BIODIVERSITY EDP on the global forefront? Energy without limits · December | January * 2010 /11 Nº20 SPOTLIGHT Miguel Amaro looks back at the Brazil IPO five years later WHO’S WHO The Director of Creativity at the Cirque du Soleil on creativity and satisfaction in the workplace IN DISCUSSION Economic competitiveness comes to the energy sector PHOTO ESSAY The award-winning photos of team members from EDP Renewables MARKETS EDP with the best financial report in the world
Transcript
BIODIVERSITYEDP on the global forefront?
Energy without limits · December | January* 2010 /11 Nº20
SPOTLIGHTMiguel Amaro looks back at the Brazil IPO five yearslater
WHO’S WHOThe Director of Creativity at theCirque du Soleil on creativity andsatisfaction in the workplace
IN DISCUSSIONEconomic
competitiveness comes to the energy sector
PHOTO ESSAYThe award-winning
photos of team membersfrom EDP Renewables
MARKETSEDP with the best financial report in the world
qual to climate change, biodiversity is seen as one areathat demands urgent intervention. The global loss of biodiversity over the past half century, and the variousscenarios proposed by the Millennium Ecosystem Assessment, point to a loss rate that will accelerate on aglobal scale.The EDP Group is well aware of this crisis, and in 2007,
we became one of the first firms to implement a biodi-versity policy. Since then, we have strived to contributeto global efforts aimed at halting the loss of more specieson our planet. The results are plain to see.
Ours was the first Portuguese company to be listed on the elite global Dow Jones Sustai-nability Index (DJSI), where we achieved a remarkable position (77 points, up three pointsover the previous year) for our performance in the environmental dimension. According tothe same index, the EDPG showed real growth in alignment with industry practices as theresult of our efforts in the area of environmental management (particularly with regard to biodiversity and climate change strategy, for which we received the maximumscore). We owe our position on the DSJI to a strategy embraced by more than 12,000 teammembers spread over 11 countries.In 2010, EDP published its first report on biodiversity, which detailed the impact of the
company's activities thus far on biodiversity, how it has been minimized, and if that hasproven impossible, how it has been offset.The report focuses on how the company sees and deals with the challenge of biodiversity,
through the partnerships and projects it creates, and by the results obtained. But biodiversityis much more than a bunch of ecosystems and species to EDP: it is an integral part of the Group'sasset management structure. The proof can be found in the business strategy we proudly in-vest in: growth from renewable energy, particularly wind and water. By 2020, we intend toachieve more than 3.5 GW of installed power in water generation and more than 274 GW ofinstalled power in wind power – clear evidence of the importance of biodiversity to our mana-gement structure. Reducing biodiversity loss is everyone's responsibility. UNESCO joined theConvention on Biological Diversity and declared the year 2010 to be the International Year ofBiodiversity, encouraging partners at the global level. The Year of Biodiversity is an effectiveinstrument in promoting the conservation of biodiversity around our world. EDP believesthat we can contribute to this objective by internally building a set of strategies and putting tomotion a set of action plans – all of which you can read up on in the following pages of this is-sue of ON.
Biodiversity is much more than a bunch of ecosystems and species to EDP: it is an integral part of ourmanagement
For a better world
on
Paulo Campos CostaBrand and Communications ManagerE
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On is a bimonthly edition
Owner EDP – Energias de Portugal, SAPraça Marquês de Pombal, 12, 1250-162 Lisboa Tel: 210 012 680 Fax: 210 012 910 [email protected] Director Paulo Campos Costa
Publisher Península Press SLRua dos Correeiros 120, 4º esq , 1100-168 LisboaExecutive Director Stella Klauhs [email protected] Editors Eduardo Marino (editor), Joana Peres (staff writer), Art Marta Conceição, André Noivo Photography Hugo Gamboa, José Reis e Adelino Oliveira, iStockphoto, SXC Copydesk Ana Godinho EDP Coordination Margarida GlóriaComplimentary distribution Portugal - 23,000 copies; Spain - 2,000 copies; Brazil - 2,500 copies; America - 500 copiesHeska Industrias Tipograficas Campo Raso, 2710-139 Sintra - Portugal. Tel. +351 21 929 89 58 (Main) Fax +351923 89 51
Registration Exempt at ERC, under the decree 8 / 6, article 12 n. 1-a
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index December | January
2010 was declared the International Year of Biodiversity. The goalof reducing the loss of our planet's rich biological diversity andraising awareness about its importance can only be achieved if allsectors of society participate. Discover how EDP is doing its share.
Photo EssayEDP Renewables held a photographycompetition among itsemployees. The resultswere surprising.
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index
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6 forumWe asked EDP's employees how theycontribute to reducing their carbon footprintin the workplace.
7 stock
8/15 edp culture The focus is on EDP's Group InformationSystems, the second edition of Media Dayand the EDPro project, all part of the EDPWay program.
16/19 innovationGet to know novelties presented at theInnovation Day, sponsored by the EDP Group.
20/23 marketThe Customer Relations Department hosts a meeting on "EDP's Customer Experience."
24/25 causes
40/41 our energyWe highlight the news that connects EDP'sproduction centers to their surroundingcommunities.
42/45 human capitalMore than 200 people celebrated theaccomplishments of RH +.
64 SpotlightCarlos Cavaleiro, chief engineer of thermalconstruction at EDP Brazil.
46Miguel Amaro, vice president of managementcontrol, finance and investor relations forEDP Brazil, talks about the company'sachievements, industry objectives andobjectives for the upcoming year.
Cover Theme: Biodiversity
Who's Who?Lyn Heward, Cirque duSoleil's Director ofCreation
34
In Discussion:Secretary of StateCarlos Zorrinhointroduces the theme"Competitiveness WithEnergy."
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forum*SHARING KNOWLEDGE · An On question
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Carbon FootprintThe term "carbon footprint" refers to the effects of human activity on Earth's ecosystems and the amount of land and water that ourplanet would need to regenerate its resources, taking into account all the material and energetic resources spent by a given population. Tocalculate that footprint, it is necessary to add all the components that adversely affect a variety of environments, including open land,pastures, forests or urban centers. If you would like to assess the overallimpact of your lifestyle on the environment, go to:www.eco.edp.pt/pt/jovens/simular/mede-a-tua-pegada/simular
HOW DO YOU CONTRIBUTE TO REDUCING YOUR CARBON FOOTPRINT AT YOUR WORKPLACE?
"At my workstation, I placed acollection point for unloadedbatteries and take them to berecycled, separating the alkalinebatteries from the mercury andlithium ones ... I promote thecollection of plastic bottle caps that Iperiodically deliver to the Red Crossoffice, in Setúbal, so that it canobtain and distribute wheelchairs tothe underprivileged. I also promotethe recycling of used copy paper forscratches.” PORTUGAL
"I use the stairs to go to my desk."SPAIN
"Besides the mentioned behavors, I walk to work (1.2 kilometers), thus avoiding the use of my car, which produces CO2 gas." BRAZIL
"I avoid drinking individually bottledwater by using a glass, and I get waterfrom the bottle dispensers available on every floor." PORTUGAL
"I work in the EDP Escelsa’s office inCachoeiro de Itapemirim. Here we haveadopted the use of individual glassesand mugs for employees, thus reducingthe consumption of disposable cups."BRAZIL
"We use rechargeable batteries fordifferent devices." SPAIN
"I avoid opening the refrigerator door somany times a day." BRAZIL
"Reduction of water flow, plastic andcoffee capsules sorting, and avoidanceof printing colorful backgrounds in "ppt"and "pps" to save ink." PORTUGAL
"I bought a car with eight seats, andsince I live in Vila Velha, I alwaysbring seven EDP colleagues towork." BRAZIL
"I collect bottles and caps frommeetings to be recycled. ThisChristmas, I collected printercartridges and toner to donate to the charity "Ajuda de Berco" at no cost to the company." PORTUGAL
I only use the elevator to go up four ormore floors; I do not take the elevatorto go down nor even when I have to goup one, two or three floors." SPAIN
"I separate waste by types."PORTUGAL
"I’m conscious that we can domuch more, but I believe that
small gestures on the part of eachof us can become majortransformations. Here are someexamples of what I alreadypractice daily at the office: At theend of each workday, I checkwhether all equipment ( printers,computers, air conditioners, etc.)are turned off. I always try toinform the general service whenthere is a leak, such as a drippingfaucet in the bathroom, and I usean individual mug for drinksinstead of disposable cups. Oncooler days, our office leaves thewindows open in place of usingAC." BRAZIL
"I close the windows that othercolleagues have opened, when theHVAC cooling system is working.”PORTUGAL
• I turn off all the lights before leaving for the day. (176)• I recycle paper. I use a separate container for old paper. (142)• I turn off machines not in use to avoid expending energy
unnecessarily. (90)• I only print if really necessary, using always the reverse side
of printed paper for new impressions in draft mode or to takenotes. (89)
• I avoid using air conditioning and other cooling systems. (37)• Reduce business trips. When possible I try to replace them
with tele- or videoconferences. (26)• I try to use as much solar energy as possible. (24)• Other. (22)• I reduce the brightness of my laptop's screen so that the
battery lasts longer. (8)
CO2
COMMENTS / ADDICIONAL SUGGESTIONS
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the strings of the market
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In 2010, EDP was declared the "best company in the world" by the "IR Global Rankings" (IRGR) in the category of financial reporting. According to the IRGR, which compares 503 companies from 35 countries, last year theEDP Group provided an excellent example for other firms,not only in terms of accuracy, transparency andconsistency but also quality of information. EDP was also recognized as one of the very best businesses in terms of corporate governance. To assure independent and fair results, the evaluation was performed by anindependent committee using test results andassessments developed by IRGR analysts.
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Among the levers of utilities development inthe energy market are two points of marketdifferentiation: the increasingly deregulatedinformation systems (IS) industry and struc-tured evolution of support services such asshared services. It is not surprising, therefore,that these areas are sought out by utilitiesthrough benchmarks, case studies, and visitsto the companies at the forefront of industrydeployments. On the cutting edge of IS sup-port, the EDP Group is set apart by the effec-tiveness, efficiency and productivity of itspractices and ability to rise to the demands ofoperating in new energy markets. Proof of itsreputation as a leader in utilities developmentcan be found in the many requests from utilitycompanies around the world to see firsthandhow EDP meets such challenges through itssupport systems.
The state-run Public Power Corporation ofGreece (DEIPCC) visited EDP on Sept. 28,
2010, to see how the company manages levelInformation Systems Geo referenced controlsystems and network incidents distribution.EDP has an integrated solution and a set of au-tomated systems, such as the SIT DR and thePower On GME, which support, respectively,network registry, information from incidentsand network maintenance, as well as mainte-nance teams and technical support throughthe integration of Web technologies and GISmobile technology.
In addition, EDP was greeted last fall by a de-legation from the State Grid Corporation ofChina (SGCC), the company responsible forthe distribution and transportation of the sta-te's energy supply in several provinces. SGCChas about 1 million employees and ranks eighthamong the top Forbes 500 companies. Interes-ted in information systems and the shared ser-vices assembled by EDP Value, the SGCC com-mittee came calling on Sept. 27, 2010, to discuss
and listen to a presentation on how to imple-ment business systems. Beyond the team fromthe Information Systems department (ISD),they met with Henrique Oliveira, of ProjectLince, and Ricardo Nunes, from the Office ofCustomer Service at EDP Valor.
The focus was on the exchange of knowledgein terms of best purchasing practices between companies in the same group whenEDP Office of Negotiation and Purchasing (DNC) welcomed Vattenfall and their repre-sentatives, Johanna Hagelberg, CPO, and Gérard Jacquemin, CEO. Vattenfall is the fifth-largest energy producer operating in Europe'selectricity markets such as Belgium, Denmark,Finland, Germany, the UK, Poland, Hollandand Sweden.
DNC sought to deepen its relationships with counterparts operating in internationalmarkets and to visit the EDO offices of RWEand Iberdrola Purchasing.
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edp culture
EDP as awindow ontechnology for the world
EDP was recently visited by three utilities looking to learn more about the company’s informationsystems, shared services systems and specific aspects of its shared services. Their interest is justanother sign that the Portuguese electricity sector is already a world leader in this area
Examples of the most efficient means and values
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Information Systems help EDP mobilityEDP mobility initiatives provide team members and their companies with effective,cross-platform information systems that are functional and in alignment with themobility of the business.
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edp culture
The team in charge of distribution ofHC Energy and the staff of ISD
Oviedo have finished the developmentand implementation of a new featurein the mobility. From their authorizedBlackberrys, team members can viewincidents, check the status on theelectricity grid average, and monitorlow voltage. As a result, networkoperations are much more agile and itis much easier for teams on theground have an easier time as well.
Also used at EDP Distribution inPortugal is the GME Production
System. Operated by the Managementand Mobility Teams, this systemmanages, operates and dispatches thework-order process (includingcommercial and maintenance issues)and the collection of informationgenerated during the execution ofwork orders by the teams on theground - ie the pickets.
Another enhancement to thecompany mobility is Web mail,
which enables employees to checktheir email accounts, calendars and
task lists anywhere, provided theyhave Internet access at theirlocation.
In terms of geographical mobilityperforming the same function,
there is Target EDP, a managementsystem of financial flows. Thisunique platform, whose featureshave been standerized throughoutthe entire company (including Braziland the United States), allows a timezero adjustment for team membersbetween companies and countries.
Also the management ofwarehouse was streamlined
thanks to the implementation ofan automated supply managmentsystem. Now the input of materials,as well as their output, loss, andtransfer between warehouses isrecorded through the use of bar codereaders that emulate a portablescreen for the functions of SAP.
Finally, there is Project Lince,which serves as a metric for
creating a single baseline of work
within Group-level Administrationand Financial and Human Resources.With Lince, it is possible to changethe company, country and type ofbusiness while working with thesame basic system and all thegains in learning and efficiency thatit entails.
EDP Communications recognized in ViennaEDP won three awards in the field of commu-nications at the FEIEA (Federation of EuropeanBusiness Communicators Associations) GrandPrix 2010 ceremony held at the Center of Industry in Vienna, Austria.Honors went to edpON corporate televisionand the I’m + EDP portal, which both earnedsecond place in their respective categories,and the magazine ON17 on InovCity, which ca-me in third.Before reaching Vienna, the winners of GrandPrix were put through three rounds of evalua-
tions. First, a national jury reviewed applica-tions, and then the top three finalists in eachcategory were sent to Brussels to be judged bya European jury. Next, after the second set ofevaluations, one participant in each area (percountry) was sent to the final round. This year,seven panelists from seven countries tookthree days to judge the nominations and pickthe winners. Danish judge Henrik Vinther said,"I was impressed with the quality of work, es-pecially in multilingual publication and [cate-gory of?] ‘Internal or News Magazine.”
