EDP ON 19 - Kakuma

Energy without limits · October | November 2010 * 2010 Nº19

DOW JONES SUSTAINABILITY Leadership on the Sustainability Index

Kakuma

EDP PROJECT IN ONE OF THE WORLD’S LARGEST REFUGEE CAMPS

INTERVIEW ANTÓNIO GUTERRES "I am delighted with the efforts of EDP”

SPOTLIGHT About the restructuring of EDP Business Solutions

editorial

on

More than energy, EDP is life o most folks, a light bulb is just a lamp; in Kakuma, a lamp can change a life. For people living in extreme poverty, who in the case of Kakuma have often been forcibly removed their land, the mere fact that there is light improves their life in terms of safety and disease, health, and education. And it gives them a reason to hope in the future and for the generations to come. This was the basis of a semicolon for over a year; it is what EDP brought to one of the largest refugee camps on the planet. We changed the world of thousands of people through a revolutionary pilot program, one that had never before been field-tested. We did not just limit ourselves to putting up structures and simply funding a project. We involved the population, shared ideas - we found the tools, and we grew.

We have put an end to a life in darkness. Students can study at night, women may walk in the fields with a lower risk of being raped, the fields can be constantly irrigated, and food can be cooked in ovens thanks to solar energy. All this has been made possible by clean, renewable energy that uses some of the most innovative and sustainable technologies in the world.

It is impossible not to be proud of these results. Two years ago, EDP was first listed on the Dow Jones Sustainability Index: this year, we climbed up a spot into first place.

Can we go any further? Sure, we can. The "triple bottom line" - economy, environment and society -- is what's essential, because it enables us to change even more. And in a competitive market like that of power utilities, we must always remain one step ahead.

And, on track.

Already EDP’s new campaign is a huge success. Our objective is to make the company's brand more "human" and take it closer to real people. We want to be spokespersons for the optimism that responsible sustainability promotes - the joys of living and social innovation and of ethics and transparency.

The timing could not be better. The project in Kakuma and our honored spot in first place on the Dow Jones Sustainability Index are just some examples of this simple, yet compelling idea: More than energy, EDP is life!

T

Paulo Campos Costa Director of Branding and Communications

We changed the world of thousands of people through a revolutionary pilot program. on 3

index October | November EDP visited the Kakuma refugee camp, between September 7 and 8, to present the results of a yearlong project. Follow what happened in this issue

Energia sem limites · Outubro | Novembro * 2010 Nº19

DOW JONES SUSTAINABILITY Já somos a empresa líder no Índice de Sustentabilidade

PROJECTO EDP NUM DOS MAIORES CAMPOS DE REFUGIADOS DO MUNDO

ENTREVISTA ANTÓNIO GUTERRES “Estou muito satisfeito com o esforço da EDP”

SPOTLIGHT Saiba tudo sobre a reestruturação da EDP Soluções Comerciais

26

Refugees from Kakuma camp warmly welcome representatives of EDP. The project has been an example for the whole world

On is a bimonthly publication Owner EDP – Energias de Portugal, SA Praça Marquês de Pombal, 12, 1250-162 Lisboa Tel: 210 012 680 Fax: 210 012 910 gmc@edp.pt Director Paulo Campos Costa

4 on

Editor Peninsula Press Publishing SL Rua dos Correeiros 120, 4 º esq, 1100-168 Lisboa Executive Director Stella Klauhs info@peninsula-press.com Editors Eduardo Marino (Editor), Joanna Perez (assistant editor) Art Marta Conceição, Andre Noivo and Nuno Teixeira Photography Hugo Gamboa, José Reis, Miguel Baltazar, Antony Njunguna, Adelino Oliveira, iStockphoto, SXC Proof-read Ana Godinho EDP Coordination Margarida Glória Free distribution in Portugal – 23,000 copies; Spain – 2,000 copies; Brazil – 2,500 copies; America – 500 copies Heska Industries Typographic Campo Raso, 2710-139 Sintra – Portugal. Tel. +351 21 929 89 58 (General) Fax +351923 89 51 Free registration with the ERC, under the law 8 / 6, Article 12 paragraph 1-a

i n d ex

WORLD LEADER on the

Dow Jones Sustainability

52 EDP achieved world leadership on the Dow Jones Sustainability Index in the utilities sector: a first for a Portuguese company.

Read on to learn what happened with this unprecedented feat

6 forum We asked team members at EDP about their main means of getting to and from the workplace

7 the strings of the market 8/15 culture edp EDP's Project Lince and Single Identity I'm+ program are profiled

16/18 market 20/22 causes

54

Dentists of the Good is a new project making headway in Portugal, after real success in Brazil

Photo Essay: Summer festivals

24/25 innovation 26/33 cover Who's who? Antonio 36 High Guterres, United Nations Commissioner

An in-depth look at EDP's Kakuma Project, an initiative that will lead to new forms of sustainable energy at a refugee camp

for Refugees

40/41 in discussion The challenges of technology – and EDP’s innovative response

42/45 our energy The news that connect the production centers to their surrounding communities

64 spotlight Vanda Martins, director of EDP Branch Spain / Project Sharedp

with 46 Interview Manuela Silva and Joao Matos Fernandes, of the administrative board of EDP Commercial Solutions on 5

forum* S H A R I N G K N OW L E D G E • On asks

TEAM MEMBERS MODE OF TRANSPORT Every day transportation should get you, on time, to work and other commitments. But not everyone uses the same means of travel.

The transportation sector is the largest contributor to Greenhouse Gas emissions, GHGs (especially CO2). And it's up to each of us to make small changes to turn around this situation. So we asked our team members how they make their way to work and home again each day, and they gave us the answers WE ASKED OUR PEOPLE – BRAZIL, SPAIN AND PORTUGAL – VIA THE INTRANET AND GOT 1,269 ANSWERS 44%

• Motor Vehicle: 559 (44%) • Public transportation: 466 (37%) • On foot: 166 (13%) • Other: 51 (4%) • Bicycle: 12 (0.9%) • Electric Vehicle: 7 (0.5%) • Hybrid vehicle: 5 (0.4%) • Carpooling EDP*: 3 (0.2%)

37%

13% 4%

0.9% 0.5%

0.4%

0.2%

(*) Rides edp – This tool, available on the intranet in Portugal, was designed to promote a more efficient management mobility. The Rides EDP is a site for sharing travel and itineraries, for the exclusive use of our team members. To learn more click on http://boleias.edp.pt/

COMMENTS "I ride to work by bike since March 2010 – and the speedometer on my bike tells me that I have peddled more than 1,800 kilometers since then!

I am an ambassador for Econnosco and am always looking for a way to set the standard for my peers."

BRAZIL "The tool Rides edp, is not being used to the fullest. It is a great idea that all EDP team members should embrace. Sometimes I ask for a ride, not always. There are times I have to go by train to Lisbon or Coimbra ... It is too bad we all cannot be more supportive and try to create a world that is more sustainable." PORTUGAL "It is important to work downtown in areas with very good access to public transport as it is to 6 on

implement these best practices. In Naturgas the office is in the center of Bilbao that has very easy access to public transport or on foot." SPAIN

"Most times I will bike to work to keep me in good form and also to contribute to nature. A car in the garage is less CO2 being released into the air." BRAZIL

"Unfortunately we still use to many vehicles powered by gas / diesel, but the need (if we do not change!) makes us think and invest in cleaner fuels (Hidro and electricity)." BRAZIL

"The Rides edp seems to be a extremely useful tool and with enormous advantages. Besides promoting the fraternization among the EDP staff, is an engine to changing ideas- and it is cheaper and benefits the environment."

PORTUGAL

"If we give up just 10% of luxuries daily, surely we would have a better WORLD for the current generation, and for the ones that follow."

PORTUGAL "Tip: Learn the network of Public Transport (CP, Metro and Carris) commonly used in the sense best fares in order to save and know how to best use it." PORTUGAL

"While fortunate to live in 50 yards walk from my place of work, I still drive. Yes, I should be shamed, for the sake of my health and not just ..."

PORTUGAL "Using public transportation is convenient, cheap, allows us some while reading time, too. As

they say: 'take care of environment'." PORTUGAL "I chose to rent a house close to my work, just to have the possibility of traveling on foot."

PORTUGAL "Due to the location of EDP in Lisbon in the center of the city, all team members should take a proactive stance. Using public transport is the best option, without a doubt, because I am user myself and their efficient operation of the lines that pass thought the Marquês de Pombal Square. It is also a good way for us to exercise and break the routine of just 'sitting'. I leave a word of encouragement: Do this for yourself, the environment and say thanks!"

PORTUGAL

t h e st r i n g s o f t h e m a r ke t

EDP PORTUGAL July 1, 2010 to September 20, 2010 2.6 2.5 2.4

2.4

2.3

Value in Euros

EDP BRAZIL July 1, 2010 to September 20, 2010

37.0 35.0

Financial analysts recommendations

36.0 34.0

ANALYST

Value in Brazilian Reals

EDP RENEWABLES July 1, 2010 to September 20, 2010

4.0 5.0

3.0

TARGET PRICE

RECOMMENDATION

DATE

HSBC

3.00

Over weight

27-09-2010

Citigroup

2.70

Hold

22-09-2010

BoA – Merrill Lynch

2.90

Buy

02-09-2010

BES

3.60

Buy

17-09-2010

Goldman Sachs

3.50

Buy

8-09-2010

UBS

3.55

Buy

8-09-2010

Nomura

2.90

Reduce

06-09-2010

BNP Paribas

3.00

Outperform

02-09-2010

N+1

2.70

Neutral

01-09-2010

BBVA

3.40

Outperform

01-09-2010

Morgan Stanley

3.20

Equal weight

12-08-2010

Deutsche Bank

2.90

Hold

30-07-2010

Millennium BCP

3.05

Buy

20-07-2010

Value in Euros on 7

culture edp The most efficient methods and the values that can serve as example

Lince project: a new culture

P

art of Sharedp (one of five programs of EDP Way), the Lince project is designed to implement uniform processes that are integrated throughout the entire EDP Group.

These processes are based on the best market practices supported by SAP standards (business management software) on a robust multi-geographic SAP system architecture that is aligned with the Group’s strategy for shared services. The Lince Project represents a fundamental step on EDP’s Evolution, from a International Group of companies to true, strong and competitive multinational. This way, the business supporting EDP’s processes will be aligned with the Group’s best practices and be identical throughout our various companies and the geographical areas they serve.

Such well-thought-out coordination across so many areas allows for higher levels of productivity and effectiveness – indispensable characteristics for a building and maintaining a relevant presence in the global competitive market.

This transformation is also positive for EDP’s team members, who will see their skills strengthened. Moreover, the standardization of processes increases the mobility possibilities between the Group's different businesses, opening a wide range of new personal and professional experiences to its team members. In its scope, the project covers the processes of the areas of Planning & Budget, Financial-Economic, and Human Resources, which were defined in June and July by approximately 200 EDP team members from 16

business units and three countries (Spain, Portugal and the United States). This work demonstrates the Group’s true capacity to work together as a cohesive, global whole. The best market practices and the practices of each company were used by the participants, with the help of specialized consultants, to define the processes which will now be implemented, in a uniform way, at all the companies that belong to the Group, until 2012.

We are facing a significant transformation in culture at EDP Group – one that will place our company on the same level as other large multinationals and provide our team members with all the benefits of mobility and opportunities for personal and professional growth that only a global company can offer.

Lince benefits: FOR EDP: • Processes and systems in line with the best practices in the world; • Increase of EDP’s competitiveness ever more demanding global market; • Strong, multinational culture.

8 on

FOR TEAM MEMBERS: • Work with processes and systems that are aligned with the world's best practices; • Greater possibility of mobility between different businesses and geographies inside the EDP Group; • Development of personal and professional skills.

e d p c u l t u re

António Mexia Highlighted Economico.pt readers were asked to choose which CEOs from the PSI 20 publicly listed companies most stood out during 2009.

Polls were held between December 15 and January 15, and António Mexia got the most votes. EDP's CEO received more than 18,000 votes in all the poll categories: leadership, vision/strategy; social responsibility; communication; energy/dynamic and results.

