Energy without limits September | October 2011 No. 23
th PHOTOGRAPHIC ESSAY
ar
n i ve r s
SPOTLIGHT
Sérgio Figueiredo
The importance of Fundação EDP for Portugal
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The best pictures of the Douro concert
y
an
For the 2nd consecutive year EDP is a world leader in the Dow Jones Sustainability Indexes
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editorial
Reasons to celebrate
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DP was founded in 1976 as a result of the merger of 13 companies that had been nationalized the year before. As a state company, it was in charge of electricity for the whole country, the modernization and extension of the electric distribution grids, the planning and construction of the national power generation system, as well as the establishment of a single tariff for all customers. In recent years, however, a lot has changed. Over the course of its history, EDP has been guided by its ability to anticipate trends and implement the necessary changes that have led it, as the largest Portuguese company, to significant achievements. Today, EDP has a strong presence in the energy sector worldwide, with offices in 13 countries: Portugal, Spain, Brazil, France, the U.S., the U.K., Italy, Belgium, Poland, Romania, Canada, Angola and China. Currently, EDP has a portfolio of more than 10 million customers and 12,000 employees worldwide. In this edition, we highlight our 35th anniversary with a detailed look at the celebratory events, including an unprecedented photographic report on the concert that took place on a stage floating on the waters of the Douro River. It was a celebration shaped in a surprising and innovative format, such as EDP knows and likes to do. And to prove EDP’s savoir faire, the company received with great pride, for the second consecutive year, the title of world leader in the Dow Jones Sustainability Indexes for the electricity sector. Simply put, this means that we are the world’s most sustainable electricity company. This year, the company earned a rating of 86 points, up 2 points from 2010, and was named a world leader in the social category. In the economic category, EDP continues to be one of the best companies. Also of note is that we maintained the maximum score in the risk and management criterion. We have, and in forthcoming years will continue to have, of course, many other reasons to celebrate.
by Paulo Campos Costa Brand and Communications Manager
It was with great pride that we received, once again, the title of world leader in the Dow Jones Sustainability Indexes for companies in the electricity sector
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Energia sem limites September | October 2011 Nr. 23
index
September | October
PHOTOGRAPHIC ESSAY
r
The best pictures of the Douro concert
y
an
n i ve r s a
EDP has continued to grow for the last 35 years, widening its SPOTLIGHT
Sérgio Figueiredo
The importance of Fundação EDP for Portugal
2nd consecutive year EDP is world leader in the Dow Jones Sustainability Indexes
business scope and becoming a global company. Learn about the successes of the largest Portuguese multinational.
06
FORUM
edpon asks: What motivates employees to volunteer?
07
STOCK EXCHANGE
08
MARKET
EDP Renewables launches new investments in Brazil, Romania and Poland.
14
EDP CULTURE
20
CAUSES
24
38
EDP AT 35
The history, work and accomplishments of the largest electricity company in Portugal.
EDP ON IS A BIMONTHLY PUBLICATION Property of 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
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EDP’s Life Energy Initiative proves that young people show solidarity.
22
INNOVATION
EDP’s Intranet has a new look.
PUBLISHER: PENÍNSULA PRESS SL / RUA DOS CORREEIROS 120, 4º ESQ , 1100-168 LISBOA / EXECUTIVE DIRECTOR: STELLA KLAUHS INFO@ PENINSULA-PRESS.COM / EDITORS: EDUARDO MARINO (EDITOR), JOANA PERES (STAFF WRITER) / ART: MARTA CONCEIÇÃO, ANDRÉ NOIVO / PHOTOGRAPHY: HUGO GAMBOA, JOSÉ REIS AND ADELINO OLIVEIRA, COME-CENTRO DE DOCUMENTAÇÃO DO MUSEU DE ELECTRICIDADE, ISTOCKPHOTO, SXC /COPYDESK: ANA GODINHO / EDP COORDINATION: MARGARIDA GLÓRIA / COMPLIMENTARY DISTRIBUTION IN PORTUGAL – 23,000 COPIES; SPAIN – 2,000 COPIES; BRAZIL – 2,500 COPIES; / HESKA INDÚSTRIAS TIPOGRÁFICAS CAMPORASO, 2710-239 SINTRA - PORTUGAL TEL. +351 21 929 89 58 (GENERAL); FAX. +351 21 923 89 51/ E.R.C. REGISTRATION-EXEMPT, PER DECREE 8/6, ARTICLE 12, ITEM 1-A/ THIS PUBLICATION WAS
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44
49
SPOTLIGHT
Sérgio Figueiredo, from Fundação EDP, explains why it’s so important to invest in the relationship between the company and society at large.
40
HUMAN CAPITAL
“A Night at the Museum of Electricity” captivated more than 70 participants.
42
OUR ENERGY
st
News that connect the production centers to the communities in which they operate.
54
FOUNDATION
“The Time Machine” is the result of photographer Edgar Martins’ visual perspective of EDP dams.
56
PHOTOGRAPHIC ESSAY Pictures of EDP´s 35th anniversary party.
64
IN FOCUS
Pedro Vasconcelos, chief of staff to the chairman of the executive board of directors, talks about the challenges of his job.
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50
53
SUSTAINABILITY EDP Group maintains the world leader position in the Dow Jones Sustainability Indexes for companies in the electricity sector.
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forum Corporate social responsibility: edp on asks
VOLUNTEERING 2011 is the European Year of Volunteering. Companies’ corporate social responsibility and involvement in social initiatives to support the communities in which they operate, particularly through the promotion and development of voluntary actions, has become a focal point for the development of modern societies. To this end, EDP has launched its most recent initiative, “Part of Us,” in Portugal (www.partedenos.com), with several complementary projects in other countries where it has offices, seeking to involve employees and even their families. EDPon wants to know: What would motivate employees to participate in voluntary corporate actions?