I t is an honor to receive an award like thisone. I have worked for EDP for 33 years,and the company is a very important part
of my life.” This was the reaction from AntónioPita de Abreu, president of EDP Brazil for thepast three years, as he received the Person ofthe Year Award from the Portuguese Chamberof Commerce in Brazil last November. Now inits 11th year, the Person of the Year Award wasgiven to Pita de Abreu after a vote by some 800business leaders associated with the Portugue-se Chamber, in recognition of the investmentEDP has made in Brazil in recent years.
During the event, Pita de Abreu sat at thehead table along with Brazilian President Luiz Inácio Lula da Silva; government ministersOrlando Silva (exports) and Luiz Barreto (tourism); the mayor of São Paulo, GilbertoKassab; Sen. Aloizio Mercadante; Chamber
EdpON, the television service of the EDPGroup, won the 2010 Aberge Award for "au-diovisual media" for the region of São Paulo. As the most prestigious business commu-nications award in Brazil, the Aberge seeksto strengthen and stimulate companies'communications strategies and recognizesinitiative and work in the area of commu-nications and stakeholder relations. To Flávia Ramos, the communications andbrand manager of EDP Brazil, EDP On ismore than a communications channel; it brings together team members acrossthe company. “The Brazilian productionteam achieved important results in the integration of professionals, inspiring ineveryone a satisfaction of being part of thecompany,” she said. More than 3,000
videos have been produced by edpONworldwide since 2008, and the Brazilianteam has made more than 20 percent of them. In Brazil alone, almost 200 inter-views were taped in 2010 with various professionals, including team members,specialists, journalists, athletes, clients,executives and others. According to Alexander Taricani, a branding and communications consultant specializing intelevision, the Aberge Award recognizesbest practices and communication by thegroup. of best practices and communica-tion by the group. To edpON Brazil reporterMilene Pinheiro and her fellow team mem-bers, the award represents market-levelrecognition of the channel's dynamic formof strategic corporate communications.
President Manuel Rodriques Tavares de Almeida Filho; Portuguese ambassador to Bra-zil João Salgueiro; and Luiz Ortiz Nascimento,of Camargo Corrêa.
During his remarks, President Lula touche-don a past that united Portugal and Brazil andthe advantages that such partnerships canbring to the future. In addition, the presidentLula was given a special Person of the YearAward to commemorate his economic and social work [to commemorate his work in social and economic development?] over thelast eight years.
EDP’s Brazilian president was declared the “Person of the Year” by thePortuguese Chamber of Commerce in Brazil – São Paulo, Brazil, withBrazilian President Lula in attendance
TV On Brazil wins the 2010 Aberge Award
3.000Videos Produced
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edp culture
F or the secondconsecutive year,EDP organized
Media Day, a meetingbetween the Group’s administration team andjournalists, with the objective of discussingbusiness and marketingtrends. The initiative,which is part of EDP'sopenness and transpa-rency policy, was oncemore a winning inves-tment. This year, 22journalists and directorsof major national mediaattended and had the opportunity to watchpresentations on issuesrelated to the activity ofEDPG and later askquestions of the Group'sadministration team.
One day before thestart of the meeting, thesame communicationsprofessionals were invitedto a CARM wine tasting.Accompanying them onthis journey of smells, fla-vors and sensations wasFilipe Vale, the winema-ker responsible for the selection of Douro winesfeatured. During the tasting, the journalistswere able to sample various Portuguese winesof excellence.
Media Day is a privile-ged channel for sharing
information and kno-wledge with the mediaand, consequently, withits customers and thecommunity. According to Nuno Vinha, from Lusa(Portugal News Agency),this meeting “is great as it has facilitated a lot ourunderstanding of how the energy businessworks." For Fausto Cou-tinho, from Antena 1, the meetings are impor-tant from the viewpoint of the relationships: "Wegain knowledge and in a less committed, moreinformal climate." AnaGonçalves, from DiarioEconomico, said in a peremptory manner: "It'sa unique opportunity to 'put pressure' on themen of EDP.
My concern was to tryto decode some of the air-tight issues to pass to thegeneral public." After pre-sentations on various busi-ness areas made by the directors of the holdingcompany, João Manso Ne-to, Antonio Martins daCosta and Jorge Cruz Morais, it was time for"one-on-one” question-and answer sessions withAntonio Mexia, in whicheach journalist had the op-portunity to interview theCEO of EDP individually.
Media Day 2010 The Portuguese media got to knowmore about EDP, on the secondedition of Media Day - an initiativethat highlights the openness andtransparency that form part of theGroup’s DNA
At the end of the day, each journalisthad theopportunity to interview the executivechairman of EDP
Meeting between journalists and EDP’s administration team
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An integrated project of the EDP Way program, EDPro focuses oneffective management of the Group's procedures through thefollowing measures:• Implementing a common model for the management of
governance procedures in all geographies and business groups;• Launching a systematic approach to measuring and optimizing
the performance of key procedures.
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edp culture edp way
Vision
Given the vital importance of consolidating the business end, creating value and increasing theimplementation of the new cycle outlined by the Strategic Plan 2009-2012, EDP launched the EDPWay. This project, which includes EDPro, aims to manage Group procedures effectively and launch a new systemic approach to measure and improve performance.
Outline of the common model of governance for process managementThe Governance Model aims to standardizeconcepts and management practices acrossthe Group, including in the following areas:• Process management, focusing on measu-rement and optimization and taking into consideration the various possible dimensions (e.g., performance, control, safety, quality, sustainability, etc.).
• The concept and methodology associated-
with the classification and prioritization ofsteps in the process and their optimization.
• The roles and responsibilities of various-players in the model (Directorate of Development Organizational CorporateCenter (DDO), organizational units thatsupport the management process, busi-ness, process stakeholders, etc.).
• The framework for classifying APQC
processes, to serve as a benchmark for the design. Procedural architecture for eachbusiness.
• The standard symbols BMPN (businessprocess modeling notation) as a referen-ce for the design of procedural flowcharts.
• An iBPMS tool, to serve as the preferredinstrument for supporting managementprocesses.
Main implications of adopting the governance model:• Implementation by the UNs of an annual cycle,with optimization of their key procedure, de-veloped in conjunction with the annual plan-ning and budgeting cycle.•Assignment of business processes to orga-nizational units, under the consolidation ofa global vision - including the internal con-trol system (SCIRF) - as well as drafting de-velopment of the ongoing optimization.
•Assignment of the definition of policies,standards and procedures in this area to the DDO, as well as outlining the general role of orchestration and conso-lidation management processes at EDP,in addition to defining DDO's role in management support of key business procedures.•Building of responsibility among players
at all levels of the governance model, to establish indicators and objectives forimproved efficiency.• Accountability of process stakeholders in the performance and achievement of their procedural objectives, with responsibilities shared among otherkey operational players.
Monitor/ Measure
Identify and document Prioritize
Analy
ze
Optimize
Implem
ent
Execute
Management concepts in the underlyinggovernance modelProcess management is a systematic approach to on-going activities developed around the implementa-tion of everyday procedures. It includes the documen-tation of every step of the instrumental processes sothat they can be optimized and improved upon befo-re becoming the focus of measurement and perfor-mance.
Major contributions to effective process management within the Group adopted three pillars of value creation:
The Group created basicbuilding blocks to establish a common model ofgovernance. The blocks weredeveloped to align, facilitate andenhance the initiatives ofbusiness units in themanagement process.Since completing a set ofawareness alignment ["a set ofawareness alignment" soundsweird to me. " a set ofalignment exercises?"],various EDP businesses havebeen working actively toimplement EDPro.Specifically, their efforts havefocused on identifying keyprocesses and processstakeholders, defining KPIs (keyperformance indicators),implementing a support tool,and, for the first time, fosteringthe cycle optimization for keyprocesses through the inclusion(including costs and benefits) ofspecific initiatives in thefollowing areas:
• Greater control overoperational developmentsthrough performance ofkey procedures
• Greater knowledge ofimpacts of operation’sprocesses variability
• Analytical support foroperational decisions
Aspect most directly impactedby active case management,particularly throughthese key activities:• Systematization• Performance review• Optimization of key
processes• Standardization by
identification anddissemination of bestpractices
• Monitoring and control
• Freeing resources to sustaingrowth
• Allocating resources toprocedures (and soon to operations) and thealigned strategic results
• Facilitating the integrationof effective procurement
• Increasing sensitivity to opportunities and operational constraints
Controlledrisk
SuperiorEfficiency
DirectedGrowth
As part of the EDPro program, in 2009 EDP Distributionundertook a new initiative to ensure better alignmentbetween its processes and organizational structure. Theteam members' goal was to provide the company with thecapacity to respond through the cross dissemination ofknowledge and the sharing of best practices, while takinginto account regulatory factors. To this end, key processeswere identified, represented and characterized by theirpriority indicators so as to integrate simultaneously theperformance management process and SCIRF. The iBPMStool set selected by EDP supported all this activity.
EDP Distribution aligns the company'sprocesses with its business needs
Effective process management is indispensa-ble to the construction of an EDP Group global culture. Together with the other projects of EDP Way, EDPro is expected to achieve specific results upon its implemen-tation:• Common practice management and well-
-oiled process optimization supported by informal structures;
• Processes and a clear framework to repli-cate them in other business/territories;
• Facilitated mobility within the Group between regions and businesses;
• Rapid and efficient integration of proces-
ses into new platforms;• Facilitation of benchmarking and the
identification and global adoption of bestpractices in the Group;
• Better knowledge management - a truly decisive asset for organizational success.
In addition to designing several processes in BPMNwith implementation provided by EDP Renewables(EDPR), EDPro developed a set of guidelines for managing and running processes (namely, which spe-cific rules to use, whether the process involves a corporation, platform or business unit anywhere in theworld).
EDPro implementation in Brazil covers the design of processflow in BPMN, KPI definition, SCIRF integration, and identifi-cation of opportunities for improvement (quickwins) in the management of the following processes: strategy (particu-larly,planning, architecture, integration and implementation),billing of utilities; investor relations; business generation; andhuman resources and financial cycles (including treasury, accounting and taxation).
EDP Renewables: uniformprocesses everywhere in the world
Process management as aperformance tool of EDP Brazil
EDPro plans to harmonize the way we manage and maintain our pro-cesses, which is one of the most important assets that EDP has avai-lable and one in which it invests heavily each year. It is imperativethat we take good care of this asset and oversee its management. Thecases represent the activities in EDP necessary to deliver and satisfycustomers. They are the things that distinguish us as a company. Theprocesses are still the basis of common work. In addition to their per-formance, many colleagues manage information technology, internalcontrols,risk, quality, safety and environment concerns. Such carefulmanagement has allowed us to establish the annual planning cyclefor process optimization, which covers major NUs [WHAT's THAT?]Group and implies engagement on the part of process owners and NUin identifying key processes in order to measure and optimize theway we do things.
The process is a valuable asset worth managing
EDPro is one of the projects that help our EDP Way program to give a greater sense of alignment to the Group’s culture. Management processes common to the whole Group tend to focus on activities of execution, making them a priority and method of differentiation forcustomers, which leads to higher levels of performance. The dominan-ce of these processes, as well as their measurement and systematic attention, create constant opportunities for improvement that are vitalto sustaining the preferences of customers and the leadership of theEDP business in which EDPro operates.
EDPpro is a leadership tool
Rui Ferin Cunha - Head of the EDPro project António Martins da Costa - Sponsor of the EDPro project
innovation*For the second time, the EDP Group sponsored a day dedicatedto innovation. The Pavilion of Portugal was the venue as bothEDP team members and company partners came together toshare best practices and new ideas - another clear sign thatsharing knowledge reinforces a culture of innovation
Innovation Day: Think out of the boxOn Oct. 28, the Pavilion of Portugal in Lisbon hosted the "Energy ofInnovation" conference. There were many who wanted to join thisrevolution of ideas (about 250 people, including team members andpartners), but this event went far beyond the Nations Park area,surpassing all physical barriers. Innovation Day was broadcast liveon EDP ON [again, not sure how you want it formatted: EDP ON oredpON], via giant-screen TV and also online. More than 2,000 EDP
team members were tuned in online, with an average of 100 peoplechatting and interacting at a time. Attendees at the Pavilion of Por-tugal had the opportunity to learn more about various Group pro-jects in which innovation has come into play at all levels: electricalmobility, panels ...Antonio Vidigal, president of EDP Innovation, was the first toopen doors by saying "we are doing this kind of meeting to de-
monstrate that innovation is a part of our everyday life and that sharing ideas reinforces a culture of innovation."
A public companyAccording to Cruz Morais, director of CAE, innovation "is a pathto discover new approaches to old or new problems. And the sector debate was exactly that. All changes to the marketing of fuels, oil and CO2 have made the electricity sector undergochange in two vital ways: by consuming energy more efficientlyand 'decarbonizing' the production sector."In a sign of this openness between EDP and colleagues, Ricardo Mendes, of Tekever -Technologies for the Evernet, had this to say about "collective intelligence": "In this particularcase, energy efficiency is our belief -- only through collabora-tion between consumers can we achieve a higher level in termsof collective intelligence."And he praised the role of EDP: . And, he praised the role of EDP: "It has a structural role, because it is one the few companies in Portugal that has the ability to see projects on a national scale. In terms of structure, InovGrid for example is one of those projects that can be the basis for launching other products that will be first implemented in Portugal. Withthat new thinking, we will certainly be innovators on a worldscale. "Carlos Zamora, from Arquiled, spoke to the audience about
the innovation, differentiation and sustainability that LED tech-nology has offered, and he examined the internal processes of innovation in enterprise. For him, innovation is a multidisci-plinary process that embraces all areas.The conclusion is that the paradigm has changed a lot. The secret no longer is the soul of business. "It's the opposite," argued Mexia, CAE EDP president. “We have to discuss and do better. Sometimes we have the idea that knowledge is only oursand that is power. But if power is shared, the possibilities are greater." This is something the company has known and done withits partners. But part of explaining the new process involved tellingthe audience to take their ideas outside the box of everyday thinking. How? By reinventing processes, methods and solutionsthrough objects as simple as a tennis ball, funnel, pot and hanger.Yes, that’s right! New thinking led to many ideas that sprung fromthe boxes with just those items at the participants' table, demons-trating that, after all, it is possible to reinvent.Innovation Day concluded on a big note: a presentation on the company's social co-creation site, which will serve as a doorway into the world of collecting and sharing ideas. According to Tiago Antunes,of EDP Innovation, "This site aims to stimulate the environment at EDP and encourage everyone to participate." Some participants have posted and tested their ideas, which you can learn more about at www.cocreation.edpinovacao.com.