The awards ceremony was held at a meeting that took place at the end of July with the top 50 students in economics and management from Portuguese universities.

This initiative of Diário Económico and Heidrick & Struggles focused on how EDP’s CEO followed his career, the secrets of his success and what he considers to have been the most important reasons for his being recognized with this honor.

DSI promotes an Integrated Access Management The Unique Identity Project is one of the pieces that make up the EDP Group’s Strategic Plan for Information Security. The project aims to provide a platform that automates and simplifies the assignment, modification and removal of employees’ access to the different computer applications of EDP. EXISTING PROCESS 1

NEW PROCESS 5

access request

1

task to carry out the request

8 perform request

Access request

2

resource’s technician 2

register request

3

notify

4

resource

Owner of supporting processes

3

notify

4

approves request 5 access request

consult access 7 registration

ITG

physical resources

IAM

Service Desk End users

access provision (automated)

access registration

approves request

Service Desk non-physical resources

resource’s owner

DB Accesses Management

resource’s owner

6 register access

Currently, the process of access management consists of many iterations, most of them manual and system-oriented with no relationship to the typical organizational functions. This complicates the adjustment of the types of systems and information that employees have access to during their evolution inside the organization, accumulating 'history trash'' that creates unusual situations, including the Internal Control System for Financial Reporting, or SCIRF. With the Unique Identity Project, the management of accesses will be integrated into a Identity Management platform (IAM), that will interact with the various systems, translating organizational functions into

the proper technical ones for each system.

There will be a shift from a vision of a system to a vision that is aimed at an individual person and based on organizational tasks. An Organizational Task is the logical grouping of system tasks or other organizational functions. It represents a task performed by a group of people inside an organization that have the same responsibilities or who are linked together by geographical location or another organizational element.

Besides the sorting by organizational functions, the platform will be integrated with EDP's human resources system (SAP HR). It will set alerts and/or creat and eliminate automatically accesses in situations such as

when an employee is hired by the Group, changes company/geography within EDP, or leaves the Group permanently.

Given its extent and complexity, this project is developed in several phases spread thru time and is expected that the production entries are done in three waves: by the end of October 2010, Late December 2010 and by the end March 2011.

"Faster access to information systems, a means of cutting through complexity, and more control over the granting of access to critical information are the goals of the Unique Identity Project."

Vergílio Rocha, ISD Corporate Director on 9

cultura edp

connect to the wireless network Numerous spots and one single network to link them.

If your computer laptop is already within the "EDP sphere" and recognizes the network wirelessON, it is possible to be connected to the internal network at EDP's offices, with no cables needed. This global, fast and safe form of access is now available in Portugal (and in the future will be available in EDP's other geographic locations) and does not require any type of configuration or software installation. If your laptop

recognizes it, wirelessON will become automatically connected. WirelessON was designed for places where there is a need to be connected to EDP's internal network without requiring physical connection spots that deliver better-quality access but limit mobility. Given that it is a limited-use network (which at the same time enhances mobility) the contenders for this type of service include meeting rooms and auditoriums.

New system streamlines commercial activity The Information Systems Department started the upgrade to the regulated markets system, an area that is crucial in supporting EDP's commercial activity. ue to current market dynamics, software manufacturers must be mindful of their applications’ response to their client’s new requirements. SAP is no exception. As a result of the evolution of the SAP ISU (Commercial System) versions, DSI started the SEP System Upgrade (System for the Regulated Market) this February, using the latest version available from SAP. This updated version is intended to prepare the way for the system evolution to ensure broader, more appropriate support to EDP's business teams. As a technical upgrade, it guarantees that EDP has a system with strong potential to grow in supporting new business processes while following the best practices that exist in the IT (Information Technologies) market.

Given that this system is crucial in supporting EDP’s commercial activity in the regulated electricity market, a very broad internal and external team was involved to ensure the success of this project. Its implementation was the responsibility of Logica, a long-time partner in the area of information systems, plus teams from the Projects, Application Maintenance, Data Processing Center areas, among others.

This project was a pilot study in the area of Acceptance Test Certification, in which Novabase was a partner. It guaranteed a higher fluidity and simplification of the testing process,

D

10 o n

EDP can already count on a system with high development potential in terms of support to the new business processes.

and created a repository of reusable scenarios for identical processes.

ISD (Information Systems Department se-

cured the management of the project and provided an essential support to the business team through its functional analysts, who validated and tested the system. Finally, an extensive team composed of "process owners" and "key users of business solutions," along with the various business areas with which they interact, were vital to the entire validation process of the new version of the SEP application.

EDP can already count on a system with high potential for growth in terms of providing support to new business processes.

edp culture

SCIRF Auto-certification in Portugal The auto-certification of SCIRF’s (Internal Control System of Finance Report) processes and controls, which was launched in Portugal during the first few months of 2010, was an essential milestone in the consolidation of business units within the Group and in the quality of the financial information made

available to stakeholders. The 314 certificates received at DAI Corporativa clearly show the dimension that SCIRF has in Portugal. In the near future, EDP intends to extend and apply this procedure to the remaining companies that are covered by SCIRF, namely EDP Renováveis, Naturgas and Brazil.

More Lean on the Commercial Solutions Integrated within the project Lean II from the EDP Way Office Program, three new Lean Commercial Solutions teams were launched. They address work organization, rebilling and undeliverable mail, representing another contribution to creating customer value.

The team members’ maturity, depth of

analysis depth and knowledge of the methodology facilitates the natural adherence and integration of the Lean method in the organization’s daily life.

Examples of the greater maturity of the project include the creation of two departmental initiative teams (Reading Occurrences and Forced Readings); the

innovative way that team leaders have developed and defined work targets; and the "work organization" method used to approach employees’ everyday problems. With this important step, EDP Commercial Systems is becoming increasingly closer to the motto: "The Lean is part of our DNA." o n 11

E d p c u l t u re e d p w a y

Given the importance of consolidating businesses, creating value and increase the implementation of the new cycle envisaged by the 2009-2012 Strategic Plan, EDP launched the EDP Way, in which i’m + edp is included. Learn more about this project that is included in the new Human Resources management model, and has twenty major themes

“ i’m + edp Achievements” reveal team members’ dynamics "Our People are our greatest source of energy”.

This EDP Group maxim is a guiding principle of the i’m + edp project – one of five extensions of the EDP Way program – which aims to enhance team members’ performance as a source of competitive advantage for the company. i’m + edp combines four strategic concepts for the Group, namely social sustainability, mobility, attractiveness and communication/mobilization. The project is based on a set of actions designed to increase team member mobility and the development of conditions that facilitate their internal mobility within EDP’s 12 o n

different companies and the various geographical locations in which the Group operates.

The involvement of the Human Resources Department in the company’s various projects is a key strategy, and communication appears to be one of its centerpieces. EDP needs to boost, integrate, exchange ideas and make its goals and vision clear to the entire Group. It is important that we show the best that has been done throughout EDP so that all the members of our community can feel that they own and have won each successful action the Group has taken.

THE ART OF GETTING THINGS DONE “The i’m + edp achievements show the effort that EDP has invested in terms of execution in the different are as in which the HRD’s competence centers, in collaboration with all the Human Resources teams of the EDP Group, work daily and are symptomatic of the way EDP wants to follow" Maria João Martins Responsible for the i’m + edp Project

E d p c u l t u re e d p w a y

Communication and Mobilization

v

v

Social Report Evidence for Dow Jones...

EDPessoa Leveraging HR processes, standardizing and maintaining diversity

v

i’m + edp Learning Maps

The communication and mobilization of EDP’s team members is one of the major strategic objectives for the 2009-12 cycle. In an attempt to have team members take ownership of the company’s messages, a timetable was prepared for the communications activities of Human Resources. Worth emphasizing is the learning map activity 'i’m + edp,' which aims to bring a new wave of mobilization while promoting the alignment of all team members around the strategic pillars of the Group. In addition, this initiative strives to facilitate the absorption of the organizational culture and values that are essential to the success of a new cycle. The effort included team members from all of EDP’s companies in Portugal, Spain and the United States, and more than 1,500 maplearning sessions were completed with the support of about 250 energizers.

v Climate Management Listen to do better!!

v Value Experience We need your knowledge

v

EDP TEAM Our people are our greatest source of energy! o n 13

E d p c u l t u re e d p w a y

Mobility To promote knowledge and experience sharing throughout the EDP Group, EDP assumes that functional and geographic mobility inside the Group should be promoted and encouraged as one of its top priorities. At this stage, EDP is considering various programs that promote several types and formats of mobility. The goal is to foster the exchange of knowledge and cultural wealth, create synergies, and position EDP as a multinational company. We must gain potential to strengthen the EDP team and guarantee our future!

v Gain potential to strengthen the EDP team and guarantee the future!

v

SMS Learn More About...

v Routes with Energy Show Who We Are and What We Do

v

Center of New Opportunities Certify to motivate and grow

v Decision Making 14 o n

E d p c u l t u re e d p w a y

Attractiveness

v

As part of its recruitment and selection policy, the EDP Group considers it essential to position its market image as a first-choice employer. In this sense, the recruitment program "ON TOP – EDP” was developed to capture the attention of young people within the academic world who demonstrate a strong potential for growth within the Group. This commitment to attracting the best and the brightest is essential to the future development of EDP.

Internal and International Mobility Energy for new skills

v RHD Governance Model Proximity Simplification Synergy Dialogue

v EDP’s Leader's Guide Guide to lead!

v

Succession Management...

Preparing Future Leaders

v Training Plan and Rules of Advanced Training Develop towards competitiveness o n 15

market E D P B u s i n e ss e s

“The best quarter ever” These were the words of CEO António Mexia at the presentation of the Group first quarter’s results, which took place on July 29. EDP experienced a 19 percent growth in profit supported by company internalization activities

T

he EDP Group's consolidated EBITDA increased 14 percent (+ € 220M) to 1,831 million euros in the first semester of this year – a value driven by the operations of EDP in Brazil (+ € 105M), by the activity of EDP Renovaveis (+ € 72M) and by the regulated networks (+ € 55M). According to CEO António Mexia, "The strong growth in results can be attributed, once again, to the efficiency ratio."

And Mexia added: "If we see the OPEX over gross margin, we achieved a value that went from 28 percent to 27 percent since last year, which is the best index level in the industry, especially in the Iberian market."

As for the EBITDA (operating cashflow) the CEO made a historical analysis of the last five years: "We verify an 89 percent growth of the company’s operating results in five years, for which 55 percent comes from its business outside Portugal." Concerning the liquidity level (4,200 million euros), Mexia considers that amount sufficient enough to ensure that all projects will continue until next year. Both the Group's EBITDA and net profits were above the analysts' estimates of 1,803 million euros and 526 million euros, respectively.

+ 19% net profit 14% increase in operating results 12%, yearly EBITDA growth since 2005 EBITDA (operating cashflow)

Liquidity Level of

Net Debt of

1,831 million euros

4.2 mil billion euros

16.1 mil billion euros

Group’s EBITDA evolution 1ST SEMESTER 2009 (VALUES IN MILLION EUROS)

1ST SEMESTER 2010 (VALUES IN MILLION EUROS)

Iberian Generation

648.6

669.6

Iberian Commercialization

23.5

1.5

EDP Renováveis

270.8

342.9

Iberian Distribution

330.4

353.2

Iberian Gas

121.9

142.3

Energias do Brasil

235.9

341.2

EDP Group

1,610.5

1,830.8

BUSINESS AREAS

16 o n

M a r ke t

EDP stores with a new look In the second quarter of 2009, the Energy Services Regulatory Authority (ERSE) had given EDP a set of recommendations. EDP complied and today its stores have a new look. Its network of stores adds value to the EDP Group because of the inherent synergies that come from providing, in the same commercial platform, live customer service for the several companies that com-

prise the Group, whether they be related to electricity or gas, or from the regulated or deregulated segment. To demonstrate even more the significance of market deregulation, EDP followed the recommendations given by ERSE in all its stores in the country. How? Using the EDP brand as its base, the Group unveiled an image differentiation that unequivocally conveys to its clients that

they can take care of all the matters within the scope of EDP Distribution, EDP Universal Service, EDP Comercial and EDP Gás.

