who also saw, on the same day, the fastest goal to be scored in the history of the stadium. 29 seconds into the match, Corinthians s left-winger, De Maria, scored the first goal of the match and the first goal to be scored at Fazendinha. Throughout its 100-year history, Timão has played 484 matches at Parque São Jorge. The team has l b h i D f g k had 356 victories, 65 draws, and only 63 losses. The Corinthians team has scored 1,345 goals and allowed only 491. The stadium s seating capacity is 16,000; however, its record attendance w as set in a match against Santos in 1962: 27,384 fans. One year before, on February 25 th, 1961, Corinthians beat Flamengo 7-2, in the inauguration of Fazendinha s lighting system. With the construction of CT Joaquim Grava and the new stadium in Itaquera, Parque São Parque São Jorge Location: Rua São Jorge, 777 Tatuapé,East side of São Paulo (SP) Area: 158,000 m² j e Jorge can be used as a space for artistic shows and other events. b AMPHITHEATER With a seating capacity of 399, Corinthians s amphitheater is an extremely modern and multimedia-equipped facility. In 2011, it 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 a variety of programs, including movies from all countries, premieres, and classic films for all ages. C SÃO JORGE FOUNTAIN The historic fountain of Parque São Jorge was already there before the property on the margins of the Tietê River was acquired in the 1920s. Over time, it became a tradition 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 by its side (read more in Memory). D CHAPEL Inaugurated on November 26 th, 1967 from a project design dating back to the 1950s, the site has been open daily for visiting since the end of 2007, when it was completely renovated, allowing the beauty of the original frescos to be restored. One of its main attractions is the handcarved statue of Saint George, the team s patron saint, which was brought from the Vatican and blessed by Pope John Paul II. E SPORTS COURTS There are six clay courts, 12 multi-purpose outdoor sports courts, a minigymnasium that seats 500 people, a beach soccer pitch, bocce and malha courts, a peteca (hand shuttlecock) court, a 7-a-side artificial turf football field, a game room, and an official football field in artificial turf. F WOMEN S DEPARTMENT To cater to female Corinthians fans, the Women s Department provides an intimate and cozy atmosphere in a space created exclusively for them. The place is well tuned to the needs of female members and has been totally renovated to host courses and workshops in areas that are essential to daily life in the 21 st century. Activities range from crafts to gourmet cuisine, and female club members can also take painting, sculpture, personal health, core strengthening, and dance classes, among other recent additions. G GYMNASIUM Parque São Jorge s multisports gymnasium is the largest private indoor sports arena in Latin America. In order to adapt the facilities to the Statute of the Fan requirements, its seating capacity, which was 15,000 in the 1960s, has been reduced to 6,834. It has hosted official matches in futsal, youth basketball and volleyball, among other types of sports. H MEGASTORE At the end of 2009, the Poderoso Timão megastore was launched at Parque São Jorge. At over 400 m 2, this is the largest store in the chain. I MEMORIAL Corinthians Memorial, located at the main entrance of Parque São Jorge, represents a journey through 101 years of black-and-white history. It covers over 1,500 m 2, with various resources, Corinthians memorabilia, and plenty of emotion. J WATER PARK Corinthians also has the largest water park in Brazil, with seven pools: two heated pools, one wave pool, one half-moon shaped flume, one wading pool for children under 5, one pool with an island, five body slides, and two inline tube slides. K RESTAURANT With a modern and hospitable structure, the restaurant seats 520 people and employs 30 professionals. Fully computerized, it has four computers and five video screens, in addition to an air conditioning system. Offering self-service and a la carte options, the Corinthians restaurant caters to 1,500 on weekends and hopes to increase this number. L GREAT HALL The Great Hall at Sport Club Corinthians Paulista measures 1,356 m 2 and accommodates 2,000 people for auditorium seating, 1,200 in a cocktail party configuration and 1,000 for seated dinners. The Great Hall has air conditioning, bar, a dance floor, video screen, dressing rooms, a fully equipped kitchen, a cloakroom, a sound and lighting control room, marble flooring, 100 four-seat rectangular tables, 100 eight-seat round tables, 1,200 upholstered chairs, and a parking lot for 800 cars. At the Club headquarters, squares, restrooms, kitchens, the aquatic complex, the minigymnasium, locker rooms, the fitness center, food courts, the playground, sports courts, the central plaza, and landscaping have undergone renovation 2011 Consumption figures DIRECT ENERGY Parque São Jorge CT Itaquera CT Parque Ecológico Antônio de Macedo Total 18,607 GJ 362 GJ 858 GJ 22 GJ 19,827 GJ Water (city supply) Parque São Jorge 32,114 m 3 CT Itaquera 7,762 m 3 CT Parque Ecológico 6,051 m 3 Antônio de Macedo 175 m 3 Total 45,927 m 3 gri indicator: 2.4 gri indicators: en3 en

10 Infrastructure// CT Joaquim Grava The Club has invested R$ 50 million in its training center, which is ranked among the four most modern training centers in the world Corinthians has the most complete training center in the country, in which it has invested R$ 50 million. The designation as the best is often heard whenever a foreign delegation comes to São Paulo to visit the Dr. Joaquim Grava Football Center of Excellence and Training. Timão s CT is a global reference and is fully able to host a national team during the 2014 World Cup. It has 98,000 m 2, in a total area of 200,000 m 2. The amateur football CT will be built in the remaining 78,000 m 2. The area is flat, with no terraces, and is located alongside the Ayrton Senna Highway, on the East side of the city of São Paulo. The area includes four official football fields (105 m by 70 m) and a goalkeeper practice field (80 m by 55 m). All fields are surrounded by FIFA-approved synthetic turf, which prevents contamination of grass and can be used for running. Each field was named after a Corinthian star player: Rivellino, Neto, Claudio, and Ronaldo (goalkeeper). An indoor gymnasium was built for practice sessions held on rainy days and it can also be transformed into a stage for major events, such as the presentation of new players. Adjacent to one of the fields is the only biomechanics laboratory in Brazil. Only three other teams in the world can rely on this type of equipment: one in Italy, one in Spain, and one in Portugal. This laboratory assesses the physical movements of athletes, enabling a precise diagnosis of their playing conditions. The CT has a fully equipped medical area. The rehabilitation center stands out among others due to its indoor, heated hydrotherapy facility. A nutritionist oversees the meals of the First-class infrastructure Four fields One indoor gymnasium Biomechanics laboratory Bodybuilding gym Rehabilitation center Cafeteria Locker room Head coach s office Hotel for 64 athletes Visiting room Chapel Pressroom players, and her office is located a few steps away from the cafeteria, next to the bodybuilding gym, which features state-of-the-art equipment. The athletes exercise in a glassed-in environment, which allows the use of natural lighting and a view of the landscape outside. The locker room is customized and players have their pictures on their lockers. Upon arrival, athletes stop by the equipment room, where they can find whatever they need for practice. The head coach s office is located next to it and is equipped with a computer and other equipment that aid in the tactical analysis of the team. In the external area, a large parking lot is exclusively for the use of all training center employees. The Training Center's facilities are modern, with metallic structures, and were designed by architect Ruy Ohtake. CT Joaquim Grava is the only training center in Brazil that was fully planned before its opening. It was launched in September 2010 and its last facilities were completed at the end of It was during this period that the construction of the hotel for 64 athletes was completed. The hotel has sufficient capacity to host not only Corinthians players, but also the entire Brazilian National Team. Near the suites, which are equipped with TVs and mini-bars, the players can enjoy a games room, a swimming and a wading pool, a barbecue grill, a restaurant, a tennis court, and 7-a-side football pitch. It is an all-encompassing Club offering the best environment for all training camp periods, whether before matches or pre-season, in addition to providing a comfortable setting for players families as well. The CT also includes a visiting room, facilities for the Football Department s administrative staff, a chapel, and a modern press room with a cafeteria, 64 seats for press conferences, and topnotch equipment, such as LED monitors. For press coverage, there are also six parking spaces dedicated to OB vans, enabling live broadcasts. Concern for the environment and the local community is also part of CT Joaquim Grava. All buildings use plenty of glass, which lets in natural light and enables energy conservation. The building where the locker, physiotherapy, and workout rooms are located is equipped to harvest solar energy. The benches next to the practice fields are made from recycled material. The water used for irrigating the CT comes from an artesian well and recyclable waste collection will begin in In the areas surrounding the CT, Corinthians was responsible for building 7-a-side fields for the local community, with locker rooms, security booths, an amphitheater, lounges, kiosks, and benches. In Parque Ecológico do Tietê, 20,000 native tree seedlings were planted. Within the center, CT employees are provided with locker rooms equipped with slip-resistant flooring, keyed lockers, barbecue grill, flat-screen TVs, and a kitchen equipped with a refrigerator, stove, and microwave oven. With all this, Corinthians s professional football organization has the very best to develop its work. However, the CT project doesn t end there. The next step is the establishment, within the same 180,000 m 2 area, of the facilities for the youth football teams. The construction of three practice fields, a mini-stadium with a seating capacity of 2,000, and separate accommodation for the future stars of the U15, U17, and U20 football teams will also get off the drawing board. More sustainable actions Use of solar energy, planting of tree seedlings, a football field, and a recreational area for the local community are also part of the CT gri indicator: EC8 EC gri indicator:

11 Sports// we are five-time champions Timão won the 2011 Brazilian Championship, having led the tournament for 27 of the 38 rounds Campaign 2011 Brazilian Championship 1 st place 38 matches / 21 wins 8 draws / 9 losses 53 goals scored / 36 goals allowed 2011 State Championship 2 nd place 19 matches / 11 wins 5 draws / 3 losses 33 goals scored / 12 goals allowed The fifth Brazilian Championship title, won on December 4 th, 2011 at Pacaembu Stadium before a crowd of 36,708, was a crowning achievement: Corinthians is the team with the best performance in the Brazilian Championship since its return to the A Series. The figures are undisputable and speak for themselves. In the 2009, 2010, and 2011 championships, Timão won 54 of the 114 matches it played, totaling 191 points. The only other team to come close to these figures was Internacional, with 183 points, followed by Fluminense (180 points). Once again, Corinthians proved itself deserving of the title Champion of Champions. Corinthians s trajectory, from 2008 to 2011, was filled with major achievements, including an average of one championship title per year: Brazilian Champion, B Series, in 2008, undefeated São Paulo State Champion and Brazil Cup Champion in 2009, and a fifth Brazilian Championship title in Timão also won the vice-champion title in the Brazil Cup in 2008, and in the State Championship in In 2012, Timão will play Libertadores for the third consecutive year. Timão will have a strong team, showing tenacity, humbleness, and passion for the team colors, just like Fiel likes it. However, that's not all. Corinthians athletes will step onto the field in the best possible physical condition, because the Club has set up a structure that is unprecedented in its history. Currently, Corinthians has one of the most advanced training centers in the sports world. The new statute ensures democratic and stable governance of the Club. The amateur football team has been undergoing a professional updating, which should yield important results in the short and medium terms. The future is promising in all senses because of the construction of Timão s new stadium in Itaquera, in addition to its loyal crowd of fans, which is growing in numbers and level of support. The fifth Brazilian Championship title in 2011 reflected the new era in Parque São Jorge. In 2011, the Corinthian fans had a bad start due to the team s early elimination from Libertadores. The first consequence was the retirement of Ronaldo Fenômeno. The second was the pressure from fans to dismiss head coach Adenor Leonardo Bachi, nicknamed Tite. Corinthians s Board of Directors heard the protests from fans, but did not respond to their requests. They remained firm and maintained Tite in the position, aware of the political risk another failure could cause. The head coach remained in command because his work had not yet been completed. 20

12 Sports// In the 2011 Brazilian Championship, Timão played 38 matches, totaling 71 points, with 21 wins and a 62% success rate Afterwards, Corinthians became vice champion of the State Championship, with 11 wins in 19 matches and only three losses. Liedson, who wears jersey number 9, was, along with Santos player Elano, the top scorer in the State Championship, scoring 11 goals. In the Brazilian Championship, Timão had the best championship start in its history. In the first ten matches, the team won nine and tied one. However, a few negative results followed and, although holding onto the top positions, Tite's head coach position was threatened once more by unsatisfied fans. Once again, the Board of Directors met with Fiel s representatives, but remained consistent in its policy of providing stability to the head coach. Tite stayed and guided Saint George s warriors toward another achievement that pleased Corinthians's supporters. Performance evolution 2004 to to titles 1 titles 4 titles 1 success rate 50.5% success rate 63% success rate 62% Of the 38 rounds in the championship, Corinthians was the leader for 27. In the 38 matches, Timão had six historic comefrom-behind wins, one of which took place at a packed Pacaembu Stadium. On that day, the gang of crazy fans saw Adriano, the Emperor, score a goal in the 43rd minute of the second half, beating Atlético Mineiro 2-1. The road to the fifth Brazilian Championship title was paved with strength, well-judged substitutions, and support from the fans. The championship title came in a scoreless match in the last round against Palmeiras, the team s archrival. Before the match, Corinthians players and supporters paid appropriate homage to Doutor Sócrates, the Magrão. The artist in jersey number 8 had passed away on that night, to join the other Saint George warriors in black and white heaven. In total, Timão played 38 matches, totaling 71 points, with 21 wins, 8 draws, and a 62% success rate. Corinthians had the best defense, the highest number of wins and the largest goal difference in the Brazilian Championship, alongside vice champion, Vasco da Gama. Liedson was Corinthians s top scorer in the championship, with 12 goals. In the home matches, Timão attracted 557,232 fans to the stadium, an average of 30,000 per match, twice the average of the Brazilian Championship. In all, in 2011 Corinthians played 64 matches, with 34 wins, 16 draws, and 14 losses. It scored 92 goals and allowed 54, with a positive goal difference of 38 goals. Timão s top scorer for the year was Liedson, wearing the number 9 jersey, who scored 23 times. Below him were Paulinho, with 11 goals, and William, with 10. In their hearts, all Corinthians fans believe that the line-up of the 2011 Brazilian Championship team should consist of Timão s 11 firststring players. However, the Brazilian Football Confederation (CBF) presents a different picture. Among the 11 players selected by CBF as the best in the Brazilian Championship, only two play for Corinthians: midfielders Ralf and Paulinho. The other nine are great players as well; however, only the two Corinthians players are champions. Behind the scenes Supporters who saw Corinthians win its fifth Brazilian Championship title, whether at the stadium or on TV, are not aware of the structure supporting the 11 warriors that wear Timão s jersey. In Corinthians, there are at least 44 professionals who work hard to enable the Club to have a competitive team that can fight for titles in any football competition. The Coaching Staff, composed of a head coach, three technical assistants, and a goalkeeper coach, is responsible for planning practices and for the line-up. A driver drives the bus that takes the team from the Training Center to the stadium. The security of athletes and of CT Joaquim Grava s employees is ensured daily by three professionals, in addition to those hired specifically for match days. A nutritionist prepares the menus for the training camps and match days. Meals are prepared by two cooks, who also serve breakfast and lunch. On match days, the equipment managers help out in the distribution of meals. Four employees working in the Equipment Room prepare all the material used during practice and matches, such as uniforms, shoes, and balls. The general health of players is ensured by three physicians and three nurses/masseurs. The Medical Department is responsible for treating and preventing injuries. During games, there is always a physician and a masseur or nurse on the bench. Four fitness coaches, one physiologist, and one scientific consultant are responsible for maintaining the i have never had anything against Corinthians. I just had to shut that incredible crowd up fast. Otherwise, the crowd would win the game. pelé, King of Football, who never played for Corinthians the 100 club Star players who 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 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 94), forward 103 goals 22 23