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innovat ion
In October, EDP Ventures (the venture capital fund for EDP cleanenergies) completed its first inves-tment. Directly in line with its business strategy for 2010, thefund acquired a stake in ArquiledLighting Projects, SA. Founded in 2005, Arquiled was the driverbehind the development of techni-cal solutions for lighting in the new
Lisbon Casino. Its activity focuseson architectural lighting, with particular emphasis on L.E.D.technology and the potential forevolution and innovation that characterizes the field. Arquiledalready has a large portfolio ofsuccessful projects, including theLisbon Casino, Museum of theOrient, Hilton Hotel, Galp Tower,
Church of St. Roque, Hotel TroiaDesign and LUX Nightclub. Remember that at the beginningof its activity, and within the inves-tment strategy in venture capitalfunds, EDP Ventures had alreadymade its first two investments in theCleantech fund, NGEN Partners,United States, and the SIGMA Capi-tal Group, United Kingdom.
EDP Ventures: first direct investment
The Windfloat demonstration project includes the development andinstallation off the coast of Aguçadoura, in northern Portugal, of afloating scale platform (built to the Atlantic climate) equipped with a 2-MW turbine. Shaped like a triangle, the steel test platform is semi-submersible and weighs about 1,200 metric tons as the turbi-ne reaches 60 meters in height. This platform/turbine will be testedfor 12 to 24 months and, depending on the results, will evolve into a pre-commercial and trade-based product. The great advantage ofthis floating wind technology is that it allows for the exploration ofwind energy in deep water (more than 40 meters), giving Windfloat
a real edge over alternative systems with fixed foundations. It can also be assembled beforehand on land (and then towed), minimizingwhat can often be difficult work at sea.To turn this project into a reality, EDP signed contracts withPrinciple Power (the U.S. promoter), to develop the project, and Vestas (the largest manufacturer of wind turbines in the world), to supply the turbine. Together with EDP Innovation, the Portuguese[wind-energy? not sure of field it's in] company A. Silva Matos has strongly supported this innovative project through national funding.
Windfloat: Energy from the high seasWindfloat, one of the most ambitious projects in terms of technologicaldevelopment in Portugal, is under way
1200metric tons of steel
FloatingPlatform
60 meters talland 2MW
Turbine
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In January 2010, EDP, Visão andExame, launched their secondEDP/Richard Branson InnovationAward, offering a cash prize of50,000 euros for the project thatdemonstrates the best innovativeapproach to clean energy. The bigwinner this year was Waynergy'sidea for a sustainable pavement thatuses a combination of alternative-energy sources to produce electricityin interior and exterior spaces. Thisproject, developed by Casimiro Filipeand Francisco Duarte, distinguishesitself from other models on themarket because it can be appliedindoors or out, in such placesas trade centers, publictransportation stations and sportsevent venues. In second place camethe EcoWater project, by JoséMeliço, which contributes to adouble savings of water and energy
in homes, gymnasiums and hotels.This system recovers water thatnormally is wasted - the output fromtaps while water is heating - andindirectly saves energy by reducingthe amount of water requiringcollection, treatment anddistribution. It is estimated thatwhile waiting for the water to heat in the shower to a desiredtemperature, we waste about 6 liters (1.5 gallons) of water onaverage, the equivalent ofapproximately 60 million gallons(227 million liters) of water wasteddaily just in Portugal.For the 2011 edition, we expect moregreat news, especially given the newidea of preselecting competitors, suchas the prototypes from FabLab, knownfor their inventions at EDP. Moreinformation can be found athttp://openspace.edp.pt/FablabEDP
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innovat ion
Waynergy wins the EDP Richard Branson Prize
RESEARCH TEAMMULTI-COMPANY
Five Spanish electricity companies,including HC Energía, have beencollaborating since 2008, developingprojects for substation automationand electrical equipment accordingto the IEC-61850 standard. They havesubmitted their findings to systemsproviders in Madrid. The group'smission is to research and reconcilethe demands of communicationsprotocols with the systems providedby suppliers and to optimize methodsand reduce costs. The aim is toincorporate new ideas as amandatory requirement in all biddingfor substation automation. In reality,HC Energia is already implementingthis agreement in the bidding systemfor new remote substations likeRomio, Silvota and Lloreda, E3-61850(along with HC Energía, Endesa, REE,and Iberdrola UFGas Natural). This isa good example of collaborationamong companies with the sameobjective in mind.
Antonio Laporta, EDP’s director of innovation strategy, was in Germany to discuss sustainable mobility initiatives during the European Mobility GreenTour, which is supported by EDP. The tour came to the cities of Berlin, Nuremberg, Munich, Stuttgart and Freiburg, where Laporta had the oppor-tunity to experience the innovative solutions for sustainable mobility and urban transport adopted by the towns and major German companies. Thanksto his marathon visit, Laporta brought new knowledge of sustainable mobility development to EDP as well as confirming the company's alignmentwith some of the world's most innovative projects.
Antonio Laporta at Green Mobility
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market
20 o n
EDP Businesses
I n a very challenging year, we once again pre-sent the best results," said EDP’s president,Antonio Mexia, about the 4 percent rise in
profits for the first nine months of the year. The impressive figure was driven by the Grou-
p's growth in Brazil and its increased presencein the wind-power market. EBITDA rose 9.2 per-cent to 2,651 million euros, with 86 percent ori-ginating from regulated and contracted long-term activities. Earnings before depreciation andamortization were supported by 28 percentgrowth in Brazil, which was driven by the Realappreciation of 22 percent, a recovery of demand,and the positive impact of annual tariff adjus-tments done by Bandeirantes and Escelsa. "Theweight of the operating results outside Portugalrose to 53 percent. The globalization strategy wasimportant for this rise," explained Mexia.
The 28 percent increase in wind activity was
supported by a higher installed capacity, a 2 percent higher average selling price, and a 12percent increase in regulated networks, whichwas driven by gas regulated activities. Towardthe end of this year, EDP estimated contracted
sales of 29 TWh, representing 38 percent growthover the course of 2009. For next year, the com-pany has already contracted more than 12 TWhof electricity sales, or about 65 percent of the ex-pected production, with prices and margins inline with the ones contracted for 2010. Duringthe first nine months of the year, EDP's conso-lidated installed capacity grew by 11 percent.
CEO Antonio Mexia expects to close 2010with record results, and the numbers are ap-proaching that expectation.
In September 2010, EDP had a very comfor-table liquidity position, close to 3.9 billion eu-ros, which should cover the expected financingneeds until 2012. In October 2010, Standard &Poor's maintained its rating of EDP followingthe decision taken by the two other top ratingcompanies (Moody's and Fitch) in June andJuly of this year.
During the first nine months of the year, profits grew by 4 percent to 777 million euros,approximating the 1 billion euros mark expected by EDP at the end of 2010
Results are reaching their target
25%Redes Energia Regulada
(P. Ibérica)
24%Produção Contratada
(P. Ibérica)
14%Actividades Liberalização
(P. Ibérica)
18%Eólica
19%Brasil
9%
Grossmargin
3rd-quarter results
Net profit
*Compared with the amount at 2009 year’s end
EBITDA Operationalresults
Operatingcosts
25% Regulated EnergyNetworks (Iberian Peninsula)
Net debt*
4% 9% 2% 7% 16%
18% Wind
14% Liberalization Activities(Iberian Peninsula)
24% Contracted Production(Iberian Peninsula)
19% Brazil
“
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market
o n 21
Naturgas Energía even more EDPBy 2012, EDP will acquire 95 percent of Natur-gas through HC Energía in a phased acquisition.The agreement involves the purchase from EVE(Ente Vasco de la Energía), of 25.35 percent of thecompany and 4.08 percent from the Ayuntamien-to de Donostia-San Sebastian. This is a 29.43percent acquisition of 617 million euros. The Bas-que government will maintain a 5 percent stakethrough EVE and will have a representative onthe board of directors. By 2016, it will also obtainsome rights, such as maintaining the headquar-ters in the Basque Country and having the veto
on possible divestitures. The purchase will takeplace in three phases: the first, refers to the pur-chase of 9.43 percent of capital, valued at 197.7million euros, still to be made this year; the ac-quisition of 10 percent of the shares (209,650,000euros), in the second half of 2011; and finally theacquisition of another 10 percent of the shares(209,650,000 euros) in the second half of 2012.With this transaction, the Basque governmentwill complete the privatization process of the gasoperator, which started in 2003 in accordancewith deadlines previously established.
On Oct. 15, 2010, Naturgas Energía inaugurated the Bergara-Irun pipeline in Spain, the longest stretch of the project opened by the company to date. At 90 miles long, the sectionrepresents an investment of 70 million euros, as the projecthas been under way for about three years. The official inau-guration of the infrastructure was overseen by Bernabé Unda,counselor for industry, innovation, trade and tourism for theBasque government, in a ceremony attended by Pedro LuisMarín, secretary-general for energy at the Ministry of Industry, Tourism and Trade; María Teresa Costa, presidentof the National Energy Commission; João Manso Neto, chair-
man of EDP Gas; and Manuel Menendez and Fernando Berga-sa, president and director-general, respectively of NaturgasEnergía. This strategic infrastructure project was built to ensure an energy supply at Guipúzcoa and to improve the gasexchange network between the Iberian Peninsula and the restof Europe. The Euskadour second stage of the pipeline, linking the networks of Naturgas Energía to French TIGF (Total Infrastructures Gaz France), is next. During this stage,Naturgas is focusing special attention to environmental issues, using for instance 370,000 m2 of reforested land - theequivalent of more than 60 soccer fields.
Innovating in costumer relationsNew realities are requiring EDP to bring in-novation to products and customer service on a consistent basis through onlinerelationships, producer-consumer and intel-ligence networks, and the full deregulation ofthe market.
According to Cruz Morais, director ofEDP and chairman of EDP Commercial,this innovation is reflected not only interms of price, but also customer relations(e.g, text messaging and e-invoices) to en-sure the retention and growth of the com-pany's existing client base. EDP is mindfulstill of the urgent need to reduce greenhou-se gas emissions in order to cope with thedisappearance of carbon from the atmos-phere. To tackle this challenge, EDP is acting on various fronts, namely and
primarily by promoting energy efficiency.This effort will be shared in equal measureby the company's residential, business/in-dustrial and transportation sectors.
"We are betting on two fronts: servicesthat already exist in the market today and ...services for photovoltaic, microgenerationand minigeneration services for energy certification and company audits, and eventechnical support services for the customerat both home and the workplace. This year,we will also launch a range of transporta-tion-related services, including solutions forthe charging of electric vehicles," said Fili-pe Santos of EDP Services.
The truth is that the energy paradigm ischanging by leaps and bounds, and soon wewill have new cities that can create and usecleaner energy. "It's this important task that
we are doing in InovCity. It's a platform thatwill serve almost as a laboratory over the nextfew years as we test new products and servi-ces," said Miguel Stilwell d'Andrade of EDPDistribution.
But innovation is not unique to services. Italso involves a more modern online relationship and more efficient contact ma-nagement. According to Manuela Silva ofEDP Commercial, "We have two major objec-tives: reducing costs and minimizing mate-rials. People are going to fewer stores andagents, and they have less time on theirhands. They need EDP to have a more modern, speedy and efficient relationshipwith them. Then there is the issue of contact management, which has to do with how wetreat customer complaints and requests forinformation."
Energy marketing and innovation in products and services were the major areas discussed at a meeting called "The EDP Customer Experience" held in late September 2010. Organized by the Department of Customer Relations, this meeting brought together company areas and units that place the client at the center of their work, creating space for sharing both knowledge and projects and initiatives that make for a more positive customer experience
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market
The core of businessThe challenges are enormous in energy mar-keting. For this reason, sharing and exchan-ging experiences within the Group is vital. "Itis especially important to share ideas betweenall of the Group's companies, to exchange experiences, and, above all, to consider theconcerns and needs of the customers,” saysJohn Aguiar of EDP Universal Services.
And what does the customer want? "Essentially they want EDP to be there,whenever and wherever it's needed, offering products and services tailored totheir needs. They also hope for a good rela-tionship, reasonable prices, and above all,for confidence in our commitment whichare already assets of EDP," adds Paula Pin-to da Fonseca.
Another change looms in the very shortterm: the end of regulated fees for electri-city sales to final customers of very high,high, medium and low voltage. It starts January 2011. According to Paulo Pinto de Almeida of EDP Commercial, the freemarket will bring more stability and transparency but also more competition."With the end of fees on the horizon, we arestrengthening our operation for customersof lower segments and also because, again,
there is a large push to build relationshipswith B2B customers, promote one-to--one marketing, and customize service andcontracts. This is a new year," he stresses.
According to Massimo Rossini of EDPGas, EDP's gas objectives in Portugal are tocontinue to grow and serve customers well."It is worth remembering that an EDP gascustomer is a satisfied customer. We mustcontinue to compete in the market industryin order to improve our position by conti-nuing to provide energy and greater com-petitiveness for the national industry," heargues. For António Mexia, president ofCAE, "what is happening in the market is aset of forces, events and changes that makeit much more important to have the senseof urgency with which EDP acts to resolvewhat people seek. It is necessary we putourselves in our customers' shoes – fromindustries, to homes, in Portugal, in Spain,in Brazil – adopting an open company."
And it is in these forces and changes thatEDP stakes its claim and is particularly at-tentive. It will certainly be a challenging fu-ture for the Group on all levels, but it's no-thing that a company without barriers, andwith a global vision strategy, isn't alreadyfamiliar with.
HC Energía with the Best Customer Care Center
The customer service center of HC Energíawas given the “2010 Client Experience”award in the energy sector for the sixth con-secutive year.The award was presented by the SpanishSpecialist Association in Customer ContactCenters in collaboration with Izo System.
The award recognizes companies with thebest customer service. The HC Energy Center for Customer Servi-ce recorded about 1 million calls answeredover the last year. The award recognizes thecompany's commitment over the last 10 ye-ars to provide excellent customer service.
EDP SERVICES OFFERSTRANSFORMATION STATION
Raising the Voltage Level is a solutionoffered by EDP Services to improve quality of service and reduce electricenergy costs. The provision of thisservice follows the completion of a study of the technical conditions for electricity installation and consists of several solutions, such as a supply of transformation stations (PTs) and theconstruction of a substation. The client,Lavandaria Araújo and Rosa Costa, of Armação de Pêra, wanted to employthe voltage-raising service, to movefrom the special low-voltage (BTE) levelto the medium-voltage (MV) level. Costa found that EDP Services offeredthe best deal for her financial needswithout sacrificing quality. The solution,provided by EDP Services through itsnetwork of agents, was the supplying of a concrete box, MCBA-1T-4250- 2P,through the implementation of electricconnections in the interior (cells and transformer) and through theconnection between the MT airline and the 400 kVA transformer, conductedby Olhelectro, the jobs were performedwithin one week in June, with thecustomer connected to MV on Oct.19. The client has needs and EDPServices delivers!