With the new layout, the image differentiation is immediately noticeable, not only in the store directories but also in the brochures organizing spaces that present specific content and graphics for each company.

Spain: energy can already be purchased at the supermarket Telecom, a telecommunications company that belongs to the El Corte Ingles retail group, and HC Energía began selling electricity, gas and other value-added service. The initiative is already functioning throughout Spain, at 17 shops located in Leon, Burgos, Valladolid, La Rioja, Navarra and Valencia. "A new formula for business expansion, an pilot experience, the first one in Spain with these characteristics" – this is how the Spanish press described the agreement between the network of services, telecommunications and energy stores from El Corte Inglés (Telecor) and the HC Energía, through which customers can sign up for electricity, gas and energy services.

Customers are able to perform all sorts of commercial account management at these stores: change personal information, including direct debit data; subscribe for electronic invoicing; sign up for supply services; change tariff rates power capacity; or simply complain.

Oriented toward domestic clients and small businesses dependent on Formula Gas Electricity and services, this initiative is one way for HC Energía to establish a new, more accessible sales channel that brings it closer to customers and carries EDP's offer to millions of homes in Spain!

o n 17

M a r ke t

Service to increase voltage levels

T

he level of voltage delivered to a customer is not always the most appropriate one. For that reason, the initiative Increase the Voltage Level, provided by EDP Services, not only allows the quality of service to be improved but also reduces the costs of electricity supply. This service is particularly advantageous for customers who, due to the growth of its production, have in-

creased their energy consumption but kept the voltage they were provided initially. This way, customers can install the voltage level that better suits their consumption and thus benefit from a more competitive rate.

Thus, the main advantages of this service are: • Improve quality of service quality through an increase in the level of voltage delivered; • Reduce energy costs due to lessened use

of the access tariff to the distribution networks; • A single "turn-key” service provider.

The solutions for increased voltage can be carried out on new consumption points or for any customer that wishes to move from low tension (LT) to medium tension (MT) or from medium tension (MT) to high tension (HT).

Neoplastic: concentrating production in Portugal Neoplastic SA, a company that produces plastic film for the food sector, decided to focus on a new production unit in Portugal, in the northern town of Santo Tirso, following the success of its factories in Virte (Netherlands), Porriño (Spain), and Chamistães, also located in the Santo Tirso area.

EDP Corporate was consulted regarding the aspect of selling energy in the open market, and through EDP Services, and its complementary offer of energy services, several areas of the project were accompanied. In addition to the energy service to Increase the Voltage Level, the work provided also included the disassembly, transportation and reassembly of industrial equipment, with the help of more than 30 trucks that came from the Netherlands and 15 more from Spain.

The project, representing an investment of about 1.5 million euros, consisted of the supply and installation of a 10MVA substation with its control panel, and a 60kV overhead line with approximately 6-kilometer extension, in order to allow the plant to obtain electricity at a 60KV/15KV voltage.

It is notable that the payback period on the investment was about 3.5 years, and Neoplastic was able, through the implementation of this project, to save about 300,000 euros per year.

18 o n

Pingo Doce wants to save With the integration of the Plus stores in the grocery/retail chain Pingo Doce, from the Jerónimo Martins group, the account manager of EDP Corporate identified the need to increase the voltage level in 70 stores. The Plus chain had 77 stores, of which seven had their own transformation stations, and the remaining 70 were supplied with low tension (LT). The objective was to increase the voltage level supplied to the premises with low tension and increase the voltage on the remaining ones.

The change in the tariffs, and the estimated savings that would result from it, was the main reason for this operation.

Most of all the newly acquired stores passed from a low tension level to a medium one (MT), with 250 kVA, and transformation stations with embedded sectioning Post were installed for that purpose.

The adjudications began in 2008, and the volume of work already awarded exceeds 3.2 million euros, in relation to the 52 supermarket facilities that used to belong to PLUS chain.

This phase is expected to be concluded by to be concluded by the end of 2010.

With this solution, the new Pingo Doce stores were able to, at the current rates, achieve 20-25 percent of annual savings (approximately 1.7 million euros per year). It is estimated that the entire investment of 4 million euros will be recovered in about 2.5 years.

causes

edp

Economic ability and social commitment

EDP Foundation brings “Dentista do Bem”

O

ral disease such as tooth decay, gingivitis and other problems are a major concern in the area of public health.

Statistics indicate that 90 percent of the Portuguese population has oral health issues.

Approximately 60 percent of young people 14 years old or younger have never been to the dentist. And at 12 years of age, young people have in average 50 percent of their teeth already in need of repair, presenting with serious dental problems and demonstrating symptoms of infection, pain or tenderness...

Aware of this challenge, the EDP Foundation launched in June, to Lisbon's Museum of Electricity, the project Dentista do Bem, in conjunction which derives its name from the nonprofit Turma do Bem, which was founded by the Brazilian dentist Fabio Bibancos. This initiative (which has been sponsored by EDP Brazil since 2008), already has more than 7,500 dentists in Brazil, Argenti-

20 o n

At Dentista do Bem, the service is free and each dentist is responsible for his or her patient until age 18

na, Chile, Paraguay, Bolivia, Peru, Ecuador, Colombia, Venezuela and Mexico. In Portugal, the project now has more than 120 dentists onboard..

In 2010, these Dentistas do Bem will consult with more than 15,000 children around the world. The selection will take place in schools and via the Third Sector projects (formed by organizations created by citizens’ initiative with the aim of providing nonprofit services to the public), using a scale that gives priority to the children with the most severe problems, the oldest and those who cannot afford to pay for care. The service is

free, and every dentist is responsible for his or her patient until the beneficiary turns 18 years old. More than an oral health project, Dentista do Bem has a significant impact on the socio-economic well-being of communities and transforms thousands of lives – not only those of the children and their families but also of the volunteer dentists who are valued and recognized by the entire society.

And everyone can help: at your next consultation, talk with your dentist about Dentista do Bem. He can also be inspired to improve the lives of many kids!

More information: Murilo Casagrande, Turma do Bem Portugal Avenida Brasília - Central Tejo, 1300-598 - Lisboa Tel: + 351 21 002 8125, Tm: + 351 92 620 8751 www.turmadobem.org.br

causes

Environmental Best Practices Guide EDP Gas edited the Environmental Best Practices Guide, a tool aimed at everyone working in the company or on its behalf, which seeks to ensure the proper management of the environmental aspects associated with the company’s activity.

Structured into four areas: consumption management, waste, discharges and emissions, and the impact of activities in the services provided - this guide presents the rules, management techniques and working methods used to control the enterprise’s impact on the environment. The Environmental Best Practices Guide becomes then a training tool and instrument for environmental awareness.

Orchestra’s Generation in Amarante The EDP Foundation has extended the Orchestra Generation Project to Amarante. On June 26, EDP handed the first musical instruments (10 violins, four violas d'arc, four cellos and two basses) to 20 young musicians from this town.

The youngsters, who are between 10 and 12 years of age, attend the Amadeo de Souza-Cardoso group of schools. They began rehearsing May 15 in order to surprise the audience with a small show.

The "Generation Orchestra" is a project of social inclusion that brings together children from disadvantaged social strata using their predilection for music. The idea is inspired by a model that has been in place in Venezuela for some 38 years,

and that has completely transformed the lives of thousands of children: through the program, students with a history of poor performance at school are encouraged to develop positive values such as discipline, punctuality, persistence and teamwork, among others. In Portugal, the project started in 2007 with initiatives at Casal da Boba in Amadora, and has been extended to other locations. Foundation EDP, Calouste Gulbenkian Foundation; Ministry of Education, School of Music of the Convervatório Nacional and local governments in the cities involved have been the main drivers and supporters of the program’s implementation.

200 Children on the Bike Tour This year’s edition of Porto Bike had a big idea: a race totally dedicated to kids, from 4 to 11 years old. The EDP Gas Kids Bike Tour was held in the seaside of city Matosinhos, on the day before the main event, and was attended by 200 children. In the spirit of social inclusion, most of the participants were from public social institutions: Obra do Frei Gil, Porto; Cáritas, Braga; the Social Services division of the Viana do Castelo Town Hall. These children had the opportunity to experience a different day, receiving all the material used in the race, including the bicycle. The group of participants also included the children of EDP Gas team members.

o n 21

causes

Down Syndrome Foundation of Madrid visits wind farm On June 15 EDP Renováveis (EDPR) celebrated another Wind Day, which this year was marked by the visit of a group of students from the Down Syndrome Foundation of Madrid to one of its wind farms. In continuing a relationship between the foundation and EDPR that has been established via other activities, more than 20 students from the foundation visited Altos de Voltoya and were able to explore the inside of one of

the 80 turbines, about 1,500 meters high, that belong to this wind farm. On their tour, the students learned how the wind is turned into energy that reaches our homes daily. EDPR wanted to show the children and their caretakers how its wind farms work and the benefits they bring to the environment and to the production of clean energy. Besides the educational component, the initiative provided an excellent opportunity to

EDP Gas supports race in Porto In June the Race Festas da Cidade (City Festivals) brought a crowd together in Porto, with sponsorship from EDP Gas. The main attraction at this sporting event is the 15-kilometer race, in which top national and international athletes participate. The festival also includes a 5-kilometer walk oriented toward families and a EDP Gas mini champions race for the youngest participants.

In this year’s festival, EDP Gas participated with the motto “Walking is 100% natural”, launching it in tandem with the clean energy of its 100 percent natural gas, which it sells and distributes.

In accordance with EDP’s strategic pillars and mission of social responsibility, a percenta22 o n

ge of revenue (0.50 cents/euro per registration) from the sale of its natural gas will be donated to groups benefitting disadvantaged youth, the elderly, and the disabled.

EDP Gas joined Ajudaris and the Metropolitan Ombudsman of Citizens With Disabilities (Provedoria Metropolitano dos Cidadãos com Deficiência) in this initiative, which aims to celebrate the “Year for Combating Poverty and Social Exclusion.” The Festas da Cidade Race takes place in Porto every year in honor of St. João, the patron saint of the city, and each time mobilizes about 10,000 participants. This race has been sponsored by the EDP Group for 11 years and associated with the EDP Gas brand since 2008.

promote social integration and outreach to the community.

Wind Day is a partnership between the European Union Wind Energy Association (EWEA) and the Spanish Wind Energy Association (AEE), which was established to create opportunities for every citizen to discover, in detail, renewable wind energy and its benefits as well as to support initiatives that give voice to the debate on renewable energy.

edp is more than energy, it’s life

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.

www.edp.pt

Innovation * Within the SmartGrids context, there are several ongoing European projects co-financed by the European Commission.

One of them, the OpenNode, counts on the participation of EDP

Community project OpenNode EDP participates in the OpenNode community project (Open Architecture for Secondary Nodes of the Electricity SmartGrid), co-financed by the European Commission as part of the FP7 (Seventh Framework Program), which aims to study and develop nodes of smart networks to be installed in transformer stations, according to the open and standardized future specifications.

The project involves funding of approximately 2.5 million euros, with 250,000 euros earmarked for the work to be developed by EDP Innovation, in collaboration with EDP Distribution. This project started in January 2010 and is expected to last 30 months.

24 o n

The OpenNode connects two main aspects of the future SmartGrids.

On one hand, it takes into account communications with the client’s meters, regardless of the manufacturer, monitoring the following: • Energy consumption and quality of service reports; • Service failures; • Remote operation of the smart meters; • Remote management of contracts (power, rates, etc.).

On the other hand, the meters infrastructure follows the automation of the distribution network, according to the SmartGrids paradigm.

A consortium of nine companies runs the OpenNode.

I n n ova t i o n

Week in Innovation EDP Innovation launched another unique initiative — the "Week With Innovation." With this project, which combines the mobility and internal communication of knowledge-sharing, EDP intends to strengthen the interaction between its companies and contribute to the promotion of innovation inside the Group.

Through this program, EDP Innovation invites internal communications departments from the other companies of the Group to spend a week at their premises and share their day-to-day activities. In this way, EDP Innovation intends to make itself better known within the

Group, to share what it does and to establish connections for future joint activities. The first "Week With Innovation" was held in June, with the participation of EDP Comercial/ EDP Services. Isabel Botelho, head of internal communications for the company, accepted the challenge and moved to the headquarters of EDP Inovação for a week.