13 Sports// I have seen Corinthians win, I have seen Corinthians lose. But I have never seen Corinthians give up. Mário Sérgio Corinthians head coach, in 1993 and 1995 physical condition of the athletes. Corinthians has four physiotherapists who help athletes to recover and prevent injuries. These days, no company can be competitive without taking advantage of technological advances. Five professionals handle this in the Sports Technology area. They analyze the matches played by Timão and its opponents, evaluate prospective football players, and operate a software program containing all data generated by the Professional Football Department, providing reports used daily in all areas, from the Equipment Room to the Board of Directors. In addition to the professionals associated with training and games, two professionals manage the registration of athlete contracts, as well as compliance with the procedures required by the federations, the Clubs with which Corinthians negotiates over players, and FIFA, for international transfers. Regarding the press, three individuals organize press conferences, coordinate requests from reporters, and prepare press kits on match days. Everything is recorded by a photographer, who also travels with the team. The Professional Football Department also has a supervisor who coordinates the daily routine and plans the operations during matches and at training camps. There is also a manager who is responsible for strengthening the relationship between the athletes and the Board of Directors, in addition to helping the Coaching Staff establish goals for the Department. The main goal is always to ensure the best possible team on the field players The group blends youthful athletes and experienced players Goalkeepers Danilo Fernandes (Danilo Fernandes Batista 04/03/88). With Corinthians since: youth football team. Júlio César (Júlio César de Sousa Santos 10/27/84). With Corinthians since: youth football team. Renan (Renan Soares Reuter 12/12/90). With Corinthians since: Defenders Alessandro (Alessandro Mori Nunes 01/10/79). With Corinthians since: André Vinícius (André Vinícius Lima de Oliveira 07/30/91). With Corinthians since: youth football team. Bruno Octávio (Bruno Octávio Jovanelli 08/02/85). With Corinthians since: youth football team. Chicão (Anderson Sebastião Cardoso 06/03/81). With Corinthians since: Denner (Denner Paulino Barbosa 11/21/93). With Corinthians since: youth football team. Fábio Santos (Fábio Santos Romeu 09/16/85). With Corinthians since: Leandro Castán (Leandro Castán da Silva 11/05/86). With Corinthians since: Marquinhos (Marcos Aoas Corrêa 05/14/94). With Corinthians since: youth football team. Moradei (Daniel Moradei de Almeida 02/08/86). With Corinthians since: Nenê Bonilha (Luís Otavio Bonilha de Oliveira 02/17/92). With Corinthians since: Paulinho (José Paulo Bezzera Junior 07/25/88). With Corinthians since: Paulo André (Paulo André Cren Benini 08/20/83). With Corinthians since: Ralf (Ralf de Souza Teles 06/09/84). With Corinthians since: Ramon (Ramon de Morais Motta 05/06/88). With Corinthians since: Wallace (Wallace Reis da Silva 12/26/87). With Corinthians since: Welder (Welder Silva Marçal 01/16/91). With Corinthians since: Midfielders Alex (Alex Raphael Meschini 03/25/82). With Corinthians since: Danilo (Danilo Gabriel de Andrade 06/11/79). With Corinthians since: Edenílson (Edenílson Andrade dos Santos 12/18/89). With Corinthians since: Matheus (Matheus Cotulio Bossa 02/21/93). With Corinthians since: Morais (Manoel Morais Amorim 07/17/84). With Corinthians since: Ramirez (Luis Roberto Ramirez 11/10/84). With Corinthians since: Strikers Adriano (Adriano Leite Ribeiro 02/17/82). With Corinthians since: Elias (Elias Fernandes de Oliveira 05/22/92). With Corinthians since: youth football team. Emerson (Márcio Passos de Albuquerque 09/06/78). With Corinthians since: Jorge Henrique (Jorge Henrique de Souza 04/23/82). With Corinthians since: Liédson (Liédson da Silva Muniz 12/17/77). With Corinthians since: Taubaté (Paulo Sérgio Rodrigues Theodoro 09/15/91). With Corinthians since: Willian (Willian Gomes de Siqueira 11/19/86). With Corinthians since: Arrivals Adriano (Roma-ITA), Alex (Spartak Moscow -RUS), Denner (youth football), Edenílson (Caxias), Emerson (Fluminense), Fábio Santos (Grêmio), Liédson (Sporting-POR), Moradei (Bragantino), Nenê Bonilha (Paulista), Ramirez (Universitario-PER), Ramon (Vasco), Renan (Avaí), Wallace (Vitória), Welder (Paulista de Jundiaí), and Willian (Figueirense). Departures Bobadilla (Olimpia-PAR), Boquita (Bahia and Portuguesa), Bruno César (Benfica- POR), Diego Sacoman (Ceará), Defederico (Independiente-ARG), Dentinho (Shakhtar Donetsk-Ucraine), Dodô (Bahia), Edno (Portuguesa), Edu Gaspar (retired), Elias (Atlético Madrid-SPA), Éverton Ribeiro (Coritiba), Fran (Americana-SP), Iarley (Ceará), Jucilei (Anzhi-RUS), Marcelo Oliveira (Atlético-PR), Moacir (Sport), Rafael Santos (Avaí), Renato (Figueirense and Portuguesa), Roberto Carlos (Anzhi- RUS), Ronaldo (retired), Souza (Bahia), Thiago Heleno (Palmeiras), William (retired), and William Morais (deceased)

14 Sports// future stars Changes are planned so that the youth football teams will set global standards of excellence All Corinthians fans are proud of the homegrown players. Corinthians has a tradition of showcasing star players from the youth football leagues, such as Rivellino, Vladimir, Ronaldo Giovanelli, Casagrande, and the current firststring goalkeeper, Júlio César, among many others. Corinthians has always valued the development of new talent, and Timão, not by chance, has been the most successful team in the São Paulo Youth Football Cup, with eight championship titles between 1969 and Such success attracts kids from all over Brazil to come to Corinthians in search of opportunity. Thus, the Club has to be prepared to receive the young athletes and to provide them with the best possible conditions for practicing sports. Timão has won the São Paulo Youth Football Cup the most times, eight in total, between 1969 and 2012 In recent years, football has been undergoing many changes due to the internationalization of the sport, with the Pelé Law and the increasing professionalization of all associated industries. Corinthians has been involved in this movement and has promoted a transformation of its amateur football program, including the youth football categories. One of the main changes was the creation of the Football Coaching Coordination unit, whose work is independent from the administrative area. The aim is to develop activities that yield results in the medium and long terms, in a sustainable manner. The new philosophy includes a software application that is being developed exclusively for Corinthians. This is groundbreaking in Brazilian football. This software will store all information pertaining to the Amateur Football Department, as well as the existing professional football data, from the contracting of athletes, including their physical condition, technical skills, and progress in practices and matches, to the history of the young athletes managers. With this equipment, the Coaching Staff will be able to assess the players based not only on their football practice experience, but on technical information as well. Concern for the future is also part of another project under consideration. Young athletes on the youth football teams can make three different choices: stay with Corinthians, play for another Club, or quit football. In some cases, the athlete starts playing for Corinthians at an early age, stays until he turns 18, and then quits football. Aiming to provide a future for these kids, Corinthians has been negotiating with universities located in São Paulo in search for a partnership that allows youths to receive partial or full scholarships. In addition to demonstrating social responsibility, this initiative will allow the families of the kids who aspire to be Corinthians star players to feel more secure about their children s future. Currently, over 170 kids are playing for Timão s youth football teams. Some of them are enrolled in a private school located in Penha, a district of São Paulo. In addition to studying, the young athletes receive psychological counseling, health insurance, and the services of a social worker who assesses their individual needs in terms of financial international talents The following are some of the players discovered from Corinthians s youth football teams, who are currently playing abroad: Betão (Dynamo Kiev-UKR) Bobô (Besiktas-TUR) Carlão (Sochaux-FRA) Cris (Lyon-FRA) Dentinho (Shakhtar Donetsk-UKR) Edson (Nacional-POR) Fernando Baiano (Al Wahda-UAE) Ronny (União Leiria-POR) Rubinho (Palermo-ITA) Willian (Shakhtar Donetsk-UKR) The main title won by Corinthians s amateur football in 2011 was the second U17 Club World Cup title, after a 2-1 win against Barcelona 26 27

15 Sports// I leave Corinthians to coach my country. I wouldn t trade this team for any other in the world Carlos Alberto Parreira during a press conference, in 2003, when he announced he was leaving Timão to coach the Brazilian National Team assistance, such as transportation and food. Corinthians is also considering the extension of health insurance to the families of the athletes. The goal is to create a bond between players and Timão, enabling the Club to offer more professional opportunities than their managers do, and to become a desirable work environment. In the coaching area, an important measure has been implemented. Activities for kids aged between 11 and 13 currently take place in a more relaxed environment. The strictness of the training was reduced for this age group in order to enable the young athletes to play football creatively and to develop their full potential. The structure of the Assessment Center (previously known as peneira, from Portuguese "sieve") has also been modified, so that newcomers go through an adjustment period before they start practicing with more experienced players. This is facilitated by an intermediate level, so that newcomers can improve their athletic condition and technical ability before being integrated with the veterans of the same age group. The relationship with the managers is also part of the restructuring. The Pelé Law transformed managers into important stakeholders in the development of Brazilian players. Nowadays, they work like old-time scouts, who discovered young talents in areas far from urban centers. However, their relationship with the Club requires rules of conduct. In Corinthians, managers have pre-established times for visits and meetings and professional relationships in which each party respects the role of the other. In addition, the software being developed will sort managers through a ranking of those who have brought players with the greatest potential to Timão. The Club is also aware of issues involving child labor in its activities, thus, all types of agreements adhere to the resolutions passed in Brazilian and international laws. The relationship between Corinthians and athletes follows the guidelines provided by the Child and Adolescent Statute and Pelé Law. FIFA and the Brazilian legislation have also established a series of provisions protecting young players, according to which no employment agreements can be signed by minors under 16 years of age. At the moment, the activities of youth football players are divided between Parque São Jorge and Flamengo, of Guarulhos. Since the closure of the Itaquera Training Center due to the construction of Timão s new stadium, Corinthians has entered into a partnership with a club from the neighboring city, which is located near the former CT. Flamengo Guarulhos has made its facilities available in exchange for renovations to its stadium. In this stadium future Corinthian stars play their exhibition and official matches, in addition to conducting training both on and off the field. Younger kids, between 11 and 13 years of age, remain at Parque São Jorge, where they can be close to their families. The others will stay in the partner Club until the construction of the new Training Center for the youth football teams, adjacent to CT Joaquim Grava, is completed. Once all works are completed, which is expected to occur in 2013, Corinthians s youth football teams will become a global reference, similarly to the professional football team. Argentinean Timão In the current globalized world, Corinthians has also gone beyond Brazilian borders. In 2011, it entered into a partnership with an Argentinean football team to train prodigies. This team is the Sport Club Corinthians Santa Fé, located in the city of Santa Fé. The club was established by managers in order to facilitate the discovery of young talent. The Argentinean Timão will not enter the professional football league and currently has 200 players in the youth football categories. In this partnership, Corinthians lends its business model to Santa Fé and, in exchange, has an ally in the world of Argentinean football. Two-time U17 Club World Cup Champion The main title won by Corinthians s amateur football program in 2011 was the second U17 Club World Cup title, after a 2-1 win against Barcelona. The World Cup was held in Spain, and Timão, coached by Zé Augusto, finished the tournament undefeated. The championship was widely covered by TV Corinthians. On Brazilian fields, the Corinthians U12 team won the Volkswagen Junior Masters Tournament. This victory means that it will represent Brazil in the global phase of the competition, which will be held in 2012 in Poland. Pro-style football Corinthians s youths played like pros, winning their eighth São Paulo Youth Football Cup title in The 2-1 win against Fluminense pleased the fans: it was a come-from-behind win, with its second goal scored in the 44 th minute of the second half, before a Pacaembu Stadium packed with 37,000 loyal supporters. Currently, over 170 kids are playing for Timão s youth football teams. some of them are enrolled in a private school located in Penha, a district of São Paulo indicador gri: hr6 indicador gri: hr6 relatório de sustentabilidade

16 Other Sports// Timão s strengths in other areas Corinthian athletes stand out in swimming, futsal, hang gliding, handball, jiu-jitsu, judo, volleyball, and American football London 2012 Olympic Games. From the Pan American Games held in Mexico, Poliana brought home a silver medal for Marathon Swim, and the same result from the Pan American Games held in Rio. Poliana is one of the most important swimmers in this category. In addition to Thiago Pereira and Poliana Okimoto, two representatives of the Corinthians swimming program were summoned to the 2011 Pan American Games in Guadalajara: swimmer Michele Schimdt and coach Carlos Matheus. In Brazil, Corinthians s team also stood out in multiple tournaments. Corinthians was the overall winner in the men's category of the Maria Lenk Trophy. It was the overall winner in the women's category of the Jogos Abertos do Interior, representing the city of São Bernardo do Campo (SP). The men s team placed second in the competition. Timão s year-old swim team was the overall champion of the São Paulo State and Southeastern Championships for the second consecutive year. Corinthians athletes also placed second in Brazil in the year-old and year-old categories. In Marathon Swimming, athlete Betina Lorscheitter placed second in Brazil and was drafted to compete in the South American Swimming Championship. Corinthians's swim team has also had many accomplishments in terms of social responsibility, especially due to the establishment of partnerships with organizations that provide assistance to disabled children. In addition to offering its swimming pools to these children, the Aquatic Center hosted the State Championship for the Brazilian Association for Sports for the Mentally Handicapped (ABDEM). Corinthians is the second most powerful Brazilian swim team. It is a serious candidate to become a major power in this sport in the next three or four years Corinthians is the second most powerful Brazilian swim team. It is a serious candidate to become a major power in this sport in the next three or four years. The Club has one of the largest aquatic centers in Latin America. All facilities have been modernized. The highlight is the heated 50-meter Olympic swimming pool, with 3,000 bleacher seats. There are also the endless pool, the 25-meter diving pool, the wave pool, and wading pools. In addition, two internationally acclaimed swimmers defend Timão s colors. These Brazilian athletes who won a record-breaking number of medals during the Pan American Games are Thiago Pereira and marathon swimmer Poliana Okimoto. The swim school has options for all age groups, from babies to seniors, including youth swimming, adult swimming, synchronized swimming, water aerobics, and activities for people with disabilities. In addition to offering top-notch sports activities to all of its members, the school aims at training athletes to take part in the main swim meets in Brazil and abroad. Corinthians has 250 athletes who use its pools. The Club expects this number to increase due to the achievements of Corinthian athletes Thiago Pereira and Poliana Okimoto in In 2011, Thiago was one of Brazil s major highlights. In the Pan American Games held in Guadalajara, Mexico, he was the individual Brazilian athlete to win the most medals, comprising six gold medals, one silver, and one bronze. When he returned from Mexico, he was honored at Corinthians, where 30 children welcomed him and the president, Andrés Sanchez, offered him a team jersey with the inscription Mister Pan. However, Mister Pan s strokes were not limited to the Mexican swimming pools. Before Guadalajara, Thiago Pereira was the overall winner of the 2010 FINA World Swimming Championship (25 m) and became the King of the Cup. The tournament was held in seven countries (Brazil, China, Singapore, Japan, Germany, Russia, and Sweden). The Corinthians athlete made it to the podium with 19 gold medals and three silver medals. Corinthians also has a spot in the London 2012 Olympic Games. Swimmer Poliana Okimoto placed 6th in the 10K Marathon Swim in the 2011 FINA World Championship held in Shanghai. This achievement secured her spot in the In the Ring He dreamed of playing for Corinthians as a left-winger. Although he was late for the football tryouts, he was invited to start training. He practiced at Timão for three months, and that is where he started his career. This is the story of Anderson Silva, the most famous MMA (mixed martial arts) fighter. In September 2011, he opened Academia Anderson Silva at Parque São Jorge, where members and non-members can practice jiu-jitsu (adults and youths), muay thai, boxing, and general workouts. This was the first gym to be opened according to the agreement executed between Anderson Silva, aka The Spider, and Corinthians. Others are on the way. Anderson Silva has held on to the UFC middleweight championship belt (Ultimate Fighting Championship) since At the UFC, fighters employ different fighting techniques, such as jiu-jitsu, boxing, wrestling, muay thai and karate. Since celebrating a contract with Timão, he has been wearing the team jersey. The combined popularity of football and MMA is another means of adding value to the Corinthians brand and improving the quality of life of children who can become successful in sports other than football. Such was the case for Anderson Silva, who almost became a left-winger

