Message from the Board of Directors Chairman

Different actions to strengthen the Conglomerate's corporate governance, aligned with the values of sustainability, were implemented in 2010.

In 2010, we took important steps in terms of making progress for the future project that is being unfolded at the Itaúsa Conglomerate through its companies. This was, undoubtedly, a very important year in terms of consolidating our goals, and the results obtained by our companies prove this fact.

As part of a process started four years ago, the strengthening of our Governance requires secure and responsible advances that guarantee that we can maintain the robustness and corporate dimension we have already achieved. We employ efforts to ensure that the Conglomerate effectively remains sustainable and lasting. By taking this position, we were able to further increase our investments and distinguished participation in increasingly globalized markets.

One of the keys to this process is the strong integration of our companies. We have promoted the search for and recognition of the best practices among them and replicated them in our management practices. The alignment with the Conglomerate's values and vision is crucial and has been exercised during recent years with both persistence and focus.

The participation of independent professionals on the companies' boards and in the coordination of the thematic committees promoted the alignment with the capital market and preserved the management autonomy of each one of the companies.

The results are reflected at each one of the Itaúsa Conglomerate companies. As one of the world's strongest banking entities, Itaú Unibanco currently represents one of the most prestigious brands in the international financial system. The success of the merger with Unibanco showed that our capacity for achievement is high and that we can produce significant results.

Itautec underwent a more ample restructurization process, one that included new management and the implementation of new concepts. In 2010, the advances in banking automation extended beyond Brazilian borders and the company currently has the world's 10th largest installed base. In the computer industry, Itautec continues to modernize its operations, which are aligned with sustainable production and management concepts followed for its entire commercial portfolio.

In the sector of industrialized wood panels and bathroom accessories and fixtures, Duratex continues to occupy a leading position, backed by strong sustainability concepts oriented by all industrial companies. The quality of its products is associated with modern design, meeting the needs of all social classes.

In the petrochemical sector, Elekeiroz, a 100-year-old company considered a pioneer in Brazil, invested in its governance. The advances in terms of maximization of values with sustainability are included among the company's management goals and serve as guidelines for the strategic planning updated this year. Today, the company stands out due to its uniqueness of integrated production of some of the most important chemical products for national industry, and is a leader in the markets in which it operates.

A considerable number of people are considered an essential part of the strategic management movement developed by Itaúsa. It is a work force that includes more than 123,000 direct jobs and which helps strengthen our Conglomerate with each passing day. We extend our thanks to each one of them for renewing their commitment to trusting in the economic growth of the country and our companies.

By implementing responsible and organized management to ensure the continued success of our business and always focused on the future, we are opening the path to a secure and healthy growth.