Also, in June, EDP Value took its turn, with Gonçalo Carvalhas from Internal Communications participating in a similar program. This initiative is expected to end in November. Until then, several colleagues will have the opportunity to participate in different workweeks.

The EWebReport @ resource management system, provided by EDP Services, promotes energy efficiency at the premises of EDP customers, thus contributing to a drastic reduction in costs. The EWebReport @ combines modern communication technologies with personalized service, which is targeted to meet the specific needs of its customers. An EDP hub locally collects the total and partial consumption amounts of electricity, water and gas and sends those in real time via GPRS to a database that that can accessed anywhere via the Web. The service generates a series of reports that become accessible to the client and can be sent via e-mail under certain conditions, providing a permanent interaction between the client and EDP via a dedicated portal, automatic e-mail alerts or preconfigured reports, and regular visits from energy managers, who can help to identify equipment or procedure inefficiencies.

v

EWEBREPORT @ EQUALS EFFICIENCY

Smart Energy Meeting EDP Innovation sponsored and jointly organized the first event "Smart Energy Brainstorms " in partnership with Carnegie Mellon University’s and Massachusetts Institute of Technology’s (MIT) programs in Portugal. The June 15th meeting was the first of seven events dedicated to the new challenges related to "smart energy” grids. The initiative, which took place at the Macau Science and Culture Center, addressed the topic of "R&D for the Future of Smart Energy Grids: Fostering Pilot Experiences in Portugal," correlating the debate with the InovGrid and Mobi-E projects.

The session included four "brainstorms" on the following themes: learning from pilot experiences of smart grids in Portugal; key technological challenges

with smart grids; consumer interaction, public policies and interaction with other services and technologies; and research needs.

António Vidigal opened the session by presenting the EDP Group’s perspective on the main challenges facing the electricity sector in terms of smart networks and the initiatives already taking place in Portugal.

Following the session was a debate on each of the topics under discussion. In addition, the all the other participants presented their projects and perspectives on this new technological area. Those present participated actively, allowing some key points to be identified and discussed at depth, which will ultimately lead to the successful development of SmartGrids in Portugal. o n 25

cover Kakuma A light of hope

EDP has teamed up with (UNHCR U.N. High Commissioner for Refugees) to bring renewable energy and sustainable environmental solutions to the Kakuma refugee camp in a groundbreaking project of this kind.

26 on

cover

tries. The camp is a small town of reedroofed huts, tents and mud houses. Living in the camp feels like being under arrest and exiled. Once admitted, refugees do not have the freedom to move around the country.

They are required to obtain “Movement� passes from the UN High Commissioner for Refugees (UNHCR) and Kenyan government. They cannot seek education or employment outside the complex. Inside this small city, located at the edge of the desert, hope is giving way to resignation. Refugees are, after all, living a kind of hostage life.

It was because of this scenario that EDP decided to team up with UNHCR to bring renewable energy and sustainable environv

L

iving in Kakuma as a refugee is a tough experience, not only because of the sandstorms, high temperatures, snakes, spiders and scorpions that devastate the territory. Malnutrition, communicable disease outbreaks and malaria are the greatest challenges. And, aid to the population has been decreasing due to conflicts that exist in other areas of the world.

Many of the refugees still hope to leave Kakuma to restart their lives in Europe or the United States. In fact, Kakuma is the Swahili word for "nowhere," epitomizing the seclusion of the area. The camp opened in 1992 and today serves more than 70,000 refugees who fled wars in neighboring coun-

on 27

cover

Guilherme Collares Pereira "The presence of the High Commissioner, António Guterres, and our company’s CEO, António Mexia, as well the other guests, confirmed the success of the initiative and the completion of the first transformation phase of the lives of tens of thousands of refugees. Responding to the refugees’ cause in a truly innovative way can only be achieved in a company like ours, commanded by people with vision and the courage to take risks."

João Maciel

Kakuma Project • 30 solar ovens.

• 4,000 solar lanterns (given to students from about 20 local schools).

• Installation of 31 solar street lamps.

• Installation of three pumping systems for small agricultural and reforestation farms .

• Technical training provided to about 100 refugees.

• Monitoring and evaluation of the entire pilot project with the help of two specialized external partners.

• Detailed study of the costs incurred by refugees and local (host) community with energy consumption.

28 on

Sérgio Figueiredo

Pedro Paes

"It is impossible, even through images, to show emotions, and how it feels touching people's lives. This is something that we, obviously, have the obligation to be the spokesman within our company to show our colleagues the work of EDP in the life of this camp. Our company is about precisely that - people emotions - because that is where true business lies also".

"The pilot phase of the project, which is now complete, is just a "seed", a small contribution to change the refugees’ living conditions. EDP’s approach has been to build the project ‘with’ and not ‘for’ the refugees. Through its work at Kakuma, the company hopes precisely to ensure the long-term sustainability of the solutions, while promoting local capabilities and social entrepreneurship."

v

"The most important thing is that we 'teach how to fish' and we do not give the 'fish' away. All projects were developed with full local involvement. Today we have, for example, 'solar engineers' that guarantee the installation, management and maintenance of the photovoltaic power systems. This decreases the social exclusion, one of the major problems that these people face, and guarantees the sustainability of the entire approach and of the developed solutions. And, in about a year, the vision and plans have been turned into reality. And already today there exists EDP energy that brings more life to the Kakuma refugee camp. They live our energy!"

mental solutions to the Kakuma refugee camp. This groundbreaking project was announced during the fifth annual Clinton Global Initiative that took place in New York in September 2009. It is a simple idea that will revolutionize the lives of more than 50,000 people.

This pilot project aims to develop a standardized set of environmentally sustainable and renewable energy solutions, which will increase access to renewable energy, build local capacity and encourage social entrepreneurship in Kakuma. EDP and UNHCR expect to be able to stimulate new economic activities at the camp, through this pilot project, with the greater objective of replicating it in other refugee camps and remote rural communities around the world. If it becomes successful and scalable, EDP intends to assist in breaking the poverty cycles and fostering the sustainable development of communities,

empowering vulnerable populations and covering their basic energy needs.

“This whole issue of responsibility cannot be simply talk - it has to be material and, consequently, has to translate into action and not just into a work of tranquil conscience,” mentioned António Mexia, EDP chief executive officer (CEO), during his visit to the Kakuma refugee camp.

“The project we’ve launched has the energy sector at its heart, but it also addresses issues of health, education, food, agriculture and more. We saw here today, firsthand, how these aspects of our project have the power to change the lives of 70,000 people.”

By October 2010, about 47 kilowatts (kW) of wind power and photovoltaic solar systems, with more than 1,500 low-energy light bulbs, will be installed in 12 buildings. The metal support structures and the technical basis for electronic equipment were built locally.

emcover foco

“As a global company today, EDP also bears a global responsibility. We are here, in one of the areas of the world suffering most from climate change, trying to contribute so that people who did not have opportunies we’ve had can have a different, better life going forward.”

ANTÓNIO MEXIA

Thanks to the merits and innovative nature of this project, EDP has become an official partner of the "Sustainable Energy Europe Campaign" and has been selected for the "Sustainable Energy Europe Awards Competition 2011"

About 30 high-quality solar ovens were distributed, and a training session on its use has been given. In addition, 4,500 solar lanterns are being distributed to students from 20 schools".

Moreover, 31 public solar lighting poles and three solar pumping water systems for household agriculture and reforestation are being installed. All of these activities were complemented with technical training sessions to about 100 refugees, which were enthusiastically received.

“I want to express my great appreciation

for the solidarity "shown by EDP," said U.N. High Commissioner for Refugees António Guterres, during his visit to the Kakuma camp. “ This partnership with the private sector, with EDP in this case, is an essential stimulus to make us, UNHCR, get out of the routine and to introduce extremely innovative ways of using energy – energy that is fully green and benefits the welfare of highly disadvantaged populations, enabling them to build the capacity to face these challenges of development.”

Thanks to the merits and innovative na-

ture of this project, EDP has become an official partner of the "Sustainable Energy Europe Campaign" and has been selected for the "Sustainable Energy Europe Awards Competition 2011".

“EDP is a global company; if it weren’t, we wouldn’t be here today [Kakuma]. We are the largest investor in Portugal and the largest Portuguese investor abroad,” concluded Mexia. As Portugal’s biggest multinational company, we are in more than 12 countries. “Our ambitions are global and so are our responsibilities.” on 29

cover

Our challenge to customers EDP wants to invite all its customers in Portugal, Spain and Brazil to participate voluntarily in a fundraising campaign to support refugee camps. This initiative was announced by CEO António Mexia at a press conference during the Clinton Global Initiative in New York. The challenge seeks to involve partners and EDP’s customers who want to voluntarily provide better living conditions to the thousands of refugees that live today in extreme poverty.

"We want to multiply this effect through our partners and our customers. We are launching a challenge so that, with symbolic funding, around 4 euros per year, or 30 cents per month, we can obtain more funds to intervene in the refugees camps," said Mexia.

The details of this initiative are still being finalized, as EDP must await the response of the respective entities handling market regulations in the various geographical areas where EDP is present.

The refugee camp in Kakuma is located 1,000 kilometers from Nairobi, Kenya. It is one of the largest refugee camps in East Africa and is administered by the United Nations. A temporary refugee camp for about 20 years, Kakuma is located near the borders of Sudan and Uganda and receives people from Burundi, Congo, Ethiopia, Rwanda and Somalia.

Lighting for all students Polataka Primary School Hospital for Refugees Our Lady School Central services City of Kakuma UNHCR office Lodwar-Lokichogio Road

Water purifier

Social enterprise

Renewable Energy to supply water

Projects under way Light for the Future Domestic agriculture

Lighting for families on the streets

Efficient lighting in buildings

30 on

Solar-powered ovens

Sustainable energy for building (schools, hospital, offices)

Sustainable environment

cover

Jorge Mayer

“I LEAVE HERE WITH A DEEPER SOUL” The engineer for EDP Production was in charge of operations at Kakuma refugee camp. It was an intense period -- as difficult as it was rewarding. In the end, he does not hide his pride for having lived in an environment that is not easy for a "mzungu" ("white man" in the local language).

How did the idea to come to Kakuma arise?

to be the ones solving their problems.

The company was looking for someone who could fit a certain profile, and after the interviews, and after the interviews they thought I was that person.

What characteristics must a person have to come to Kakuma?

I like to joke and say that to come here you have to bring dental floss, because in this region we eat a lot of goat meat (and sometimes camels), and at times it gets stuck in your teeth. On a more serious note, I think it is crucial that people come with an open mind and a huge sense of inner strength. You must come with a spirit full of conciliation and the motivation to help people accomplish their goals.

What did you bring in your suitcase?

Few things. Mostly a series of T-shirts and shorts. I only brought one suitcase. When I go back to Portugal, it always goes back almost empty.

What were your expectations?

I had the idea of doing something innovative and different, of being part of something completely new. This is a pioneering and unique project in the world, and it’s the first time EDP has done something like this.

So, at the same time, everyone is learning.

I came with high Expectations, and now that we're near the closing stage, when you look at the work done in the field and the joy of the people, it is extremely gratifying to see what we have accomplished in this mission.

You have a life history linked to social intervention. What makes a person become so devoted to these causes?

Usually people do not speak very much about their faith, but I am a person of faith.

I try live it in my day-to-day life. And I came because of the 70,000 people who are here.

This is a unique project that could change the lives of the people in the camp and of many more in the future. I think happiness comes primarily from three things: knowing what the meaning of our life is, being close to our roots (family, friends, etc.) and finding the place where we can be most useful What did you get from Kakuma?

Do you have any remarkable stories to share?

others feel. They are all very young and seized the opportunity. We told them that they had been given a unique chance to do something no one else ever had, and therefore we all needed to work as a team.

From the beginning, we tried to motivate them and we made sure to introduce them to Dr. Mexia, explaining that they were responsible for the public street lights.

The joy was visible on their faces after having accomplished something unique and with such potential. Through this process, which pulled so much from everyone, they became leaders and grew as people and as workers.