1Mcalls answeredin 2009
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Solidarity schools already in the field
24 o n
edpcausesEconomic and social commitment
The Energy With Life (Energia com vida) pro-ject, from EDP Gas, started last September.The first edition is destined to public or
private middle and high schools up to the ninth grade, in the Portuguese districts of Porto, Bragaand Viana do Castelo. The organizers hope to growthe project in the future in terms of its geographicscope and the level of education. The concept behind the "Through the youth, through the scho-ols, with the community" is to teach and motivateyoung people to help those in need and give themthe unique opportunity to reach adulthood feelingas if they've seen social problems and acted. At theschools a continuous solidarity- educational matrix will be created, bridging the communitywith existing social welfare institutions and gene-rating live platforms for knowledge exchange and
local intervention. The Energy With Life projectchallenges the school community and its familiesto embrace this commitment to act, with a sustai-nable intervention methodology that can be adap-ted to fit each locality. Project participants will actin such areas as "poverty and hunger," "living withdifferences," "serious illnesses," "unemployment,""senior population," "illiteracy," "environmentalsustainability" and "global partnership for humandevelopment." During the academic year, the scho-ol teams will be challenged to identify the real is-sues affecting their surrounding areas (includingthe school itself) in order to solve or minimize tho-se problems. At year's end, the Solidarity Schoolsof 2010/11 will be determined.
You can follow this project and learn more aboutit at www.energiacomvida.organd on Facebook, Twitter, Hi5 social networks.
At year's end the Solidarity Schoolsfor 2010/11 will be determined. Thewinners of the award will be thosewho try to solve or minimize the pro-blems encountered in their surroun-ding areas.
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edp causes
Solidarity Energy
EDP Solidarity Dams helps nine new projects
An environmentally friendly laundry to promote social inclusion in the county of Vila Velha de Ródão; therapeutic workshops to develop the sensory abilities of young people with mentaldisabilities in Mirandela; a commercial project to combat desertification in the region of Beira Interior - these are just three of nine projects selected by the 2010 EDP Solidarity Dams program, which will receive more than 220,000 euros in monetary support.The winners were announced at a ceremony that took place Nov. 8, 2010, at the prefectureof Vila Real. In this second round of the program, 46 projects applied with the intentionof reaching more than 153,000 direct beneficiaries.
Pink OctoberEven in times of crisis, HC Energía’s teammembers support their colleagues. A good example is their collaboration inthe project EDP launched in the Republicof Benin, in West Africa. As part of theirparticipation, the team members havedonated a day's wages, or anotheramount they consider appropriate, to fund the electrification of a village in the country. The supply of electricity to populations in Benin with fewerresources is the main goal of this jointaction, which involves HC Energía, the HC Energía Foundation and Energía sinFronteras, as well as the local inhabitantsthemselves, who also have invested their time and energy in the project. The team's participation in suchcorporate social responsibility initiativesis crucial. Indeed, the success of theproject will depend to a large extent on the cooperation and generosity of thecompany’s team members. The HCEnergía Foundation plays a major rolehere, as it doubles the amount donated by each team member to make thisproject a reality.
This year, EDP Brazil joined thePink October campaign, organi-zed by Femama (the Brazilian Fe-
deration of Philanthropic Institutionsfor the Support of Breast Health), in thefight against breast cancer.
Consequently, EDP has scheduled a number of external and internal ac-tivities to raise awareness of breastcancer and the importance of early detection.
In a symbolic nod to the name of thecampaign, distributor EDP Bandeirantechanged the color of their customerselectricity bills to pink, and the towers ofEDP Escelsa, an electricity distributor inMorro Jesus de Nazareth, were also illu-minated in pink.
In addition, the Web sites of EDP, EDPInstitute, EDP Bandeirante, EDP Escel-sa and the ON bulletin also honored theproject by coloring their layout in pink.
The fight against breast cancer has another ally in Brazil. EDP hasjoined the Pink October initiative, with the towers of EDP Escelsa and the electricity bills of EDP Bandeirante gaining a new color
220thousand euros
153thousand beneficiaries
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2 6 o n
in focus
Biodiv
eThe year 2010 was devoted to biodiversity. For its part, EDP has made a ommitment to reduce the loss of species and their habitats. Learnhow the Group has beenfulfilling its mission.
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o n 2 7
em foco
ersity
in focus
T he term biodiversity describesthe richness and variety of the natural world. It is not known
exactly how many species of plants andanimals exist in the world. Estimatesrange from 10 to 50 million, but untilnow scientists have only classified and named 1.5 million species. Pollu-tion, overuse of natural resources, expansion of the agricultural frontier at the expense of natural habitats, andurban and industrial sprawl are puttingat risk the extinction of many plant and animal species. The General Assembly of the United
Nations declared 2010 the Internatio-nal Year of Biodiversity, to raise awareness about the importance of preserving plant and animal speciesworldwide. This initiative aims to emphasize the importance of biodiver-sity to our quality of life, reflect on theefforts already undertaken to safeguardthe diverse life-forms on our planet, andpromote and foster all work-related initiatives that help reduce the loss ofbiodiversity. Protecting biodiversity re-quires that the entire global communitywork together to ensure a sustainablefuture for all. We will only achieve a reduction
in species loss as well as resources andraw materials if all members of society,including the private sector, contribu-te to solving the problem. The questionthat immediately arises is how then to combine economic developmentwith the protection of ecosystems? The answer is easy: through sustaina-bility. Access to electricity is, for example,
seen as key to reducing poverty. Today,approximately 1.6 billion people live without electricity worldwide. In the future, a large percentage of them gainaccess to energy, but this developmentwill have a direct or indirect impact on the surrounding biodiversity, interms of the occupation or degradationof the ecosystem, weakening of soil or water pollution.
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2 8 o n
in focus
The construction of new hydroelectricplants, mainly using reservoirs, leads to theflooding of fields that have various types ofusage. The irreversible suppression of highecological value riparian galleries, and theconsequential habitat fragmentation andalteration of the flow regimes, are the mostsignificant impacts. In the reservoir area thelotic systems (running waters) are replacedby lentic systems (still waters), which leadsto a readjustment of the resident species.Along the stretch of river where the damwas built, migratory fish species usually are
the most affected. In this sense, EDPpromotes a series of measures for newecosystems equilibrium, taking advantage offavorable conditions for some of thespecies. It also promotes a set ofcompensatory measures, such as, therecovery of degraded water lines, theimprovement of the quality of neighboringhabitats or the artificial spawning and therecovery of downstream water lines. EDPhas fish ladders in many plants, and alsopromotes compensatory measuresassociated with migratory species
Hydroelectric Production
With about 8,000 MW of installed thermalgeneration capacity (coal, fuel oil and natural gas), the raw materials extractionphase can lead to significant habitatdegradation, whether we speak in terms of acidifying gas emissions or emissions from the cooling waters process to the hydro surroundings. EDP assumed its commitment to reduceCO2 emissions by 70 percent in 2020,
compared to its 2005 figures, which can be obtained by reducing the consumption of electricity from fossil fuels. At the same time, EDP has chosen to use fuelswith a lower concentration of sulfur and to implement denitrification anddesulfurization systems for emissions.The cooling towers, which already exist at the plants with a new combined cycle, also help mitigate the impacts.
Thermoelectric Production
The impact of wind energy production onbiodiversity is localalized and reduced. However, EDP gives the issue special attention,since wind energy is considered to be abooming business. Carrying out feasibility andenvironmental impact assessments and otherspecific studies on avifauna, etc., in the earlystage of projects, enables EDP to select the
correct location for its wind farms and thusminimize future environmental damages. EDPconducts monitoring studies on birds and batscolliding with the blades of wind turbines, anexample of the project's most direct impact onthe environment, and promotes compensatorymeasures to limit indiscriminate access, whichcan disturb sensitive species and habitats.
Wind Production
The expansion of electricity distributionnetworks depends heavily on urbanplanning. As more construction takes placewithin areas afforded nature protectionstatus, it also increases the number oflines that will be built in those regions.On the Iberian Peninsula, the main impacts
result from the collision and electrocutionof birds with power lines. In other areas,these impacts extend to additional wildlifespecies, such as the white-faced saguimonkey, in Brazil. The need to managevegetation growing along the protectedareas for the distribution lines requires
periodic cuts of the foliage. To minimize itsimpacts, EDP implements measures suchas routes diversion, use of insulated cables,placement of warning signs for the lines,among others. It also promotes theisolation of aerial electricity distributionlines.
Electricity Distribution
At EDP, biodiversity is animportant management variable.The Group's business strategyhas tended to focus on growthfrom renewable energies,particularly from wind andwater. By 2020, it intends toachieve an additional 3.5 GW ofinstalled hydropower and morethan 274 GW of installed windenergy capacity. Thismanagement variable stemsessentially from the followingobjectives:- Controlling the operationalrisks that result from theincreasing legal and regulatoryframework concerningbiodiversity protection and fromthe social pressure associatedwith the construction of newprojects;- Safeguarding company’sposition in marketsgeographically locatedin areas of extreme sensitivity,namely Brazil, where theadoption of policies andinitiatives specifically aimed to protect biodiversity assumeparticular importance in thecontext of managingenvironmental projects;- Maintaining a reputation oftrust and credibility with keystakeholders and assuming a leading and proactive role inthe protection of biodiversity.
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o n 2 9
EDP Fund for Biodiversity
The EDP Biodiversity Fund, establishedin 2007, supports projects related to thepromotion and recovery of biodiversity.Private or public nonprofit, scientific orhigher-education institutions that showtechnical expertise in the field of natureconservation may apply for the fund,which will contribute 500,000 eurosannually to combat biodiversity lossuntil 2011. With the establishment of this fund, EDP aims to increaseknowledge of the different scientificaspects of biodiversity, optimizeconservation and improve the dynamicof ecosystems, placing specialemphasis on fields with more relevance
to the development of its activities and focusing on the regions where it operates. The 2010 edition jury waschaired by João Ferreira do Amaral,professor at ISEG (School of Economicsand Management) and chairman of EDP’s Environment and SustainabilityCouncil; Maria do Rosario Partidario,professor at IST (School of Engineering,Science, Technology and Architecture)and an expert in strategic environmentalassessments; Francisco Sanchez,of theEDP Foundation; Luis Filipe Manuel,manager of EDP Innovation; andAntonio Neves Carvalho, director of EDP’s Sustainability and Environment
Office. In this third edition, conservationprojects were awarded to four differententities: the Portuguese Society for the Study of Birds (SPEA - study ofhabits of migratory birds), Institute of Agronomy (study of trees along the river banks), Center of MarineSciences of Algarve (CCMAR - study of sea bottom forests) and Frauga -Association for the IntegratedDevelopment of Picote (studies on the usages and knowledgeassociated with species from theInternational Douro Natural Park). The winners will share the 500,000euros in funding.
COSTS AND INVESTMENTSIN BIODIVERSITYIn recent years, EDP has been making an effort to differentiate its environmental expenditures, breakingthem down by category. Today, it is possible to see the costs and annual investments associated with the Group's commitment to biodiversity protection.
(Unit: thousand euros)Note: The cost of protecting the biodiversity and landscape in the U.S.are not yet dissociated from the remaining environmental issues.
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3 0 o n
in focus
• Portugal’s average ecologicalfootprint per capita: 4.5 hectares.
• Bio-capacity (a measure ofregenerative capacity, with thepossibility of mitigating CO2 emissionsor generating resources capable ofsuppressing the consumption): 1.3hectares per person.
• Portugal occupies 39th place amongthe biggest destroyers of the planet.
• In terms of bio-capacity,Portugal ranks 85th among 126countries, below the Europeanaverage.
• Portugal consumes moreenvironmental resources than it is able to produce. In addition, it is the sixth country in the world in terms of water consumption per capita, consuming 6,000 litersper day and per inhabitant.
Portugal
Water• Billions of people,
particularly in developingcountries, get the water
they drink directly from rivers, lakes,springs and swamps.
• In 1995, approximately 1.8 billion peoplelived in areas with severe water stress.
• It is estimated that by 2050 about two-thirds of the world's population -
5.5 billion people - will live in conditions of moderate to severe water stress.
Forests• Forests account for 90 percent of terrestrial biodiversity,
store carbon, help to regulate the climate, reduce theimpact of flooding and purify water.
• Deforestation accounts for 15 percent of greenhousegases emitted by human activity.
Portugal spends almost four times more environmental resources than it has available.
Sixty percent of the planet's regenerative capacityis found within the borders of just 10 countries:Brazil, China, United States, Russia, India, Canada,Australia, Indonesia, Argentina and France.
Rich inbio-capacity 10+
SOSPlanet
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World population• 3.5 billion people live in urbanareas.
• By 2050, 6.3 billion people areforecasted to live in urban areas,and the world's population willreach 9 billion.
• 80 percent of CO2 global emissionsare produced in cities.
1.Change consumption patterns. The way we eat and the energywe use have a direct impact on the carbon we emit.
2. Create protected areas, prevent deforestation, preserve watercourses and control fishing.
3. Invest in energy-efficient building and forms of transportationwith low power consumption
4.Plan and manage the soil rationally.5. The failure of the climate change summit in Copenhagen illustrated that it is much easier to say than to do, especially at the governmental level.
A report from the World Wildlife Fund estimates that at the currentrate of natural resource consumption, humans will need the equivalent of two planet Earths by 2030. By 2050, we will need almost three.
Ocean• Nearly 3 billion people worldwide get 15 percent of the animal protein in theirdiet from fish.
• The stocks of the 10 most fished species are heavily exploited, complicating the recovery process in the near future.
• In 2007, 28 percent of monitored marine stocks were overexploited, depleted or recovering from depletion.
• Seventy percent of commercial ocean fish isthreatened today.
• As with cod, stocks of Northern blue fin tuna arealready on the verge of collapse in the Mediterranean.
• From 1970 to 2007, the Marine Living Planet Indexfell 24 percent. The index, an indicator of the evolutionof marine life, follows 2,023 populations of 636 speciesof fish, seabirds, turtles and marine mammals.
Five commandments for increasing quality of life on theplanet without harming Mother Earth.
