Petrobras' experience on Integrated Reporting

April 20th, 2018

Advancing the SDGs: Understanding and Improving the Role of Corporate Transparency

Annual Report

Sustainability

Petrobras Overview—

We are an integrated company operating in the segments of exploration and production, refining,transportation, marketing, distribution, petrochemicals, fertilizers, biofuels and power.

Our main operations are in Brazil and we have activities in Argentina, Bolivia, Colombia, United States,Mexico, Nigeria, Paraguay, and Uruguay.

millions of boed, LGN, condensed and natural gas

120 platforms7,888 producing wells

millions of bpd in products sold to the internal market

13 refineries and 1 shale oil plant

millions of m3 in biodiesel

4 biodiesel plants in operation

millions of m3 in transported oil and products

7,719 km of pipelines55 product vessels47 terminals

millions of m3

fuels

8,277 service stations

thousand MW generated in average

20 thermal power plants

Dec/2012

2013

Developing Petrobras' Integrated Reporting—

Engagement

Join the IIRC Pilot Program for the development of the Integrated

Reporting Model

Integrated Report Brazilian Commission

meetings;Some IIRC principles

and elements incorporated in the

annual reports

May/2017

Integrated Report - 1st step

IIRC concepts and framework incorporated into the 2016

Sustainability Report (materiality, business model,

capitals and connectivity)

Jul/2017

Integrated Report - 2nd

step

Working Group for developing the 2017

Integrated Report, based on IIRC framework

March 15th, 2018

Petrobras 2017 Integrated Report

launched

Dec/2016

IntegratedReporting

ModelDefinition

DevelopingProcess

Disclosure

Integrated Report implementation—

2017/2018

Integrated Report

SEC CVM

2016/ 2017

Defining the Report Model—

Note: ITR (Quarterly Financial Information) and RMF (Financial Market Report) are issued quarterly.

Benchmark/Analysis

Mar

chA

pril

/ M

ay

Mar

chA

pril

May

Formulário de Referência

Formulário de Referência

Annual Report2016

Financial Statements2016

Financial Statements2016

Developing process—

Oct/2017 Mar/2018

Processo de Elaboração do Form 20-F

DraftPreparation

ContentDevelopmentby business

areas

Certificationby Managers and Auditors

BoardApproval Disclosure Dissemination

- Launched to the market- Published on the website

Integrated ReportingProcess

Multidisciplinary Team- 33 areas directly involved- 102 focal points- 30 WG meetings- 20 Governance committes meetings - Workshop

Improvements:- Reliability- Focus on material aspects- Wording (more direct)- Connectivity of information- Capitals and Value creation

- Team and reporting system Integration

- Cultural change

Disclosure—

Annual Reports

Integrated Report

Annual Report

Sustainability

Financial Statements

Form 20-F

Integrated Reporting is a process that promotes a more cohesive, efficient approach to prepare corporate reports, aiming to improve the quality of the information available to financial capital providers, seeking to explain how the company generates value over time, and providing subsidies to capital allocation in a more efficient and productive manner.

Materiality—

Business Model—

2017

Ann

ual R

epor

t—

SAFETY

OVERVIEW AND BUSINESS MODEL

OUR CAPITALEXTERNAL CONTEXT

BUSINESS PERFORMANCESTRATEGIES AND PERSPECTIVES

GOVERNANCE AND COMPLIANCERISKS AND OPPORTUNITIES

OTHER INFORMATION

ANNUAL REPORT 2017PETROBRAS

SAFETY OVERVIEW AND BUSINESS MODEL

OUR CAPITALS EXTERNAL CONTEXT

BUSINESS PERFORMANCE

STRATEGIES AND PERSPECTIVES

GOVERNANCE AND COMPLIANCE

RISKS AND OPPORTUNITIES

OTHER INFORMATION

ABOUT THE REPORT

MATERIALITY

SUMMARY

Message from the Chairman of the Board of Directors 03

Message from the President of Petrobras 05

Who we are 16

Where are we 17

How we generate value 18Business model

Human

Intellectual

Relationship

NaturalProductiveFinancial

Oil and Gas Exploration and ProductionRefining and natural gas 78Financial performance

Strategic planning

Business plan 2018-22

Management systens: Evolution Project

Corporate governance

Ethic

Compliance and internal controls

Risk management

Crisis management 125Opportunities

Sust

aina

bilit

y 20

17—

SUSTAINABILITY 2017PETROBRAS

TRANSITION TO A LOW CARBON ECONOMY

DIGITAL TRANSFORMATION

PEOPLE ENVIRONMENT SOCIETY AND RELATIONSHIP

SUMMARY

TRANSITION TO A LOW CARBON ECONOMY

DIGITAL TRANSFORMATION PEOPLE

ENVIRONMENTSOCIETY AND RELATIONSHIP

AUDITOR'S LIMITED ASSURANCE REPORT

PETROBRAS IN NUMBERS

CONTENT

Message from the President of Petrobras Commitment to life Human capital

Respect for human rights Ethics and transparency

Emissions and air quality Biodiversity Water management

Waste management Spill Response

Relationship with stakeholders

Supplier management

Social Investment

§ Limited Assurance by KPMG§ Global Reporting Initiative – GRI Standards§ United Nations Global Compact principles§ SDGs correlation

We will invest US$ 74.5 billion in our projects, ofwhich 81% in Exploration and Production, from anactive management of our portfolio, focusing onprojects with the best economic and financial returnand preferentially working in partnerships.