Do you think this project has brought a feeling of belonging to the refugees?

I received two very important things. First, the smiles from the children. They gave me great strength. Another thing was seeing the work done and noticing that, together, we can do unthinkable things, such as creating the first illumination pole in the world that was made by refugees. We broke lots of stones. We pioneered.

That is more difficult to analyze, because they already have a sense of belonging to this place. We worked very closely together; we worked with each other as a team.

That's the project worked so well. We gave everything we had.

And how did the refugees feel about the experience?

Their culture has nothing to do with ours.

People are not used to being part of the solution. They were waiting a lot for others

It is always difficult to speak about what

What was most difficult aspect in your relationship with the refugees?

Among many stories, in positive terms, the most striking one, apart from António Guterres’ delight with the results, was when we arrived a few days before the visit and made a site inspection to see if everything was OK. We were inside the Jeep and saw five little children who came close to the car and began to shake their hands and say together: "Thank you! Thank you." Of the most negative ones, it has to be the moment when I was arrested. It was not easy to land, to arrive at the camp and receive so soon a warrant for my arrest. It happened because a gentleman said my taking pictures was illegal, and he wanted to take me to court. But then it was all resolved successfully.

The people from here do not like being filmed because they say it steals a piece of their soul. Is your soul greater than theirs?

I would say that it is deeper, more defined, after my experience here. My soul has grown larger in the sense that being at Kakuma has required a lot of dedication.

There were a lot of things in my life that I had to quit to come here. It was not easy, but in the end I think my spirit has been strengthened and become more refined.

Working here requires that you have a plan B, a plan C and sometimes even a plan Z. Can you define Kakuma in a sentence?

I would say it is a mission and a direction, a mission, because we work as a team, and a direction, because of the people who are in Kakuma. on 31

cover

The faces of Kakuma

32 on

cover

EDP brought hope to thousands of lives in the Kakuma refugee camp.

These are some of the images that are not to be forgotten

on 33

cover

1

2

6

3

7

4

5 34 on

8

12

9

cover

10

11

13

15

14

1. September 7, 2010. Half Day. Almost 40 degrees Celsius (104 F). U.N. High Commissioner for Refugees António Guterres and EDP CEO António Mexia land at Kakuma.

They are greeted by the Turkana, whose ancestors inhabited this almost deserted area of northern Kenya.

2. Food distribution center. The bars and corridors are ways to organize the crowd. The environment is tense and conflicts arise easily. Here it is all about survival.

3. Ensuring the continuous flow of food remains a woman’s task.

4. EDP brought to Kakuma efficient solar ovens meant to replace the consumption of firewood. Deforestation continues to increase around the camp.

5. The residents at Kakuma try to reconstruct the sense of day-to-day life that have lost along with their homelands.

6. In Kakuma, food is distributed twice monthly by the U.N.

16

7. Water is taken from a not very deep hole through a solar pump installed by EDP. In a few months there'll be fresh vegetables for some of the families.

12. A flashlight can change lives. Passing the final exam may mean getting one of the few scholarships offered by nonprofits.

8. EDP is distributing 4,500 solar lanterns to students. The lanterns are charged. Having a solar lantern means having the ability to attend school. It reduces the dropout rate, creates savings by avoiding the use of kerosene, and improves school performance.

13. Few girls attend high school. Instead, they stay tied to household tasks. By distributing solar lanterns, EDP seeks to help these girls continue with their education.

9. Their difficult lives have not erased the generosity of this people. Thousands of residents have thanked EDP and UNHCR. 10. Water is a scarce commodity in Kakuma. The U.N. drilled holes for the water supply. EDP now brings a novelty – solar-powered pumps that will enable residents to grow small gardens.

11. There is only one high school. It serves just slightly more than 800 students in a population of 75,000 people.

14. This is the first pole made in Kakuma. The skirt of straw is just one of the components produced locally. The aim is to ensure maximum integration and local solutions.

15. Security is a problem. The installation of solar-powered street lights is expected to reduce the incidence of thefts and rapes in the camp. During the day, the batteries for the lights will charge under the scorching sun and, hours later, illuminate the nights in Kakuma town.

16. Mogadishu Street is the camp’s busiest avenue. The Somalis, since they are more business oriented, dominate the area.

on 35

Who’s who United Nations High Commissioner for Refugees

ANTÓNIO GUTERRES B

ringing energy to refugees can significantly improve their lives. U.N. High Commissioner for Refugees, António Guterres, wants more examples like that of EDP in Kakuma — companies that contribute with their know-how for the protection of human rights.

What has been your experience as United Nations High Commissioner for Refugees?

Above all, I must admit that it is an extraordinary privilege to be able to dedicate my life to such a noble cause as helping those who are vulnerable in today’s world. During this period, we have made a great effort not only to improve the protective conditions of refugees but above all

that we had accomplished to the three areas of most movement — Afghanistan, Democratic Republic of Congo and southern Sudan – decreased drastically due to conditions of worsening insecurity in those countries. Today we are dealing with a true humanitarian crisis that begins in Pakistan, continues through Afghanistan, Iraq, its neighboring countries that host its refugees, the Middle East, Sudan, and Africa’s Congo and Yemen. It is an arc of crisis from whence come two-thirds of refugees worldwide and where the situations are increasingly interconnected. All of them have implications in terms of global safety, since what is called into question on some level is a set of relationships between the socalled Western and Islamic worlds.

"I am very pleased with the efforts of EDP” There is a rigid realism in the speech of the UN High Commissioner for Refugees, which does not leave large doubts regarding the future: the problems will get worse for the millions of people displaced from their lands. But despite all the difficulties of those who deal with this humanitarian drama, António Guterres believes that innovative examples, such as the one in Kakuma, can open new doors to hope. to find solutions for them. Our main goal is to decrease the number of people living in such dramatic situations. Unfortunately, however, every time we find solutions for one group of refugees, two other new groups of displaced persons arise, because of the worsening problems that occur from so many crises worldwide.

What differences in the world do you note since you took office in 2005?

In the beginning, we were assisting in a significant reduction in the number of refugees, thanks to the resolution of several conflicts, such as those in Angola, Liberia or Sierra Leone. Today, we are experiencing huge difficulties, in particular, in trying to help refugees to return in a dignified and secure way to their countries of origin. During the last year, the number of voluntary repatriations 36 o n

How can UNHCR make the difference in this so dramatic scenario?

Unfortunately, we cannot solve this problem.

There is no humanitarian solution. The solution is always political and things have not evolved positively in general, in these situations. What we can do, and what we are doing, is to ease the suffering conditions of those people that are affected by these humanitarian disasters.

How is the day-to-day life of a U.N. High Commissioner of Human Rights?

Like it has always been. I work the best that I can so that the mission I have can be attained in the most effective way possible.

But do you go out into the “field”?

More than half my time is spent on the ground. This is, indeed, the most interesting part

Ciência Portuguesa Quem é Quem

We were able to pass from $US1.1 billion in activity to $US1.8 Billion, in four years, without increasing staff worldwide and by reducing 300 people in Geneva. The costs associated with headquarters decreased from 14 percent to 9.5 percent of our global spending.

All these reductions in savings have resulted

in an increase of the organization’s effectiveness.

But this is not what I like to do: What pleases me is working directly in the field, especially the contact with the refugees, seeking through the direct action, to improve our efforts so that UNHCR can be even more effective in solving the problems of the people I meet. v

of the work I do, since over the past few years we have developed a set of important reforms at UNHCR that allow for more effective action, allowing us to spend the minimum amount of time possible with the organization, so that we can dedicate the maximum effort to the people for whom we work.

o n 37

Quem é Quem Ciência Portuguesa

Guterres was recently elected by the General Assembly of the United Nations to his second five years term as High Commissioner for Refugees. He took office on June 15, 2005, succeeding Dutchman Ruud Lubbers in becoming the 10th High Commissioner of UNHCR. Guterres heads one of the main humanitarian agencies in the world, which has more than 6,000 employees in about 115 countries to provide protection and humanitarian assistance to some 17 million refugees. Guterres was prime minister of Portugal between 1996 and 2002. During his tenure, he spearheaded an international effort against serious human rights violations in East Timor .

As president of the European Council in 2000, he co-chaired the first Africa-European Union summit. He founded the Portuguese Refugee Council in 1991 and joined the Council of State from 1991 to 2002. Between 1981 and 1983 Guterres was a member of the Parliamentary Assembly of the Council of Europe, serving as chairman of the Committee on Demography, Migrations and Refugees. He was president of the Socialist International in 1999 before joining UNHCR. Guterres is an electrical engineer in training, was born in Lisbon on April 30, 1949 and studied at IST. He is married and has two children.

38 o n

v

PROFILE OF THE UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES

What have been the most dramatic situations you've seen?

The most horrific cases of suffering that I witnessed were certainly women who were victims of sexual violence in the eastern Democratic Republic of Congo. That was a humanitarian disaster little noticed on the international level, but one that had the greatest impact on human suffering.

And what was the most rewarding situation you've seen?

We recently helped Tanzania to grant citizenship to 160,000 refugees from Burundi who had been living in Tanzania for more than 30 years.

One cannot calculate the immense joy felt by all those people who had lived in overcrowded camps for decades.

Now they have the opportunity to enjoy all the rights of Tanzania’s citizenship. By the way,

United Nations High Commissioner for Refugees Who’s who

and still related to solutions.Moreover, in 2009, the agency submitted 128,000 resettlement proposals from refugees from developing-world countries in lower vulnerability situations to developed countries, up from 60,000 submitted in 2006. As you can imagine, this translated into offering an opportunity for a more favorable life to a significant number of people living in a very difficult situation. world's largest companies do regarding the plight of refugees?

Mainly, the companies can contribute with their know-how and competence.

Naturally, we also count on their financial support. But more important than that is to have

tance of the project currently being developed in Kenya.

Do you consider it important to extend these types of projects to other camps?

I have no doubt that if we could bring renewable energy, not just to the refugee camps, but to many of the other populations in need with which we work, it would translate into huge benefits.

What is daily life like for refugees?

The most dramatic situation in Kakuma comes from the fact that the refugees in Kenya, although protected by Kenyan authorities, can't move freely within that country. A refugee camp is also a big prison. And this is perhaps

Do you think people in the Western world are cognizant of these questions?

On the one hand, they are sensitive to such issues, but on the other they are subjected to very intense campaigns, due to either political reasons or media sensationalism. All that leads to a "tune out" attitude toward the problems of foreigners, in general, and of immigrants, in particular.

We need to promote tolerance, to help people understand that all societies are transforming into multi-ethnic, multi-religious, multicultural communities, and that immigration is an indispensable component of a society’s survival — especially in areas with

A refugee camp is also a big prison. And this is perhaps the most dramatic situation associated with the exile. Then there are a number of deficiencies. No matter how much we do in terms of providing medical care, shelter and support for food and school, the refugees we work with are always living in conditions that are incomparable to those that exist in the developed world

companies, such as EDP, bring what they know and use that expertise to the benefit of the people living in situations of great vulnerability while bearing the costs associated with it.

The fact that EDP makes energy available to the population in Kakuma, and even better provides sources that are renewable and sustainable, leads not only to a substantial improvement in the refugees’ living conditions but also in their protection in terms of human rights. For example, the public street lighting provided by EDP greatly reduces personal attacks and, in particular, protects women against sexual violence.

Have you ever been to the Kakuma refugee camp?

Yes, more than once, and I am particularly pleased by the investment effort that EDP is now making there. Just the installation of public solar-powered lighting in a camp in Bangladesh, in a less effective situation than the one being developed at Kakuma, led to a spectacular reduction in the number of cases of violence against women. This figure gives an idea of the impor-

the most dramatic situation associated with the exile. Then there are a number of deficiencies.

No matter how much we do in terms of providing medical care, shelter and support for food and school, the refugees we work with are always living in conditions that are incomparable to those that exist in the developed world.

At this moment, we are living in a scenario of economic crisis, environmental degradation and constant natural catastrophes. What type of innovative responses can be given?