17 Other Sports// 7-a-side Football Timão established a partnership with Big Preço, which was very successful in its first year of existence. The Corinthians/Big Preço team played in the finals of the São Paulo State 7-a-side Football Championship and became champion. The members of the Club also entered the 7-a-side Football Winter Fest, in which six teams took part. American Football 2011 was a perfect year for Corinthians Steamrollers, which won the São Paulo State and Brazilian Championship titles. Corinthians was the undefeated Brazilian champion in the Touchdown Tournament, with the best overall offense and defense. Basketball Corinthians s priority in basketball is the development of its youth basketball teams. Timão has teams in the U13, U14, U15, U16, U17, and Master categories. In 2011, the U13 team won the vice-championship title in the State Championship. Beach Soccer Corinthians players stood out in the 2011 FIFA Beach Soccer World Cup, held in Italy. The Brazilian National Team won the vicechampionship title, and Corinthians athlete André Álvaro Batista do Nascimento, who scored 14 goals in the tournament, received the Golden Boot (top scorer) and Silver Ball (second best overall player in the tournament) awards. Bocce The Club also maintains two bocce teams, women s and men s. They take part in federation championships and in the renowned Domingueira (Sunday meet), which brings several bocce teams together. Canindé Canindé is a department formed by the members who play football at the Club. It is composed of nine groups, with approximately 60 people per group. They meet on weekends to play football on Parque São Jorge s fields. Cifac The Internal Association Football Championship (Cifac) offers four categories to kids: U11, U13, U15, and U17. The finals take place on Fazendinha s field, where various stars have played throughout Corinthians s history. In all, there are 31 teams in four categories. In addition to the internal championship, there is an official team for each category, which plays the Inter- Club Football Tournament against the most traditional Clubs in São Paulo. Table Football The Club maintains a table football school, which offers weekly classes, and whose teams compete in tournaments in the Main, Master, and Aspiring categories. In 2011, Timão placed 3 rd among the best teams in Brazil. In the State of São Paulo Championship, Corinthians placed 2 nd in the Main and Aspiring categories. Futsal (Men s) Futsal is one of the sports that have brought the most trophies to be displayed at the Corinthians Memorial. Timão s athletes have played with a lot of heart, always supported by Fiel was filled with major achievements. The U20 team played with a lot of flair and won the State Championship, the Brazil Cup, and the Regional Games. The team in the main category finished third in the Futsal League. Handball Timão s handball teams obtained major victories in In women s handball, the girls won the title in the Gold category of the year-old Circuit. The team in the year-old category finished third in the State Championship. The teams in the and the year old categories won the Pinheiros Cup, which gathers the main handball teams in the State of São Paulo. In men s handball, Corinthians made it to the finals of the São Paulo State Handball Championship in the year-old category, placing second. The 12-14, 14-16, and yearold categories of the men s handball teams went to Denmark to play the Dronninglund Cup against teams from six countries. Timão brought back a second-place finish. Hang Gliding Corinthians s hang gliding team was put together at the end of 2010 and it has already achieved significant results for Timão. Three Corinthians athletes take part in hang gliding tournaments: Michel Fernandes Louzada, Eduardo Jacinto de Oliveira, and David de Almeira Brito Filho. They came to Corinthians with an impressive track record, which includes the Brazilian and State of São Paulo Championships, in addition to the record in distance, set in the Northeastern region of Brazil. This is Corinthians, flying high. Jiu-Jitsu In 2011, Corinthians jiu-jitsu fighters Luanna and Gabrielle became two-time world champions in Abu Dhabi. In addition to these victories, these Corinthians athletes are contributing to popularizing women s jiu-jitsu. Judo Corinthians s judo school has approximately 40 students in a number of categories. Timão has athletes who compete in state, national, and international tournaments. The medal display expands each year. Peteca (Hand Shuttlecock) Corinthians s team has over 50 athletes. In 2011, it finished second in the State Championship. 7-a-side football São Paulo State Championship American Football São Paulo State Championship Brazilian Championship Futsal (Men s) U20 Category São Paulo State Championship Brazil Cup Regional Games Championship Metropolitan Championship Handball year-old Circuit (Gold Category) women s Pinheiros Cup year-old and year-old categories Hang Gliding 2011 State Championship David Britto (first place) and Michel Louzada (second place) 2011 XC Brazil Championship Michel Louzada (first place) Cross Country Championship Eduardo Oliveira (first place in the 410 km) 2011 Brazilian Championship Michel Louzada (second place) World Championship, in Italy, Eduardo Oliveira and David Britto (8 th place, with the Brazilian National Team) Jiu-Jitsu Two-time World Championship (Abu Dhabi) Judo São Paulo City Championship (U11, U13, and U17) São Paulo State Championship (U15 and veterans) Pan American Nikkei Championship (Asunción Paraguay) Swimming Men s Team Overall Champion, Maria Lenk Trophy Jogos Abertos do Interior (second place) Women s Team Champion, Jogos Abertos do Interior run, Corinthians Corinthians has a team of 70 runners that take part in road running and hiking events. They receive training and guidance from Physical Education teachers specialized in the sport. Taekwondo In 2010, the Club hosted the Brazil Open Taekwondo. In 2011, it hosted the Corinthians Open, in which 60 athletes competed in the 9-12-year-old, year-old, and Adult categories. Timão s taekwondo team won medals in tournaments held in Porto Alegre, Fortaleza, and Curitiba. Tamburello The Club s courts hosted male and female athletes competing in individual and team tournaments. Tennis The remarkable performance of Corinthians s tennis team is the result of important 2011 achievements year old Team São Paulo State Championship Southeast Championship year old Category Brazilian Championship (second place) year-old Category Brazilian Championship (second place) Swimming Thiago Pereira Pan American Games Guadalajara 2011 (Mexico) six gold medals 2010 FINA World Swimming Championship (25 m) 19 gold medals and 3 silver medals Poliana Okimoto Pan American Games Guadalajara 2011 (Mexico) - one silver medal Taekwondo America Cup - two gold medals, three silver medals, achievements recorded throughout the year by its players, who took part in tournaments in all categories. Corinthians ended 2011 ranking third and fourth in the State of São Paulo Inter-Club and Supervised Championships, respectively, and fourth in the State of São Paulo Trophy. Competitive tennis is a new sport at Corinthians. The department was created in July 2010 and 12 professional athletes now represent Timão on the courts. Volleyball In women s volleyball, the 13-year-old team was State champion. In the 9-12-year-old and 15-year-old categories, Timão picked up a second place finish in the State of São Paulo SindiClube Championship. In the women s Master category, Corinthians won the Brazilian Championship in Santos, the Open Championship in Natal, and the US Open National Volleyball Championships in Phoenix (USA). In men s volleyball, the Master team won APV s Metropolitan Championship, in partnership with Voley & Cia. and three bronze medals São Paulo State Championship (1st round) - six gold medals, four silver medals, and three bronze medals (2nd round) - four gold medals, five silver medals, and four bronze medals (3rd round) - three gold medals, five silver medals, and five bronze medals Brazilian College Championship - one gold medal, one silver medal, and three bronze medals Brazilian Inter-Club Championship - one gold medal, two silver medals, and two bronze medals Superpaulistão - three gold medals, five silver medals, and three bronze medals Corinthians Open - 15 gold medals, eight silver medals, and five bronze medals Regional Games - one bronze medal Porto Alegre Open - three gold medals, two silver medals, and one bronze medal Brazil Games - three gold medals, two silver medals, and three bronze medals Brazil Cup - two gold medals, two silver medals, and one bronze medal Brazil Open - one silver medal, and two bronze medals 3rd Mauá Cup - five gold medals, and two silver medals Volleyball 13-year-old Women s Category São Paulo State Championship Women s Master Brazilian Championship Master in Santos (SP) Open Championship Master in Natal (RN) US Open National Volleyball Championship in Phoenix Men s Master APV s Metropolitan Champion 50+ category APV s Metropolitan Vice-Champion 45+ category gri indicator:

18 Fans// THERE IS NOTHING LIKE FIEL Corinthians s crowd of supporters is arguably the largest in Brazil Corinthians fans do not live off titles, Corinthians fans live off Corinthians. This sentence is part of an advertising campaign launched after Corinthians won its fifth Brazilian Championship title, in December It represents the feelings of over 30 million fans in love with Timão, who, at all times and in all situations, always support the black and white colors of the team from Parque São Jorge. The biggest sign that being a Corinthians fan is more important than winning championship titles came during the 22 years, eight months, and seven days that Fiel was unable to chant we are champions. Even so, although the team did not win any major championship titles between 1954 and 1977, the gang of crazy fans continued to grow in number and spread throughout Brazil. In 1976, in the semifinal against Fluminense, 80,000 Fiel warriors were present in Maracanã. This is known as the Corinthian invasion, and it is considered the largest human movement in times of peace. Nowadays, the title of largest crowd of supporters in Brazil is shared between Corinthians and Flamengo. Until 2010, the fanbase of the team from Rio de Janeiro was still bigger. However, a survey conducted by Ibope whose results were published in October 2011 showed a tie between Corinthians and Flamengo on the list of the teams with the largest fanbases in Brazil. The survey was conducted in 12 Brazilian metropolitan areas and revealed that both Corinthians and Flamengo are preferred by 13% of fans. In this survey, 18,000 people were interviewed, representing 100 million Brazilian citizens over 10 years of age. Golden Musketeer Corinthians fans voted center forward Liedson as the best player in the team in the 2011 season. He received the Gold Musketeer Trophy with an average of 8.41 points, beating midfielder Ralf, who came in a close second with an average of 8.12 points. Goalkeeper Júlio César came third with 8.03 points. Scores are awarded after each match. Levezinho, the nickname of Timão s 2011 top scorer, played in 44 of the 56 Corinthians matches played during the year. He sank the ball in the opposing net 23 times, with 11 goals in the State Championship and 12 in the Brazilian Championship. He averaged 0.5 goals per match. However, in Corinthians s 5-0 thrashing of São Paulo in the first phase of the Brazilian Championship, Liedson scored three goals, his best performance in a single game in I will never forget this crowd of fans. It can wait for me, because I swear, I ll come back! Carlitos Tevez striker, currently playing for Manchester City gri indicator: pr5 35

19 Fans// People s Republic of Corinthians In November 2011, one year after its foundation, the People s Republic of Corinthians elected its first president. In a transparent and democratic process, Milton Oliveira, who was born in São Paulo and is 24 years old, beat 192 candidates and won by a landslide in the polls. All 12,074 Corinthians citizens were allowed to vote through the Internet. The government plan of Milton Oliveira, the mastermind behind the social project Sangue Corinthiano (Corinthian Blood), is to appreciate Fiel and to hold social activities. He proposes sending a letter from Corinthians supporters to the Club on a regular basis, creating a Fan Day, and promoting of the Sangue Corinthiano project. Milton s campaign platform comprises some of the 18 items suggested by the Corinthian Nation via social networks and the official channels of the governors of the Republic. The presidential election is an example of engaged citizenship in the modern world, where the Internet is increasingly important in social mobilization. After the People s Republic of Corinthians was born, it proceeded to set examples and win awards. The advertising campaign República Popular do Corinthians, created by the advertising agency F/Nazca S&S, won the Bronze Lion at the Cannes International Festival (France), and two Grand Prix at the International Festival El Ojo de Iberoamérica in Buenos Aires (Argentina). Internally, the Republic launched the Saint George s Weapons Award, which will grant emblems with the weapons used by Corinthians s patron saint to the best online Corinthian environments in the following categories: best blog, community, website, and Twitter account. A stunner Fiel chose the most beautiful of the 53 goals scored by Timão in the 2011 Brazilian Championship. The stunner was scored by midfielder Alex, who hit a shot from outside the box into the right corner of the opposing goalkeeper. The match was in the 16 th round and ended in a 2-2 draw in Pacaembu Stadium. Amazing match To the loyal fans, the most incredible match in the journey towards the fifth Brazilian championship title was the come-from-behind win against Atlético- MG in Pacaembu Stadium. In that afternoon of November 20 th, Atlético-MG (aka Galo) was leading 1-0 when, in the 32 nd minute of the second half, Liedson scored a header, tying the match. Cheered on by the Corinthians fans, Adriano, the Emperor, scored the winning goal in the 43 rd minute, which was his one and only goal for the team in the entire year. The historical come-from-behind victory was instrumental in winning the title, and received 38% of the votes cast by fans. Loyal Fan (Fiel Torcedor) The Loyal Fan program was launched in February 2008 and was widely embraced by Corinthians supporters. In 2011, the program had 80,000 users, 45,000 of whom were in good standing. The program offers three types of plans, with different prices and benefits: My History, My Life, My Passion. All plans offer discounts and give fans preferred treatment when buying tickets for home matches; members also receive customized kits. Upon registration and payment, supporters receive the Loyal Fan Card, which contains the member s data, allowing tickets to be purchased from the Loyal Fan website and facilitating access to the stadium. In 2012, the scope of the program will be extended. The Loyal Fan program will be incorporated into the People s Republic of Corinthians and will become a sort of ID, providing an ID number and other standard details. This document will be a debit/credit card issued by any credit card issuer. The idea is to place over one million cards in circulation. Poderoso Timão Stores All consumers deserve respect. If consumers are looking for Corinthians products, they deserve special respect. This is what happens at Todo Poderoso Timão Stores, an exclusive network that sells products catering to the needs of these loyal fans. In all, there are 113 stores, spread across shopping malls, kiosks, and streets in five Brazilian states and in the Federal District. Most of these stores are in the city of São Paulo, which hosts 44 of these true Corinthian temples. Another 56 stores are scattered throughout 44 cities in the metropolitan area of São Paulo, in the interior and coastal cities of the State. There are three stores in Paraná, two in Mato Grosso do Sul, one in Minas Gerais, one in Mato Grosso, and another one in Distrito Federal. These numbers are likely to change, since the Todo Poderoso Timão network continues to grow. In these stores, Corinthians fans can find over one hundred licensed products bearing the Corinthians brand, from official and practice jerseys to shirts that pay homage to Timão s and its star players major achievements throughout history. Products are designed for men, women, and children. In addition to T-shirts, the stores offer full uniforms, tracksuits, jackets, pants, mugs, books, movies, footballs, posters, key chains, games, barware, personal care items, gifts, backpacks, hats, bicycles, clothes, bed and bath accessories, trays, fine jewelry, costume jewelry, and many other products. ShopTimão For Corinthians fans who do not have time to stop by one of the over 100 Todo Poderoso Timão stores, or for supporters who live in a city that still doesn t have a store, there is the Shop Timão Virtual Store ( com.br). In a safe environment and in compliance with a strict privacy policy, the store stocks all products licensed by Corinthians and ships to all regions in Brazil. The virtual store is a partnership between Corinthians and Netshoes. Payment can be made via credit card or bank payment slip. Social Networks Corinthians has the largest official Orkut community of all Brazilian teams. In 2011, it reached the record-breaking number of 500,000 members. However, this is not the only site used by Corinthians fans. There are over 2.5 million Corinthians followers on the most popular social networks in Brazil. In addition to Orkut, Timão has 790,000 followers on Twitter (@SiteCorinthians) and 1.6 million crazy fans on Facebook. On Twitter, Timão is the fourth most followed team in the world, according to the website Folos.im, trailing only Real Madrid, Barcelona, and Arsenal. This means that, in the Americas, Corinthians is the most popular team. This is the best crowd in the world for a player. Ronaldo Fenômeno in an interview with a Brazilian TV station There are over 2.5 million corinthians followers in the most popular social networks in brazil. in addition to orkut, timão has 790,000 followers on twitter and 1.6 million crazy fans on facebook 36 37

20 Strategy// ON THE WAY TO THE world cup Corinthians Arena will be finished by the end of 2013, in compliance with standards By the end of 2013 the ultimate dream of the Corinthians nation will come true Corinthians s new stadium has become a reality. An arena with seating capacity for 48,000 fans is being built in a 200,000 m 2 area located in the district of Itaquera, on the East side of São Paulo. The construction works will be completed by December Six months after, on June 12 th, 2014, Timão s stadium will host the World Cup opening match. For the most important global event in football, the stadium will rely on an additional 20,000 temporary seats, which will be removed after the end of the World Cup. FIFA requires a 65,000 seating capacity for the opening match. The estimated cost of the project is R$ 820 million. Of this total, R$ 400 million will be funded by Corinthians, which has a period of ten years, plus a three-year grace period, to pay back Construtora Odebrecht, the contractor responsible for the work. The remaining resources will come from tax incentives from the São Paulo Municipal Government, which will be granted after the opening of Corinthians s arena. The property belongs to the City Council, which has granted Corinthians the use of the land for 99 years. The stadium will be totally managed by Corinthians. The district of Itaquera will also profit from the new stadium. The East side of São Paulo is an area that lacks urban infrastructure. For the operation of the stadium, improvements in the district s transportation system will be required. The Corinthians/Itaquera subway station, for example, will be expanded. A railway line will connect the Brás district, also located on the East side, to Guarulhos Airport, benefiting the area as a whole. Five roadway projects are planned for the vicinity of the stadium, with an estimated investment of R$ 478 million, which will be funded by the City Council and by the Government of the State of São Paulo. Earthworks services and preparation of the stadium site started on May 30 th, In November, a group of FIFA representatives and members of the Local Organizing Committee visited the construction site. They observed that 68% of the earthworks had already been completed, 1,910 piles had been driven into the ground, 330 concrete blocks had been cast, and 30 pillars had been installed that is, 19% of the construction works had been completed and 800 workers were working at the site. During the most work-intensive period, over 2,000 direct jobs will be generated. The parking lot will have a capacity for 3,700 vehicles, with enough space for 59 business establishments, such as restaurants, cafeterias, stores, and bars. Most seats will be located in a roof-covered area. For the 2014 World Cup, the stadium will be ready to welcome the 32 heads of state who will represent the countries competing in the tournament. The project also includes the provision of infrastructure for the simultaneous work of 5,000 journalists from all around the world. The project was designed by architect Aníbal Coutinho, and incorporates the traditions and history of Timão. The turf, for example, will be located 777 meters above mean sea level, a tribute to Fazendinha s address, which is located at 777 Rua São Jorge. This number also refers to 1977, when Corinthians became São Paulo State Champion and put an end to the dry spell without any traditional championship titles that had lasted 22 years, eight months, and seven days. gri indicator: ec8 39