In line with our vision to evolve with society, we will pursue the value

creation and promote the development of skills and technologies by adding

two new strategies:

10

Strategies and Perspectives—

Investments

US$ billions Other areasReduce carbonemissions in ourproductiveprocesses

Invest andpromote new Technologies toreduce impact onclimate change

Develop business with high value in renewable energy

Prepare the company to a Low Carbon economy

Capture opportunities created by Digital Transformation

Generate valuefor process andoperations

Digital Solutionsand High Performance Computing

Automation andArtificial Inteligence

Reduce CO2emissions in our

operations

Invest and promotenew tecnologies to

reduce climatechange impacts

Develop high valuebusiness in

renewable energy

Stakeholder Relations—

We engage with stakeholders, continuously to improve our communication by a constructive and transparent dialogue

- 600 thousand investors- Over 500 direct clients in Brazil and abroad- 24 hour Ombudsman channel- 11 thousand suppliers

- Mailing for 40 thousand journalists- US$ 162 million for research with 213 universities and institutes- US$ 42 million in social, environmental and cultural projects

INTERNAL PUBLIC

PUBLICAUTHORITIES

PARTNERS

CIVIL SOCIETYORGANIZATIONS

INVESTORS

PRESS

RETAILERS

CLIENTS

SCIENTIFIC AND ACADEMIC COMMUNITY

COMMUNITIES

COMPETITORS

CONSUMERS

SUPPLIERS

PetrobrasSocial andEnvironmental Program

Integrated reportingOperations:Launched at the World Water Forum - March, Brazil

Civil Society Organizations projetcs Public Selection launched in March

Colaboration and Engagement

Corporate Transparency—

Published on March 15th

ü Disseminating SDGs throughout Petrobras Social and Environmental Program

ü Public Selection will engage around 4,000 Civil Society Organizatios (CSOs) – subscription until May 5th

Education

Children´s Right

Sport

Water

Biodiversity

Forest and Climate

5 Crosscutting issues

• Human Rights and Fighting against Discrimination

• Ethics, Integrity and Transparency

• SDGs promotion, dissemination and implementation

• Science and Technology Development and Diffusion

• Eco-efficiency

PetrobrasSocial andEnvironmental Program

Social and Environmental Lines of actions

Disseminating the SDGs—

SDG Territorialization and Acceleration

United Nations Development Program

110 Municipalities and 2,200 direct participants

ü The project* will promote training and capacity

building for sustainable local development, through

strategies of Agenda 2030 territorialization and

acceleration to achieve SDGs at municipality level,

focusing on institutions that will implement social and

environmental projects sponsored by Petrobras;

ü CapaCities methodology, developed by UNDP, aligned

with the institutional approach MAPS (Mainstreaming,

Acceleration and Policy Support) for local development;

ü The project will encompasses 110 municipalities

(totaling 23,304,262 inhabitants) nearby Petrobras´s

operations;

Partnerships—

Ethical Connections of the Third Sector

UN Educational, Scientific and Cultural Organization

180 CSOs and 1,800 direct participants

ü The project* will contribute to strengthen civil

society organizations (CSOs) management systems

reinforcing ethics, integrity and compliance

practices, enhancing their positive impacts and

results;

ü The project will apply diagnostic research on

compliance practices and global external training

evaluation of 180 Petrobras' partners CSOs;

ü Capacity building for preparation, evaluation,

implementation and monitoring of ethics, integrity

and transparency initiatives and support to the

development of instruments such as code of ethics

and conduct guide for CSOs;

* under development

Mapping the Oil and Gas Industry to the Sustainable Development Goals: An Atlas IPIECA, IFC and UNDP (2017)

2 Petrobras Case studies:

Social Investment Initiatives: Petrobras Social and Environmental Program

Improving the work environment for women: Petrobras engagement at the Brazilian Pro-Gender and Race Equality Program

SDGs and the Oil and Gas Sector—

Ø Brazilian Petroleum Institute SDGs Workshop – Nov 2017 Ø IPIECA SDGs Workshop - March 2018

7

Thank you!

BEATRIZ NASSUR ESPINOSASocial Responsibility - Petrobrase-mail: bespinosa@petrobras.com.br