I think it is evident that the traditional concept of a refugee as a victim of conflict or persecution is currently being redefined to include people who are forced to leave their communities due to a different set of reasons: the interrelation between climate change, extreme poverty and conflicts. All this contributes, more now than ever, to an increasingly flow of people who no longer have the conditions to continue living in their communities of origin.

very low fertility rates. People need to understand the importance of combating xenophobia. This is something absolutely essential for us to be able to maintain our support to the refugees.

What do you see in the future?

We currently have 16 million refugees, plus 27 million displaced persons as result of all the conflicts around the world and unfortunately I think that the problem will will most likely deteriorate. We have witnessed a reduction in the amount of humanitarian space available due to increased insecurity. And we look at the attitudes of some governments, which, citing national sovereignty, tend to limit their populations’ access to humanitarian causes.

And finally, because of the confusion that can be difficult to avoid between the military and civilians, conditions can arise that hinder humanitarian work and aggravate not only the situation of the refugees but also those of victims of conflicts on a global scale. o n 39

in Debate VERGÍLIO ROCHA · DIRECTOR OF ISD (INFORMATION SYSTEMS DEPARTMENT)

Information Systems Information systems are the solution to many problems. But to what extent can we trust them?

Like all areas of expertise that are subject to significant technical jargon and intense media coverage, information systems today suffer from a significant number of misconceptions. Examples: • I have an efficiency or organizational problem. I buy an information system, so the problem is solved. WRONG; IT (Information Technologies) does not solve any problem by itself!

•I need to invest in innovation. I buy an innovative information system and that’s it. WRONG; IT by itself is not innovation.

An information system can be part of the solution to an organizational problem; it can translate into innovation; it may even facilitate, liberate and encourage; but it can only do these things if we know what we want to get from it.

We need to integrate information technology into the solution and train people in its use.

We need to understand how to make an

IT by itself is not innovation, and it does not solve problems

information system evolve and adapt to the evolution of our immersive reality. This is technology, and therefore it can become what we make of it.

IT is the result and a starting point; it is the basis of a new world of possibilities, but it is not by itself a new world; IT is both the gadget and the big brother.

To integrate information technology into EDP’s business structure, we must take the following steps: • Provide training and grow a technology culture at all levels; • Automate only what we know about its process and what is expected to be delivered; • Choose well. We shouldn’t buy an IT system before we are certain of what we want.

40 on

in debate

A variety of perspectives

+ Carlos Luengos · HC Energia

+ Aurélio Manuel Blanquet

Miguel Amaro · Energias do Brasil

· EDP Distribution Any organizational solution regarding information systems is a key part of the triangle – people, processes and systems.

An IT professional today must be much more than simply a technician behind a computer screen; he must be a professional who understands his organization, its administration, the technology associated with its business and its information needs. For most businesses, having a solid information system is a key component to success, and it’s no different with the energy-services sector.

Today, customers are asking us for different solutions in terms of energy. We can only provide these solutions proper, however, by pursuing a change in approach, one that is supported by information systems.

Therefore, the challenges of information systems in our sector are many. Beyond contributing to and supporting this new reality in product and services, which assumes a change in mindset, information systems must provide solutions that allow for the type of decision making necessary for visualizing complex matters and creating new products.

In the 21st century, information systems definitely give gravitas to Information and Communication Technologies (ICT): From their 24-hour workday to the ability of IT to be present anywhere, integrating a multimedia, multi-channel perspective that affords organizations and people access to information, knowledge sharing and higher productivity signifies an enhanced ability to intervene for ICTs. And with greater access to information and knowledge also comes greater responsibility.

If ICTs are considered levers of efficiency for organizations, at EDP, due to its size, its geographical dispersion and the transversal nature of its actions, the biggest challenge for ICT lies in understanding the business and its needs, as well as constantly reinterpreting its contributions to ensure that adequate solutions are found that generate competitive advantage in an unstable market.

To do so, ICTs will increasingly need to understand the nature of the business and use it as a source of inspiration and creative factor in its activity and role within the Group; from this complicity between ICTs and business, innovation will spring forth as both a tool and a conduit for creating value and sustainable profitability.

Currently, it is difficult to imagine any business process not being supported by an information and communication system, even the simplest ones.

Within the energy sector, the EDP Group will face a set of changes that will modify (within a short or longer period), the way companies and customers’ correlate. The point where the systems can contribute most is in terms of efficiency and control. The degree of accuracy increases, the errors are reduced and the processing speed allows larger amounts of data to be analyzed. Information can then be crossed and decisions and procedures taken that lead to more effective results. It is, nevertheless, crucial to emphasize that intelligence comes from those who analyze and conclude, not from the system itself. But it’s not enough to install a new system and decide that we will be more efficient. It is necessary, even fundamental, to modify the underlying processes and work habits, as well as adapt them to meet new demands when changes arise.

The central aspect, which I believe important to reinforce, is that information systems are part of the solution and not the solution themselves. They are part of the innovation but do not bring innovation by itself.

Innovation comes from the people who idealize, think and implement new models of solutions.

Since July 2010, Vergílio Rochas has served as director of the Information Systems Department (ISD) at EDP Corporate.

Although he is only now formally linked to EDP, he has maintained a close working relationship with the Group for roughly 10 years, first Edinfor, RIE and Oniway, and later at Logica, which gives him a collection of experience and knowledge regarding EDP that with certainty will reveal to be very useful. DSI has changed from being an information systems department dedicated only to the companie located near headquarters, to a Corporate Department with extended responsibilities regarding the steering of EDP’s ICTs (Information and Communication Technologies). Challenges no doubt remain, and DSI will continue to address them.

Information systems are necessary to a company's success but not sufficient by themselves. They serve EDP's business but are not the business of EDP

on 41

Our energy* PRODUCTION CENTER HONORED

v

The Carregado Production Center was honored for its contributions to the enrichment of the town of Carregado and Alenquer Region near Lisbon. At the event, speeches praised the important contributions of EDP to the community through its great sense of social and environmental responsibility during more than four decades of service at the Carregado Thermal Power Plant.

Ribatejo One of the ideas of the Communications Department at EDP Production has been to throw open the doors of power plants. "Open Day" at the production centers in Ribatejo and and Sines Sines enabled dozens of people to enjoy the facilities and see firsthand the life of a thermal party it up power station. The participants all praised this "Open Door" attitude and were left with a more concrete idea of the complexity involved in producing electricity.

In addition, everyone had the opportunity to witness the care that is taken to ensure the safety of the plant and to minimize the impact on the environment.

44 on

Our energy

Angolan Minister visits Lares On June 18, Emanuela Vieira Lopes, Angola's minister of energy and water, visited the Lares plant, where she was received by Jorge Cruz Morais and António Ferreira Costa. The visit served to highlight the performance and characteristics of the plant, as well as aspects of its construction, as there is a chance of EDP participating in a similar project in Angola.

Homage to Barreiro On July 1, there was a tribute to all those who passed though this mythical installation. For more than 31 years (1978 - 2009), Barreiro served with high quality the demands of its customers. The board of directors of EDP Production made a point of highlighting this event in a warm way. "We have to look to the future, but the future exists only if we respect the past.

And this is for the people who do just that, " said João Manso Neto.

EDP Production in Sertã Fair Team members from EDP Production attended the Agriculture, Forestry, Industrial and Commercial Fair (known as FAFIC) in Sertã.

The theme of this year’s event was “renewable energy.” Nunes José Farinha, mayor of the town, highlighted the investment in the "promotion of the county of Sertã, by highlighting that we have excellent conditions for the production of environmentally-friendly energies and disclosing all we offer.” Carlos Rosário, director of the production center at Tejo-Mondego, participated in a conference with the theme "The Park Hydroelectric EDP: contributions to a more sustainable electricity system”.

o n 43

v

Our energy

Family Day at the Plant The "Family Day Center" opened the doors of our power plant to the family members of our team. This initiative ran for 19 days in June at the power station in Ribatejo, and several employees took up the challenge to bring in their families.

After a brief presentation, there was a visit to the central power station, followed by entertainment, traditional games and fun. At the end of lunch, all the employees received a family photo to remember!

Going forward, the EDP plant will continue to open its doors to employees and their families.

44 on

Our energy

Aquasemana in Portalegre On May 20, team members from EDP Production participated the Aquasemana (“Water Week”) event organized by the School of Technology and Management at the Polytechnic Institute of Portalegre. For three days (May 18-20th), more than 40 speakers discussed topics related to water. Speakers invited to participate on the event’s energy panel included EDP’s Carlos Rosario, hydraulics production manager, who presented the theme "EDP: Water Park Producer” (with particular emphasis on the plants at Mondego and Tejo), and Eduardo Guedes, of the Department of Business Development, who spoke on the topic "New Dams," focusing on the activity of the AH Alvito area.

Visits to Alqueva and Ribatejo

"Open day,” a joint initiative of the Human Resources, Communication and Production Departments, took place for 18 days last June. The event involved two visits respectively, to EDP’s hydroelectric plant at Alqueva and production center in Ribatejo.

On day 18, a group of 28 employees from EDP Production left Lisbon, heading toward Alqueva, where they were received by Carlos Rosário, director of production at Tejo-Mondego. In turn, on June 22, another group headed to Porto Ribatejo, where they met up with Carvalho Rodrigues, manager of maintenance.

v

Cherry Festival

Alfandega da Fé’s annual Cherry Festival took place June 10-13, and EDP Production was represented by a booth on the hydroelectric power plant at Baixo Sabor.

The booth was designed to show the project through

previews, photographs of works under way and other elements.

Getting into the spirit of the fair, EDP acquired 250 pounds of cherries, which were distributed to workers in the yard of Baixo Sabor.

The festival occurred amid the second phase of acquiring land for the reservoir and additional works, which will have an impact on Alfandega da Fé County, and thus provided an opportunity to promote EDP’s work at Baixo Sabor.

o n 45

spotlight Chatting with ...

MANUELA SILVA JOﾃグ MATOS FERNANDES EDP COMMERCIAL SOLUTIONS

Prepared for the Future The board of directors of EDP Commercial Solutions explains the recent organization of the Group's commercial services platform. A significant evolution from the past aims to prepare the company for new challenges ahead

46 o n

o n 47

spotlight

How did EDP Commercial Solutions (SC) begin?

EDP SC is a platform for business services that was established in 2005, at a time when the law regulating the electricity sector advocated the separation of the distribution and supply of electricity. It was then thought to make sense to have a shared platform that could ensure the provision of commercial services to the various companies of the EDP Group. And this was how SC was born. During its first two years, the company has essentially followed with the same characteristics, from its staff to its working methods, as what used to constitute the commercial area of EDP Distribution. The truth is, we knew that in those years EDP was alone in the market and the competition issue was not a problem... but we already realized that this would change, and there was a need to prepare the company for new challenges. However, in those times, we maintained a set of commercial service practices that were very traditional.

When did the change become more visible?

MANUELA SILVA Manuela Silva has been the administrator of EDP Commercial Solutions since 2007. Fifty-five years old and married, she holds a degree in economics from the Technical University of Lisbon and has been working at the EDP Group since 2001. In that same year, Silva started her work at Edinfor as a member of IT-LOG management, Logistics and IT management, a company that EDP helped to create and develop. From 2004 to 2006, she served as an administrative member of EDP Value. She developed her professional life in the business sector, working in several activity areas, from tourism and manufacturing, to the energy sector. In 1996, she was appointed the deputy minister of economy for Portugal. In her leisure time, she likes to read, travel and spend time with her family.

The latter is what truly gives her life a sense of balance. She is especially interested in social welfare issues and seeks to get involved in projects that help the community in constructive ways.

48 o n

With the change of EDP's board of directors in mid-2006, an idea started to materialize regarding the need to prepare the Group’s companies to face a more competitive market. As that began to appear, this same challenge was presented to SC, which is the face of the company to some 6 million energy consumers. The management team at SC was revamped in January 2007, and the company made its first reorganization in the second half of that same year. So, during 2007-2009, SC clearly made some changes at the customer service level to bring the companies of the EDP Group closer to their customers. It was also the beginning of a new focus in the commercial activity of sales, since SC was the entity that competed most to get customers from EDP Comercial, including through its network of stores. Also, in 2009, SC started offering commercial services for the gas sector, which also constituted an important organizational challenge.