21 Strategy// guaranteed future earnings Corinthians s new home will bring benefits in all senses, including financial benefits. In addition to not having to rent a stadium for its home games, the Corinthians arena will generate total revenues of approximately R$ 600 million per year from ticket sales, merchandising, sponsorships, box rentals, licensed product sales, and other sources of revenue still under consideration. apreciation of the east side region The construction of the stadium will adhere to the standards set forth by FIFA. In order to do so, the solutions and technologies must ensure the rational use of natural resources, such as water conservation, rainwater harvesting, waste reduction and recycling, and in energy conservation, in addition to natural ventilation and lighting. In order to obtain the construction permit, a study on the impacts on the environment and surrounding community was conducted. Accenture, a consulting company for the global management of technology and outsourcing services, prepared an analysis of the benefits that the 2014 World Cup opening ceremony to be held in Itaquera will generate for the City of São Paulo. Accenture identified potential for approximately R$ 30.7 billion in economic benefits for the city, most notably for the East side region, in a ten-year period. The stadium s construction site is located in one of the São Paulo Municipal Government s most important intervention project areas for the East side region, generating synergies with public investments, such as road infrastructure work, enhancing social mobility in the region and benefiting its inhabitants with increased real estate values, generation of new businesses and jobs, and increased economic productivity, among other advantages. The project in Itaquera will bring benefits to the Municipality of São Paulo in the construction phase, in the 2014 World Cup opening ceremony, throughout the lifecycle of the stadium, and through the legacy it establishes. The tourism activities associated with the World Cup will generate R$ 1.7 billion in financial transactions for São Paulo, approximately seven times more than the volume generated by Formula 1. Benefits Creation of new jobs and increased economic activity and tax collection1 are only a few of the many benefits that the construction of the stadium and the 2014 World Cup opening ceremony will bring to the East side of the city, according to the study conducted by Accenture. Construction Creation of 1,500 and 4,500 direct and indirect jobs, respectively; - Increase of R$ 73 million in direct consumption in the area; - Training and development of local staff for employment during the construction phase; - Better quality of life for the population of the region as a result of increased economic activities. Additional taxes collected throughout the system ISS: between R$ 11 million and R$ 14 million; ICMS: R$ 30 million; PIS/COFINS: between R$ 24 million and R$ 30 million; IRPJ: between R$ 25 million and R$ 27 million. World Cup june-july Increased tourism 190,000 foreign tourists are expected, spending approximately R$ 1.2 billion, in addition to 270,000 Brazilian tourists, adding approximately R$ 481 million to the economy; - Creation of over 39,500 temporary jobs. Additional taxes collected throughout the system ISS: between R$ 50 million and R$ 91 million; ICMS: N/A; PIS/COFINS: between R$ 96 million and R$ 175 million; IRPJ: between R$ 48 million and R$ 88 million. 1 ISS Services Taxes; ICMS, Sales tax; PIS/COFINS, Profit Sharing and Social Security Financing Contributions; and IRPJ, Corporate Income Tax Operation Revenue generation: R$ 442 million from sports events and R$ 511 million from non-sports events; - Creation of approximately 700 jobs, 200 of which will be permanent and 500 on match and event days; - Savings of R$ 50 million for the São Paulo Municipal Government, due to not having to build a Convention Center in the East side of the city. Additional taxes collected throughout the system ISS: between R$ 49 million and R$ 53 million; ICMS: R$ 2.7 million (municipality s share); PIS/COFINS: between R$ 85 million and R$ 97 million. Legacy Stimulus in the form of necessary infrastructure with direct effects worth R$ 15.5 billion; - Creation of over 34,000 jobs as well as new sources of economic activities arising from improvements in infrastructure; - Increase in post-world Cup tourism activity of approximately R$ 1 billion; Real estate market appreciation (IPTU and ITBI). Additional taxes collected throughout the system ISS: between R$ 550 million and R$ 756 million; ICMS: between R$ 1.7 million and R$ 1.8 million; PIS/COFINS: between R$ 1.7 million and R$ 2.2 million; IRPJ: between R$ 888,000 and R$ 1.1 million; IPTU: R$ 325 million. winning tactic The Board of Directors, which took over the management of the Club in 2007, has actively worked to turn Corinthians into a modern and efficient company. Since then, the goal of regaining the Club s credibility with its major stakeholders - supporters, athletes, employees, sponsors, media, banks, members, and vendors - has been attained. In order to face the challenges, as of 2007, the Board of Directors has adopted a renovation strategy (see the Seven Pillars). A professional management structure has been put in place, involving corporate governance, enforcement of accountability and transparency, a presidential system, and the development of a collaborative style of work, with constant exchange of information (read more in Management and Governance). The tactical actions taken were dramatic: orthodox treatment, spending analysis aiming at reductions, analysis of all services agreements, assessment of departmental budget adequacy, regular meetings with vice-presidents and boards of directors to discuss figures, and the hiring of market professionals for key areas. At the same time, management actions were adopted that included strategic planning preparation, cash flow implementation with a 60-day fixed cost horizon, and very detailed budget planning. In order to do so, the Club was divided into three business units: Football, Land and Water Sports, and Social Club. Managerial accounting with monthly follow-ups was also implemented. The activities and results are now disclosed monthly and the control and process structure has been improved. Focusing on the fans and on the football team, which are Corinthians s main reason for existence, the current management has developed specific strategic actions regarding Corinthians s image/brand, professional football, supporters, and Club. This management model has proven to be efficient, as reflected in the good financial results obtained in the last few years (read more in Economic Performance). 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 fans with the team 7 Involvement of the fans with the Club gri indicator: en

22 Brand// Multimillion deals Largest sponsorship agreements in 2011 (in R$ million*) Liverpool (ENG) 53.6 ** Manchester United (ENG) 53.5 Real Madrid (SPA) 52.1 Bayern Munich (GER) 49.9 Corinthians (BRA) 45.8 Source: Sport + Market Survey, German sports marketing magazine. * Values converted into BRL according to the exchange rate on April 8 th, (1 euro = R$ ). ** Liverpool only received part of this sponsorship fee in The remaining amount was paid in mid expanding network Growth of Poderoso Timão stores (2008/2011) stores stores stores stores the most valuable brand Timão stays on top in the ranking of the biggest brazilian football brands In 2011, Corinthians consolidated the evolution of its brand s value as well as its leading position among the 12 largest football Clubs in Brazil. A study conducted by Consultoria BDO RCS shows that the Corinthians brand was the brand with the highest increase in value in 2011, growing by 16% in relation to 2010 to reach R$ 867 million. For the second consecutive year, Timão has led the ranking of the biggest Brazilian football brands. Flamengo comes in second, with R$ million, followed by São Paulo (R$ million), Palmeiras (R$ million), and Internacional (R$ million). The figures for Corinthians reveal not only its place at the top of the pyramid, but also a continuous evolution. In 2004, Timão s brand was worth R$ 286 million and placed third in the ranking, falling behind São Paulo (R$ million) and Flamengo (R$ million). Five years later, in 2009, Flamengo had placed first, followed by Corinthians and São Paulo. In 2010, Corinthians took over the first place, with a brand worth R$ million. São Paulo was second (R$ million) and Flamengo was third (R$ million). These figures reveal the speed with which Corinthians has overcome its main competitors. From 2004 to 2011, the Corinthians brand grew by 203%, while the Flamengo and São Paulo brands grew by 113% and 95%, respectively. The consolidation of the leadership in 2011 was a direct result of the growth of marketing revenues, TV rights related to the broadcasting of Corinthians s matches, and the social Club. According to the assessment included in BDO RCS s study, the future potential for revenue generation will depend on how the Club maximizes its relationship with over 30 million fans and how Corinthians responds to the economic and social characteristics of its target audience. The work of strengthening the Corinthians brand has been constant. With a comprehensive and ambitious action plan, a number of initiatives have been created, developed and reinforced in the last four years. Notable among these initiatives are the establishment of a new business standard and the relationships with sponsors, which have served as models for other Brazilian Clubs. The Loyal Fan program, which offers discounts on tickets and exclusive kits to its members, also showed significant growth in 2011, reinforcing the strategy of serving supporters. Launched in December 2008, the program is constantly evolving and currently has over 80,000 registered fans, with approximately 45,000 members in good standing. The Corinthians brand was the brand with the highest increase in value in 2011, growing by 16% in relation to 2010, reaching R$ 867 million The Poderoso Timão store chain followed the same growth pattern. In 2008, there were only 12 units, and this number soared to 100 by This expansion continued in 2011 with the inauguration of new stores, totaling 113 units, arriving in the states of Paraná and Mato Grosso do Sul and in Distrito Federal, in addition to cities in the interior of São Paulo State. Since its creation in October 2008, the Poderoso Timão chain has recorded sales in excess of R$ 178 million. The virtual store ( has not fallen short either. In 2011, it sold more than R$ 9 million worth of products and earned R$ 1 million in royalties. The Club considerably expanded its brandrelated revenue, with a significant increase in ticket sales from R$ 5.5 million in 2003 to R$ 27 million in 2011, a significant expansion of 391%. In turn, revenue from TV rights reached R$ 79 million in 2011, an increase of 210% over Among so many achievements and initiatives, the most important ones were the sponsorship agreements executed with Hypermarcas, Fisk, and TIM 2. Aiming at strengthening its brand, in December 2010, Corinthians partnered with PoupaFarma, a pharmacy chain that offers medication and other products at reduced prices, to create FarmaTimão - its first franchise. Thus, the Club opened the world s first pharmacy owned by a football team at Parque São Jorge. In 2011, franchised units earned R$ 516, Hypermarcas, Brazil s largest consumer goods company. Fisk, a major language school chain, TIM, mobile phone carrier. High values Revenue from Marketing (in R$ million) Product TV/Print advertising Nike Uniform Loyal Fan Licensing Ticket sales Grand Total Leader in the Ranking MOST VALUABLE BRANDS IN BRAZILIAN FOOTBALL (in R$ million) club Corinthians Flamengo São Paulo Palmeiras Internacional Santos Grêmio Vasco da Gama Cruzeiro Atlético Mineiro Fluminense Botafogo gri indicator: 2.2 gri indicator:

23 Management // speaking OPENLY with the fans Over the course of four years, the current Board of Directors has promoted changes in the management of the Club by focusing on transparency, efficiency, and democratization Upon taking office in October 2007, the current Board committed itself to efficient and transparent management, with permanent accountability the financial statements are available on the Internet and involvement of the members in the daily activities of the Club. In order to fulfill this mission, profound administrative change was instituted and new governance rules were put in place. Corinthians's statute was reformulated and has been in effect since September 2008, ensuring Club members the right to vote directly for president and establishing a three-year term with no right to reelection, among other modernization measures. The changes made to the statute, one of the most modern and democratic in the world, marked a milestone in the history of the Club. The document provided a legal basis for strengthening the process of professionalizing management, making it more transparent and efficient. In this period, important results were achieved, and past errors corrected. Another significant aspect of the current governance model at Corinthians is the fact that the Board and executive committees are formed of independent, non-remunerated members. Management is divided into five levels, which are structured according to the parameters set forth in the Club s Social Powers (see box on page 51). The statute promotes permanent accountability and the involvement of fans with the team and the Club. These values are also enshrined in the seven pillars established by the current Board since the start of its term in 2007 (read more in the Strategy chapter). These intentions led to the creation in 2009 of a Cultural Management Department, with the aim of gathering the memorable facts of the Club s 100-year history and promoting events relevant to Club members and non-members alike. The Deliberative Council consists of both life members and members elected for threeyear terms. The Council is in charge of electing the effective members and their stand-ins for the Orientation Council (CORI), for the Fiscal Council, for the Ethics and Discipline Committee and the permanent councilors, in addition to voting on the annual budget. Consisting of ten members, the Orientation Council has the following responsibilities, among others: assisting the president and supervising the administration; approving and issuing the Internal Rules and Regulations, with the right to review their texts in the first quarter of the year; issuing opinions to the Deliberative Council on the Board s report on the budget and supplementary funds for each fiscal year; authorizing the Chairman of the Board ad referendum of the Deliberative Council to sign contracts; examining monthly trial balances and recommending any measures for organizing them more efficiently. The main duties of the Fiscal Council's three effective members and their stand- As part of the Club s transparent management, Corinthians has published its Sustainability Report since In 2010, the Report was a finalist for the Abrasca Award, being nominated for Best Annual Report 44 45

24 President and Directors President ANDRÉS NAVARRO SANCHEZ Club member since st Vice-President of the Board of Directors ROBERTO DE ANDRADE SOUZA Club member since nd Vice-President of the Board of Directors MANOEL FELIX CINTRA NETO Club member since 1975 Administrative ANDRÉ LUIZ DE OLIVEIRA Club member since 1995 The Board of Directors and the executive committees are formed of independent non-remunerated members. Management is divided into five levels, which are structured according to the parameters set forth in the Club s Social Powers. Finance RAUL CORRÊA DA SILVA Club member since 1959 Professional Football ROBERTO DE ANDRADE SOUZA Club member since 1997 Youth Football FERNANDO ALBA BRAGHIROLI Club member since 1983 Land Sports FAUSTO BITTAR FILHO Club member since 2006 Legal Affairs SÉRGIO EDUARDO MENDONÇA DE ALVARENGA Club member since 1993 Water Sports OLDANO GONÇALVES DE CARVALHO Club member since 2001 Property JORGE ALBERTO AUN Club member since 1965 Social WALDIR ROZANTE Club member since 1987 ins include verifying the Club s general bookkeeping by examining the relevant documents at least once a month; reviewing the monthly trial balance of the Treasury Department; informing the Chairman of the Board of possible irregularities; representing CORI on financial matters; giving an annual opinion to the Deliberative Council on the Balance Sheet and the Statement of Revenues and Expenses of the Club, which must be attached to the annual report of the Board; giving opinions on the budget and issue an opinion on the coverage of additions to the budget, in view of the available funds; monitoring compliance with the sports legislation in effect. The Club has 177 councilors for life, 171 men and six women, and 193 quadrennial councilors, 185 men and eight women. Among many duties, the Board of Directors is responsible for the following activities: managing Corinthians; resolving issues regarding admission, transfer, licensing, dismissal and readmission of members; dealing with sports competitions to be officially held outside Corinthians s facilities; providing CORI and the Deliberative Council with all the information and documents they might require. The Ethics and Discipline Commission, meanwhile, has the following duties: learning, instructing and reporting on disciplinary Marketing LUIS PAULO ROSENBERG Club member since 1999 Secretary General ELIE WERDO Club member since 1959 Cultural DUILIO NOCCIOLI MONTEIRO ALVES Club member since 1978 proceedings regarding members of the Deliberative Council, the Board, CORI, and the Fiscal Council, which may involve collecting evidence, taking testimony and requesting information from all Corinthians officials; gathering new evidence, taking new testimony, adding documents, and requesting information from the Board for the reliable accomplishment of its duties. The final opinion of the Ethics and Discipline Commission is submitted to the Deliberative Council for ruling. The president is in charge of the following activities, among others: conducting social administration, with ample powers to oversee the organization of services; appointing permanent or temporary commissions required for the maintenance and development of social activities; constituting a commission to investigate violations; summoning the Deliberative Council, CORI, the Board of Directors and the Fiscal Council; authorizing the use of budget additions granted by the Deliberative Council and carrying out the financial operations, in view of relevant administrative requirements and statutory provisions; authenticating documents pertaining to social responsibility and signing papers; managing the social interests, as well as demand, compromise, hire, renew or rescind obligations, in consultation with the Board; representing Corinthians in and out of Court; annually submitting to the Deliberative Council the budget for the subsequent fiscal period, the Balance Sheet and Statement of Revenues and Expenses of the previous year, and the annual General Report on the Club s activities, with the opinions of the Fiscal Council and CORI; reviewing bills before payment, or delegating this authority to the Finance Director; reporting to CORI on the development of the Club s social life, providing accounts of the measures adopted; The statute of a Club is like the Constitution of a country. It determines the internal rules and policies and the rights and duties of its members and directors. The statute is the most important law of a Club, and in a democratic organization, should be developed with the participation of all stakeholders. In September 2008, Corinthians's statute was approved by a general assembly of all members who are entitled to vote, that is, by supporters who have been members of the Club for at least five years, are over 18, and are in good standing with their monthly fees. The black-and-white constitution is the result of a revolution in Parque São Jorge. With these new rules, the future of Corinthians has been placed in the hands of its members. Six words encapsulate what is most important in these statutory changes. They are: the club belongs to its members. The power structure was completely modified. Formerly, Corinthians had 400 councilors. With the new statute, the total number of councilors was reduced to 300, 100 of whom are for life while the remaining 200 are chosen by members through direct vote. It is important to point out that there are currently 177 councilors for life in the Club. Since the new rules stipulate that the Club must have 100 councilors for life, changes to this Board will only start when the number Management // disseminating the Corinthians way of thinking, or delegating this authority to the Board of Directors; appointing directors; respecting and enforcing the statute and other internal rules of the Club, as well as the deliberations of the Public Authority or other high-ranking sports entities; signing players and coaching staff members; hiring, dismissing and punishing employees, determining salaries and wages, granting licenses and performing all legal actions required of an employer. corinthians constitution eventually drops to 99. This statute has also given members the right to directly vote for president. The president and both vice-presidents are currently chosen in direct elections by the members for three-year terms, without being entitled to reelection. Any member that fills all the prerequisites specified in the statute may run for councilor or president. In order to be elected councilor, it is necessary to have been a member for a minimum of five years. In order to be elected president or vice-president, the candidate must have been part of the Counseling Board for at least two management terms, and have been an active member of the Club for at least 11 years. The directors are appointed by the president in the same way ministers are appointed in a democratic government; these jobs require technical experience and alignment with the guidelines of the new administration, as well as the president's trust. This democratic and participatory statute was very positive for Corinthians. When rules are crystal clear, members feel reassured because they know they can have an influence on the future of the Club. Corinthians also gains credibility from the general public. The outcomes are profitable commercial agreements and the fact that the Club has set a good example of The new statute, in effect since September 2008, gave members the right to directly vote for president, with a three-year term, and eliminated the option of reelection gri indicator:

25 Composition of the Councils Directors Andrés Navarro Sanches President Roberto de Andrade Souza 1 st Vice-President Manoel Felix Cintra Neto 2 nd Vice-President Roberto de Andrade Souza Director of Professional Football Raul Corrêa da Silva Director of Finance Jorge Alberto Aun Director of Property and Works Fausto Bittar Filho Director of Land Sports André Luiz de Oliveira Administrative Director Fernando Alba Braghiroli Director of Amateur Football Sérgio Eduardo Mendonça de Alvarenga Director of Legal Affairs Orlando Gonçalves de Carvalho Director of Water Sports Waldir Rozante Director of Social Department Luis Paulo Rosenberg Director of Marketing Duilio Noccioli Monteiro Alves Director of Culture Elie Werdo Secretary-General Deliberative Council Carlos João Eduardo Senger President Alexandre Husni Vice-president Coryntho Baldoino Costa Neto 1 st Secretary Luiz Gonçalves Neto Ad-Hoc Secretary Fiscal Council Francisco Bontempi President Antonio Abdo Corinto Baldoino Parreira Costa Members Luiz Carlos Rosa Munir Abdo Baarini Stand-ins Orientation Council (CORI) Antonio Roque Citadini President José Alves dos Santos Filho Vice-President José Campizzi Busico Secretary Ademir de Carvalho Benedito Alexandre Husni André Luiz Barone Antonio Roque Citadini Clodomil Antonio Orsi Eduardo Nesi Curi Guilherme Gonçalves Strenger Heleno Haddad Maluf José Alves dos Santos Filho José Campizzi Busico Marco Aurélio Repetto Myryam Athiê Oswaldo Abrão José Rubens Elias Rubens Gomes da Silva Júnior Wagner Caetano Acedo Wilson Bento Wilson Bento Júnior Effective Members Carlos João Eduardo Senger Marlene Matheus Mauro de Mello O. Gasparian Wadih Helu Waldemar Pires Legacy Members Angel Lopez Abad Carlos Pereira da Silva Dalton Gióia Delphino Russo Hélio Nasri Abou Madi José Muradian Osmar Toso Osnaide Jorge Rubens Diniz Willian Sesso Stand-ins Councilors for Life 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 Papaiordanou Jr. 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 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 Mário Gobbi Filho Mario Mendes da Silva Marlene Colla Matheus Mauro de Mello de Oliveira Gasparian Michel Helu Miguel de Jesus Guerrero Miguel La Motta Miguel Marques e Silva Miriam Athie Moacir Sebastião de Oliveira Nelson Luiz da Silva Nelson Real Dualib Nelson Sacho Newton David Ferrari 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 Romeu Tuma Jr. Rubens Approbato Machado Rubens Diniz Rubens Gomes da Silva Junior Rubens Tavares Aidar Ruy Marco Antonio Filho Sergio Panes Rodrigues Silvio dos Santos Amaral Toufic Jamil Akari Tufi Jubran Vicente Torralba 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 Rodrigues de Oliveira Neto Antonio Sérgio Albino Ariovaldo Brandespim Ariovaldo Carrera Dias Augusto da Silva Junior Caio Cotait Maluf Carlos Donoso Vidal Carlos Eduardo Bittencourt 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 Felipe Legrazie Ezabella Gilmar Lopes 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 Romer 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 Carvalho 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 Oldano Gonçalves de Carvalho Osmar Basílio Osmar Abrão José Osmar Toso Osvaldo Paloma Paulo Marcelo Vélez Paulo Roberto dos Santos Paulo Roberto Martinez Gonzalez Pedro Fiúza Fabiano 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 organizational chart 1 st Vice- President Deliberative Council Orientation Council (CORI) Finance Land Sports Property Water Sports SOCIAL powers General Assembly (GA) This consists of all Club members over 18, with more than five years of membership and in good standing with statutory obligations. The GA elects the president, vice-president, and two-thirds of the Deliberative Council. Deliberative Council (DC) Consisting of 300 councilors, 200 elected by the GA for triennial terms and 100 with terms for life, the DC supervises the accounts and actions of the Board. The DC is in charge of electing the members of CORI, the Fiscal Council, the Ethics and Discipline Committee, and their councilors for life. The DC must ensure ethical behavior in the Club, vote on the budget, supervise the annual accounts of the Board of Directors and the opinions of the Fiscal Council and of CORI, and assess the Chairman of the Board's general report. Management // President MARKETING Administrative Directors Legal Affairs Cultural Orientation Council (CORI) This consists of 10 members elected by the DC among their own members, the last two presidents and those who have the status of legacy members. Councilors have three-year terms, with no right to consecutive reelection, and cannot simultaneously hold the position of director. The councilors supervise the Club s management and accounts, including preparing opinions for the DC on the Board of Directors budget proposal, in addition to following up on the execution of the budget. Fiscal Council The Fiscal Council consists of three effective members and three stand-ins, who are elected by the DC for three-year terms. Its members cannot be part of the DC, CORI, or Board of Directors, and cannot be related to the directors. In addition to Professional Football Youth Football 2 nd Vice- President Secretary- General Fiscal Council SOCIAL International Relations assessing and preparing opinions on the budget for the fiscal year, the Fiscal Council supervises the budget s execution and examines monthly trial balances to advise the President on possible irregularities. Directors This is an administrative body consisting of the president, Andrés Navarro Sanchez, 1 st vice-president, Roberto de Andrade Souza, and 2 nd vice-president, Manoel Felix Cintra Neto, who were elected for three-year terms with no right to 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 electronic polling. The president, vice-presidents and directors are not remunerated. The president is entitled to appoint and dismiss, at his/her own discretion, the secretarygeneral and the 12 directors. gri indicators:

26 RECORD BREAKING FIGURE$ The responsible and efficient management is reflected in the good results presented in the last four years No fines or sanctions In 2011, Corinthians did not have any incidents that resulted in significant fines or sanctions from the São Paulo State Football Federation, Brazilian Football Federation (CBF) or FIFA. The Club did not receive any significant fines or non-monetary sanctions related to noncompliance with the Statute of the Fan, supply of products and services at odds with environmental laws and regulations, or noncompliance with labor laws and regulations. gri indicators: en28 pr9 so8 In four years, Corinthians has undergone unprecedented transformations, on and off the field. At the beginning of 2008, Corinthians was relegated to the B Series of the Brazilian Championship. The fans were in very poor spirits then. Corinthians was constantly in the newspapers due to investigations carried out by the Public Ministry and the Federal Police. In the books, the expenses were accumulating, debt was growing by the minute and revenues were insignificant. The result: general losses for Corinthians. However, 2012 started very positively. The team was very motivated due to becoming fifth-time champion in the 2011 Brazilian Championship; Corinthians is now getting ready to take part in the Libertadores Cup and the State and Brazilian Championships with a very competitive team. The press has recently announced the completion of the construction of the Dr. Joaquim Grava Training Center, one of the most modern in the world, and the ongoing construction in Corinthians s new stadium, in Itaquera, where the opening ceremony of the 2014 World Cup will be held. The construction and assembly of a very competitive team have prevented the Club from paying off its debts in full. However, with the increase in revenues and administrative reorganization, indebtedness is being addressed. In addition, both the Training Center and the new stadium are guarantees of new revenue for Corinthians in the near future. In the meantime, however, Corinthians already boasts the highest revenue amongst all football clubs in Brazil and has the most valuable football brand in the country. The transparency of its administration and the democratization of its internal decisions have restored the team s tainted credibility and the trust of the Public Authorities. In 2008, Corinthians inherited major financial liabilities because of contracts with former players, such as center forward Nilmar and former coach Daniel Passarella. The Club was also being sued by FIFA and by CBF. A wide-ranging administrative reorganization made it possible for Corinthians to settle agreements that were favorable to the Club, which was able to resolve old issues without any contract breaches or fines. The old practice of solving disputes and controversies in courtrooms gave way to conciliatory solutions and negotiation. As a consequence, taxes were divided into installments and there was a reduction in the amounts due. At the same time, the revenues earned from the broadcasting of matches on TV have increased, and the income from sponsorships and the amounts made through ticket sales in stadiums have grown. Corinthians invested in improving the social club, and the result was the increase in contributions made by members. Another source of income was Club advertising, as well as the launch of licensed products with the Corinthians brand targeting the tastes and resources of the more than 30 million fans. The reward for earned titles (the professional football program was named champion four times in four years) and the implementation of the Loyal Fan program expanded Corinthians s revenues even further. The extensive changes in the last four years have also given the Club a long-term project. This type of initiative adds credibility and expands business opportunities. Corinthians s goal is to be the most valuable club in the world. sources of revenues The Club s growth in revenue in 2011 is directly associated with the increase in all sources of revenues, especially from broadcast rights, sponsorships, ticket sales, the social club and amateur sports Economic Performance// Results in 2011 For Corinthians, 2011 was marked by sowing. It was a year of reformulations in youth football, of heavy investments in infrastructure for professional football and of renovation of the social facilities. The seeds were planted to ensure a good harvest in the near future. The Club's revenue has grown substantially to record levels. As of September 2011, Corinthians had already earned the equivalent of the entire previous year. However, expenses also increased due to resources invested in fixed assets. The final destination of the resources is evident: renovation of the property in Parque São Jorge, completion of the construction of the Joaquim Grava Training Center and kick-off of the construction works of the new stadium in Itaquera. Corinthians had a very good year in terms of professional football. It was runner up in the State Championship and champion in the Brazilian Championship for the fifth time. A competitive and victorious team drove sales of licensed products bearing the Corinthians brand, in addition to increasing the Club s value in negotiations with sponsors and the image quotas in the broadcast of matches on TV. When the team is competing for titles, fans go to the stadium even more. In the State Championship, Corinthians had the most supporters on average (17,000). In the Television Social and Amateur Brazilian Championship, the Club had the highest revenue from ticket sales, totaling R$ million in Therefore, an increase in debt is not surprising or concerning; after all, the return on these investments is on the way. For example, with the Joaquim Grava Training Center, Corinthians will no longer spend money on accommodation. The Training Center may also be rented to local and foreign teams and during the Confederations Cup and World Cup. The Itaquera stadium, according to initial forecasts, should bring Corinthians an average of R$ 600 million a year. With the reformulation of the youth football program, Corinthians will become a center for discovering new talent; the number of discoveries should be greater than any in its history. In addition, the renovation of the social facilities has allowed the preservation of the Club s property. The surplus in the Club s accounts is a major highlight. In 2011 alone, the positive balance reached R$ 5.3 million. There was a very different number in 2007, when the deficit of the Club was R$ 23.2 million. In 2011, the total revenue reached R$ million, up 117% when compared to Since 2008, the Club has balanced its debt and increased investments (read more on pages 56 and 57) Negotiation of Athletes Sponsorship and Advertising Ticket Sales

27 Economic Performance// 2011 was marked by sowing. It was a year of reformulations in youth football, of heavy investments in infrastructure for and of renovation of the social facilities. The seeds were planted to ensure a good harvest in the near future Total Revenue Corinthians ended 2011 with excellent results, both on the field and in its administration. The positive performance is reflected in the Club s total revenue, which reached R$ million in 2011, up 37% when compared to Since 2008, revenues have increased by 147%. When compared to 2007, this increase was 117%. Evolution of Revenues (In millions of Brazilian Reais) Record Ticket Sales Corinthians fans were present in large numbers in Pacaembu Stadium in 2011, with record-breaking attendance during the Brazilian Championship. The average turnout was of 29,329 supporters per match, which resulted in a total of 557,200 supporters. The attendees generated R$ million in the A Series, higher than the figures registered by clubs SPFC and Bahia, ranked second and third, respectively. When comparing Corinthians's ticket sales to those of the three other clubs from São Paulo and the teams from Rio de Janeiro with the largest ticket sales in the A Series in 2011, the difference in numbers is clear: the combined revenue originating from ticket sales of the four teams from São Paulo totaled R$40.4 million. A comparison with clubs from Rio de Janeiro produces a similar result. Together, the three teams from Rio de Janeiro with greatest ticket sales generated revenues of R$ 40.7 million. Revenues from sources other than transfers of athletes The evolution of revenue, not considering the transfer of athletes, can be considered a true business model in the Brazilian and global football segment. The Club made R$ million in revenue from sources other than the transfer of athletes, up 270% when compared to 2007 (R$ 62.3 million). Evolution of revenues from sources other than transfers of athletes (in millions of Brazilian Reais) corinthians 48% corinthians 47% santos 9% palmeiras 15% são paulo 28% fluminense 14% vasco 19% flamengo 20% Club Management The Club s financial management in the past five years has been marked by balance, along with ample generation of revenues. This more responsible attitude allowed a permanent investment in the football department, without the irresponsibility seen in the past or negative effects on the Club s finances. An example of this is the evolution of investment related to the total revenue generated. In 2007, investments in the football department accounted for 85.1% of the total revenues; this figure dropped to 67.1% in % % COSTs OF THE FOOTBALL DEPARTMENT 73.8% % Cash flow Generation 67.1% The Club has been posting positive and increasing cash flow generation. This indicator, usually used in the corporate sector, is known as EBITDA, and refers to earnings before financial expenses, taxes, depreciation and amortization. In 2010, Corinthians s EBITDA was R$ 41.1 million, reaching R$ 73.7 million in 2011, up 79%. When compared to the total revenue produced, known as the EBITDA margin, the indicator has shown positive results for four consecutive years. In 2011 alone, it reached 25%. 300, , , , ,000 50,000 - (50,000) EVOLUTION OF INVESTMENTS IN THE FOOTBALL DEPARTMENT AS A PROPORTION OF TOTAL REVENUE (IN MILLIONS OF BRAZILIAN REAIS, EXCEPT LINE) EBITDA EVOLUTION X TOTAL REVENUE (IN MILLIONS OF BRAZILIAN REAIS, EXCEPT line) % ebitda TOTAL REVENUE EBITDA MARGIN % 21.4% % 25.4% Time to Invest In 2007, the Club s net debt was R$ million, but there was a low level of investment, both in players and in fixed assets. The current administration reversed this situation, keeping the Club s indebtednesses at a balanced level and considerably increasing the level of investment. Between 2007 and 2011, investments grew by 651%, while indebtedness increased by 76% in the same period. Investments made in 2011 increased by 107% when compared to 2010, while indebtedness increased by 47%, thus proving that the current administration s finances remain balanced. The Club also presented a significant improvement in its fixed assets, due to heavy investments in the Joaquim Grava Training Center, in addition to investments in high-level players, wich will allow Corinthians to form very competitive teams The investment plan was very positive for the Club. Overall, in 2011, the Club s indebtedness increased by R$ 56.8 million, while the investment in fixed and intangible assets grew by R$ 62.1 million. Analyzing data from December 2007 to December 2011, it can be seen that indebtedness increased by R$ 77.3 million, while the increase in fixed/intangible assets was of R$ 103 million. Therefore, in this period, Corinthians s assets grew by a significant R$ 25.7 million. EVOLUTION OF INDEBTEDNESS X INVESTMENTS IN FIXED OR INTANGIBLE ASSETS (IN MILLIONS OF BRAZILIAN REAIS) INDEBTEDNESS FIXED/INTANGIBLE EVOLUTION OF INDEBTEDNESS X INVESTMENTS MADE (IN MILLIONS OF BRAZILIAN REAIS) INDEBTEDNESS INVESTMENTS MADE

28 Stakeholders// network of RELATIONSHIPS Learn about Corinthians s Strategic Stakeholders Corinthians s communication with its various stakeholders has intensified over the past years. A broad and well-structured communication network was established in order to talk to the various stakeholders. We maintain specific relationship channels with each type of stakeholders fans, employees, Club members, suppliers, the media, banks, TV stations, internet figures Our Internet portal gathers all relevant information for communication with the entire black-and-white fan base. The portal gives users and fans easy access to the most convenient and transparent channels for communicating with directors. The website gathers relevant institutional information, the latest news on sports, promotions and online shopping through the virtual store. The complete and diversified website is now one of the best structured and most accessed portals amongst all Brazilian sports clubs. The portal provides many interactive solutions and fully incorporates the Internet 2.0 concept. The portal is also available in Spanish and English, with static versions another way to promote the internationalization of the Corinthians brand. 24,925,022 hits 85,004,040 page views 10,456,164 visitors 790,000 followers on Twitter 1,600,000 friends on Facebook professional staff, and players agents. The most recent initiative was the launch of TV Corinthians (read more in Communication). A priority in the Marketing Department, the project is aimed at strengthening relationships with our loyal fans by using the Internet as a major tool. sport Entities Brazilian Football Confederation, South American Football Confederation, São Paulo State Football Federation, FIFA, and amateur sports entities. Relationship Channels: Institutional contacts are made by Directors and the President. Fans Over 30 million Corinthians fans. Relationship Channels: Website and Ombudsman. Organized Fan Groups There are dozens of organized fan groups, among the best known: Camisa 12, Coringão Chopp, Corinthianos Obsessivos, Estopim da Fiel, Garra Corinthiana, Gaviões da Fiel and Pavilhão 9. Relationship Channels: Directors and the President. Professional Team 10 coaching staff members and 48 professional athletes. Relationship Channels: Direct access to the Director of Football and the President. Players Agents The list of players agents is published on our website. Relationship Channels: Director of Football and the President. social Club Members in Good Standing 22,700 members Relationship Channels: Official website, monthly magazine, and O Fiel newsletter. The president is also the major spokesperson for the Board in its relationship with Club members, through personal contact, messages in the suggestion boxes distributed throughout the Club, or s via the website. On the administrative agenda, the President reserves a time slot for meetings with Club members. Employees 859 in total Relationship Channels: Specific and Administrative Departments. Suppliers 7,982 in total Relationship Channels: Specific and Finance Departments. BUSINESS Sponsorship Neo Química, Coca-Cola, Nike, Scania, Fisk, Pepsi and TIM. Relationship Channels: Marketing Department and the President. TVs Broadcasting rights are negotiated directly by the Club. Relationship Channels: Marketing Department and the President. Media Dozens of journalists from newspapers, magazines, radio, TV and the Internet are registered with the Club, but Corinthians s presence in the media goes beyond their daily coverage. Relationship Channel: Press Agency. Banks Bradesco, Bic Banco, Caixa Econômica Federal (CEF) and BMG. Relationship Channels: Finance Department and the President. gri indicator:

29 marketing// TV worthy of a nation Another means of communicating with the fans is on the air: TV Corinthians The first television channel exclusively devoted to a sports club and fan group in Brazil was launched in March TV Corinthians (TVC) was the result of a partnership between TV+ and Corinthians. Its head office is in Parque São Jorge, where it also has a 250-square-meter studio. The professionals work hard in order to provide fans with new programs every day. The channel also offers six hours of live broadcasts daily, with the rest of the programming consisting of previously recorded coverage. On the channel, the Club's social and cultural activities, in addition to the sports in which Timão takes part, can be seen daily. However, TVC s focus is on professional football, news reports on games, training activities, stories on the team and interviews with current and former players. The content is created by Casa de Vídeo. The U17 World Cup, won by Corinthians in 2011 in Spain, merited full coverage by TV Corinthians. The broadcasting of Corinthians s matches in the São Paulo Youth Football Cup 2012 by TV Corinthians was also authorized by the São Paulo State Football Federation. The success of TV Corinthians is measured by the growth in ratings, which attract a growing number of sponsors, such as Capemisa, Banco Cruzeiro do Sul and different types of retail stores. TVC programming can be seen on channel 20 on TVZ, channel 530 on OiTV, channel 467 on Telefônica, or even online, through Ustream at tvcorinthians-international and on Corinthians s Facebook page. rules of conduct Article 1 First and foremost, always tune your TV to TV Corinthians. Article 2 Never exchange TV Corinthians for the 6, 7 or 8 o clock soap opera. In the case of spouse blackmail, refer to article 6. Article 3 You are allowed to switch channels 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 going on with Corinthians, in all categories, from kids to seniors. Article 6 In case of spouse blackmail, refer to article 1. Article 7 Find at least one Corinthians fan who is not familiar with TV Corinthians and enthusiastically introduce it to him/her. Article 8 Understand that, during matches not broadcast by TV Corinthians, the screen will remain entirely black. At this moment, nothing is more important than supporting Corinthians. Article 9 Also watch futsal, swimming, basketball, etc. anything that involves our beloved Club. Football is good, but Corinthians is more than that. Article 10 Be more than a crazy group of fans. Be a crazy group of TV viewers. Article 11 Never lose your temper with another supposedly impartial football commentator again. Don't worry, everyone here is a Corinthians fan, bro. Coringão Radio The Corinthian nation has a radio program that talks only about Corinthians. This is Apenas Corinthians (Corinthians Only). People who wish to know what is going on before matches, learn more about the next opponent, and listen to interviews and testimonials of personalities who were and are part of the History of All Powerful Corinthians should access the programming through the Club s official portal, or the website br. In addition to information on matches, the section Momento Estádio (Stadium Moment) informs listeners of the ongoing construction in the new Corinthians stadium and the benefits it will bring to the city's East side. Maroon Jersey In May, Corinthians s players started wearing their new jersey, the third Corinthians uniform. Maroon in color and with a printed image of Saint George, the jersey is a tribute to the Italian team Torino. In 1949, all Torino players died in a plane crash, causing a commotion in the football world. In that year, in a match against Portuguesa de Desportos, Corinthians players stepped on the field wearing the maroon-colored uniforms. In 2011, Corinthians once again paid tribute. Corinthians Land The history of Corinthians is full of myths. In 2011, another one was created: the sacred soil where the new Corinthians stadium is being erected, in Itaquera, has now become a pilgrimage destination. Everybody wants to see the place where Corinthians will play its matches. In this context, Corinthians launched a kit that contains a bit of soil that was taken from the area. The sacred soil kit is sold with seeds of yellow elders, which are 6 meter-tall trees. Corinthians without stars Corinthians's history is marked by infinite glories, by heroic conquests, by dedication and by passion for its colors. The titles are the result of this endless struggle. Fans have their own preferences: the 1954 Centennial, the 2000 FIFA Club World Cup, the historic 1977, the first Brazilian Championship in 1990, the first three consecutive State championships in the first half of the 20 th century. It is impossible to represent each of them with a star on Corinthians's sacred jersey. Thus, the stars on the team's uniform have been removed. Consequently, Timão s crest may become even larger, right beside the heart. And in the heart of each fan a different star will shine, or even the whole black-and-white constellation, which is ever-growing. the most beautiful jersey in the world Voters selected Corinthians s maroon jersey, Timão's third uniform in 2011, as the most beautiful jersey in the world on the British website Subsite Sports, which promoted a contest for the Football Jersey of the Year. Among the 10 most voted-for jerseys, Corinthians s maroon had 32% of all votes, way ahead of the derby jersey (15%) of German s Borussia Dortmund. TV Corinthians (TVC), launched in March 2011, is the first television channel in Brazil exclusively focused on a football team and its fans 56 57

30 a complete Social and Cultural Investments// club Corinthians goes beyond sports and invests in culture and social actions Football is the greatest passion of Corinthians fans. However, the Club goes beyond professional football, the practice of sports and the healthy lifestyles in its facilities. With the aim of offering cultural resources and information to its members, Corinthians created the Department of Culture. In a short time, it achieved remarkable results. The Corinthians family is now able to go to 777 Rua São Jorge to attend plays and music and dance performances, always at reasonable prices. Watching movies in Cine Timão is free. Fans can take part in theater workshops. They can watch concerts of famous artists and shows for children. Members of the Club can also follow what is going on through TV Corinthians, whose programs are shown on twelve monitors spread throughout Parque São Jorge's facilities. They air interviews, stories on Timão, old traditions, pictures and coverage of events. Everything is produced by the in-house team. Important information relating to Corinthians can also be seen in the magazine Nação Corinthians, a colorful publication on par with the top magazines produced in the country. Nação Corinthians is a bimonthly publication, with free distribution to club members. In it, fans will find stories on Timão s great names, significant facts in Corinthians s history, personalities, trivia and celebrities who support Parque São Jorge s black-and-white uniform. The magazine is filled with old and new photos and entertaining text. Social Cause Corinthians is aware of its social responsibility and its important role in the shaping of a new generation of fans, who are part of the most passionate football club in the world: Corinthian Nation. Chute Inicial (Kickoff) and Time do Povo (People's Team) are among the social projects implemented by the club. Chute Inicial is the largest chain of licensed football schools in Brazil. In these schools, Corinthians can teach kids the values of sports, such as socializing, learning to win and lose, a sense of community, character building and the value of friendship. In São Paulo alone, there are 35 schools. In other cities of the State of São Paulo, there are an additional 27. The project has extended beyond São Paulo to reach five other Brazilian states, now totaling 13 schools. Overall, Chute Inicial encompasses 76 units and over 13,000 students. In 2011, it recorded revenue of R$ million, higher than the R$ million revenue recorded in In 2011, Corinthians opened three schools in underprivileged communities, in partnership with local entities. Corinthians waived royalties and other fees for these schools. The school in the Heliópolis community in São Paulo reaches 120 boys between the ages of 10 and 15. In Jacuí, also in São Paulo, over 220 boys between the ages of 5 and 17 take part in activities. In the interior of the State of São Paulo, in Pindamonhangaba, there are over 140 boys between the ages of 8 and 15 from needy communities who can use all of the sports equipment for health and educational purposes. Time do Povo is a groundbreaking social project that brings Corinthians closer to kids with special needs from underprivileged communities. To offer these kids an opportunity to experience something different, the project Um dia de Corinthians (One Corinthian day) was launched in May These boys and girls visit the Club's social facilities, tour the Memorial, take part in events and cheer for Timão in the Pacaembu Stadium. In 2011, many activities took place and over 1,000 children took part. Requests from children who want to participate come not only from the city of São Paulo, but also from daycare centers in other cities and states. Corinthians offers the participants round-trip transportation in buses rented by the Club, lunch, afternoon snacks, tickets for the match and a support team formed of volunteers and Corinthians s staff. Visits are monitored, and the kids receive presents, food to take home and project T-shirts. Time do Povo has help from strategic partners and sponsors, such as Poderoso Timão stores. The chain gives children T-shirts with the project s logo, which are autographed when kids meet up with players. In addition to the autographs, kids also take home a kilo of rice and a kilo of beans with Corinthians's brand, which are provided by Broto Legal, a company that controls levels of pesticides through analysis by the Biological Institute of São Paulo. Kids who go to Pacaembu Stadium receive snacks and sodas that are provided by Pop Ice, a company that specializes in food concessions at stadiums. The project also develops special actions throughout the year. In 2011, Corinthians provided help and support to several different social campaigns aimed at improving people s social well-being. In addition to events on holidays, such as Christmas and Children s Day, the project Time do Povo supported other events, always with the presence of stars from the professional football team: donation of a check by President Andrés Sanchez, in the amount equivalent to 10% of the net revenue of the match between Corinthians and Botafogo (October 12 th ), to Teleton, in addition to a jersey Chute Inicial is the largest chain of licensed football schools in Brazil. There are 70 schools throughout the country, 29 of which are in the city of São Paulo alone In 2011, 29 actions were organized and over 1,569 children assisted 58 59

31 Social and Cultural Investments// autographed by all Corinthians players, to be auctioned; donation to the Sou da Paz Institute and support to Espaço Criança Esperança in Vila Brasilândia, with the opening of the doors to the Joaquim Grava Training Center and Parque São Jorge to over 30 kids; participation on McHappy Day, with over 20 kids from the Support Group for Children and Adolescents with Cancer (Graacc) visiting Parque São Jorge; open doors to Parque São Jorge and Joaquim Grava Training Center to kids from the Association for Assistance to Disabled Children; a visit to Timão s Memorial during the campaign of the Lojas Pernambucanas store chain, which decorated the home of a needy family; a visit made to the Club by the NGO Gotas de Flor, and the opportunity to watch the Imperial Circus at Credicard Hall. Tickets were donated by Time for Fun; participation in Polícia Amiga da Criança III, promoted by the East side Police Precinct. For 2012, the objective is to go beyond these activities by increasing the number of children assisted to 2,000, in addition to seeking new partnerships, further improving the structure of the project, addressing even more individual requests in customized ways, and promoting activities that involve amateur sports. The success of this initiative is seen in thousands of children s smiles, as well as in the positive response from the media and social networks. With Time do Povo, Corinthians shows that it is more than a Club and a football team. It is also a responsible member of society. Actions that took place in the stadium on Corinthians game days Timão s matches always receive visibility, not only in stadiums, but also on TV screens throughout the country. Corinthians uses this opportunity to deliver educational messages on relevant social issues. The players take banners onto the field or wear jerseys with relevant messages. In 2011, Corinthians used this kind of media to support the State Program for Awareness of Alcohol Consumption by Teenagers, the International Day for the Elimination of Violence against Women and World Diabetes Day. Corinthians also showed its support to former President Luiz Inácio Lula da Silva in his fight against a serious disease. Library On Children s Day, Corinthians established a partnership with the São Paulo Library and the Instituto Ecofuturo for the campaign Todo dia é Dia de Ler (Every Day Is Reading Day). The players stepped on the field in Pacaembu wearing jerseys with the Dia de Ler hashtag #. Sports and books combined contribute to a cultured, healthy and civically engaged society. A Second Chance The rehabilitation of young offenders and their reintegration into society is one of Corinthians s concerns. In partnership with the National Justice Council, the Club promotes monitored visits to its social facilities by kids over 12 years of age who are detainees in Fundação Casa (Juvenile Hall). The goal is to reintegrate these youths into society through sports and good examples of athletes who also had difficult childhoods, but succeeded in life through sports. In addition to visits to Corinthians Memorial, these kids use the Club's facilities to practice volleyball, basketball, futsal, handball and swimming. The activities are run by Physical Education teachers and followed closely by former Corinthians and Brazilian player Zé Maria, also known as Super Zé. In two years, 1,900 kids from ten units of Fundação Casa were assisted by the project, 644 in 2011 alone. When these boys and girls visit Corinthians, they also receive lunch and fruit juice. Children On Children s Day, midfielder Alex showed that good examples must go beyond the field. He used his day off to visit and entertain kids who are undergoing physiotherapy at the Association for Assistance to Disabled Children (AACD). Alex gave away toys, took pictures and played with the kids. Apart from being an athlete, the Timão player is a responsible and conscientious citizen. The toys were given away with the support of the company Plastbrinq. Diabetes Brazil has over 10 million people who suffer from diabetes, according to an estimate from the World Health Organization. Corinthians is not oblivious to his problem, which can lead to severe consequences, such as the amputation of lower limbs and blindness. In the match against Atlético Paranaense, on November 13 th, Corinthians players walked on the field with a banner showing support for the campaign: Diabetes: Educate to Prevent. In addition to the banner, tents were set up in front of Pacaembu s main entrance for supporters to check their blood sugar levels and learn about ways to prevent the disease. Donations In the last two years, Corinthians has made donations to social projects of great importance to the public. A major portion of these resources comes from revenues from Timão s matches. Criança Esperança is one of the campaigns supported by Corinthians, which has been promoted by Globo TV network in partnership with UNICEF. The resources received are allocated to programs that invest in education, health, cultural activities and sports. Teleton, the campaign that Sistema Brasileiro de Televisão (SBT TV network) has been organizing for 14 years in partnership with the Association for Assistance to Disabled Children (AACD), has also received support and donations from Corinthians in the last two years. In November 2011, the Club held a football match in its main gymnasium with its professional futsal players. Admission was through the donation of one kilo of food. Approximately 1 ton of food was acquired and given to the existing social projects of the Evangelical Church Bola de Neve. Corinthians Blood In another action carried out in partnership with its fans, Corinthians gives its official support to the Corinthians Blood Campaign, an initiative conducted by Corinthians s organized fan groups from all over the country. This is the second largest blood-donation campaign in the State of São Paulo and the first among clubs. The goal is to promote, three times a year, the Corinthians Blood- Donation Day. Brazilian blood centers need 5,500 blood pouches per day. Therefore, it is important to raise awareness of this issue among the population. The main activity of this campaign is to open collection centers all over the country, always in partnership with local blood banks. Osmar Oliveira, a Corinthians doctor, was chosen to be the patron of this campaign. Relation to the community in São Paulo Corinthians is not oblivious to its social responsibilities. The Club has partnerships with the military police, firefighters and the JR Ferraz Disabled Athletes Sports Association, allowing athletes from these organizations to train in Parque São Jorge's facilities. In 2011, the technical staff of the JR Ferraz/Corinthians Paralympics futsal team was invited to Chile to present the work done by Corinthians. Coach Cleiton and assistant coach Cícero Cazu were awarded the Order of Chile's Medal of Honor

32 Environment // a goal worth hundreds This projects aims to contribute to the reduction of global warming and to RAISE AWARENESS ABOUT CLIMATE CHANGE AMONG CORINTHIANS FANS Each goal scored by Timão is not only an explosion of joy in the stands. It is also a reason for nature to celebrate. In partnership with Banco Cruzeiro do Sul and Instituto Ecoar, Corinthians has its team playing against global warming. People who watch the news have probably noticed the increasing number of floods, droughts, hurricanes and other natural disasters happening on the planet. The search for solutions to these problems lies in actions on the part of citizens, and the black-and-white team is doing its part. Whenever Timão sets foot on the field, 100 native trees are planted in Salto de Pirapora, in the interior of São Paulo. That's the location of the Corinthians Banco Cruzeiro do Sul Forest Reserve, in an area of 103,000 m 2 used for this project. For each goal scored by the team, 100 new trees are planted. Another 100 trees are planted when we do not allow any goals. For each penalty kick defended by the goalkeeper, 200 trees are planted. As a matter of fact, goalkeeper Júlio César, who started at Corinthians in the youth category, is the sponsor of the project. Planting trees is very important because they capture CO 2 from the atmosphere and give back oxygen. The carbon taken from the air accumulates in the trunks. According to environmentalists, five adult trees can neutralize one ton of carbon monoxide emissions, depending on the species and local biome. The Project Jogando pelo Meio Ambiente (Playing for the Environment) is only two years old, and 44,700 seedlings have already been planted through the Corinthians initiative alone. Of this total, 23,000 seedlings arrived at the Forest Reserve in In 2011, over 21,700 new seedlings were planted. But the project is not limited to the field. It is necessary to change the behavior of society to achieve a better, more eco-friendly world. This is a matter of awareness. During matches, flyers promoting the project's website ( com.br) are distributed. This site allows fans to obtain information in the form of videos, articles, and news reports relating to environmental education. Social networks also play an important part by providing a space for the project to showcase its ideas and actions related to environmental. The actions taken by this project are paying off. In addition to the planted trees, a survey conducted by the company Perfil Urbano, with 400 fans who were at Pacaembu on August 31 st (Corinthians 3-2 over Grêmio) showed that, over the course of one year, the level of knowledge about the project had increased from 31% to 58%. Of this total, 90% totally or partially agreed that the project contributes to the fight against global warming, and 88% said that the project has a lot to do with Corinthians. The credibility of this initiative is attested by the 61% of the people interviewed who said that this project is not a marketing tool, but an effective action. In two years, 44,700 seedlings have been planted through the Corinthians initiative alone Trees Planted 100 Every time the team steps onto the field 100 For each goal scored by the allpowerful team 100 When the team does not allow any goals 200 When Timão defends a penalty kick 62 63