•4 9.32% - Contributing to a better society • 35.14% - Helping those in need
49.32%
• 6.08% - Performing an activity different from my day-to-day work 35.14%
• 4.73% - Believing that this type of action reinforces the company’s reputation within our society • 2 .70% - Helping to fix the current situation in my country • 1.35% - Acquiring other skills that may be useful in 6.08%
4.73%
the performance of my duties 2.70%
1.35%
0.68%
• 0.68% - The contagion effect of seeing other colleagues doing it
COMMENTS “I feel an obligation to give back to society
I made a difference. This is the great
this search for balance what makes
part of what it gives me, putting my
mission that has guided me always.“
volunteers so special, so dedicated to a cause? Surely the reasons do not end in
personal skills to the service of others. And if I can help those in need, play a
“The complexity of volunteering causes
this reflection, but I believe this could be
different activity every day in my life and
many to argue that it is not healthy nor
one of the levers for volunteering—the
see a smile, I also gain from the experience
possible “to do the math” — i.e., to find
positive experiences offered to all those
and feedback that I get. I’ve practiced
out how much you give and how much
who engage in this type of activity.”
volunteering for some years now.”
you get in return. However, we cannot deny that, currently, our world holds this
“A small gesture or action can make a
“Above all, to help civil society understand
dichotomy within itself. Thus, without
difference to those in need, and we can
that the business sector, and in
having to think for even a moment, I
have a more balanced and just society.”
particular EDP, also does have social
easily conclude that this activity, which
and environmental concerns in trying to
I perform on a daily basis, allows me to
“This type of activity offers a social return
preserve the environment and natural
receive more than I give. Now, thinking
that is unparalleled in financial terms.”
habitats sustainably in their areas of
about it, this does show some ambiguity
influence.”
since volunteering presupposes altruism
“In an individualistic society, it is good to
and selflessness, thus giving more, or
help someone who needs only a hand to
at least the same, than receiving. Is
follow his path.”
“I want to go through life and feel that
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/0 1
07 0 /0 7/0 1/ 1 /2 01 201 /201 07 071 07 1 1 /0 /0 /08 8/ 8/ 20 2 /20 11 0011 11 07 07 7 /1 /1 /15 /2 5/ 5/ 01 20 2 11 00711 1 07 07 /2 2/ /2 /2 20 2/ 2/ 11 20 200 81/1 11 12 08 08 /2 /1 /1 01 2/ 2/ 1 20 20 11 081/1 9/ 08 08 2 /1 /1 01 9/ 9/ 0 1 20 28 11 01/126 /2 08 08 01 /2 /2 1 6/ 6/ 09 20 20 /0 11 112/2 09 09 01 /0 /0 0 1 2/ 2/ 9/ 20 20 09 / 1 11 20 09 091 11 /0 /0 09 9/ 9/ /1 20 20 6/ 1 1 2 09 091 0 1 011 /1 /1 9/ 6/ 6/ 29 20 20 /2 1 11 011 09 091 /2 /2 9/ 9/ 20 2 11 011
07 0 /0 07/07/0 1/ 1 1/ 20 /20 20 1 1 07 07 071 11 1 /0 /08/0 8/ /28/ 20 0120 1 1 07 07/071 1 1 /1 15/1 5/ /205/ 2 1210 0 01 11 07 7/0271 2//2 /2 202 2/ 1/21 01 02801 /01 1 1 08 2 8 /1 /120 2/ 21/ 1 20 0280 /111 11 08 089/ 2 /1 /101 9/0 9/ 1 280/ 20 21 11 08 0861/2 /2 /2011 6/09 6/ 20/0 20 12 1 09 0 1/20 1 /0 0 9/0 11 2/ 9/ 2/ 2009 20 1/ 1 09 0 1 201 1 /0 09 9/0 1 9/ /1 9/ 20 6/ 20 1 2 1 09 0 091 011 1 /1 9/ /1 6/ 29 6/ 20 /2 20 1 0 1 09 091 11 1 /2 /2 9/ 9/ 20 2 11 011
07
0
0
EDP Brasil
54 4
1 0
0
In euros
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09 09 /2 /2 9/ 9/ 20 20 11 11
0707 07 /0 /0 /0 1/ 1/ 1/ 20 2 2 1101 01 1 1 070 0 /07/ 7/ 8/08 08 20/ / 1210 20 11 11 07 0/17 07 5//1 /1 250 5 /121 /2 01 01 07 1 1 /02 0 2 7//2 7/ 2201 22 /21 /2 01 01 08 1 1 /1 082/208 /1 01/1 2/ 1 2/ 20 20 08 11 11 /1 9/ 08 2008 /1 1/11 08 9/2 9/2 01 01 /2 6/ 1 1 08 20081 / /1 09 26/ 26/ 2 2 /0 2/ 01 01 20 1 1 09 0911 09 /02 /02 /0 /2 /2 9/ 0 0 20 11 11 0 0 11 09 9/0 9/0 /1 9 9 6/ /2 /2 20 01 01 11 1 1 0 0 09 9 9 /2 /1 /1 9/ 6/ 6/ 20 20 20 11 11 11
3 3 the strings of the market
EDP Portugal
2,50 2,503
2,50
2 2 2.35
1,502 1,50
1 1,50
1
0,501 0,50
0,50 0
In euros
38
38 39 39
37 38 38
37 36 37
34 35 35
34
33 34
33
EDP Renováveis
55
36 35 36
43 3
32 2
2 1
1
0
40
Analysts Recommendation Target price Date
39 40 40
Espírito Santo Investment Buy 2.70 09-26-2011
Citigroup Hold 2.50 09-16-2011
HSBC Overweight 2.85 09-15-2011
UBS Investment Research Buy 3.00 09-02-2011
33
Exane BNP Paribas Underperform 2.00 08-31-2011
In reais
Fidentiis Buy 2.66 08-31-2011
Goldman Sachs International Buy 3.40 08-30-2011
BPI (Banco Português de Investimento) Accumulate 2.85 08-04-2011
Merrill Lynch
Buy
2.95
07-29-2011
Deutsche Securities
Hold
2.60
07-28-2011
Cheuvreux
Outperform
2.97
07-25-2011
Collins Stewart
Buy
3.25
07-19-2011
Namura
Sell
2.50
18-07-2011
Societé Generale
Hold
2.50
30-09-2011
N+1
Sell
2.42
29-09-2011
4.13
ANALYST´S RECOMMENDATIONS
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market EDP Business
The Tramandaí project is EDPR’s most recent success amidst the tumultuous winds of the current economic crisis. The wind farms in Romania and Poland are two other good examples of this achievement.
Investing in strong winds DP Renewables is quelling the tempestuous winds of the current crisis by focusing instead on diversifying its funding sources to keep an ambitious investment plan moving forward, covering such disparate locations as the United States, Brazil and Europe. The most recent outcome of this planning effort was the execution this past July of project financing with the Brazilian development bank (BNDES), valued at 228 million reais (100 million euros) for the Tramandai, which
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will generate 70MW of windpower, will be the first EDPR project to be designed and built in Brazil. This wind farm will generate 70 MW. The Tramandaí project is EDPR’s most recent success as it navigates the current economic and financial turmoil. Also in July, and in addition to the developments in Brazil, the company acquired project financing totaling 188 million euros for the construction of three wind farms in Romania, from a consortium of banks led by the
European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation, a member of the World Bank Group. The first loan, in the amount of 115 million euros, is earmarked for the construction and operation of Cernavoda I and II wind farms, with a total capacity of 138 MW, while the second is directed to the Pestera wind farm, which has a production capacity of 90 MW. With these infrastructure projects, EDPR makes its debut in the Romanian market.