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QUIZEDP andBiodiversity
1 - EDP Gas has partnered with the NationalAssociation of Forestry, Agriculture andEnvironment Businesses (ANEFA), under thePronatura project. The partnership aims topromote the reforestation of burned areaswith native species, thereby safeguardingbiodiversity in Portugal's forests. How manytrees does EDP plan to plant in the Caminhãmunicipality?a) 500b) 1,000c) 2,000
PORTUGAL
2 - Since 2003, EDP has maintained apartnership with Quercus and the PortugueseSociety for the Study of Birds (SPEA), which aimsto promote a balance between the quality oftechnical service and the protection of species, inparticular birds who collide with and sometimesare electrocuted by the electricity distributionlines. What is this partnership called?a) Ecological Corridorsb) Protocol Avifaunac) Operation Protected Habitats
3 - The construction of the new Baixo Saborhydroelectric plant, in an ecologicallysensitive, was preceded by a complexenvironmental impact assessment. With that,EDP established a voluntary scientificassessor partnership for the entire process, to ensure and maximize the ecologicaleffectiveness of the measures to beimplemented on the ground. With what group did EDP partner on this project?a) Research Center for Biodiversity and
Genetic Resources (CIBIO)b) Institute of Nature Conservation and
Biodiversity (ICNB)c) League for the Protection of Nature (LPN)
4 - Since 1996, EDP has had 1,000 m2 ofgreenhouses in the Setubal thermal station.The greenhouses are optimized for theproduction of autochthonous species, some of which have protected status. The outcomesshowed that global warming caused anincrease in the plant growth rates by 30percent more than unheated greenhouse. How many plants per year can the Setubalgreenhouse produce?a) 100,000b) 50,000c) 75,000
SPAIN
5 - Through its biodiversity fund, EDP hassupported various initiatives under the businessand biodiversity commitment, totaling 2.5 millioneuros over a period of five years. Among theseinitiatives is the Emergency Recovery Plan of threeRupícola bird species at the International DouroNatural Park. What birds are we talking about?a) Apus melba (Andorinhão-real),
Pyrrhocorax pyrrhocorax (Gralha-de-bico-vermelho) and Gyps fulvous (Grifo)
b) Bubo Bubo( Bufo Real), Falco peregrinus(Falcao Peregrino) and Neophronpercnopterus (Britango)
c) Hieraaetus fasciatus (Aguia de Bonelli),Egyptian Vulture (Abutre do Egipto) andCiconia Nigra (Cegonha Preta)
6 - Each new client and invoice of HCEnergía translates into the company'senvironment commitment. Thus, customersand the HC Energía Foundation have alreadyplanted more than 30,000 different trees atvarious locations around Asturias. What isthe name of this initiative? a) “Un client, un árbol " (One client, one tree)b) "Viva la floresta " (Live the forest)c) "Facturas ecologicas” (Ecological invoices)
7 - Naturgas Energia expects to plant, in thecoming months, more than 13,000 trees in two different forest sites, in Mendibil (Alava)and in the Aiako Harria Natural Park(Gipuzkoa), provided by the forest entities. The trees are native species and will bechosen depending on their better adaptationto the grounds. What is the size of the sites?a) 4 hectaresb) 7 hectaresc) 10 hectares
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14 - What kind of terrestrial mammal,which is endemic to the coast of Rio Grandedo Sul,and lives in burrows in the sand, isbeing protected during the construction of theTramandaí wind farm?a) Cuíca-Lanosa (Caluromys philander)b) White Tuco-Tuco (Ctenomys flamarioni)c) Tamandua-Mirim (Tamandua tetradactyla)
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8 - River Nalon received new residents torepopulate the waters. The HC EnergíaFoundation gave more than 100,000 browntrout fry, in collaboration with the NalónFriendly Fishermen Association. Studentsfrom Elena Sanchez Tamargo public schoolin Pola de Laviana, contributed to the fry’srelease in the river waters. The project hopesto instill among students from Asturias asense of responsibility for the environmentand the need to protect biodiversity. What kindof fish are we talking about?a) Carpb) Troutc) Bass
9 - What kind of fauna and its habitat inAsturias has been protected by the HCEnergia Foundation?a) Brown Bearb) Deerc) Bat
10 - To ensure the conservation of biodiversity,HC Energía created the first river lift in theAsturias region. It is one way to help the fishpassing through the company’s station toovercome the obstacle and follow the river'snatural course. Where is it installed?a) Tavergab) Tejoc) Huebra
BRAZIL11 - The Econnosco program strives topreserve human resources. During oneevent in 2010 for team members' children,which used environmental awarenessmaterials to talk about waste with theinternal audience and the development ofsustainability projects by the ambassadorsof Econnosco, what was the amount spenton the implementation of selective batteryand residues collection points?a) 500,000 realesb) 20,000 reales c) 100,000 reales
12 - What's the name of the initiativeincluded in EDP's school-based program,which had as its theme, "Biodiversity: howmany different lives!" and which involvedstudents jointly producing a newspaper?Thecompetition took place in São Paulo,Espírito Santo, Tocantins, Santa Catarinaand Rio Grande do Sul states; involvedabout 7,000 students; and created 950 jobs.a) Art With Energyb) Live Our Energyc) Environment Is Life
13 - The project to re-use rainwater for the irrigation of gardens and orchards, inthe southern region of EDP Escelsa, wasperformed in what municipality?a) "Cachoeiro de Macaé"b) "Cachoeiro de Ubatuba"c) "Cachoeiro de Itapemirim"
RENEWABLES15 - EDP Renewables is developing a projectto monitor and track diurnal birds of prey inCatalonia. What type of bird of prey is thisproject oriented toward?a) Real eagleb) Aguia perdicera (Hieraaetus fasciatus)c) Marbled duck
16 - Through its commitments policy, EDPRNorth America demonstrates its respect forwildlife and its habitats. In this sense, thecompany has already spent millions of dollarson studies to understand better and reducethe potential impacts of wind farms. Howmany studies did it launch, in 11 states,during 2010?a) 7b) 12c) 18
17 - Hundreds of thousands of birds of preycross Europe and Africa every year, with theStrait of Gibraltar acting as an area ofconcentration and key point of obligatorypassage. Having this region as an area forabundant numbers of migratory birdsprovides crucial information for managementon the conservation of migratory birds of prey.What type of tool is used?a) Put washersb) Publication of a guidec) Installation of an information panel
L yn Heward has been with Cirque duSoleil for 18 years and has never feltthe flame diminish. In this interview,
she explains why and shares some tips forkeeping creativity and job satisfaction high.
You have been with Cirque du Soleilfor many years. How do you keep the"flame" lit?Always doing things differently. I was
lucky by always with the Cirque. They allo-wed me to advance a lot. It's the ideal set-ting for any person: to enter a position andthe company allow the employee to evolve,have by always doing new things. Every twoyears I was given a different job. When so-me people (and this has happened a few ti-
mes in recent years) come to me and say,"I'm so satisfied because I’ve advanced inthe company, but I'm not happy doing myjob,"and ask me what to do, I reply: "Do whatyou like, even if it means going to meet withthe artists on a Friday at the end of theafternoon. Your work is important, but youhave to feel happy and healthy doing it. "Doyou know what I missed most when I beca-me president of the Creative Content Divi-sion? Working with the artists.”
What is the company’s "mantra"? The key is to evoke the imagination, pro-
voke the senses and invoke emotions. Ori-ginally, it was written as the internal mottoof the company. It was what we used to mo-tivate people in the company. Then it be-came the our statement to the outside.
This mission has social significance for
our people inside the company as well as forour consumers outside. We know whaviewers expect of us, but to give them that,we must provide the same to our employe-es by invoking their emotions, provokingtheir senses and evoking their imaginations.Our mantra is all about personal growth andachievement. Despite being part of a teamand always talking about the team we want,each of us within the Cirque deserves ourown space.
Our mantra is also linked to our socialrole in the greater community, which is andalways has been to work with disadvantagedor marginalized youth.
And this became very important forCirque, to the point of having some of our
coachesworking on outside projects, whichbrings much inspiration to the company. It'ssomething that every Cirque employee hasto do: participate in this social mission bycontributing a percentage of his/her salaryto this program. They each have their mis-sion in life but also have their mission hereat Cirque.
How do you define creativity?First, creativity is distinct from innova-
tion. I do not talk too much about innova-tion, because what makes me tick is the factthat people can increasingly become morecreative in their lives. Creativity begins withinspiration, intuition and our ability to seeold things in new ways and carry this all in-to the way we live. These are not characteristics that can only be found at the office.Cre-ativity takes practice, like reading a book or
Who's Who Cirque du Soleil's Director of Creation
On Oct. 11, the Electricity Museum in Lisbon hosted the 2010 Happy Conference, an initiative aimed at morethan 100 members of the School of Development Executives at EDP University. The participants engaged intalks about creativity, talent and innovation, all considered critical factors to personal and professional success.Overall conclusion: It was very inspiring to link up Cirque du Soleil with EDP
LYNHEWARD
"Creativity takes practice"
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Cirque du Soleil's Director of Creation Who's Who
v
doing calculations. We have to go Basically,it arises from what we feel, the experiencesthat we live and the world around us.
The creative flame leads to the reinven-tion of the every day in order to conquerthe future.
How is it possible to keep an oldproduct new?It’s not as easy as we think. One good thing
is that our product is alive. It's not like but-ter or a car. And about butter, we alwayshave the same expectations ("Will I getfat?"); with a car we have others ("Will it dri-ve me to work? "). But when we deal with a“live” product, it is something that is cons-tantly changing. Even in a perfect world,people change. Then, in our case, there areother factors, such as the need to relocate a
show, or when someone can’t perform be-cause of an injury or sickness and suddenlya replacement has to step in. The show chan-ges because we can make strategic changes,but it also changes because people change.Every time we bring a new person to theshow, suddenly it becomes different, anddespite wanting our shows to be coherent,we need to leave room for them to grow...
How does the recruitment process atthe Cirque work? At Cirque we do not recruit or use "talent
identification" in the traditional way. Ourcasting department — the new CreativeSynergy Division — has two distinct com-mandments: scour the globe for ideas andinspiration, which become the main forceof our creative process, and "always walk
around with a fishing rod" to discover indi-vidual talent that will ensure the creativeand artistic wealth, as well as the longevity,of our shows. Our treasure hunters arelooking for the most precious pearls. Thecasting process is a two-way chain. Thecompany has its basic needs; the candidatepresents his or her bid. Of course, as in anybusiness, for each position, we look for cer-tain qualities and skills. However, we seekthe added value of potential plus a little"craziness" — something extraordinary thatwill help us push the limits of what we wantto accomplish and craft that individual in-to someone unique and genuine to our crea-tive process.
We maintain a database of more than20,000 people, which is updated regularly,and we organize private auditions, and ne-
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Who's Who Cirque du Soleil's Director of Creation
On Oct.11, the Electricity Museum in Lisbon hosted the 2010 HappyConference, a gathering in which EDP personnel spoke aboutcreativity, talent and innovation, all factors considered critical forpersonal and professional success. The meeting, which wasattended by 130 participants, featured Lyn Heward, currentdirector of creation for Cirque du Soleil and former president andchief operating officer of the Creative Content Division, as speak-er. Throughout her professional life, Heward has achieved a vastwealth of knowledge in terms of talent, creativity and innovationthat has been the genesis of Cirque du Soleil’s great shows, andtoday she is an expert in that area. Heward bases her presenta-tions on her experience, showing how creativity is present in eachof us and should be part of everything we do. "I believe that whenwe are born, we are born to be creative and intelligent," she says.Her lectures include a series of practical advice on developingtalent; creativity; the ability to take risk; leadership; teamwork;and a strong, dynamic and successful organizational culture.
During the Happy Conference, Heyward took the participantsbehind the scenes of one of the biggest shows in the world toexplore the nature of creativity and innovation. The conferenceparticipants also received a copy of her book, The Spark: Ignitingthe Creative Fire, which invites readers to enter the world and ideasof Cirque du Soleil through the story of an ordinary man who seeksmeaning in his work and life. This inspiring story, told throughbehind-the-scenes episodes, involves the most creative andinnovative people in the world of entertainment. According toHeward, The Spark "is a manual" containing three main messages:we all have the potential for creativity within us; we all have a greatpotential for teamwork (if we are placed in a strong team, weevolve more quickly and are more creative and productive); andwe all have creativity around us, right in front of us — we just needto be aware." As Lyn explains, "There is no formula for creativesuccess; every one of us has to turn the power key of ourimagination in our own way."
HAPPY EDP CONFERENCE 2010
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ver in-group. The private auditions intendto discover the hidden talents and to assessindividual potential.
What is the secret to keepingemployees motivated? �Oh boy! ... There are many ways. I think the
most important thing at the Cirque is to keepstaff members very close to the product. Wehave a wonderful training studio, in Montre-al, originally built in the shape of a ship, to re-mind us that we are constantly traveling intothe unknown. The studio was built in the mid-dle of a landfill. It's true. We bought 3 millionsquare meters of property near Montreal’sCity Hall, because it was very inexpensive. Sin-ce 1996, we have rehabilitated the grounds,building the ship that looks like a Portuguesecaravel from the Discoveries period. Over thepast 10 years, the space has grown exponen-tially. It reminds us, that every day, we are ona journey to discover new shows, themes andpeople, and that our responsibility is to coverthe entire world.
What do you in that space? We do several different things; for exam-
ple, on Fridays in the late afternoon, we meet
the new artists, who have been practicing per-formances that will be shown to an audienceof 18,000 people. Why do we do this? So thatpeople can feel close to the product. In Mon-treal, we only have new shows every two ye-ars. And our employees have to wait that longfor a new show, but they themselves can bepart of the show just by therapists does shemean "physical therapists"? If so, I would put"physical" in brackets before therapist thera-pists, coaches or the accountant ... All of themcontribute to the product’s evolution in someway. So, this is how we thank them for theircollaboration.
What is the importance of the chiefsin the leadership of ideas? We do not use the term "boss". There are
certainly people who "boss around", but wecall them creative directors and guides. A vi-
sionary is one who guides us in any directionwe might go with the new show, providing ide-as for making strategic decisions (such as whe-ther a show will take place in a theater or anarea, include tourneys, or go to South Africaor China), or who works as a creative directorin terms of deciding what the content of theshow will be. Then we have people who areguides, and next we have the wonderful vicepresidents, who are there to ensure the orga-nizational structure that supports the creati-ve process and the distribution process of ourbusiness. There are two sides: We create andmaintain the shows for a very, very long time.Shows like Mysterehave been in Las Vegas sin-ce 1993. This involves having a huge supportstaff. Yes, we continue to support the artistsonstage, but who will sell the tickets, do themarketing of the show, provide the techni-cians, etc.. I would say there is a healthybalance between maintaining the creativityadvantage and the business advantage.