33 Memory// Corinthians's fans maintain the tradition of taking their children to drink water from Corinthians s fountain sacred fountain The passage of Halley's Comet in 1910 made superstitious people think that the world was coming to an end. In May of that year the light of that star shone even brighter. However, nothing happened; 101 years later, we're still here, and the earth is still spinning around the sun. The truth is that 1910 did not bring the end but the creation of a new world. Four months after the visit of the comet, under the light of a lantern (and not of a comet's tail) Sport Club Corinthians Paulista, a universe that currently holds over 30 million Corinthians fans, was born. Founded by five laborers, Corinthians came into the world to be the People s Team. In its early years, the team played on Lenheiro, a football field near the district of Bom Retiro, where it was founded. The team also played a few matches in Parque Antarctica, which back then was the official pitch for São Paulo s Football League. The Club grew and won titles, and its players started playing on the Ponte Grande field (now named Ponte das Bandeiras). Players and directors eventually joined forces to erect their stadium on a piece of land donated by the City, on the banks of Tietê River. In that period, Timão won the first of its its three consecutive state championships (1922, 1923 and 1924); the first title won in 1922 was Champion of the Centennial. São Jorge had already blessed the People s Team and its loyal fans, a bunch of crazy people who have multiplied since those days of glory. In 1918, the first match in Ponte Grande Stadium was seen by 10,000 Corinthians fans. However, it was in 1926 that the Warrior Saint completed his blessing by illuminating the path of former Corinthians president Ernesto Cassano toward the purchase of land in Parque São Jorge, on São Paulo's East side. Two years later, on July 22 nd, 1928, Alfredo Schürig Stadium would have its opening day. The name was in honor of Corinthians's president between 1930 and 1933, who was one of the main financiers of the construction of the stadium. The nickname Fazendinha (Small Farm) soon caught on because of a small farm property that used to sit on the land that would become the ultimate home of the Corinthians Club members. It was there, in that place held sacred by all Corinthians's fans, that Saint George had stored his biggest surprise, which not even President Cassano suspected: the holy water that comes out of a small fountain, known today as Saint George's Fountain. Adjacent to the stadium, near the Rowing Department, a stairway leads visitors to the fountain. The water is clean, clear and odorless, as all drinking water should be. It pours from a structure made of tiles, which has been completely renovated. People who walk by feel inevitably drawn to quench their thirst, and its effects are extremely beneficial. Apart from being healthy, its effects are inevitable, since those who drink from the fountains are immediately converted into Corinthians's fans. One of the most common scenes in all of Parque São Jorge s history is to see parents take their still very young children to drink water from that fountain. This tradition is passed from one generation to the next. The older members tell stories of supporters from other teams, even archrivals, who have drunk the water and become Corinthians's fans. Even though the water from the fountain is colorless, its effects are black-and-white. Above the fountain, there is an image of the Warrior Saint fighting a dragon. Parque São Jorge s soil is sacred, and also performs miracles, because if someone was unfortunate enough to not be a Corinthian by birth, there is still the hope of drinking the water from the fountain and receiving Saint George's blessings. With Saint George's blessings Even though the water from the fountain is colorless, its effects are black-and-white This has become my second skin. I couldn't shed it even if I tried. Marcelinho Carioca After winning the Brazil Cup in

34 FS// SPORT CLUB CORINTHIANS PAULISTA Financial Statements followed by the Independent Auditors Report 31 st of December 2011 CONTENTs Opinion of Independent Auditors Chart 1 Balance Sheet Chart 2 Income Statement Chart 3 Cash Flow Statement Chart 4 Value Added Statement Chart 5 Statement of Changes in Net Equity Assurance Report Independent auditor s report on financial statements The Management, Counselors and Members of Sport Club Corinthians Paulista - SCCP We have audited the accompanying financial statements of Sport Club Corinthians Paulista SCCP ( the Club ), which comprise the balance sheet as at December 31, 2011, and the related income statement, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting practices and other explanatory information. 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 accounting practices adopted in Brazil, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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 about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's 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 Company's preparation and fair presentation of the Company s 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 Company's internal control. An audit also includes evaluating the appropriateness of accounting practices used and the reasonableness of accounting estimates made by 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 financial position of Sport Club Corinthians Paulista - SCCP as of December 31, 2011, and its financial performance and its cash flows for the year then ended in accordance with accounting practices adopted in Brazil. Emphasis of a matter As described in Note 10, the Club filed its request to adhere to the rules of the lottery named Timemania under Laws No /06 and /07 and Decree No, 6.187/07, which provide that the remuneration of the Clubs that adhere to the lottery should compulsorily be used for paying the tax liabilities owed to the Brazilian Internal Revenue Offices and Social Security. Despite the understanding of the Club s Management and of their legal advisors concerning the adhesion of the Club to such lottery, the formal and definitive homologation of the request to adhere to the Timemania lottery is under the process of being approved by the respective managing body. Other matters Statement of Value Added (SVA) - We have also audited the Statement of Value Added for the year ended December 31, 2011, the presentation of which is required by Brazilian corporation law for publicly held companies and is optionally disclosed by the Club. The Statement of Value Added has been subject to the same auditing procedures described above and, in our opinion, are presented fairly, in all material respects, in relation to the overall financial statements. Audit of prior year corresponding figures - The financial statements of Sport Club Corinthians Paulista - SCCP for the year ended December 31, 2010, presented for comparison purposes, were audited by another independent auditor, the report of which, issued on January 31, 2011, contained an emphasis of a matter similar to the paragraph above. São Paulo, the 27 th of January of 2012 David Elias Fernandes Marinho Assurance Partner CRC 1SP /O-3 Grant Thornton Auditores Independentes CRC 2SP /O-1 relatório de sustentabilidade

35 FS// BALANCE SHEET ON DECEMBER 31, 2011 AND 2010 (Values in thousands of Brazilian Reais) INCOME STATEMENT FOR FISCAL YEARS ENDED DECEMBER 31, 2011 AND 2010 (Values in thousands of Brazilian Reais) ASSETS CURRENT CASH AND CASH EQUIVALENTS 4,003 1,145 ACCOUNTS RECEIVABLE 169, ,274 IMAGE RIGHTS 8,390 15,625 OTHER ACCOUNTS RECEIVABLE 5,313 2,425 INVENTORY LIABILITIES AND NET EQUITY CURRENT LOANS AND FINANCING 32,828 28,959 SUPPLIERS 39,832 19,779 IMAGE RIGHTS PAYABLE 9,635 17,453 OBLIGATIONS AND PAYROLL TAXES 76,519 42,954 TAX OBLIGATIONS 4,910 4,974 FOOTBALL (reclassified) GROSS REVENUES TV BROADCASTING RIGHTS 112,486 54,969 SPONSORSHIPS AND ADVERTISING 44,382 47,315 TICKET SALES 27,171 29,434 CHAMPIONSHIPS PRIZES, LOYAL FAN PROGRAM AND LOTTERIES 14,700 6,934 SOCIAL CLUB AND AMATEUR SPORTS GROSS REVENUE MEMBERSHIP FEES 8,628 8,249 COMMERCIAL EXPLORATION 8,486 9,719 LICENSING AND FRANCHISES 14,038 20,709 OTHER REVENUES FOLLOWING YEAR EXPENSES 1,029 1,116 TAXES IN INSTALLMENTS 3,913 4,279 SUBTOTAL 198, ,652 TOTAL CURRENT ASSETS 188, ,013 DEFERRED INCOME 121,673 70,041 TOTAL CURRENT LIABILITIES 289, ,439 INCOME FROM FEDERATIVE RIGHTS TRANSFER 59,706 34,963 TOTAL OPERATING REVENUE 258, ,615 TOTAL OPERATING REVENUE 32,044 39,018 NON-CURRENT LONG-TERM RECEIVABLES JUDICIAL DEPOSITS 4,122 2,688 NON-CURRENT LOANS 20,840 34,461 IMAGE RIGHTS PAYABLE 5,473 2,474 DEDUCTIONS FROM GROSS REVENUES TAXES AND CONTRIBUTIONS (9,455) (7,385) NET OPERATING REVENUE FOOTBALL 248, ,230 DEDUCTIONS FROM GROSS REVENUE TAXES AND CONTRIBUTIONS (478) (416) NET OPERATING REVENUE SOCIAL CLUB AND AMATEUR SPORTS 31,566 38,602 ACCOUNTS RECEIVABLE 308,162 99,603 IMAGE RIGHTS 6,403 5,072 NEGOTIATION RIGHTS 2,796 3,135 TOTAL LONG-TERM RECEIVABLES 321, ,497 PERMANENT ASSETS NET FIXED ASSETS 192, ,710 INTANGIBLE ASSETS 53,130 16,370 TOTAL PERMANENT ASSETS 245, ,081 TAXES IN INSTALLMENTS 53,636 52,509 DEFERRED INCOME 312,310 83,457 PROVISION FOR CONTINGENCIES 6,937 7,238 TOTAL NON-CURRENT LIABILITIES 399, ,138 NET EQUITY EQUITY 1 1 OTHER COMPREHENSIVE RESULTS 93,158 95,822 CAPITAL RESERVE ACCUMULATED DEFICIT (25,857) (33,840) OPERATING REVENUE (EXPENSES) EMPLOYEES (73,308) (79,624) THIRD-PARTY SERVICES (26,444) (21,526) GENERAL AND ADMINISTRATIVE (4,744) (6,791) COST OF TRANSFER AND SIGNING OF ATHLETES (43,784) (11,255) DEPRECIATION AND AMORTIZATION OF RIGHTS (27,266) (14,156) FOOTBALL (15,132) (16,168) ASSESSMENT OF ADMINISTRATIVE COSTS (6,708) (3,879) TOTAL OPERATING EXPENSES (197,386) (153,399) OPERATING REVENUE (EXPENSES) EMPLOYEES (18,361) (14,927) THIRD-PARTY SERVICES (9,450) (6,382) GENERAL AND ADMINISTRATIVE (14,872) (12,450) DEPRECIATION AND AMORTIZATION OF RIGHTS (4,976) (5,331) AMATEUR SPORTS (770) (640) COST RECOVERY 4 1 ASSESSMENT OF ADMINISTRATIVE COSTS 6,708 3,879 TOTAL OPERATING EXPENSES (41,717) (35,850) TOTAL NON-CURRENT ASSETS 567, ,578 TOTAL ASSETS 755, ,591 TOTAL NET EQUITY 67,333 62,014 TOTAL LIABILITIES 755, ,591 OPERATING SURPLUS BEFORE FINANCIAL EXPENSES AND NON-OPERATING EARNINGS 51,604 12,831 NET FINANCIAL EXPENSES (9,817) OTHER REVENUES (2,882) 463 OPERATING SURPLUS (DEFICIT) SOCIAL CLUB AND AMATEUR SPORTS BEFORE FINANCIAL (10,151) 2,752 EXPENSES IN NON-OPERATING EARNINGS NET FINANCIAL EXPENSES (1,762) (2,994) OTHER REVENUES (DEFICIT) SURPLUS OF SOCIAL CLUB AND AMATEUR SPORTS (11,316) 215 FOOTBALL SURPLUS FOR THE FISCAL YEAR 16,636 3,477 SURPLUS FOR THE FISCAL YEAR 5,320 3,692 The Accompanying Notes are part of the financial statements Access them at The Accompanying Notes are part of the financial statements Access them at

36 FS// CASH FLOW STATEMENT FOR FISCAL YEARS ENDED DECEMBER 31, 2011 AND 2010 (Values in thousands of Brazilian Reais) CASH FLOWS from OPERATING ACTIVITIES SURPLUS FOR THE FISCAL YEAR 5,320 3,692 ADJUSTMENTS FOR THE RECONCILIATION OF NET SURPLUS TO CASH GENERATED BY: OPERATING ACTIVITIES DEPRECIATION OF FIXED ASSETS 5,525 5,709 AMORTIZATION OF INTANGIBLE ASSETS 26,462 19,838 CHARGES ON LOANS 14,151 10,873 WRITE-OFF OF FIXED ASSETS (INCREASE) REDUCTION IN CURRENT AND NON-CURRENT ASSETS ACCOUNTS RECEIVABLE (262,781) (55,880) IMAGE RIGHTS 5, OTHER ACCOUNTS RECEIVABLE (2,887) 3,340 INVENTORY 128 (70) FOLLOWING YEAR EXPENSES 87 1,322 JUDICIAL DEPOSITS (1,434) 203 INCREASE (REDUCTION) IN CURRENT AND NON-CURRENT ASSETS SUPPLIERS 16,618 2,729 TAXES PAYABLE (63) 2,889 IMAGE RIGHTS PAYABLE (1,383) (1,277) OBLIGATIONS AND PAYROLL TAXES 33,564 19,627 AGREEMENTS AND COURT RULINGS - (2,229) TAXES IN INSTALLMENTS 761 2,268 PROVISION FOR CONTINGENCIES (301) (138) DEFERRED INCOME 280,485 19,500 NET CASH PROVIDED BY OPERATING ACTIVITIES 120,319 32,861 CASH FLOWS FROM INVESTMENTS ADDITIONS TO FIXED ASSETS (20,901) (3,892) INTANGIBLE - NET (63,222) (18,475) NEGOTIATION RIGHTS ATHLETE DEVELOPMENT (9,773) (29,296) NET CASH USED IN INVESTMENTS (93,558) (46,002) CASH FLOWS from FINANCING ACTIVITIES LOANS AND FINANCING 34,381 67,180 PAYMENTS ON LOANS AND FINANCING (58,285) (53,703) NET CASH GENERATED (USED) IN FINANCING ACTIVITIES (23,904) 13,477 INCREASE IN CASH AND CASH EQUIVALENTS 2, CASH AND CASH EQUIVALENTS BEGINNING OF THE FISCAL PERIOD 1, END OF THE FISCAL PERIOD 4,003 1,145 INCREASE IN CASH AND CASH EQUIVALENTS 2, FOOTBALL (reclassified) REVENUES PARTICIPATION IN TOURNAMENTS 112,486 54,969 BRAND EXPLORATION AND USE 44,382 47,315 TRANSFER OF FEDERATIVE RIGHTS 59,706 34,963 TICKET SALES 27,171 29,434 CHAMPIONSHIP PRIZES, LOYAL FAN PROGRAM, LOTTERIES AND OTHERS INPUTS ACQUIRED FROM THIRD-PARTIES VALUE ADDED STATEMENTS FOR FISCAL YEARS ENDED DECEMBER 31, 2011 AND 2010 (Values in thousands of Brazilian Reais) 14,700 6, , ,615 CONTRACTED SERVICES (39,833) (28,874) GENERAL AND ADMINISTRATIVE EXPENSES (4,507) (6,713) COST OF DISPOSAL AND SIGNING OF ATHLETES (43,784) (11,255) RECOVERY OF EXPENSES (2,985) 441 ASSESSMENT OF ADMINISTRATIVE EXPENSES (6,708) (3,879) (97,817) (50,280) GROSS ADDED VALUE 160, ,335 DEPRECIATION AND AMORTIZATION (27,266) (20,329) NET ADDED VALUE PRODUCED BY THE ACTIVITY 133, ,007 ADDED VALUE RECEIVED FROM TRANSFER FINANCIAL REVENUES 8,497 2,934 TOTAL ADDED VALUE FOR DISTRIBUTION 141, ,941 DISTRIBUTION OF ADDED VALUE PERSONNEL ADMINISTRATIVE AND ATHLETES 73,308 79,625 REMUNERATION OF THIRD-PARTY CAPITAL INTEREST 12,730 LEASES 1,856 2,670 GOVERNMENT TAXES (FEDERAL, STATE AND MUNICIPAL) 9,580 7,439 NET EQUITY SURPLUS 16,636 3, , ,941 CLUB AND AMATEUR SPORTS REVENUES BRAND EXPLORATION AND USE 8,486 9,719 MEMBERSHIP 8,628 8,249 OTHER REVENUES 14,930 21,050 32,044 39,018 INPUTS ACQUIRED FROM THIRD-PARTIES CONTRACTED SERVICES (10,220) (7,022) GENERAL AND ADMINISTRATIVE EXPENSES (14,608) (12,115) RECOVERY OF EXPENSES 4 1 ASSESSMENT OF EXPENSES 6,708 3,879 (18,116) (15,257) GROSS ADDED VALUE 13,928 23,762 DEPRECIATION AND AMORTIZATION (4,976) (5,401) NET ADDED VALUE PRODUCED BY THE ACTIVITY 8,952 18,361 ADDED VALUE RECEIVED FROM TRANSFER FINANCIAL REVENUES 1, TOTAL ADDED VALUE FOR DISTRIBUTION 10,143 19,314 DISTRIBUTION OF ADDED VALUE PERSONNEL ADMINISTRATIVE, SOCIAL CLUB AND AMATEUR SPORTS REMUNERATION OF THIRD-PARTY CAPITAL 18,361 14,927 INTEREST 2,356 3,490 GOVERNMENT TAXES (FEDERAL, STATE AND MUNICIPAL) NET EQUITY (DEFICIT) SURPLUS (11,316) ,143 19,314 The Accompanying Notes are part of the financial statements Access them at The Accompanying Notes are part of the financial statements Access them at