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market
EDP Stores Sell Energy Efficiency Certifications
EDP Soluções Comerciais, in cooperation with
recommends measures to be implemented. The expert
EDP Serviços and Home Energy, are canvassing
then schedules a visit to the property. Subsequently,
customers interested in joining the energy efficiency
the energy certificate’s registration is obtained from
certification (EEC) effort for their real estate holdings.
ADENE (Portuguese Energy Agency) and sent to the
After receiving the appropriate training, EDP store
customer. Rating the energy performance of a building
employees and exclusive agents started promoting
or any part thereof on a scale from A+ to G, the EEC
this service as of the beginning of July. This procedure,
recommends improvement measures designed to
which is performed in the field, is quite simple. First,
reduce the structure’s energy costs. Valid for 10 years,
a qualified expert from Home Energy calculates
the EEC is a legal requirement for the sale or lease of
which energy class the property falls under and
real estate.
EDP VENTURES
Betting on technological innovation
188M
€
For the construction of three wind farms in Romania
228
million reais For the construction of the Tramandaí wind farm
535
million zlotys
Rui Teixeira was named “Best CFO” in 2010
for the Margonin wind farm, in Poland
for his market performance in Portugal.
Central and Eastern Europe are not unknown territories for EDPR. Last year, in September, Poland swelled the company’s list of planned funding. A loan in the amount of 535 million zlotys (about 135 million euros) was negotiated with another bank consortium, led by the EBRD and European Investment Bank (EIB), for the 120MW Margonin wind farm. EMEA Finance, which considered the project a “benchmark for the region,” also recognized the financing plan for Margonin as “2010’s Best Sustainable Agreement.” The support for these and other projects currently under negotiation how the recognition that EDPR has gained amongst investors, who continue to invest in the company and its planned expansion. Besides obtaining favorable contractual instruments, EDPR has secured very attractive interest rates at a time when investment funds are not readily available or have become all together too expensive.
According to Rui Teixeira, chief financial officer (CFO) for EDPR, “the participation of international banks in our most recent project financing commitments has given investors the confidence to continue to invest in EDPR, which is raising funds at 6 percent interest rates for 10 years and sidestepping the effects of the current crisis in Europe.” Teixeira was recently elected by Deloitte as the best CFO in 2010 for his market performance in Portugal. The markets’ and investors’ confidence in the EDPR project is also related to the excellent results obtained by the company. In the first half of 2011, net profit reached 90 million euros, double the amount for the same period in 2010, while operating profits rose 49 percent to 353 million euros. Investment totaled 345 million euros. In the first six months of the year, the company increased its installed capacity to 486 MW, about 60 percent of the installed capacity forecasted for 2011.
In June, EDP Ventures — EDP’s venture capital fund — completed its second direct investment through a shareholding interest in Feedzai Consulting and Technological Innovation S.A. Founded in December 2008, this national corporation is a technology spin-off from the University of Coimbra, which develops large data volume processing software, in real time, for the complex event processing (CEP) and business activity monitoring (BAM) markets. This type of software holds increasing relevance for the EDP Group, with direct application in several areas, such as monitoring and troubleshooting distribution problems in high- and medium-voltage grids, managing information for the InovGrid project, monitoring and troubleshooting problems in wind farms, as well as managing data for new energy services. The software has been tested not only by EDP but also by BES and Novabase (with the involvement of Vodafone and SIBS) with exceptional results. Espírito Santo Ventures and Novabase Capital are members of the investor consortium that joined the first investment capital-raising effort for Feedzai.
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market
Iberian Contact Center EDP NOW HAS A UNIQUE INTEGRATED VOICE PLATFORM FOR PORTUGAL AND SPAIN. ON MARCH 1ST, 2011, THE FIRST HC ENERGÍA CALLS IN PORTUGAL WERE ANSWERED. WELCOME TO THE NEW IBERIAN CONTACT CENTER!
The four current locations for EDP’s contact centers — Odivelas, Seia, Bilbao and Gijón – have now been integrated into a single “large” contact center, as a result of the Sharedp project. At the end of 2009, the company
identified a great potential for synergies by integrating the four existing contact centers in the Iberian Peninsula. The project called for an investment by EDP in technology, people and training in order to do more and do it better.
At the beginning of December, we finalized the integration of the voice platform between Spain and Portugal.
HOW THE PROJECT EVOLVED The importance of this project and the quality of EDP Soluções Comerciais’ Contact Center were recognized by the Portuguese Association of Contact Centers with an award given at the end of May: • Best Utilities Contact Center 2011 • Innovation Award 2011, awarded by Altitude Software For the creation of the new “click-to-call” channel, which facilitates contact with customers; For the integration of the contact center at the Iberian Peninsula level; For the implementation of the operation based on best practices and controlled by metrics.
contact center numbers
In June 2010, the contact center’s services contract was successfully renegotiated for two locations in Spain and Portugal.
160 80
90%
230
calls answered within 1 minute.
380*
50%
13.5
>
calls answered within 10 seconds
850 jobs
million of calls answered (approx.)
4.5
1,200
+
answering machines
18M
>
minutes average response time
45
calling lines
euros annual value of services provided
* The numbers shown on the map refer to the number of jobs.
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market
edpOnline is changing Ten years. A round number that spells evolution for edpOnline.
Nowadays, customers prefer to contact their service providers
We have created the basis for a space reserved for all EDP
through remote channels from the comfort of their own home.
clients — the Customer Area. We started by changing the
Given their flexible working schedules and the simplicity of the
site’s navigation technology and architecture, and then by
processes, they choose more and more to interact through the
reflect the mood of the new brand.
Internet and the telephone to get their issues resolved.
Currently, edpOnline lets you access EDP Serviço Universal,
EDP also responds to the needs of customers by updating and
EDP Comercial and EDP Distribuição. In the Customer Area,
increasing the responsiveness of its digital channels.
EDP Gás will also be providing services later this year in the
Providing a quality experience that meets customer needs is
Customer Area.
the vocation of the new Customer Area.
23 Km Long €9M Invested
Naturgas Energía inaugurates gas pipeline On June 17, the company, through its subsidiary HC Energía, inaugurated the Serinyà-Figueres gas pipeline, which measured 23 kilometers in length at a cost of 9 million euros. This infrastructure, which connects Figueres to the gas wholesale market, not only ensures a safer supply of gas but also eliminates the heavy truck traffic (approximately 500 vehicles per year) by decommissioning the liquid natural gas (LNG) station, which also provided service to Vilafant. This gas pipeline also allowed the supply of
gas to other municipalities, such as Navata and Santa Llogaia D’Àlguema. Environmental issues prevailed in the execution of this infrastructure project, which invests heavily in preventive measures and in the recovery of the surrounding landscaping areas extending to the entire gas grid. This is the EDP Group’s second major project in this geographical area aimed at improving the quality and safety of the gas supply following the integration of Gas Figueres. The first major project
was the master plan for the Figueres grid substations, the replacement of old materials with new polyethylene components, bringing the total investment to 6 million euros. The inauguration ceremony was attended by Josep Canos i Ciurana, general director for energy, mines and safety of the Autonomous Government of Catalunya, Manuel Toro, deputy mayor of Figueres, and Juan Ramón Arraibi, managing director of Naturgas Energía Transporte and Naturgas Energía Distribución.