What is the importance of having anoutside perspective on the process? Since our product is a live product, we al-
ways have an outside perspective. Thismeans that we must always be alert and
watch and listen to the audience. It does notmean we have to make major changes to theshows, but we must take into account thedifferent cultural sensitivities. One thingthat works well in Japan may not necessa-rily work well in Canada. When we work fordifferent markets, we must be aware of thisand know what their "expectations are —not making radical changes but assumingthe changes that are necessary.".
Are there Portuguese artists at Cirquedu Soleil?Two of the oldest artists in the company,
since the premiere of Saltimbanco, in 1992, arethe Portuguese Lorador Brothers. Currently,they are on in Mystere. Their family has beenin the circus business for many years. But, Wealso have Portuguese clowns and other peo-ple who sing and dance.
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Cirque du Soleil's Director of Creation Who's Who
Something that works well in Japan may not necessarily work well inCanada. When we work for different markets, we must be aware ofthis and know what their expectations are — not making radicalchanges but assuming the changes that are necessary
Seven Doors According to Lyn, these "doors"reveal the seven essentialstrategies for success:
1st doorGrab creative opportunities asthey arise.
2st doorAwaken the senses and dare toexperiment.
3st doorSee beyond the obvious: the crea-tive transformation.
4st doorNurture an environment that isconducive to innovation.
5st doorSee obstacles as challenges tomove further.
6st doorTaking risks is part of the creati-ve process.
7st doorBe attentive to the people youwork with: A creative leader neverloses sight of the potential of thestaff with whom he or she works.
Because creativity and innova-tion are essential to success inbusiness and in many otherfacets of our lives, it is up to eachof us to open the right doors.
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Competitiveness with Energy Portugal has made energy one of itsstrategic commitment areas to increase the competitiveness of itseconomy. But to what extent and how?
3 8 o n
of electricity (and about 25 percent of totalenergy) consumed in Portugal came from in-digenous and renewable sources, generatinga reduction in the cost of imports of around500 million euros. The success of this policystems from a choice turned into a mobilizingvision and a shared strategy. Only with strong,internationalized companies that maintain thehighest management standards with high ma-nagement standards will it be possible to sustainthe country’s leading role in the technologicalfrontier areas in which it competes. Therefore, Iam pleased to see the adoption, by leading com-panies such as EDP, of advanced managementprojects that align the strategic dimension, struc-tural flexibility and optimization of processes.
More than ever, businesses are competing ona global scale and in a hugely aggressive manner.Factors of differentiation, such as acquiring ta-lent and expertise in networking; getting tailor-made answers quickly, allocating financial and lo-gistical resources optimally, and motivating andmobilizing teams around shared goals, all assu-me a key role. Since these factors are critical to thesuccess of companies with global ambitions, theyhave become even more important for Portugue-se firms, which come from a medium-sizedcountry with limited resources. Thus, only by de-monstrating optimization and flexibility in theirresponses to these challenges, combined with in-jecting innovation and creativity into the solutionscan companies in Portugal ensure that their dif-ferences lead to success. This already occurred inthe past, when we doubled resources while ma-naging an improbable geopolitical empire thatmarked a transition in the history of mankind. Weare a country of pioneers that wins when we con-nect our skills and art with the right tools, willpo-wer and strategic determination to lead.
As a tool for collaborative work, quick and re-levant information, systemic articulation, andthe optimization of efforts and resources, the ma-nagement processes project under way in EDP, Ibelieve, will be decisive for the success of our com-pany, allowing it to achieve and sustain its ambi-tious objectives, the importance of which is pa-ramount to the well-being of the country as awhole.
CARLOS ZORRINHO · University Professor and Secretary of State for Energy and Innovation
P ortugal has made energy one of its stra-tegic commitment areas to increasethe competitiveness of its economy, by
reducing energy dependence, cutting back onimports of fossil fuels and and creating indus-trial clusters via the development and com-
mercialization of solutions related to rene-wable energy, energy efficiency and smartgrids. This bet has been successful. Today,Portugal has one of the most intelligent, gre-en and inclusive energy policies in the world.In the first half of 2010, more than 60 percent
in debateRN_38-39_EM DEBATE:Layout 1 11/01/25 12:31 Page 38
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The opinions of EDP's different personalities?
+ +
The expectations that CarlosZorrinho, the secretary ofstate for energy andinnovation, has for themanagement processesproject at EDP (internallydubbed as EDPro) are basedon his thorough knowledge ofthis issue. We are talkingabout someone who hasdevoted a substantial part ofhis academic career to thestudy of these issues, havingreached the rank of fullprofessor in management,and who currently is deeplyknowledgeable of the energysector due to his appointedgovernment position. It isevident that if we want toachieve our objectives in thecurrent adverse andcompetitive economicenvironment, we increasinglyneed to be better organizedand more efficient. We canhave an intuitive approach tomanagement, but that meanssurrendering our destiny tochance. Surely, a little lucknever hurts, but it is essentialthat we master a systematicapproach to processmanagement to enhance and replicate our ownformulas for success.
EDP Brazil has experiencedand benefited from theinternationalization of theGroup's advanced processmanagement project (EDPro)mentioned by CarlosZorrinho, the secretary ofstate for energy, CarlosZorrinho. The strategicalignment referred to in hisinterview takes place everyyear at EDP Brazil throughthe Balanced Scorecardmethod, which breaks up theEDP Group’s three strategicpoints of focus into objectives,indicators and goals. Thescorecard also allows for theeffective prioritization andoptimization of criticalprocesses to reach theestablished goals. Thegovernance model hasallowed the company tomonitor more effectivelyits business processes bymanaging the flow ofactivities, indicators,targets and action plans withan easy-to-use technologicalplatform (iBPMS). Theacknowledgment of EDPEscelsa's hard work andsuccess, for the secondconsecutive year, with thegold medal at the EspiritoSanto Quality Awards (2009and 2010) shows the benefitsof this project.
Carlos Motoki · Escelsa
Considering thatorganizations are made ofdifferent people who becomealigned toward commongoals, it is essential tounderstand and adopt anend-to-end approach toprocess management. Thisvalue-added strategy shouldaim not only to ensure resultsat the strategic andregulatory alignment level,but also to promote theintegration of the group fromthe standpoint of improvingoperational efficiency andeffectiveness. To this end,EDP Distribution has beendeveloping a consistentstrategy to achieve superiorperformance through thedesign of its businessprocesses and measurementof its performance, as well ascontrol, improvement andchange. The innovation ofprocesses, which without adoubt factors into acompany's competitiveness,also plays a major role.Achieving innovation in areasof core competence, such as crucial business activities andthe search for new solutions(based on the triangle ofpeople, processes andsystems) in line with all thenew contexts in whichcompanies must operatetoday, becomes a constantchallenge.
Virginia Andrade· EDP Distribution
José Carlos das DoresZorrinho, 51, is the current
secretary of state forenergy and innovation. He
holds a doctorate ininformation managementand is a professor in thedepartment of business
administration at theUniversity of Evora.
Between 2000 and 2002,Zorrinho served as the
joint secretary of state ofthe Minister of Home
Office. He then held theposition of National
Coordinator of the LisbonStrategy and Technological
Plan from 2005 to 2009.The secretary of state haspublished several books,
including InformationManagement: condition towin (1995), Order, Chaos
and Utopia (2001) and To manage in Complex
Contexts� (2003). �
Rui Ferin Cunha· EDP-Energias de Portugal, S.A.
"Today, Portugal has oneof the most intelligent,
green and inclusiveenergy policies in theworld. During the first
half of 2010, more than 60percent of electricity (andabout 25 percent of total
On Oct. 27, 2010, EDP kicked off construction for the expan-sion of the Salamonde power station. José Socrates, primeminister; Carlos Zorrinho, secretary of state for energy and
innovation; Antonio de Almeida, president of the GeneralCouncil and Supervisory Board of EDP; and Antonio Ferreira
da Costa and Antonio Castro, administrators of EDPProduction, among others, attended the ground-breaking
ceremony. The project director, Jose Lopes Alves, explainedthe challenges of the project and promptly proceeded with
signing contracts for the construction, which will be the responsibility of the consortium Teixeira Duarte/Epos/Seth.
ourenergy*
4 0 o n
Salamonde: powerstation expansion
In September 2010, a group of team members from EDP Production paid a visit to the Carrapatelo, Ribatejo, Castelo de Bode and Alto Lindoso powerstations. The experience deepened their knowledge of the production side and also strengthened team spirit at EDP.
Power Stations Open
200million
euros
207MW
274GWh
(corresponds to averageliquid production
of 79 GWhper year)
As part of the Living Science program, a group of youngsters got the chance to visit EDP's Castelo de Bode, Alto Lindoso and Ribatejo power plants.
Even with this multifaceted crowd, the satisfaction they felt for the hosting and the explanations received,
This September about four dozen business leaders toured theconstruction site at Baixo Sabor as part of a program offered by
the EDP Foundation and EDP Production. They got a look at newhydroelectric technologies, as well as the new business opportu-
nities the project will bring to the community. The business leaders were able to see firsthand the growth and potential of
this mighty project. They also learned how Baixo Sabor could actas a basis for regional development.
Business leaders visit Baixo Sabor
The administrative board of EDP Production took a tour of the company’s new hydroelectric projects.The trip started at Picote and Bemposta on Aug. 26, 2010, went to Baixo Sabor on Sept. 1 and endedat Alqueva on Sept. 7. The board members saw various aspects of the projects under way ―inclu-ding the speed and energy with which they are being completed ―and received detailed briefingsfrom the project teams on the ground. . And, they saw the speed and energy of the projects as well.
Board tours current projects
Since this past September, EDP has been traveling from north tosouth, bringing energy efficiency to Portuguese residents. The initiati-ve, part of the EDP Universal Service program, is called ECO EDP. Or-ganizers plan to distribute 800,000 compact fluorescent bulbs in main-land Portugal in exchange for incandescent bulbs. In addition to con-suming 80 percent less energy than the older incandescent bulbs, thenew lights can last up to eight times longer, helping families save ontheir energy bills.
This effort will save the same amount of energy as that consumedby more than 66,000 Portuguese households in an entire year and re-duce CO2 emissions equivalent to that of an annual carbon footprintof more than 9,000 Portuguese. The energy savings offered by this pro-gram amount to more than 20 million euros. Check out this and otheractivities of ECO EDP Program at www.eco.edp.pt.
PROMOTING EFFICIENCY
800,000energy-efficient bulbs distributed
by Jan. 2011
20millionEUR
in energy savings
On Sept. 29, 2010, some 100 team members came calling at the Sines Power Station and the new Alqueva dam. Participant Jorge Manuel, who worked with DHR-CC, had this to say:
"I really enjoyed this visit. It was an opportunity to experience the different activities of EDP and share a different vision of the company."
Energy Routes is part of the I’m + EDP program, which brings together team members to meetstaff in the different areas of the Group's business through visits to power plants and distribution
and marketing facilities in Portugal. The next road trip is expected soon. One group of team members will leave Porto to see a production center in the northern section of Portugal.
T he day began with a strategic reflec-tionmeeting with human resourcesmanagers and a visit to the central
thermal unit of the Ribatejo region, to give themanagers insight into one of the company'sareas of focus (see caption).
In the classroom, the program continuedwith a presentation by Maria Joao Martins,director of EDP Human Resources, on themain projects developed in the last year (HR+Achievements). “It's important that we cele-brate what we've accomplished,” said Martins.
“Connecting the teams, promoting the shar-ing of knowledge, not just through more effi-cient support mechanisms but above allthrough emotional intelligence and the cer-tainty that being next, being simple and act-ing in partnership with the business is themost virtuous cycle and the best global prac-tice," she added.
Absent from the meeting because he wasout of the country, Antonio Mexia (CEO ofEDP), and Pita de Abreu (EDP HR adminis-trator) sent “thank you” messages to all pres-
ent for their dedication and commitment andreminded all that "people are the most impor-tant asset of EDP and what truly set us apartfrom other groups."
Different people, same objectiveOne overarching theme was the importanceof working as a team to achieve optimal re-sults. This idea truly showed itself in thephrase “Meeting is a beginning, but remain-ing together is a process, and working togeth-er is a success.”
On Sept. 23, 2010, team members from EDP Portugal, Spain and Brazil gathered to talk aboutthe best things they've done in human resources. More than 200 people participated in thehuman resources Accomplishment celebration to meet and exchange their experiences
“It's important to celebrate what we've accomplished”
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Career Routes:Finding their Way
In Brazil, team memberscan track the direction ofone or more careersthrough the Career Routessystem. Orient yourself andfollow the coordinates ...
The Career Routes program waslaunched in Brazil with theobjective of helping team membersto identify development andlearning opportunities at EDPGroup. Asking the question, “wheredo you want to arrive?,” CareerRoutes invites every participant toreflect, dream about and plan his orher career. Accessible through thecompany intranet, the new systemallows team members to simulatecareer paths and alternatives andread descriptions of each jobfunction.According to Juliana Salles,executive manager of HumanDevelopment, the tool is aninformation base to help teammembers plan their careers.“It presents a level of transparencyand offers the opportunity tomobilize within the company.The system offers 50 natural routesand 535 alternative routes wherethe team member can expand uponhis or her career vision. HumanResources, in partnership with thisprogram, identified and thought ofsolutions to offer new possibilitieswithin the Group,” she explains.
On a day when team members from avariety of locations came together, it wasimportant to hear the various stories andexperiences they all had to share. But“the most interesting thing was seeingthat, despite our diverse realities, we'reall on the same page,” said Martins.
In the opinion of Adilia Pereira,director of Human Resources and EDPProduction, “It's important to knowwhat the group wants in terms of humanresources and then after that to look atthe specifics and know how to incorpo-rate them. You need to be strategicallyaligned with the management and witheach other. But success also comes frommanaging both specific and diverseissues.”
Elaine Ferreira, HR director of EDPBrazil, supports this idea. “The cultural
differences (between each of our loca-tions) are a challenge,” she explained.“We need to work along one single veinwhile still maintaining our differences,and this is what EDP does best.” Themeeting honored the best projects devel-oped by the companies in attendance. Inthe opinion of Maria Joao Martins, “Allof the businesses have merit in HR. It'snecessary to appreciate that.”
The “live our energy” anthem was thekey to the day's close. For Ferreira,“Independent of where we work, we allhave felt unity. This is such a strong thingthat a song like that [the EDP anthem]makes even our newest team membersemotional upon hearing it for the firsttime. It's the feeling of belonging — thatno one is left out. This is the face of EDP,our whole being.”