37 STATEMENTS OF CHANGES IN NET EQUITY FOR FISCAL YEARS ENDED DECEMBER 31, 2011 AND 2010 (Values in thousands of Brazilian Reais) EQUITY CAPITAL RESERVE/ DONATIONS ACCUMULATED DEFICIT OTHER COMPREHENSIVE RESULTS ON DECEMBER 31, (40,263) 98,553 58,323 REALIZATION OF REVALUATION RESERVE - - 2,731 (2,731) - SURPLUS FOR THE FISCAL YEAR - - 3,692-3,692 ON DECEMBER 31, (33,840) 95,822 62,014 REALIZATION OF REVALUATION RESERVE - - 2,664 (2,664) - SURPLUS FOR THE FISCAL YEAR - - 5,320-5,320 ON DECEMBER 31, (25,857) 93,158 67,333 Andrés Navarro Sanchez President Marcos Chiarastelli Superintendent of Finance The Accompanying Notes are part of the financial statements Access them at Raul Corrêa da Silva Director of Finance Mauro Túlio Garcia Accountant CRC 1SP /0-9 total Independent Auditor s Limited Assurance Report on the Sustainability Report for 2011 To the Managers, Councilors and Members of Sport Club Corinthians Paulista SCCP Introduction We have been engaged to provide limited assurance on the Sustainability Report for 2011 of Sport Club Corinthians Paulista SCCP ( Corinthians ) for the year ended December 31, Management s responsibility for the Sustainability Report The management of Corinthians is responsible for the preparation and presentation of the Sustainability Report. This responsibility includes designing, implementing and maintaining internal control over the proper preparation and presentation of the Sustainability Report. Responsibility of the professional Our responsibility is to provide a limited assurance report on the information disclosed in the Sustainability Report of Corinthians for the year ended December 31, 2011, based on the work performed. Criteria and guidelines adopted in preparing the Sustainability Report The Sustainability Report for 2011 was prepared in accordance with the criteria and guidelines for reports of the Global Reporting Initiative (GRI-G3) for Application Level C+. Following these criteria and guidelines, Corinthians has reported 11 essential and additional performance indicators. Procedures Applied Our limited assurance engagement was performed in accordance with the Brazilian Accounting Standard NBC TO 3000, "Assurance Engagements Other than Audit and Review", issued by the Federal Accounting Council (CFC). This standard requires that we comply with ethical requirements and plan and perform the assurance engagement to obtain limited assurance that no matter has come to our attention that leads us to believe that the Sustainability Report for 2011 of Sport Club Corinthians Paulista - SCCP is not in accordance with the criteria and guidelines for reports of the Global Reporting Initiative (GRI-G3), in all material respects. The procedures to obtain evidence in a limited assurance engagement are more limited than in 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 and guidelines for reports of the Global Reporting Initiative (GRI-G3.). Within the scope of our work, the procedures conducted included the following, among others: (i) planning the work, taking into consideration the relevance and the volume of information presented in the Sustainability Report; (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 members of management 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. Scope and limitations The objective of our work was to evaluate whether the data included in the Sustainability Report for 2011 of Sport Club Corinthians Paulista - SCCP, with respect to obtaining qualitative information and measuring and calculating quantitative information, are presented in accordance with the criteria and guidelines for reports of the Global Reporting Initiative (GRI-G3). Opinions, historical information, descriptive information and information resulting from subjective evaluations and evaluation of legal compliance of the information included in the Sustainability Report for 2011 were not included in the scope of the work performed. The financial statements of Sport Club Corinthians Paulista SCCP, for the year Assurance Report// ended December 31, 2011, were audited by other independent auditors, who issued their unqualified audit opinion on January 27, 2012, 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 adhere to the rules of the lottery named 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 to the Social Security and the Brazilian Federal Revenue. Although the Club's Management and legal advisors understand the adherence of the Club to that lottery, the formal and definitive approval of the request to adhere to Timemania is in the process of approval by the respective management body." Conclusion Based on our limited assurance engagement, nothing has come to our attention that causes us to believe that the Sustainability Report for 2011 of Sport Club Corinthians Paulista SCCP, for the year ended December 31, 2011, does not meet, in all material respects, the criteria and guidelines of the Global Reporting Initiative (GRI-G3) for Application Level C+. São Paulo, January 30, 2012 PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5 Manuel Luiz da Silva Araújo Contador CRC 1RJ039600/O-7 S SP 72 73

38 gri// gri table OF CONTENTS Sport Club Corinthians Paulista s Sustainability Report meets the requirements for GRI 3.1 Application Level C+, according to the parameters presented in the table below: Report Content G3 Profile G3 Management Approach G3 Performance Indicators & Sector Supplement Indicators C C+ B B+ A A+ Respond to items: 1.1; ; , ; , ; Not required Report at least 10 Performance Indicators, including at least one in each area: social, economic and environmental With External Assurance Report all items Level C plus: 1.2; 3.9, 3.13; , Information on Management Approach for each Indicator Category Report at least 20 Performance Indicators, including at least one in each area: economic, environmental, human rights, labor, society, product responsibility 1 Strategy and Analysis Reported Page 1.1 Message from the President Total 8 and 9 2 Organizational Profile Reportad Page With External Assurance Same requirement Level B Disclosure of Management Approach for each Indicator Category Respond on each core G3 and Sector Supplement indicator with due regard to the materiality Principle by either: (a) responding in relation to the indicator or (b) explaining its omission With External Assurance 1 The Club outsources only security and cleaning services. 116 people work in this area, which accounts for 13.5% of workers. More information on pages 11, 12 and Significant changes in the reporting period 4 Total 12 and Awards received in the reporting period 5 Total 11, 12, 13 and 33 3 Report Parameters Reported Page 3.1 Reporting period for the information provided Total Date of the most recent previous report Total Reporting cycle Total Contact point for questions regarding the report or its contents Total Process for defining report content Total Boundary of the report Total Statement of any specific limitations on the scope or boundary of the report Total Basis for the development of the report 6 Total Reformulations of information provided in previous reports Total Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report Total Table identifying the location of the standard disclosures in the report Total 74 to 76 4 Governance, Commitments and Engagement Reported Page 4.1 Governance structure of the organization, including committees under the highest governance body 7 Total Chair of the highest governance body Total Independent or non-executive members of the highest governance body 8 Total 75 Mechanisms for shareholders and employees to provide recommendations 9 Total List of stakeholder groups engaged by the organization 10 Total 75 4 As a Club, there have been no operating changes. Its operating unit still remains the Club s office. 5 The awards received are championship titles that bear no relation to sustainable management. More information on pages 10 and The Club does not have joint ventures, subsidiaries, leased facilities, outsourced operations or other organizations that may significantly affect the comparability between periods and/or between organizations. 7 The administration is divided into five levels, structured according to parameters set forth in the Club s Social Powers. The executive committees, formed of independent and non-remunerated members, are only responsible for the economic performance. More information on pages 43 to There is no Administrative Council. More information on pages 43 to As a non-profit association, the Club has no shareholders. Employees can make their recommendations directly to specific and administrative departments. 10 In 2011, there was no engagement with stakeholders. 11 In 2011, there was no engagement with stakeholders. 2.1 Name of the organization Total Primary brands, products and/or services 1 Total 11, 12, 13, 42 and Operational structure of the organization Total Location of the organization s headquarters Total 12 and Countries where the organization operates and where its main operations are located Total Nature of ownership and legal form 2 Total 12 and Markets served 3 Total 12 and 74 2 The Club is a non-profit association, with a legal form distinct from that of its members, who will not be held liable, jointly or separately, for obligations undertaken by the association. More information on page Formal practice of sports in all forms, especially football. It also fosters and develops social, educational, recreational, cultural, civic and welfare activities, out of goodwill Basis for identification and selection of stakeholders with whom to engage 11 Total 75 PERFORMANCE INDICATORS ECONOMIC PERFORMANCE Indicator Indirect Economic Impacts Reported Page ec8 Impact of infrastructure investments for public benefit Total 18, and Scale of the organization Total

39 \\gri ENVIRONMENTAL PERFORMANCE Indicator Energy Reported Page EN3 Direct energy consumption by primary energy source 12 Total 17 and 76 Indicator Water Reported Page EN8 Total water withdrawal by source 13 Total 17, 40 and 76 Indicator Compliance Reported Page EN28 SOCIAL PERFORMANCE Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations Total 50 Indicator Employment Reported Page LA1 LA3 Total workforce by employment type, employment contract, and region 14 Total 76 Benefits provided to full-time employees that are not provided to temporary or part-time employees 15 Total 76 Indicator Occupational Health and Safety Reported Page LA9 Health and safety topics covered in formal agreements with trade unions 16 Total 76 Indicator Child Labor Reported Page HR6 Measures taken to contribute to the elimination of child labor Total 28 and 29 SOCIETY Indicator Compliance Reported Page SO8 Monetary value of significant fines and total number of non-monetary sanctions PRODUCT RESPONSIBILITY Total 50 Indicator Product and Service Labeling Reported Page PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction Total 35 Indicator Compliance Reported Page PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services Total Power consumed by the Club comes from a utilities provider. The company does not make use of renewable and non-renewable power sources, and it does not acquire energy by extracting, cultivating, harvesting or converting from other energy sources. More information on page The Club makes use of water from the municipal water supplier and from an artesian well. When the new stadium starts its operations in 2014, rainwater will be harvested and reused. More information on pages 17 and The Club is located in São Paulo, and all its employees are formally registered, except the director and assistants to the Board of Directors, who are not remunerated. More information on pages 12 and The Club does not employ temporary workers. It employs interns who are entitled to transportation vouchers and paid vacations. However, all the remaining employees receive several benefits, such as life and health insurance, food and transportation vouchers, and maternity and paternity leave, in compliance with labor laws in effect. 16 The Club deals with issues regarding occupational health and safety through the Internal Commission for the Prevention of Accidents (CIPA), but these topics have not been established in formal agreements with unions. In the last 15 minutes of the classic match between Palmeiras and São Paulo last Sunday at Morumbi stadium, an unbelievable phenomenon took place: Along with booing the players, Palmeiras and São Paulo fans started chanting: Corinthians! Corinthians! Corinthians! Historic archenemies, this example reveals (...) the exact amount of respect, hatred, and fear they feel for their great rival. Those who do not root for Corinthians, root against Corinthians This is one of the greatest truths about the behavior of our football fans. Excerpt from news article published in Jornal da Tarde, on July 21 st,

40 our history// 1964 Corinthians wins the State Championship in the aspirant category (it would win again in 1965 and 1966) and reveals one of best players in the world: Roberto Rivellino November 16 Corinthians becomes the first team to represent the Brazilian National Team abroad, against Arsenal in London. In basketball, Corinthians, with the players Amaury, Wlamir, René, Ubiratan, and Rosa Branca, is the undefeated Metropolitan Champion and winner of the State Championship, Brazil Cup, and South American Championship. In July 1965, it defeats Real Madrid from Spain, , at Parque São Jorge Rio-São Paulo Tournament Champion, shared with Botafogo, Santos, and Vasco, due to the lack of dates for a tiebreaker. The Corinthians basketball team is two-time Metropolitan Champion and South American Champion, and places second in the World Club Cup Corinthians places first in the first round of the first Roberto Gomes Pedrosa (Robertão) Tournament. In the quarterfinals, with Palmeiras, Inter, and Grêmio, it finishes third March 6 the team ends a ten-year, 22-match no-win streak against Pelé-led Santos: Corinthians wins 2-0 at the Pacaembu Stadium, with goals scored by Paulo Borges and Flávio The deaths of right-winger Lidu and left-winger Eduardo in a car accident shock the team, which at the time is leading the State Championship. August 17 another win over Barcelona from Spain, this time 2-1, in the second 30-minute overtime, ensures the Costa del Sol Tournament win in Malaga, Spain In the Mexico World Cup, Brazil becomes three-time champion, with Rivellino. Corinthians goalkeeper Ado, a substitute for Félix, is also on the team February 19 in a match played at Mineirão stadium in Belo Horizonte, Corinthians defeats Internacional (RS) 1-0, with a free-kick goal by Rivellino. The team becomes champion in the People s Tournament, played by the most popular teams in Brazil (Corinthians, Flamengo, Atlético-MG, and Internacional-RS) Corinthians reaches the semifinals in the Brazilian Championship March 3 champion in the Laudo Natel Tournament, a single-elimination tournament that precedes the State Championship, defeating Palmeiras 2-1 in the final October 9 Corinthians defeats São Paulo 1-0 and wins the first round of the State Championship, qualifying for the final match for the first time in 17 years. In the final, it is defeated by Palmeiras February 2 after a 2-2 tie at the end of the normal playing time, Corinthians defeats São Paulo 4-3 in a penalty shootout. This clinches the São Paulo Futebol Clube Trophy, an international tournament promoted by São Paulo, with the presence of Peñarol from Uruguay and San Lorenzo from Argentina December 12 approximately 80,000 fans travel to Rio de Janeiro to attend the Brazilian Championship semifinal match against Fluminense (1-1 draw, 4-1 penalty shootout), which allows Corinthians to advance to the final match against Internacional. It is considered one of the largest movements of people in times of peace October 13 after 22 years, eight months and seven days, Corinthians wins the State Championship by defeating Ponte Preta 1-0, with a goal scored by Basílio November 26 Corinthians wins the City of São Paulo Trophy, which is equivalent to the first round of the State Championship, by defeating Santos 1-0. The match features a goal scored by Palhinha and a remarkable performance by Sócrates February 10, 1980 the 2-0 win over Ponte Preta after the third match of the finals gives Corinthians another State Championship title, valid for the 1979 tournament, the 16 th won by the Club in its history. Many were still to come The Club places fourth in the State Championship and fifth in the Brazilian Championship The eighth place in the State Championship relegates Corinthians to the Silver Trophy (Brazilian Championship 2 nd Division) in the next year. Start of the so-called Corinthians Democracy, a movement that aimed at ensuring greater participation of players and other Club employees in the decisions made by the Football Department December 12 the 3-1 win over São Paulo ensures another State Championship title, the 18 th in its history December 9 the team becomes two-time State champion, again over São Paulo, after a 1-1 tie. This follows a win in the first match of the finals May 6 After a defeat in the first game of the quarterfinals for the Brazilian championship in Rio, by a score of 2-0, Corinthians needs a victory by a two-goal difference against the two-time Brazilian Champion, Flamengo. The team pounds Flamengo 4-1 at Morumbi stadium and qualifies for the semifinals against Fluminense Corinthians puts together a super team, with players that have played for National Teams in every position: Carlos, Édson, Juninho, De León and Wladimir; Dunga, Casagrande and Zenon; and Paulo César, Serginho, and João Paulo Three Corinthians players are summoned to the Brazilian National Team competing in the Mexico World Cup: Carlos (goalkeeper), Édson (right-winger) and Casagrande (striker) The Club finishes 19 th, secondto-last, in the first round of the State Championship. However, in an incredible comeback, the Club wins 13 matches, ties five and loses only one match in the second round. It defeats Santos in the semifinals, plays the finals against São Paulo, and wins an honorable second place July 31 the 1-0 win over Guarani in Campinas, with a goal scored in overtime by young Viola, only 19, ensures Corinthians s 20 th State Championship title In an unprecedented deal with Palmeiras, Corinthians trades midfielder Ribamar, and allows the arrival at Parque São Jorge of one of the greatest idols in the Club s recent history: José Ferreira Neto, midfielder Neto December 16 the 1-0 victory over São Paulo, with a goal scored by Tupãzinho, ensures Corinthians s first Brazilian Championship title January 27 Corinthians becomes champion of the Brazil Supercup by defeating Flamengo, Brazil Cup Champion, 1-0. The goal is scored by Neto May 1 Parque São Jorge reopens with its present-day capacity in a match between Corinthians s Masters team and the 1992 professional team, which wins by a score of Corinthians picks up a secondplace finish in both the State Championship and the Rio- São Paulo Tournament. The Club is third in the Brazilian Championship, despite losing only a single match in the entire competition, to Vitória, 2-1, in Salvador (Bahia) August 9 Corinthians conquers Santos 6-3 and wins the Bandeirantes Cup, qualifying for the next year s Brazil Cup June 21 Corinthians wins its first Brazil Cup title by defeating Grêmio 1-0 in Porto Alegre, and qualifies for Copa Libertadores in the following year. August 6 Corinthians wins another State Championship title by defeating Palmeiras for the first time in a final match, 2-1, with a goal scored by Elivélton in overtime August 24 the 2-0 win over Bétis in Cadiz, Spain, ensures the Ramón de Carranza international tournament title June 5 the 1-1 tie against São Paulo ensures the State Championship title in 1997, the year of the Club s first ever partnership, with Banco Excel December 23 the win over Cruzeiro 2-0, at Morumbi Stadium, ensures the second Brazilian Championship title June 20 State Champion once again, over Palmeiras. This comes after a 2-2 tie in the second game of the finals, with Edílson juggling the ball several times at the end of the match. The first match was won by Corinthians 3-0. December 22 the 0-0 tie against Atlético-MG, at Morumbi stadium, ensures the Brazilian Championship for the second consecutive year (1998/99) the third title in its history (the first title was won in 1990) January 14 Corinthians defeats Vasco 4-3 in a penalty shootout, after a 0-0 tie in normal playing time and overtime. This makes the team the first FIFA Club World Cup champion, in a tournament held in Brazil May 27 after winning the first match of the finals 3-0 in Ribeirão Preto, the 0-0 tie against Botafogo from Ribeirão Preto, at Morumbi stadium, ensures the 24 th State Championship title in the team s history Two achievements in three days: on May 12, the Corinthians-São Paulo match ends 1-1, securing the Rio-São Paulo Tournament title for Corinthians. On May 15, another tie, 1-1 against Brasiliense in Taguatinga (Federal District), ensures the title of the Brazil Cup. The team thus qualifies for the Libertadores Cup March 22 State Champion for the 25 th time, by defeating São Paulo January 25 winner of the São Paulo Youth Football Cup December 4 even after being defeated by Goiás, 3-2, in Goiânia in the last round, Corinthians wins the Brazilian Championship title for the fourth time. In this year Argentinean star Carlitos Tevez plays for the team and the partnership with MSI Group is established In the World Cup, held in Germany, Corinthians is represented in the Brazilian National Team by midfielder Ricardinho Corinthians is relegated to the B Series of the Brazilian Championship, and starts its administrative restructuring October 25 the 2-0 win over Ceará at Pacaembu ensures a spot in the A Series of the Brazilian Championship in the following year. At the end of the year, Corinthians signs Ronaldo, the Phenomenon May 3 the 1-1 tie against Santos at Pacaembu, after winning the first match 3-1 at Vila Belmiro, gives Corinthians its 26 th State Championship title. It is undefeated for the fifth time in its history. July 1 the 2-2 tie against Internacional in Porto Alegre, after winning the first match 2-0 at Pacaembu, ensures Corinthians s third Brazil Cup and a spot in Copa Libertadores The Club holds an extensive program to celebrate the Club s Centennial, and wins a number of titles in different sports Corinthians wins the Brazilian Championship and places second in the State Championship The team plays in three championships: State Championship, Libertadores Cup, and Brazilian Championship.

41 Corinthiano, rowdy and sufferer Thank God!