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market
First Semester 2011
Net profit grows 8 percent DP´s net profit grew 8 percent, to 609 million euros, in the first half of the year. These strong results were supported by the Group’s diversification strategy. Per CEO António Mexia, “This increase of 8 percent was sustained by the company’s excursion into foreign markets; the company’s strategy at the moment focuses mainly on business growth in Brazil and worldwide through EDP Renewables.” In spite of the unfavorable international and domestic
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40%
€3.0MM
of the company’s total investment was made in Portugal
financial liquidity
€609M net profit
of the company’s investment was made within Portugal,” adding that this figure “shows the importance of EDP in Portugal,” which works directly with “more than a thousand domestic companies.” The Group’s financial liquidity, currently at 3 billion euros, secures the company’s financing needs through the first half of 2013, thanks to the public offering of 14 percent of EDP Brazil’s stock, an operation that yielded a notable financial reinforcement of 350 million euros.
situation, 61 percent of the company’s EBITDA was generated outside Portugal: 15 percent growth in Brazil and 19 percent through EDP Renewables. In Portugal, the 10 percent decrease in EBITDA was impacted by the termination of the Carregado Power Purchase Agreement as well as a drop in electricity consumption. Despite EDP’s expansion outside Portugal supported the increase in EBITDA, Mexia stressed that in the first six months of 2011 about “40 percent
61%
of EBITDA generated outside Portugal (+15% in Brazil and +19% from EDP Renewables)
€1.9M EBITDA
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edpculture Our most effective methods and the values that sustain them
General Shareholders’ Meeting The termination of the government’s shareholding interest in the company has been approved During the General Shareholders’ Meeting, held Aug. 25, EDP’s shareholders voted and approved the end of the special rights of the Portuguese state, as required by the troika, in a Memorandum of Understanding signed with the Portuguese government. The votes represented 94 percent of the voting capital at the General Meeting. CEO António Mexia stated that the company is “attractive to new shareholders” because it has grown faster than the rest of the industry and with less risk than its competitors. “The privatization operation can and should be seen as an opportunity for the company,” he said. Mexia also highlighted the “quorum record” at the General Meeting, at which more than 71 percent of the voting capital was represented. The challenge now is for “all EDP stakeholders” to give their best efforts to make this privatization “a success.” With the removal of the voting rights limitations through this privatization, many potential investors find the prospect of investing the Company very appealing.
EDP and Its Best Annual Report The 24th Investor Relations
activity indicators for 2010. This
with the best performance during
& Governance Awards (IRGA)
short version also included a
2010. Sponsored by Deloitte,
honored EDP for “Best Annual
3-D animated video summarizing
in partnership with the Diário
Report in the Nonfinancial
the Group’s activities. António
Económico newspaper, this
Sector,” in a ceremony held
Mexia received the award on
initiative rewards executives,
July 7. The EDP Group’s 2010
behalf of EDP and stressed the
industry professionals,
Annual Report, prepared by
importance of teamwork and of
institutions or individuals who
the Happy Brands agency,
the efforts undertaken to ensure
have contributed to the quality
consisted of a regular edition
transparency.
of financial information while
and a summary version, which
The IRGA Awards targeted those
simultaneously promoting good
highlighted the Group’s main
professionals and institutions
practices within the industry.
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e d p c u l t u re
Excellence in Communication EDP’s intranet and internal television channel, along with EDPLife’s special edition, were honored this year with the Award of Excellence in Communication from the Portuguese Association of Corporate Communication. This is the third consecutive year in which EDP´s communication venues have been awarded for the various projects and initiatives undertaken in the areas of internal communication, institutional communication, milestones and events.
EDP Distribuição’s Staff Meeting
Around 800 EDP Distribuição staff members and more than 50 guests attended the company’s Annual Staff Meeting. João Torres, EDP Distribuição’s chairman of the board of directors, opened this annual meeting by taking stock of the 2012 Distribution Program and presenting the corporate KPI (key performance indicators) results, whose goals were fully met. For Torres, EDP Distribuição plays a key role in changing the paradigm: “We are moving toward an intelligent distribution electric system focusing on the remote management of energy and micro-generation, radically transforming the efficiency of operations and quality of service in an environment where customer interaction is crucial. We want and we will make this company the company of intelligent energy ‘par excellence.’ To this end we are creating InovGrid cities.” Members of the board of directors, sponsors of the four 2012 Distribution Program strategic axes—Excellent Quality of Service, Controlled Risk, Superior Profitability and Constant Innovation — answered questions on issues as diverse as outsourcing, electric mobility, the future of the grid operator, career management and other issues of concern to company
staff during the four workshops held in preparation for the meeting. The “EDP Case”, for which the electric distribution road map for Portugal was drawn, emphasizing in particular EDP Distribuição’s post-creation period, was a defining moment in the meeting. António Mexia, EDP’s CEO, closed the morning session with words of appreciation and encouragement, highlighting that “we have to make a difference using our own means.” Mexia emphasized the fact that we have “a framework from which we can generate and distribute energy very differently. The smart grids are a huge challenge, which makes EDP Distribuição’s relevance even more significant. The distribution sector is undergoing a tremendous revolution with the introduction of more intelligence in network management and in the relationships with the end consumer.” António Mexia concluded his speech by saying: “We stand on the side of the solution for the Portuguese economy, on the side of growth, technological innovation, modernization of society, human resources development. We stand on the side of the shareholders and customers.” For António de Almeida, chairman of
the general and supervisory board, who gave a historical overview of the evolution of electricity distribution in Portugal, it was worth creating EDP Distribuição. “Nowadays, this is a very efficient company, and it can stand side by side with the best distribution companies in the economic sector in which we operate,” he said. António Martins da Costa, EDP’s executive director, closed the meeting by expressing his congratulations for the dynamic operational efficiency that EDP Distribuição has demonstrated. This efficiency has been tested and proven, among other indicators, by a consistent improvement in the quality of service. He also expressed pride in how the InovGrid Project, implemented in InovCity Évora, has evolved and deserved special international attention. This effort was recently distinguished by the European Council. Nine hundred books were collected as a result of gifts from the meeting participants and delivered to the Parish Centre of Avanca, in a show of company solidarity and active sharing with the community. In fact, the meeting ended in moments of joy and fun, during which 15 EDP Distribuição employees sang several inspirational popular themes.