What aspects stand out from the recently carried out reorganization?

The impacts of the deregulation of the energy-market are now becoming greater, so, on one hand, competition has become a reality, and second, the regulatory hurdles have become more intense (a phenomenon that is not just national). These two facts require a platform such as the SC. It becomes quite efficient, so that the costs of the commercial services stay more competitive; to

spotlight

ensure customer loyalty through innovative and quality service that is able to satisfy them even more, making them the center of attention while ensuring that all the procedures defined by the regulators are met without any malfunctions. These three aspects were crucial to justifying the need for a reorganization so that the new structure could provide answers to them in the best way possible.

And what is that way?

Through which the management team can interact more easily – at SC, even a client’s smallest problem is a major concern that the administration wants to monitor and have solved in a satisfactory way. On the other hand, we wanted to create a structure segmented by markets – residential, commercial and distribution networks – which would allow for an integrated action in the business cycle of these customers and provide them with satisfaction. In addition, the SC has an employee structure with a high average age and seniority, which suggests that new opportunities will be created to provide career development opportunities for younger staff, who will benefit from sharing knowledge

ople were confronted with new leaders and new ways of working … and being. We also promoted some young people who in recent years have shown consistent progress and effort in their work. In addition, we created some transitional responsibilities: for example, there is a transition period that will occur until the end of October, with their "managers." After all, we are talking about 200 million operations yearly and 6 million customers. Every day there are thousands of things happening from north to south of the country that cannot go wrong!

Who are the EDP SC customers in the EDP Group?

These are what we call the "core" market.

EDP Distribution is a key client for us – an operator for the electricity distribution network, it was also the company that originated SC. Then we have the companies that commercialize the Group’s electricity, including EDP Universal Service, which resulted from a spin-off from EDP Distribution and has contracts with the Group’s 6 million regulated customers. EDP Comercial, which due to the greater market liberalization and the increase in free market

calls to our site in Odivelas, Portugal.

What services are provided?

The services we provide cover the entire commercial cycle, from the hiring process, to the invoicing of meter readings, billing, debt management and response to contacts. Plus we handle all the services, which are transversal.

Client contact is taken care of primarily at the front-office level by our service channels. We run a network of 45 stores, mostly operated by EDP SC employees, although some are already outsourced. We also manage a network of 370 agents that offer a range of different services.

But the channel that actually provides the majority of our services is the contact center. This channel and Internet support are available 24 hours a day. The first contact center started out in Odivelas, and about two years ago, a second one was created in Seia. Now, with the Iberian integration, we will have four contact center sites for the Iberian peninsula. We believe that the Internet will be the channel of the future and are betting on it seriously (i.e., in the recent reorganization a specific department was created to manage the "digital channels”). Today,

2009 Data

Readings 26.4 million Invoices (documents) 41.8 million Billings 80.6 million Billing Value 7.403 million euros In-person Service 2.3 million Internet Operations 5.3 million Calls to the Contact Center 11.7 million

660 Employees 45 Stores 370 Agents 6.326.532 Customers EDP SU 5.842.797 EDP C 259.575 EDP Gas 224.160

June 2010

No. of Customers with Electronic Invoicing 533.566

This last reorganization took almost a quarter to prepare. Why?

Because we made a big slash in the past, and these steps should be taken with caution. We have created entirely new and more "soft" divisions, which separate regulated activities from non-regulated ones. There is an interesting number that has to do with the mobility that our EBD (Executive Board of Directors) supports, and that explains the dimension of this latest reorganization: Some 40 percent of percent of people management responsibilities changed roles. did change roles. This means that almost half of all SC employees (660) had changed supervisors. By changing the macrostructure, pe-

dynamics, has been assuming a larger role in the energy sector. We also have the gas companies, which in terms of operations are increasingly becoming integrated with EDP SC: EDP Gas Distribution, which is an operator in the gas distribution network in Grande Porto; EDP SU Gas, which has regulated customers; EDP Gas GLP and EDP Gas.com, which have free customers from the commercial segment. There is also EDP Valor; when, for example, a collaborator wants to contact the HR division, they can get assistance from the contact center managed by SC. We plan to provide, by the end of the year, services to HC and Naturgas, since we have an Iberian contact center. We will be able to assist Spanish customers, by transferring the

this channel already allows us to offer a very wide range of operations. Moreover, because of the unavoidable and fundamental “Webization” of customer relations, this area will be critical for us in the coming years.

Another area in which our services are relevant is the management of commercial systems, which are indispensable for supplying the large-scale services that 6 million customers require: most of these systems, especially the SAP ISU, are part of the SC, so all updates are designed, in functional terms, and tested by SC. There are also customers from the designated 'non-core' market. What kind of services does SC provide in that area?

To those we provide assistance with billing, v

with older, more experienced workers.

o n 49

spotlight

v

leveraging our know-how and our own structure and systems, as well as information systems and finishing services. The latter are provided within the scope of the consortium we have built with Logica, which was inherited from Edinfor. Through this business, we serve more than 2 million customers and that allows us to get economies of scale in the negotiation of collection services, which also benefit us in terms of “core” market costs. Thus, the importance of this business is significant to EDP, as besides the already mentioned economies of scale, this activity is developed using margins calculated on the basis of the market situation for these types of services. Within this scope also falls the responsibility for Audiovisual Contribution and its transfer to RTP (Portuguese Television), which we make via EDP Universal Service and EDP Comercial.

What is the importance of employees throughout this process?

We normally say that SC is a company which has three main pillars: the processes, the systems and the people. It is a triangle that has to be equilateral. The people are absolutely fundamental at SC. There are skills that have become consolidated over the years, which are not

commitment to our staff. There are many people approaching retirement and we need to ensure that all this knowledge is transmitted to the youngest. Besides the direct staff, we also rely on the services of many people who are not part of EDP. There are 1,000 people from subcontracting companies working at the contact centers in Odivelas and Seia, and we also use 600 people that work for the providers of our reading services. Overall, on SC, we are talking about a universe of more than 2,000 people. Actually, this side of the triangle is fundamental, but it is a side that concerns us regarding the future.

One of the other sides of the triangle is the Information Systems department.

What is its importance at SC?

With millions of annual transactions, calls, bills and readings, we had to have powerful systems. So, a good amount of the work that is done at SC is to ensure that the systems are able to respond to our needs on a regular basis. Today we have two major commercial management systems, the SAP ISU and a new support system for all the activities of the free-market business (CC&B)t hat will assume increasing importance with the liberalization, since it allows the client management from "A to Z." Be-

cial information from the various systems that we operate. Besides this commercial information, SC also plays another very important role: Within the Group, all the information related to sales and billing has to be verified by us.

This means that there are short production and validation cycles for information, which is crucial to guaranteeing the quality of the service we provide to our customers.

What are the biggest challenges for the future?

With regard to the customers, we would say that EDP in the near future will face several challenges, whether they stem from the market liberalization that has now become a reality or other factors, such as the possibility of smart meters (an example of innovation where SC is also a partner), that will change completely the relationship between energy companies and their clients. Moreover, in the near future, the entire socio-economic situation will force companies and individuals to seek the most efficient-energy solutions. At the level of the final customers, the challenges are total. We will look for the most advanced solutions so that the companies of the EDP Group can increase customer loyalty. In the short term we will launch,

A successful case involves the electronic invoice: In Portugal, EDP is the corporate group with the highest number of clients who receive electronic invoicing. We passed the barrier of the 500,000 customers in 2010. A new and different way of providing this service, it offers more opportunites for us to reach our goals of higher savings and sustainability for the EDP Group only “hard" but also "soft" skills that highlight our dedication to the customer. In any type of incident that might take place at SC requiring interaction with the client, it is very common to use any team member because we know that he or she will be completely available and open to solving that customer’s problem. Customer focus has always been a reality of SC. In addition, our people also have a very strong sense of commitment: EDP Group is, for most of them, a part of who they are too.

What are the major concerns with this group of 660 people?

We have some weaknesses that are related to the company's history. Since we incorporated people who had already been working for EDP for a long time, the average age of SC’s employee is 50 years old and the average seniority is about 28 years. Only 1.5 percent of our workers are younger than 30 years old. From 2007 to 2009, we hired very few new people. Now we're looking to introduce more personal "happiness-inducing" projects, such as the corporate program...

On our side, we will do everything to ensure that everyone works well and feels well too. It is our 50 o n

sides providing commercial services directly to our institutional clients, we also ensure, as previously mentioned, powerful consistency in the informatics support for approximately 200 million operations. And going back to our people, besides knowing how to make contracts, invoices, billing, etc., in general, they have a very solid technological education as well. For their role here, beyond putting their heart and soul into their work, it is also essential that they have the “hard” skills to do their jobs well.

How does one manage such a vast amount of information?

When we speak of a reality that is becoming more complex – like the one awaiting us in the digital age – information becomes essential. So, we have to organize, analyze and make it available to our customers. But we can only assume this responsibility if the systems on which we support our business have the capacity and strength to produce the required information.

With this in mind, there is a project we began in 2009 – MIS (Management Information System) – which will provide a very dynamic and reliable platform for obtaining commer-

in a partnership with the DRE and DSI, a project called e-Customer, in which several other Group entities also participate and whose main purpose is to rethink the entire relationship with the customer and favor the use of the Internet, cell phones, etc., as communication tools. Every business cycle has to be rethought and dematerialized, plus in the short term, the e-business culture has to become a reality at EDP. And for this challenge, the SC wants to have a significant role in it.

What plans exist for the employees?

We want to continue to strengthen the skills and the motivation of our employees at EDP SC. For that it is essential that we continue, as we have up to now, to have training and development policies that are tailored to the needs of SC and its employees, and that we are able to involve those employees in achieving the company's objectives in a increasingly conscious and participatory manner. We hope that "our" people become best practice leaders: in terms of their availability for functional mobility as a way to learn more; in terms of their willingness to participate in personal "inducers of happiness

spotlight

"projects, such as the corporate program Mais Conciliar (Reconciling More). By our side, we will do everything to have everyone work well, and feeling well. It is our commitment.

What about the shareholders?

As for the shareholders, the challenges involved with the Iberian convergence of commercial services – for which the previously mentioned contact center is the first step – is on the agenda, subject to the progress of the priority convergence in Spain (HC Energía and Naturgas). We will continue to study carefully the best solutions for the Group in this regard. In addition, there are important contributions for the OPEX II Project, including the operationalization of initiatives that reflect a better supplier management and task automation. SC’s contributions to the Group are also important in terms of the Lean culture. Since 2007 SC has had successive organized "waves" of work at this level, and we already are at a phase where, in some areas of the company ( similar initiatives that occur spontaneously ), these types of movements have contributed significantly to spreading the culture of continuous improvement and waste cutting.

What will be the approach for direct clients?

In terms of our direct customers, there exists a theme of relationships. Still, it is necessary that we increase our ability to better serve them. Under the reorganization, we have strengthened the role of" contract manager," an initiative that we launched with two very experienced SC members. On the other hand, we must keep in mind the entire regulatory issue and ensure that we are the ones that guarantee that those challenges are met. There is also the issue of strengthening our sales ability. In a competitive and open market scenario, we are required to have a good capacity for sale at our network of stores, but we also believe that our agents can optimize this activity, as can our contact centers.

EDP Commercial's current share in the residential market was built thanks to the contributions of SC, so we have to maintain and develop that level of performance in terms of sales. A successful case involves the electronic invoice: In Portugal, EDP is the corporate group with the highest number of clients who receive electronic invoicing.

We passed the barrier of the 500,000 customers in 2010.

This is a different way to provide the service and hone in on our goals of higher savings and sustainability for the EDP Group.