Maria Manuela Cardoso, of EDP Commercial Solutions, was one of the peoplewho visited the central thermal unit of the Ribatejo region for the first time.Besides her surprise with the “enormity of the structure,” the participant alsohighlighted this unit being a completely different environment from the one inwhich the majority of team members work. “Though they've already heard aboutit on one occasion or another, people in the office have no notion of what a pro-duction center is until the day they actually visit the location,” she says. “Thisexchange of experience is very important because it brings us closer to eachother and reinforces the idea that, when we need to make a decision, we al-ways need to think about what's best for the Group.”
T he winners of the second edition of“Amoment With Energy – PCAE” arealready known. The team is made up of
Lorenzo Alvarez (Naturgas Energy), Luis Car-los Afonso Mendes (EDP Commercial Solu-tions), Patricia Susana Lopes Duarte (EDPCommercial) and Saulo Santana Coelho (Escelsa), who won first place for their workon the theme “Developing a Customer-Orien-ted Corporate Culture.” As an award, the group
will receive a free strategy course through theinternational management school.
The other three themes approached in the2009 edition were “Increasing the OverallSatisfaction Index and Reinforcing EDPGroup Culture,” “Hedging Stragegies” and“Improving Communication Within EDPGroup as a Strategic Priority.”
“A moment With Energy – PCAE” is anannual corporate initiative through which a
group of professionals from various areas ofEDP areinvited to bring their energy andcontribute to making EDP a company thatbecomes more global every day. Besides giving team members the opportunity tomeet the president of EDP's executive coun-sel personally, these meetings also aim topromote a culture of diversity and reinforcethe sharing of ideas, internal networking andcompany knowledge.
A culture more focused on the client
Team members had breakfast with CEOAntonio Mexia, visited the central thermalunit of the Ribatejo region and the centraldispatch in Palhava, and reflected aboutand shared ideas regarding “Cost Mana-gement Culture: Challenges for Creating
a Culture of Cost-Consciousness in EDP,”accepting the new challenge launched byMexia.Thus began, on Oct. 26, 2010, the first meeting of the third edition of "A MomentWith Energy – PCAE.” After organizing in
“virtual” teams, the 12 participants colla-borated to develop work in accordance withthe theme introduced at breakfast with thepresident. The next “moments” of thisprogram will take place during the first twotrimesters of 2011.
T he knowledge and experience of eachcontribute to the betterment of all — fromthis concept, which inspired EDP to
create a specific program that could be transfor-med into a Group practice, the "ValuingExperience" program was born. The initiative,launched Oct. 7, 2010, by program sponsor Pitade Abreu and Maria João Martins, both ofHuman Resources, involves nearly 100 positionswithin the team member chain and emphasizesthat a program's success depends on the invol-vement of everyone. These chains of commandrecognize the strategic importance of "ValuingExperience" in making a company's culturemore efficient. They also help make it easier toreach out to team members of all kinds inworkshops and their resulting initiatives.A consulting committee was formed of the
HRadministrators of four different companiesandthe director of the corporate center. The com-mittee's mission is to facilitate the spread of thecompany's message to all of its team membersand to play a part in the different phases of theprogram. Though only a select few administra-tors comprise the committee, the projectinvolves the whole spectrum of EDP, from theadministrative council, the department ofhuman resources and the corporate centerhuman resources, to the team member chainsand each team member in the chain.
Everyone onboard for Valuing Experience!
What?“Valuing Experience” is a program created toreveal and emphasize the experience and knowl-edge gained by the most senior members of EDP,and to share this experience and knowl-edge withthe rest of the Group's team members.
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At EDP, Experience MattersKnowledge exists in eachof us and builds withexperience. But the realvalue of knowledge is bornwhen it's shared andapplied so that it may betransmitted to the nextgeneration of EDP.
Online Campus Builds Strength
• Access to a user's complete training his-tory at any time
• A multilingual platform that allows usersto select their preferred language
• Self-education, which lets users revisit
training already completed according tothe availability of the developer
• The opportunity for users to view orparticipate in events that, because ofdistance or cost, they wouldn't be able
to attend physically• Support in a variety of content, includingvideo and audio
• Functionality in a Web environment thatcan be accessed from anywhere.
Starting in February 2011, nearly 1,000 userswill have access to EDP University's onlinecampus, an advanced management platformthat supports knowledge sharing amongteam members. This program provides train-ing and access to training content, includinge-learning courses and virtual classrooms.The platform's implementation depends on
the support of DSI, DRH-CC, DFR (Value) andDMC, among other departments, and will be car-ried out over three phases until 2012. At thatpoint, all EDP team members will have accessto the online campus, said director Rui Brandao,
who is also a member of the project managementteam, at the campus' kick-off celebration. Theprogram also involves the participation of Nunode Brito, director of EDP University and spon-
sor of the project; Antonio Vidigal, president ofEDP Innovation; and Antonio Pereirinha Fer-nandes, of the project management team; andmembers of its external partners, Cornerstoneand Novabase.Antonio Mexia, president of EDP's CAE,
attended the kick-off's closing and request-ed the involvement of all the stakeholdersfrom various areas of the Group's activity.“EDP University does not intend to competewith any other university,” he said. “What itdoes intend is to share the knowledge thatalready exists within the EDP Group.”
What does the new online campus bring?
Who? The program is directed to collaborators with30 years or more of activity in EDP, who belongto different professional groups throughout thecountry. They are people who the relevant kno-wledge and experience with the aptitude to com-municate effectively that find the time availa-ble to be valued.
When?The program will launch as a pilot with 300participants who will be divided into twosubgroups. The first phase, which ran until theend of 2010, featured four awareness sessionsand seven workshops that stem from adefined set of initiatives. In 2011, the secondsubgroup will go through the same process.
In this interview, Miguel Amaro, vice president of finance, investor relations andmanagement control for EDP Brazil — who was tremendously excited to answerquestions in conjunction with his team — speaks about thecompany'sachievements, challenges and the objectives for the upcoming years.
EDP ENERGIAS DO BRASIL
The achievements of a winning team
MIGUEL AMARO A mechanical engineer with a degree from ISEL (Lisbon Superior Enginee-ring Institute), Amaro arrived at EDP Brazil having already amassed a vastamount of experience in Portugal, where he had served as head of internalaudits for Portugal Telecom (PT), from October 2003 to December 2007.Before working at PT, where he also was the executive officer for PresidentMiguel Horta e Costa, Amaro was employed as a financial analyst in the te-lecommunications sector, at Espirito Santo B & M in Madrid, from 2000 to2002, and as SETF (secretary of state for treasury and finance) deputy forPortugal’s Ministry of Finance, between November 1999 and September 2000.
The initial public offering (IPO), in2005, was the first step. Since then, alot has been done. Five years after the
IPO, and under the helm of vice presidentMiguel Amaro, EDP Brazil was rated amongthe Best Companies for Shareholders by themagazine Capital Aberto (Open Capital), atouchstone for the sector. And this recogni-tion was not the only one. Amaro's team, andAmaro himself, have won several prestigiousawards, which highlight both the company'ssuccessful operations and the work of itsexecutives.The most recent — at least until the closingof this issue — Institutional Investor maga-zine recognized Amaro with the maximumrating possible among chief finance officersin the sector of electric energy and otherutilities in Latin America, in a 2010 ranking.The award also highlighted another personfrom his team: Manager Mayte Albuquerque
earned a spot among the top 3 in the Inves-tor Relations category.More than 400 profes-sionals from 200 financial institutions of seve-ral sectors participatedin this research.
How does the team view the Group'simportance today after going public in 2005? How do you imagine thecompany would be if it had not had the increase in capital?The Group’s IPO was held as the result of a reor-
ganization process that simplified the corporateorganizational structure and migrated to minori-ty shareholders from several subsidiaries to theholding company, EDP Brazil. This process allo-wed us to centralize a number of corporate activi-ties, making the Group’s administration more ef-ficient as a whole, and has allowed us to refinethings continually over the past five years. Duringthis period, the Group raised a total of 3.3 billion
Brazilian reales through public offerings in the
capital market, of which 1.6 billion reales were inshares (2005 IPO and follow-on in 2009) and 1.7billion reales in corporate debt (five bond issuan-ces and one of commercial paper). Therefore,
the IPO led to EDP Brazil and its subsidiariesbeing placed in the Brazilian and internationalcapital markets, diversifying the investor base andproviding access to key resources that guaranteethe Group’s self-sustaining growth in Brazil.
What achievements would you highlightfrom the past five years?The significant growth in the power genera-
tion field was the main achievement of the EDPGroup throughout these five years post-IPO, du-ring which the installed capacity more than tri-pled, currently reaching 1,741 MW (versus 500MW in 2005). We had this period, the entry intoto operation of the hydroelectric plant at PeixeAngical (450 MW in partnership with Furnas),and the mini-hydro Sao Joao and Santa Fe plants,
spotlight
"This recognition was the result of work ac-complished by the entire company, in parti-cular those people who belong to differentteams and their leaders, who are part of thefinance vice presidency, whom I have had theprivilege of managing and whom I thank fortheir dedication, involvement and commit-
ment. From the IR area, obviously, since itis the company's main interlocutor with themarket and the top 3 of the Latam’s Institu-tional Investor's Ranking, passing throughFinancial Structuring, Budgeting andControl, Business Development, Tax Mana-gement, Operations and Financial Services,
and Consolidation and Accounting, to Supply,Infrastructure and Information Technology,and Communications. It presents us withmore responsibilities and challenges for thefuture, which we must learn how to face andovercome with effort, innovation andteamwork."
in addition to the fourth engine at the Mascare-nhas plant.We also participated successfully in the 2007
power auction with the Pecem thermoelectricproject (720 MW in partnership with MPX),which is in an advanced stage of construction, withoperations scheduled to start in early 2012. In ad-dition, the company successfully implementedan asset exchange in 2008 with Grupo Rede, viawhich we acquired stock control of the Lajeadohydroelectric plant (900 MW in partnership withEletrobras). We also established a joint venturewith EDP Renewables, from which we acquiredin 2008 an in-use wind farm in Santa Catarina (14MW), and we are finalizing the construction of awind farm in Rio Grande do Sul (70 MW).
How would you evaluate theperformance of the company's shares?The return of EDP Brazil shares for its
shareholders, since the IPO (until April 11,
2010), has been 138 percent — 101 percent inshare valorization and 37 percent in divi-dends. The value of paid dividends, since theIPO to date, was 1.1 billion reales. EDPBrazil has, until that day , a valuation abovethe Ibovespa index and the IEE – BM & FBO-VESPA’s electric energy index (Brazilianstock exchange).
What still needs to change in thestock market since then? What stillneeds to be changed (in terms ofregulations, etc.)?We saw the beginning a few years back of a glo-
bal trend of investors seeking to apply their re-sources to socially responsible business,environ-mentally sound, and obviously profitable. Suchinvestments consider that sustainable compa-nies create more value for shareholders over thelong term because they are better prepared to fa-ce economic, social and environmental uncer-
tainty. Over time this demand has strengthenedand originated new instruments in the interna-tional capital markets.In 2006, EDP Brazil became part of the ISE,
which requires a continuous improvementprocess, as every year its evaluation parameterschange to require participants to bring sustaina-bility and corporate governance initiatives to theforefront and exclude items that have alreadybeen implemented by most companies or havebecome legal requirements.
How is corporate governance evaluatedwithin the EDP Group?As a member of the BM & FBOVESPA NovoMercado, which lists a market segment of com-panies that have the highest standards of gover-nance, EDP Brazil voluntary committed to ad-ditional practices of transparency, accountabi-lity, and fair and equal treatment for its share-holders, employees, customers and suppliers.
spotlight
v
The team from theSao Paulo office
represents all theworkers who are partof the Espirito Santoteam, which is also
praised in thisinterview
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111- Executive Secretary;2- Budget and Control;3- Financial Structure; 4- Infraestructure; 5- IT Applications; 6- Tax Management; 7- Financial Operations; 8- Investor Relations; 9- New Business; 10- Infraestructure; 11- ITC Governance.
To ensure these conditions, its financial sta-tements are developed from procedures and in-ternal controls prepared using the InternalControl System of Financial Reporting metho-dology (SCIRF), based on the Sarbanes- Oxley(SOX) law, even if the company does not tradeshares in the American market, where this is alegal requirement. ICSFR Our corporate go-vernance model is based on best practices re-commended by the Brazilian Institute of Cor-porate Governance: shares issuance of a singleclass of shares with equal rights; action of advi-sers with experience in operational and finan-cial issues; and sealed access to information andright to vote to the advisors in cases of conflictsof interest.
EDP Brazil also maintains an audit commit-tee, a remuneration committee, and a sustai-nability and corporate governance committee,which act in support of the board of directors,in different areas of responsibility. Accordingto the recent revisions in BOVESPA's regula-tions for new markets, EDP Brazil has alreadymet the new requirements: 1) More than 30percent of its board should consist of indepen-dent directors (actually it has 50 percent) 2 )
Constitute an audit committee, which compa-ny did following the IPO 3) Separate the boardchairman (chairman) and chief executive officer (CEO) roles, which also became a reali-ty after the IPO.
Recently, we were named one of the BestCompanies for Shareholders by Capital Aber-to (Open Capital) magazine , attaining secondplace among companies with a market valueof between $US 5 and 15 billion. According tothe magazine, we also got the second-best rating in terms of corporate governance, rightbehind the BM & FBOVESPA.
And the action in the IR (Investor Relations) area?The IR area at EDP Brasil has been consoli-
dating itself as an interface between the capitalmarket and the company. During the elaborationof the annual plan, the trends and the commu-nication needs (one-on-one's, road-shows,conferences, etc..) of the different types of inves-tors and shareholders are analyzed and incorpo-rated into it, and initiatives are designed andimplemented to meet and communicate withthese stakeholders in an ever more targeted,useful and complete way. The modernization ofcommunication tools (new IR Web site andreleases) and the use of new ways of communi-cating (Twitter, Slideshare, etc.) are other exam-ples of the evolution that has occurred in this area.
A few years ago, a global trend started of inves-tors seeking to apply their resources to sociallyresponsible, environmentally sound and obvious-ly profitable business, environmentally sound,and obviously profitable started. 51 In recogni-tion of this work, the IR area of EDP Brazil,through its officer Mayte Albuquerque, was re-cently recognized by analysts from Buy Side andSell Side in Institutional Investor's Latin Ameri-
A few years ago, a globaltrend started of investorsseeking to apply theirresources to sociallyresponsible, environmentallysound and obviouslyprofitable businesses
ca 2010 Executive Team ranking as the third best,i.e. top 3, of the electricity and other utilities sec-tor. in Institutional Investor magazine’s LatinAmerica 2010 Executive Team Ranking.