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edp culture edp way
900
EDP WAY Agents in Sharing
employees directly involved (multi-geography and multi-business)
5
projects
EDP seeks to create a unifying, mobilizing and inspiring movement of the EDP Way philosophy. The cross functional teams have been a great driving force in this form of ‘being EDP.’ Learn how and discover how far they’ve managed to take the EDP Way.
5
cross-team movies
In a program consisting of five projects based on the two strategic axes of culture and execution, this movement means, above all, to share knowledge and experience. Convinced that the whole is greater than the sum of its parts, we designed a plan of internal dynamics based on the concept of “cross teams” — i.e., ultidisciplinary, multibusiness and multi-geography teams representative of the five EDP Way projects. These teams, which consist of approximately 11 members each (four training, four presentation and three case study members from the specific project), embraced the challenge of preparing a presentation for each project, using an emotional language through the development of short films. One major goal of this format was to increase the effectiveness of communication by avoiding the use of technical jargon in each project, thus allowing the public to access the message being conveyed more easily. The involvement of the teams, which each brought very different experiences, was great and even the geographical distance was easily overcome through videoconferencing: the results were amazing! Those who weren’t familiar with any of the projects became knowledgeable about them all through the cross-team movies. They were the real agents of sharing. 16 edpon
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edp way edp culture
+ opex lean edpro sharedp
“We know that the discovery of the organizational culture is something that exists already, but the edp way aims to bring it even more into focus and reinforce it to become part of our chromosomes.“ opex sou+edp edpro sharedp
sou+edp lean edpro sharedp
António Martins da Costa
cross teams
opex sou+edp lean sharedp
opex sou+edp lean edpro
“What do we have to do?! A movie?!!!!! I’m in the wrong casting! After we got people together, we combined the dreams of each one; added sharing, joy, dedication and friendship, stirred all thoroughly and... there it was! The EDP Way movie.” Felicidade Costa (cross-team leader)
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+
The different phases…
Project team
14 March
2 Nov
PRE-EVENT Cross-team workshop to view the movie firsthand
Bringing together complementary skills, the Umanism/EDP team brought together the projects’ focal points, consultants, creative
15 Nov
directors, audiovisual technicians and
30 March
actress Ana Brito e Cunha, who in addition
Cross-team invitation
24 Nov Meetings to wrap up final script
NOVEMBER DECEMBER
EDP WAY DAY • 400 guests • 40 teams • 20 leaders/facilitators • Team building • Discussion with PICs (people in charge) • Synergies workshop
Teams film their movies
Report (workshop input)
JANUARY
MARCH
Orientation meetings • Practical guidelines for teams • Pre-ideas
FEBRUARY
Editing and making of the movies
ABRIL
to directing actors also assumed the role of EDP Way “ambassador” for these events.
ROADSHOW • Six sessions • 900 guests • Synergies workshop
MAIO
Gathering feedback from team leaders for preliminary report
JULY JUNE Follow-up
Team building
Teams write their scripts
Sharing to make it happen! One way to begin sharing happened at the pre-event held on March 14 where all the cross teams were present. It was the time to show all teams what everyone had done and to reveal it to some guests at EDP. At the Museum of Electricity a quiz was fully customized to the space and project, in order to streamline the group and allow it “access” to view the movies. This pre-event was also the time chosen for the teams, while knowledgeable of the projects, to vote on the cross team whose work seemed to them to have met the pre-defined criteria: simple, surprising, concrete, credible and emotional. The choice fell on the OPEX cross team, whose prize turned out to be a teambuilding activity, to which members of the other teams were invited. This activity consisted of an orienteering competition on land in jeeps and down the river Zêzere in canoes. The teams were again “mixed” and with the right amount of ambition and cooperation they again reinforced the “together we make more sense” philosophy. During the pre-event all teams faced another challenge: become leaders of the
following sessions, in order to monitor and provide support to teams working on the event and the roadshow. And so it was! From this exercise arose the leaders who played a decisive
role in the success of all sessions and managed to create clarity among colleagues, assist and incentivate, enticing them to participate in this project.
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To go further “I believe that we showed a willingness to perform the tasks together, reinforcing the habit of looking at things with hope and always thinking of a better future. And that was contagious … Boosting EDP Way further reinforced my idea that working constantly with joy is clear proof of wisdom!” Virgínia Andrade (cross-team leader)
“Boosting EDP Way was a fair exchange with a ver y positive balance ... I challenged and was challenged, but most impor tantly I learned a lot and I had even more fun doing it!” Marisia Giorgi (cross-team leader)
Held on March 30, EDP Way Day was dedicated to the involvement and recognition of all the work done by EDP Way. Once again a tremendous success and great time, EDP Way Day went further this year with a road show to the various locales in which EDP Group operates. Our intention was to take the celebration to everyone at EDP who, although involved in the initiative, was unable to attend the event. Six sessions were held in Portugal and Spain, where the wall and workshop ideas were replicated. The project leaders played a crucial role at all the sessions, where they created a sense of clarity about the initiatives and built enthusiasm for them among colleagues, always doing so in an open, transparent and approachable tone.
“Being a leader allowed me to recognize and value trends, practice empathy, and channel energy to the work at hand. It was learning from those who learned...” Teixeira Pedro (cross-team leader)
Because it only makes sense doing it this way In a group like EDP that is dominated by a strong, hierarchical culture, the philosophy behind this program is a huge challenge. EDP Way stirs minds and drives change and EDP culture. To continue to make sense is to show consistency and pragmatism, so that the idea of “together we make more sense” is not a mere slogan. Indeed, EDP Way is an excellent ambassador for our brand values:
humanization through willpower; involvement and sharing between people and teams; sustainability, as it seeks to maintain sustainable business practices across the entire organization; and innovation in the constant search for ideas, improvement and optimization. And our brand is the visible proof that change is a constant in our organization. Execution is what allows change to happen.
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edpcauses economic capacity and social commitment
Who says young people don’t show solidarity? The first edition of the ‘Energia com Vida’ (Life with Energy) sponsored by EDP Gás, proved otherwise.
The “Energia com Vida” initiative demonstrates student solidarity he first edition of EDP Gás “Energia com Vida” came to a conclusion at the end of the 2010-11 school year, and it was a total success! In total, 78 participating schools implemented “Energia com Vida” intervention projects in different areas, including poverty and hunger, senior citizens illiteracy, living with disabilities, unemployment, environmental sustainability, and global partnerships.
T
This project allowed fifth- through ninth-grade students from schools located in the districts of Porto, Braga and Viana do Castelo to show their solidarity with the community. Ten schools were distinguished for their student projects’ excellent performance in terms of solidarity. The student teams met and displayed their projects during the final event, which took place at EDP’s new headquarters in Porto.