JOÃO MATOS FERNANDES Born in Porto, João Matos Fernandes, 36, is married and has two children. Holding a degree in economics from the School of Economics in Porto, he began his career in 1997 as an analyst for the Investment Bank of Portugal (BPI). In 1999, he became adviser to the secretary of state for treasury and finance and returned to BPI in 2000 as head of operations on the primary market. Between 2001 and 2006, he joined EDP’s Business Analysis/M&A team and participated in acquisition and divestment operations in several geographies and business areas. From 2006 and 2009, he was the director of planning and management control at EDP Distribution. Since January 2010, he has been an administrator at EDP Commercial Solutions.

o n 51

Sustainability E n v i ro n m e n t a l re s p o n s i b i l i t y

A WORLD LEADER on

Dow Jones

Sustainability EDP achieved world leadership on the Dow Jones Sustainability Indexes for the Utilities sector. An unprecedented achievement, it marks the first time that any Portuguese company has taken the top spot

or three consecutive years, EDP has been listed on both the Dow Jones Sustainability World Index (DJSI World) and the European Dow Jones Sustainability Europe Index (DJSI Europe). And each year, EDP has been gaining ground in this index, which includes companies from around the planet – 318 firms at the global level and 157 at the European level. In 2009, EDP, had already reached the top position in Europe but has also started to be part of the global list in the Utiilities sector.

From a set of 22 criteria, EDP is considered "Best in Class” in 10 criteria, and was declared distinguished in six of them for reaching the highest score.

CEO António Mexia received the news after

F

52 o n

he returned from Kenya, where he had been visiting the Kakuma refugee camp, which is supported by EDP. He immediately shared his satisfaction for the achieved results with EDP team members. "This is a distinction that recognizes us as being a company with the best performance in terms of transparency and sustainability in our industry, and at the world level, and shows our excellence in economic, environmental and social management " said the CAE’s president. " The project in Kakuma and our global leadership position in the Dow Jones Indexes are two of the most recent examples of this success. To both teams, my congratulations and thanks. They are a source of pride for more than 12,000 EDP employees in 12 countries."

REASONS TO BE THE BEST This year, EDP maintained a leading position in sustainable development practices and received its first nomination for "Best in Class" in social issues. In terms of economics, EDP continues to stand out as one of the best companies in the sector. Worth a mention is that the Group maintained the top score in the criteria Price Risk Management and Scorecards and Measurement Systems. EDP, for the first time, was considered "Best in Class" in Codes of Conduct / Compliance / Corruption & Bribery. The Group’s position in the environmental dimension represents an improvement in alignment with average practices in the industry; it is the fruit of the efforts that have been developed in the area of biodiversity and environmental management, and EDP’s climate change strategy.

Standing out is the top score received by EDP in the Biodiversity criterion. The Grou’s presence in the Dow Jones Sustainability Indexes was achieved after a rigorous assessment process conducted by the SAM Group, which included a questionnaire with 113 questions that appraised the fundamental aspects of the three dimensions of sustainable development – economic, environmental and social. It is a distinction that reflects the work of an exemplary group and is the recognition of its commitment to sustainable development. Congratulations to all!

Foundation * "Presidents Cars – the engine of the Republic" is an exhibition that ON recommends in this edition. It can be seen at the exterior area of the Electricity Museum, until October 17

Cars with great power etween July 28 and October 17, the Presidents cars ventured out of the museums and garages where they had been stored and assembled together to tell the stories of their time at the service of the presidential institution. The venue selected for this gathering was the exterior area of the Museum of Electricity in Lisbon, in a joint initiative between the Republican Presidency Museum (Museu da Presidência da República) and the EDP Foundation. From horse-drawn carriages to Cadillacs and Rolls Royces, and from ostentatious vintage cars (the subject of curiosity and collection), to the latest models still in use today, this exhibition is a gathering of vehicles and a rendezvous with history. Through the car and its

B

54 on

uses and representations, the visitor travels along the 100 years of the Portuguese Republic.

The exhibition consists of four sections: "From the horse-mounted to the pioneers"; "The new state and ostentatious vehicles”; “ The democratization of the presidential cars"; and "The president of the republic and the security forces." Through text, photographs and guideline movies, the exhibition "Presidents Cars – the Engine of the Republic" presents not only a valuable set of cars to be admired by aficionados and experts of this type of transportation, but also as an opportunity for those curious about history to remember the 18 presidents of the republic and their mandates, through the vehicles they traveled in.

fundação edp

2010 Portugal Art – EDP Lisbon, Grândola, Portimão and Vila Real de Santo António all hosted from July 16 to Aug. 15, 2010, the First Biennial 2010 of Portugal Art – EDP, an international exhibition of contemporary art. The exhibit brought together 246 artists from 14 countries (among them two dozen Portuguese) – some of whom are well established, while others are still emerging.

Under this initiative, the EDP Foundation launched, in September, the International Award – Public Art, an honor aimed at national and international artists whose artwork is produced in Portugal and with Portuguese materials.

Lisbon Architecture Triennial

With the goal of selecting the best proposal for the design of a prototype of a family home in Luanda, the Lisbon Architecture Triennial launched the competition "The House in Luanda: Patio and Pavilion."

The contest, designed to promote low-cost housing construction in the Angolan capital, was launched in collaboration with the Luanda Triennial and had the highest attendance of any Triennial ever held in Portugal. The organizers received 599 bids and accepted 588.

From those, a jury (composed of Álvaro Siza, Carrilho da Graça, Fernando Mello Franco, Barry Bergdoll and Angela Mingas) selected 30. In total, architects from 44 countries competed. The five winners will be announced during the exhibition, which will take place at Lisbon’s Museum of Electricity between

Oct. 28, 2010, and Jan. 16, 2011. Also on display at the museum is the result of a challenge launched by the Triennial at the city’s schools of architecture and landscape architecture. The challenge involved answering one question: How can architecture contribute to making concrete improvements in the living conditions of the people of the Cova da Moura neighborhood – a complex feat in social and cultural terms stemming from the area’s peculiar historical circumstances and its having followed an unusual development path? Word is this is a not-to-be-missed exhibition!

EDP Institute embraces new institutions CHECK THE PARTNERS: São Paulo - Associação Amigos do Projeto Guri, Centro Integrado de Estudos e Programas de Desenvolvimento Sustentável, Grupo de Assistência à Criança com Câncer; Espírito Santo - Associação Ambiental Voz da Natureza, Associação dos catadores de materiais recicláveis de Guarapari, Associação de Pais e Amigos dos Excepcionais de Vitória, Bem Brasil - Instituto de Desenvolvimento Social, Sociedade dos Amigos do Vale do Castelo, Serviço de Engajamento Comunitário, Associação Comunitária; Mato Grosso do Sul - Girassolidário - Agência em Defesa da Infância e Adolescência; Tocantins - Associação de Arteducação e Meio Ambiente Casa da Árvore, Instituto Crescer para a Cidadania (Lajeado e Peixe)

Aiming to maintain its commitment to social responsibility, the EDP Institute, through EDP Solidarity, held on June 21 in São Paulo a "Dialogue With EDP Solidarity, " where it was announced which 14 programs would receive support from the Institute in 2010. António Pita de Abreu, president of EDP

Brazil, reminded the attendees that education is the support behind sustainability: "Only through education is it possible to make the world more sustainable." In just four years, more than 70 projects have already benefited from a $5 million investment. on 55

Photographic essay M o re s u st a i n a b le fe st i va l s

The summer at EDP beat For the fourth consecutive year, EDP took part in major summer festivals. The idea was to get people closer to sustainability and the efficient use of energy. The fun was a constant.

Here are some of the best moments ...

56 o n

p h o t o g ra p h i c e ss a y

y

Xxxx

o n 57

p h o t o g ra p h i c e ss a y

Jamiroquai - Sudoeste

Optimus Alive

58 o n

p h o t o g ra p h i c e ss a y

Florence and the Machine - Optimus Alive

o n 59

p h o t o g ra p h i c e ss a y

Deolinda - Cool Jazz

Diana Krall - Cool Jazz

60 o n

Salomon Burke e Joss Stone - Cool Jazz

p h o t o g ra p h i c e ss a y

Mike Patton - Sudoeste

La Roux - Optimus Alive

o n 61

Super Bock Super Rock

p h o t o g ra p h i c e ss a y

Super Bock Super Rock

62 o n

in focus VANDA MARTINS Director of EDP Spain /Sharedp Project In what year did you begin working at the EDP Group?

I have worked for EDP since 2000.

I started at EDP Comercial, where I joined in the initial stages of the Portuguese electricity market deregulation, which was an extremely interesting experience. When you participate in the creation of new markets at a company, the challenges faced are a constant. What fascinated me most was being able to work with a young, talented and ambitious team that always wanted to do more and do it better. I grew up a lot, as a person and as a professional.

"People are the key factor in large organizations"

What was the biggest challenge?

In 2006, I accepted an invitation to work for Naturgas, beginning at that time my biggest professional challenge until now. I moved to another country, I changed departments and fields, plus moved to Bilbao. It was clearly a huge change. It’s an experience that I strongly recommend, though it has been quite demanding. But I believe that it is in the most intense situations that we are able to discover ourselves and evolve as a whole, in the various facets of our lives. The energy market in Spain has a dynamism that requires a quick response time from the key players, and that was one of the major appeals of my role as commercial support director.

What are the major differences between EDP and other multinationals?

I emphasize the cultural aspects as a differentiating factor at EDP as a multinational that can be enhanced by its mobility. In my opinion, mobility is an agent of growth and of professional and personal enrichment. It is essential that inside EDP Group there exist a spirit for adaptation to change, since it is a constant in today’s world.

How does it feel to be involved in one of most ambitious projects of EDP?

I returned in 2009 to embark on yet 64 on

another challenge, which I believe was also transformational for the EDP Group – the Sharedp Macro–Project. This ambitious initiative focused on the people, systems and processes and also was aligned with the spirit of EDP Way. A knowledge–sharing project, it was designed to create a new way of organizing multi–geographical services to provide the necessary support for the next cycles of the EDP Group’s business plan.

What did these experiences give to you?

They reconfirmed that the "great teachers,” with whom I was fortunate to work with, were right: the people are the differentiating factor in large organizations.

Is there any motto? If so, what?

As one of my mottos in life, I’ve adopted a phrase from Mahatma Gandhi – "The joy lies in the fight, in the attempt, in the suffering involved, not in the victory itself."

moveon Planet EDP

Po

v

Po r t u g a l

rt

Po

rt

Po

rt

University Challenge

Innovation Day

Concert Biodiversity

EDP launches the fourth edition of the "EDP University Challenge." Aimed at university students, the project is also being launched in Spain, through EDP Renewables.

EDP officials present the company's latest projects in innovation to all its stakeholders at the Portugal Pavilion.

The closing concert for the Year of International Biodiversity is organized by the College of Science of Lisbon and Sponsored

by EDP. Location: Aula Magna, in Lisbon.

25

Po

10

rt

28

Po

10

rt

11

Es

11

p

EDP University:

Energy Expo 2010

Renewable Energy Fair

Configuration workshops are held for stakeholders responsible for various fields in EDP University.

Intelligent Energy – Energy Efficiency is the theme of Energy Expo 2010, held at the Belem Cultural Center. The expo will focus on energy efficiency and smart-energy management.

The first Renewable Energy Fair will be held at the Fair of Andalucia. The event is intended to inform and raise awareness of the need to act on climate change.

18

10

66 on

09

11

–

10

Es

p

Es

p

Br

a

3rd Quarter Results Presentation

University Challenge

Helena Vieira da Silva Exposition

EDPR discusses in Madrid its 2010 results from June to September.

EDPU Students present their most creative renewable-energy projects at EDP's awards ceremony in Madrid.

Promoted in partnership with the Gulbenkian Foundation, ArpadSzenes/Vieira da Silva Foundation and Tomie Ohtake Institute, this exhibition will help to promote portuguese culture in Brazil.

The duo André Romão and Pedro Neves Marques mix it up with the staging and set design of the oracle that is theater. Until the 21st of November at the Museum of Electricity.

-

11

p

–

Po

11

rt

Inauguration of Bergara–Irún Pipeline

Portugal and the sea, our 21st century commitment

The second phase of construction begins for the Bergara-Irun pipeline, which will run through Basque country.

In this conference, to be attended by Aníbal Cavaco Silva, president of the Portuguese Republic, EDP Director Jorge Cruz Morais will address the issue of offshore energy.

15

10

21

10

moveon

Marble and glass

Es

10

O N R e n ew

rt

19

v

Po

11

Planet EDP

03

on 67