What is the profile of EDP’sminority shareholder?At the end of the third quarter of 2010, the
composition of EDP Brazil's shareholders freefloat was 29 percent nationals and 71% foreign,and 3 percent individual and 97 percent insti-tutional investor.
In your opinion, what factors havecontributed to EDP Brazil's inclusion inthe list of "Best Companies for
Shareholders" in Capital Aberto (Open Capital) magazine?The aforementioned commitment to sus-
tainability and corporate governance practi-ces; ongoing efforts to increase the company’sliquidity, including the shares follow-on heldat the end of 2009; the commitment of thecompany’s management team in evaluating in-vestments in new projects while maintainingthe Group’s level of profitability and return toinvestors; the dividend policy, with 50 percentpayout and increasing distribution reales/pershare; and the pro-active position of the investor relations area, answering to market questionnaires, contacting analysts and managing expectations.
How do you imagine EDP in five years?Since the company's inception in 1996, the
path of EDP Brazil has been defined by coherentaction, keeping focus on a balance between pro-viding quality of service to its customers, achie-ving solid financial health through a prudent debtprofile, and inspiring a sense of ambition to takeadvantage of opportunities for profitable growthwhile maintaining a risk profile in its portfolio.We imagine EDP Brazil acting with the same prin-ciples and values that have governed it so far, butwith a greater focus on innovation, given the chan-ges experienced by the sector worldwide, as wellas obviously the right people who can continueto sustain the Group as an important point of re-ference in the Brazilian electricity sector.
12- Consolidation and Accounting; 13- Infraestructure and Telecom; 14- Supplies; 15- Infraestructure; 16- Patrimony Accounting and Costs;17- Finance, Treasury and Financial Structure; 18- ICT; 19- Shopping Platforms; 20- Financial Services; 21- General Accounting
In Asturias, HC Energía organized a meeting on the electric vehicle and its practical implications for the company.
sustainabilityResponsibi l i ty for the Environment
O n Oct. 29, Graciano Torre, regional minister of industry in Asturias, Luz María Peláez, of the Ministry
of Industry, Tourism and Commerce, and João Manso Neto, CEO of HC Energía, participated in a meeting on the electric vehicle and its practical implications for the company. HC, which launched the proposal for household customers at Feirade Muestras, began implementing the recharging stations in public locations andon its premises. Some of these work lines,which HC has had in development for more than a year, are already a reality. The company belongs to two of the threeworking groups that materialized the plan of the Ministry of Industry, Tourismand Trade. HC Energía is part of the searchand promotion group and the infrastructu-res and demand management group. It only
doesn't intervene in the industrializationgroup, which is composed of solely automakers. This past year, HC Energía Asturias led the implementation of the city-elect and Gijon car living projects presented by the government, and in Jan.2010, the company signed an agreementwith the suppliers Temper and Gam togivea boost the electric vehicles. As an exampleof its commitment to mobility, HC has already installed eight recharging stationsat its working centers. There are stations forteam members and for all users of electricvehicles. In addition, the company has agre-ed to the installation of recharging stationsin the cities of Oviedo, Avilés, Siero, Langreoand Gijón. Electrical mobility, in Spain, is here to stay. Connect yourself to the power supply and contribute to a more sustainable world!
HC boosts electric mobility Available charging stations
OviedoHeadquarters ( La Plaza de la Gesta Parking)La calle Paraiso Station (Calle Paraiso Parking)Corredoria Substation (Almacén Corredorial Parking)
GijónRoces Station (Centro de Trabajo Parking)
CarreñoC. T. Aboño (Oficinas Central Parking)
Ribera de ArribaC.T.C.C. Soto-IV (Oficinas Central Parking)
LangreoValnalón – Langreo (Centro de Trabajo Parking)Trasona Avilés-Substation (Centro de Trabajo Parking)
EDP Valor took another step on the path toward sustainability. On Oct.15, the companybegan to use electric motorcycles for their courier services in Lisbon. They have threeenergy-efficient motorcycles, two scooters andone maxi-scooter, all of which have zero CO2
emissions, an average operating cost of 0.46€/100km and virtually no maintenance costs.The couriers drive around 100 kilometers a day in Lisbon. This way, step-by-step (in this case kilometer by kilometer), EDP is contributing to a better world.
In partnership with Sonae MC,edp5D distributed 850,000 light--saving lamps to promote energyefficiency. The free swap ofan incandescent lightbulb fortwo energy-saving bulbs was well received by the general public, who headed to ContinenteorModelo supermarkets to makethe swap. In line with EDP's dedication to corporate social responsibility, this initiative, an integrated part of the promotional plan for efficient consumption, aimed to broadcastthe implementation of energy--efficiency measures to thecountry's population.
PORTUGALLIGHTS UP
More sustainable couriers
The previous edi-tion of the CSR Forum, in 2008,
focused on sustainable markets and busi-ness ethics, seeking to introduce discussionsaround the new paradigms of sustainability.In 2010, the forum aimed to respond and provide solutions to the challenges faced bybusiness and society. To get more informa-tion on the event, visit www.forumrso.aip.pt.On Oct. 21, 2010, the 4th Forum on Corpora-te Social Responsibility and Sustainability took place at the Lisbon Congress Center,bringing together national and internationaltop speakers from different areas and sectors and more than 1,200 participants.The theme was "value networks," which fell within the rubric of the European Year
for Combating Poverty and Social Exclusionas well as the International Year of Biodiver-sity. "Act now. Be connected!" set the tone for a day of intense debate regarding new strategies for more intelligent, sustainableand inclusive growth in the world. Among the speakers were personalities such as globally recognized businessman and social entrepreneur Oded Grajew, who revolutionized business positions in Braziland serves as president and founder of theEthos Institute for Business and Social Responsibility. Also in attendance was Marc Kieburger, social entrepreneur andfounder of Free the Children. This organiza-tion, which now has about 650 schools in Asia, Africa and Latin America, provideseducation to more than 50,000 children.
It has already received numerous awards forits work, including the World's Children'sPrize for the Rights of the Child (also knownas the Children's Nobel Prize). EDP had an institutional presence, as a platinum supporter, and through the participation of its director of sustainability and environ-ment, Neves de Carvalho, who was a guestspeaker on "Sustainability Investment: Not a matter of 'why' but 'when'." The next edition of the forum has already been scheduled for Oct. 25, 2011 . Take note because, after all, the challenge is for everyone and calls for quick action — "Act Now. Be Connected!" Learn more at the official Web site of the 4th Forum on CSR and Sustainability at http://www.forumrso. aip.pt.
foundation*In this issue, we highlight the new dance show “CisneNegro” (Black Swan), in Brazil, and a must-see newexhibition at the Museum of Electricity, in Lisbon, called"Cities of Vieira da Silva and Arpad Szenes".
With the support of EDP Bandeirante and the EDP Institute,under the direction of the Hulda Bittencourt, the “Cisne Negro” Dance Company presented their new production,Baobab, in the city of Taubaté, Sao Paulo. This groundbrea-king work brings together drama, dance, music and litera-ture, with the company's dancers exhibiting a series of mo-vements inspired by the "The Little Prince." As in the famousnovella by Antoine de Saint-Exupery, each act is unique, witha look and feel all its own. At its core, Baobab also revealsthrough dance the importance of environmental preserva-tion and sustainability.
Getting to know Oviedo in a “virtual”sustainable way is the idea behind ofthe new space the Foundation and HCEnergía created at the newly openedMuseum of La Eria. This project makesavailable to the visitor to an electricbike to explore Oviedo in a virtual way.Explore the Old Town, Mount Narancoor even visit the head office of the HCon the Plaza de la Gesta. It is alsopossible to explore with a friend onanother bike.With a focus on mobility and this newattraction offers the visitor a newperspective that speaks to sustainableenergy duringh their bike trip throughthe city. Not surpisingly, the museumoffers the public electric bicycles aswell.Oviedo is the first virtual tour to beoffered by HC Energía, but surely therewill be more “virtual” rides like this inSpain soon!
Successful partnershipThe EDP Institute and EDP Renewables have partnered in Traman-daí, Rio Grande do Sul (Brazil). The goal is to get information, security, culture and education to the community that lives aroundthe wind park. The two EDP teams have spent the last six monthsattempting to understand the dynamics of the community and initiate a socio-environmental cooperative dialogue with local authorities. And work has already begun. In addition to attendinga special meeting of Consepro (Community Council for Public Safety), EDP hosted a "Dialogue With the Community,” led the "ArtEnergy" competition under the theme of biodiversity and partici-pated in many other events.
Museum of Electricity
"The Cities of Vieira daSilva and Arpad Szenes "
From Budapest to Lisbon, from Paris to Brazil. "The cities of Vieira da Silvaand Arpad Szenes" is the title of a new exhibition, which runs until Jan.16, 2011, at the Museum of Electricity,in Lisbon, Cinzeiro 8 Gallery.Dozens of works are on display, including portraits of places with biographies of both artists, in a journeythat crosses itineraries both imaginary
and mythical.This exhibition, the third featuring thework of the two artists, was made possi-ble by the Arpad Szenes Vieira da SilvaFoundation, which is supported by theEDP Foundation and appears to the ex-tent of the Lisbon Architecture Triennalededicated to the theme "Let's Talk AboutHouses." The Museum of Electricity isone of the host venues.
Maria Helena VIEIRA DASILVAThe poetry is in the street II,1975Poster
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Arpad SZENESAuprès of Persepolis.. 1964Oil on canvas73 x 92 cmFrom the Arpad Szenes Vieirada Silva Foundation
EDP Renewables held a photo contest via the companyintranet, encouraging the full participation of all teammembers from the different regions: Europe, UnitedStates and Brazil. Geographically separated but unitedby a common passion – photography – the participantsshared with the whole company their mostrepresentative snapshots in the various categories opento competition. With the object of bringing peopletogether, promoting communication and encouragingnon-work-related activities, the competition also led tothe submitted photographs being integrated into EDP'sbank of images. In this essay, we present some of theimages shared in each category.
When did you start working for theEDP Group? I've been working for the Group for 27 years, beginning Feb. 1, 1983.
Up until now, what has been yourbiggest challenge?Throughout my career in EDP, I havefound happiness in each new position |byfinding the challenges. I would not say bigger challenges, but each one has beenfascinating than the other. The design andconstruction of the Porto do Pecém Thermoelectric Power Plant in Ceará is extremely challenging because it has a specificity, complexity and dimension thattranscend what I have done during these 27 years at EDP. I am also responsible for implementing the operational and maintenance activities and buildingthe team, with the help of EDP Portugal.
What is the importance of thisdevelopment for EDP, and how does it feel being part of its story?This new development is of vital importan-ce to the EDP Group in Brazil and represents a unique opportunity for theGroup as a multinational. In addition, itshows that EDP’s standards are consolida-ted, independently of the geography in which each project is being developed.And, as the one responsible for the project,I feel immense pride in being part of itsstory.
What are the biggest challenges youand your team have faced so far?I think that the difficulties should not bekept secret. Only with a strong team spiritis it possible to move ahead, and this is whatwe have done. Our team, made up of Brazilians and Portuguese, has been oneof dedication and resilience beyond the imaginable. For that reason, there is noother option for us but to achieve the esta-blished goals.
Tell us about your average day.My day starts quite early, around 7 a.m., and ends late. Given the diversity of the entities involved in the project, and the are-as that compose the team that works withme, it is necessary to have a default sche-
dul e for the week that regularly suffers some adjustments.
How do you reconcile your work with yourpersonal life?Throughout my life, I've always been able to reconcile my professional and personal lives,which is not always easy, but this is only possiblewhen you have a family like mine. My wife, my son and my daughter are just extraordinary.Only with such a family is it possible to create thebalance needed to have a serene and happy life,aspects that are brought into the working life have allowed a higher probability of success.
Do you have any hobbies?I enjoy playing golf.
What is your motto?Try to be happy in every moment by seeking tocontribute in some way so that those who inter-act with me are also happy.
What is it like living in northeastern Brazil?Do you miss Portugal?It is very pleasant to live in the Northeast, although most people in Portugal imagine thenortheastern Brazil as a place for vacation andnot for work. For me, even while working, I canenjoy the constant beauty of this region. of Bra-zil. Another positive aspect of the Northeast is its friendly people, who are always willing to helpwithout asking for anything in return - unfortu-nately, this is a characteristic we don't see muchof today. Do I miss Portugal? A lot!
in focusOur team has
been one ofdedication and
resiliencebeyond theimaginable
CARLOS CAVALEIRO, Engineering and Thermal Construction Director at EDP in Brazil
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edp is morethan energy,it’s life
www.edp.pt
EDP is part of people’s life. Over 20 million people in 12 countries make our energy their own,
at home, at work, at school, everywhere. This is why we continue to invest in development and technology,
in minimizing the environmental impact of our operations and, above all, in initiatives that preserve the
environment, that preserve life. For all this we can say that EDP is more than energy, it’s life.
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SMS Innovation A lecture will be given by Lincoln Paiva,consultant and managing partner of GreenMobility. With the participation of AntonioLaporta, director of innovation strategy at EDP,last September Paiva embarked on his firm's
Scottish Renewables Offshore WindConferenceTeam members from EDP Renewables willattend the biggest wind energy conferenceever, leading a discussion on the future of theindustry.
Energy with life – solidarityin schools Effort in curriculum of schools until the end ofthe current school year. Solidary initiativepromoted by EDP Gás.
World Bike Tour Sao PauloFor the third time in a row, EDP Brazilsponsored a World Bike Tour in Sao Paulo.As is the tradition, the event takes placeon the day celebrating the foundingof Sao Paulo.
On the moveEDP teams are participating in cancerawareness walks in various cities in northernPortugal. Proceeds go to supporting thePortuguese League Against Cancer.
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Presenting the ResultsThe annual financial report of EDPRenewables will be presented in Madrid,Spain.
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Ágora ProgramAimed at senior management and macrostructure, this effort calls for reflection anddiscussion of the top priorities for EDPProduction. Electricity Museum.
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Supporting NonprofitsAs of Jan. 3, 2011, nonprofit groups can applyfor support for public and privatefoundations.More information available at www.edp.pt.
2020 Richard Branson AwardFor the third consecutive year, EDP andVisaomagazine are taking applications forthe 2020 Richard Branson Award.
Future Energy SummitEDP will be at the World Future EnergySummit, in Abu Dhabi, to promote innovativenew technology, ideas and services that canhelp to build "Smart Networks."
AWEA Wind Power on Capitol HillThe American Wind Energy Associationhosted this influential wind-industrymeeting in Washington, D.C. Participantsalso had a chance to meet with members ofCongress.
Company-wide Employee Town HallA town hall meeting was held each quarter toshare results, ask questions, respond toteam members' queries and hear their input.