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causes
DOWN SYNDROME FOUNDATION OF CANTABRIA RECEIVES GIFT OF COMPUTERS Naturgas Energía donated 12 computers to the Down Syndrome Foundation of Cantabria for use in the training of people with the disorder. The agreement between the company and the institution was signed on June 28. Maria Victoria Troncoso, president of the foundation, Jose Alonso, managing director of Naturgas, attended the equipment delivery ceremony.
Naturcuentos Awards Ceremony
•G athering clothing, footwear and books for donation • Promoting literacy, financial management and creative savings Illiteracy: • Teaching seniors to read and write • Establishing a school for seniors offering study programs that include foreign languages, computer tutorials, cultural visits, etc.
SOME EXAMPLES OF THE INTERVENTION PROJECTS UNDER THIS INITIATIVE Senior Citizens: • Interaction with senior citizens (day centers entertainment, lunch with the elderly at the schools) • Seniors’ participation in community school activities (special mention of a 91-year-old “student,” who went to school for the first time) • Styling hair and giving manicures to elderly people Poverty / Hunger / Unemployment: • Holding fund-raisers for social solidarity organizations • Distributing food baskets to needy student families
Living With Disabilities: • Hosting lecture on “Accessibility” • Integrating people with disabilities in school teams • Renovating the dwelling of a Romani (Gypsy) family Environmental sustainability: • Reforestation, waste collection • Cleaning school areas • Creating nature trails for hiking Global Partnerships: • Collecting books and educational materials for Mozambique • Organizing donations campaign for “Rebuilding Haiti”
The Naturcuentos, the awards venue for the Energia com Vida initiative, were held June 21 and 23, with four children taking home a personal computer. The first award, given in the 6 to 8 years age range, was presented to Hugo Mazariegos, age 7, who attends the Ander Deuna School of Sopelana. For the 8 to 10 years category, the awards went to Cristina Santos, age 9, a student at Juan Delmas School, Barrio de la Peña, in Bilbao. Cadena Ser radio interviewed Cristina about her experience and broadcasted her tale on June 24. Two other awards went to Lucia Rivas, age 10, who attends the San Martín de Vitoria School, and to 9-year-old Mirari Aguado of Portugalete. EDP On and Cadena Ser interviewed Mirari who told the story of a gull flying by the Basque coast and observing the abuses that have been visited upon the environment. In the end, all the schools involved expressed their appreciation and affection for this initiative.
View pictures of these events and learn more about this initiative at www.energiacomvida.org. edpon 21
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innovation You are the leading actor!
Our new intranet vision and mission
News: TOP 5
Vision:
• Global communication and
Come join us in building the
To be a privileged space for all EDP employees to
new intranet! You are still on
meet, share and work.
time to help us build an intranet
Mission:
for you: simple, accessible,
• To promote the sharing of knowledge and best
functional and attractive. We would like to receive your comments, suggestions and ideas for our new intranet.
more business processes • Web 2.0 (comments, forums, blogs)
practices of the Group • To provide services that assist employees in their
• A global and interactive staff directory
daily lives • To disseminate the Group’s common culture
Please send them to
while respecting the local characteristics of each
intranet@edp.pt.
subsidiary
• Alerts, notices and personalization
• To strengthen synergies among the company’s various business areas
• E xtranet and mobile access
• To report on the Group’s activities • To supply work tools
... And much more!
New EDP intranet: Debut in 2012 More than 60 people are currently working on the MoveOn project, racing against time. All this so we can witness the big premier of the EDP Group’s intranet For the first time, we will all speak with one voice whether we are in Portugal, Brazil, Spain, the United States or anywhere else on the planet. This is a truly global intranet and at the same time unique and tailor-made for each EDP staff member. Participation, simplicity, personalization and mobility are the characteristics that will shape this trend from 2012 on. The new intranet aims to transform the tower of Babel that is EDP – a world of languages,
countries and companies – into an open forum for discussion and sharing of ideas, knowledge and culture. This will be an indispensable communication and work tool, one which will make it easier to find someone and to be found, to participate and receive feedback, to know and be known. THE WORK BEHIND THE SCENES HAS ALREADY BEGUN! MoveOn is the name of this bold,
ambitious and pioneering project that will move your new intranet from paper to your computer screen. The new intranet’s production team is cross-sectional, involving people of all companies and countries where EDP is present. More than a communication or information systems project, MoveOn is an endeavor of cultural transformation of the company to attain a more innovative, transparent, open and participatory EDP. We’re debuting it next year. Do not miss it!
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innovation
Single Point of Contact
A more global Service Desk
Solving problems is now simpler than ever: All you have to do is go to the SPC (Single Point of Contact), the new Service Desk tool located in the ‘SOU EDP’ portal, and report. The advantages are numerous: In addition to seeing your incident referred and resolved more quickly, you may contribute to a reduction of costs to the company. The use of the most common means of communication — phone and email — to resolve incidents and requests has thus far presented severe limitations. The call is often the most time-consuming, especially in periods of heavy phone traffic. In the case of email, the application runs the risk of not being properly identified and interpreted. All these conditions may jeopardize the quality of information and considerably increase the time necessary to resolve the request.
These issues, as well as the desire to unite all EDP geographies, led to the creation of the SPC.
what software and hardware equipment are available in your workplace; check lists of templates and useful manuals; access the service catalog and introduce your request. Using the SPC is easy and intuitive. For example, to place an order for technological equipment simply add the objects you want to your shopping cart and proceed to checkout when you are finished.
Accessing the SPC This portal is part of the Group’s cloud computing-based network, which allows for easy monitoring of your request, wherever you are, as long as you have access to the Internet. On the SPC page you can perform many tasks related to technology programs and equipment:, including check the status of your requests and know to whom they were assigned; see
Crisscrossing in every direction At the end of the year, the SPC will be available for Portugal, Spain, the rest of Europe and the U.S., with content translated into the respective languages. Brazil’s turn will come later. However, this new tool is not meant only for EDP users. The SPC is also available for use by IT vendors, whose requested services will be delivered with the utmost brevity
Windows 7 1,400 more users by year’s end EDP was one of the first Portuguese companies to adopt the
Microsoft certification for the workplace image and platform
Windows 7 OS about a year ago. Windows 7 offers new features and
management areas. The results were quite good; the implementation
improved energy efficiency, making this option perfect for demanding
of Windows 7 Enterprise within the EDP Group is the best in the
EDP users. More than 9,980 of our employees already use Windows 7,
world. In the vast majority of problems related to the use of the
and we expect to grow that number to over 1,400 more users later
operating system, such as applications, security and hardware,
this year. HC and Naturgas are included in this expansion program.
EDP obtained an excellent rating with far fewer problems than the
Recently, the Information Technology Department obtained a
average evaluated company. edpon 23
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in focus EDP Anniversary
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YEARS edpon 25
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in focus
EDP’s history has been marked by its ability to anticipate trends and make the necessary changes that have allowed the Group to make important advances. Read, step by step, about the 35 years of existence of largest company in Portugal. DP was founded in 1976 as a result of the merger of 13 companies that had been nationalized in 1975 and united under the name “Electricidade de Portugal” (Electricity of Portugal). As a government-owned company, it was charged with the task of electrifying the entire country, modernizing the electric distribution grids, planning and constructing the nation’s electricityproducing assets, and establishing a single tariff system to extend to all clients. That same year, the Valeira Hydroelectric Project started production and, between 1977 and 1989, 5,380 locations received electricity (about two per business day). By the 1980s, EDP’s distribution network already extended over 97 percent of Portugal’s continental territory, and the company was supplying 80 percent of its low-voltage electricity capacity. In 1991, the government decided to change EDP’s legal status from public company to corporation. In 1994, three years later, it was created the EDP Group, holding company with 19 subsidiaries: Companhia Portuguesa de Produção de Electricidade, Rede Eléctrica Nacional, Electricidade do Norte, Electricidade do Centro, Electricidade de Lisboa e Vale do Tejo, Electricidade do Sul, Hidroeléctrica do Norte, Hidroeléctrica do Centro,
E
Hidroeléctrica do Tejo, Edinfor, Internel, Hidrorumo, Labelec, Enernova, Sãvida, Mudança e Recursos Humanos, Edalpro and Econoler. The following year, SPE MACAU and ENERGIA-RE were created. Portugal had become too small for so much capacity and in 1996, the first steps were undertaken to globalize the Group. In a consortium deal with Chilectra (Chile) and Endesa (Spain), EDP acquired 21 percent of CERJ (an electricity distributor in Rio de Janeiro) and then acquired a 30 percent controlling interest. Globalization continues to move forward with the execution of a contract for the construction and exploration of the Luis Eduardo Magalhães Plant (Brazil), an asset that will reach an installed
capacity of 902.5 MW in which EDP controls 73.10 percent of the voting shares. PRIVATIZATION In June 1997, EDP’s first privatization phase took place with the sale of 30 percent of its stock. An extremely successful operation, it exceeded demand by thirty-fold. More than 800,000 citizens, about 8 percent of the Portuguese population, became EDP shareholders. The Group consolidated its presence in Brazil in 1998, with the acquisition of a controlling interest in Bandeirante Energia (Sao Paulo); acquisition of interests in Guatemala through the acquisition of interests in partnership
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in focus
+
ANTÓNIO MEXIA, CEO of EDP “It’s 35 years of a company that, today, is the largest in Portugal. It can not only perform its basic purpose in the energy arena but also offer to the public the cultural and social component necessary to involve them in this process of creating a more energetic country with the ability to face the future!”
with Iberdrola; and in Morocco, through its workings with Redal, which announced the EDP Group’s entrance into the area of multi-services — i.e., distribution combined with electricity, water and basic sanitation. In addition, in 2000, the fourth Group privatization phase took place, resulting in 70 percent of the capital transferring to private hands. Another phase of the Iberian business development strategy occurred in 2004. EDP’s growth strategy in Spain included the acquisition of 39.5 percent of Hidrocantábrico’s capital in December 2001. Three years later, the Group reinforced its position, this time taking control of the company with a total capital share of 95.7 percent.
GLOBAL WIND PLAYER In 2007, through its subsidiary Energias Renováveis, EDP Group acquired, for US$2.74 billion American dollars, one of the world’s largest wind energy producers, Horizon Wind Energy (LLC), with turbines in New York, Iowa, Pennsylvania, Washington and Oklahoma, and projects planned for Minnesota, Oregon, Texas and Illinois. Through its subsidiary EDP Renovaveis, EDP is now the world’s third-largest company in the renewable energies market, with 7,163 MW of installed capacity through the first quarter of 2011. Present in 13 countries, the EDP Group is a decisive force today in the global energy sector, serving more than 10 million customers and employing 12,000
people worldwide. In 2010, the EDP brand held 192th place on the list of the 500 largest companies in the world. It is the best positioned “Portuguese company” with a net worth of 3.2 billion euros. EDP is today the world leader in the Dow Jones Sustainability Indexes for the utilities sector, an unparalleled feat for a Portuguese firm. In short, 35 years later EDP has become a leader in the energy industry, integrating its corporate cultural values and commitments with those of its customers, the general public and the environment. In the following pages, we list some of the main achievements of a company that is supported by three basic pillars: respect, sustainability and innovation. Live our energy! v
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in focus
EDP: noteworthy moments • The first EDP brand
The Aguieira
is born with the EDP-
Hydroelectric Project
The Pocinho
Electricidade de Portugal/
(336 MW), on the
Hydroelectric Project (186
Empresa Pública name.
Mondego River, goes into
MW), on the Douro River,
1983
production.
1978
goes into production.
1981
1976
1982
1979
• EDP-Electricidade de Portugal is born
1985 • Project (117 MW), on the
out of the merger of
Douro River, goes into
13 companies in the
production.
Portuguese electric
• The Setúbal
sector, which had been
Thermoelectric Station
nationalized in 1975.
(946.4 MW) goes into
• Project (24 MW), on the Mondego River,
• The Sines
goes into production.
Thermoelectric Station
production.
(1,180 MW), goes into
• The Valeira
production.
Hydroelectric Project (240 MW) on the Douro River, goes into production.
• EDP enters de Spanish gas market. • EDP acquires a 39.5 percent • The Mortagua Biomass Station
interest in Hidrocantábrico is
• Project (191.6 MW), on the
(9 MW) starts production.
acquired in December.
Rabago River, goes into production.
• EDP Comercial is created in Portugal to compete in the deregulated electricity market.
1999 1998
2005
2001 2004
2000
2007 • EDP acquires Horizon Wind Energy and is now
• The second and third
• A new brand: EDP–Energias de
a player in the North American market.
phases of the privatization
• The fourth phase of the
Portugal is associated with a
process take place. In the
privatization process is
new logo.
third phase, the Portuguese
completed: 70 percent
government retains 51
of EDP’s capital is now
• EDP reinforces its position with
another subsidiary
percent of EDP’s capital.
privately held.
the acquisition of 95.7 percent
in December: EDP
of HC Energía’s capital.
Renováveis.
• The Ribatejo Thermoelectric
• The InovGrid Project
Project (1,176 MW) goes into
takes off.
• The Group founds
• EDP Distribuição is created.
production. 28 edpon
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in focus • EDP enters the global market with a • EDP-Electricidade de • Project (140 MW),
presence in Brazil.
Portugal, SA is now a
on the Tamega
“group of companies.”
• Publication of
River, goes into
• Project (630 MW), on
production.
the Lima River, goes into
• Project (40 MW), on
Community Directive
production.
the Caldeirao River,
results in changes
goes into production.
in the company and
the first European
in the European
1988
electricity industry.
1992
1994
1996 1995
1993
1991
• Project (189 MW), • EDP-Electricidade de
1997
on the Douro River,
Portugal becomes a
• Project (22 MW), on the Lima
corporation.
River, goes into production.
goes into production.
• As part of the • Project (41 MW), on the Ocreza
first privatization
River, goes into production.
phase, 30 percent of the company’s
• Launches EDP Renewables’ initial
• On July 22, EDP debuts its new
public offering, the largest in Europe
trademark, which replaces EDP’s
that year.
first brand image: the “lightning bolt.”
capital is sold.
• EDP acquires Home Energy.
• On Sept. 4, EDP becomes the only Portuguese company to
• The new EDP trademark is
be a member of the Dow Jones
launched in Portugal, Spain
Sustainability Indexes: World and
and Brazil in July.
STOXX. This same year, the DJSI declares EDP one of the best
• The Portuguese government’s
seven electricity companie globally
interest (25.7 percent) in EDP
and one of the best five utility
is privatized.
companies in Europe. • EDP attains, once again, global leader status in the
2010
2008 2009
• In April, EDP launches InovCity in Evora, the first “intelligent city” in the
Dow Jones Sustainability Indexes.
2011
Iberian Peninsula.
n
ow
• DP becomes the first Portuguese • The holding company and its subsidiaries in Brazil
company to reach global leader status
adopt the Portuguese name: EDP.
in the Dow Jones Sustainability Indexes for the utilities industry.
• For the second year in a row, EDP is included in the DJSI Sustainability Indexes.
• EDP allies with the U.N. High Commissioner for Refugees to bring
• EDP Serviços is founded.
renewable energy to the Kakuma refugee camp in Kenya.
• The Lares Combined Cycle Project Station (862 MW) goes into production.
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in focus
EDP IN THE WORLD
Employees
23
Installed capacity (MW)*
341
Net production (GWh)
336
Production from renewable sources**
Employees
16
100% 45
Employees
396
Installed capacity (MW)*
248
Net production (GWh) Employees
326
Installed capacity (MW)*
3.278
Net production (GWh)
5.105
Production from renewable sources**
100%
Production from renewable sources****
100%
United Kingdom France Belgium Poland Romania
Portugal
U.S.A Canada
Spain
China
Italy
Angola Brazil
Employees
14
Employees Electricity customers Gas customers Employees Electricity customers Installed capacity (MW)*
2,444 2,784,905 1,874
Employees
7,212
Electricity customers Gas customers
258,650
Net production (GWh)
4,043
Installed capacity (MW)*
Production from renewable sources**
100%
Net production (GWh)
Electricity distribution (GWh)
12,296
6,090,875
Production from renewable sources** Electricity distribution (GWh) Gas distribution (GWh)
10,542
2,039 1,019,747 806,113
Installed capacity (MW)*
6,075
Net production (GWh)
7,465
Production from renewable sources**
41%
Electricity distribution (GWh) Gas distribution (GWh)
4,952 25,789
13,571 61% 23,576 3,767
* MW EBITDA **Includes hydric, wind, biomass and waste sources
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Portugal
Production 4,578 MW of installed hydric ordinary regimen capacity 5,040 MW of installed thermal ordinary regimen capacity 355 MW of installed special regimen capacity
Marketing 6.1 million customers 8.8 TWh liberalized market (51% quota) 30.6 TWh regulated market The EDP Group explores the marketing activity in the regulated market in Portugal through EDP Serviço Universal, which ensures the supply of regulated tariff electricity, and in the free market through EDP Comercial. During 2010 the total number of regulated market customers decreased 0.9 percent, due to the net transfer of around 100,000 customers to the liberalized market side; however, this loss was partially compensated for by the addition of 51,000 new customers. 2010 was a year of consolidation for the liberalized electricity market, which was relaunched in 2009, especially in the B2B segment. A more favorable market and tariffs allowed the development of a more competitive market in which EDP Comercial, through its partner relationship with customers, maintained a leading position. EDP Comercial had a 51 percent share in energy sales, having reached 88 percent of the free market installations by the year’s end. The B2B segment, in tandem with the steps taken in 2009 for the market’s relaunch, market, once again showed the greatest dynamic competitiveness in 2010 with new players in the market. A value proposition adapted to our customer needs resulted in a sales volume of about 7.5 TWh and a portfolio of 8,993 installations by year’s end. In the B2C segment, EDP Comercial was the choice for 305,000 residential and small-business customers (representing 90 percent of the free market), which corresponded to a sales volume of about 1.3 TWh. As for EDP Serviços, 2010 was a year of consolidation for its existing capacity, which is always supported by three strategic vectors — energy efficiency, multi-technical services and decentralized production — and by the development of solutions designed to meet specific needs, such as those of small and medium businesses and residential customers.
Nowadays, EDP operates one of the most balanced energy generation portfolios in the Iberian Peninsula, considering its significant hydric generation, the operational efficiency of coal stations and the growing capacity of its combinedcycle plants. At the end of 2010, EDP’s total installed capacity reached 9,974 MW, of which 47.5 percent (4,735 MW) was in hydroelectric and 52.5% (5,238 MW) was in thermoelectric production. Still, hydroelectric production continues! Under way and going steady are the generation reinforcement for Picote (246 MW); Bemposta (191 MW), which is to start production in 2011; the startup of Alqueva (256 MW), scheduled for 2012; the conclusion of Salamonde (207 MW), forecasted for 2015; and finally Venda Nova III (746 MW), which will go into production in 2015. In terms of hydroelectric production, new projects continue at a good pace: Baixo Sabor (171 MW) is to be finalized in mid-2014, Foz Tua (259 MW) in 2015, and Ribeiradio/Ermida (77 MW) in 2014.
MAIN MILESTONES DURING 35 YEARS Startup of hydrolectric projects
the EAC renegotiation that
After a long investment hiatus
it was possible to get the
in this area, EDP now has the
concession extension on the
most ambitious program in
hydric resources, which, apart
Europe, with the construction
from the strategic value they
of six new dams and six
bring to the Group, enabled EDP
production reinforcements
to undertake the five production
in existing energy stations.
reinforcements currently under
Of special note are eight
way.
simultaneous construction projects under way (three
CCGT Ribatejo takes off in the
dams and five production
free market
reinforcement projects).
CCGT (natural gas) was the first power plant in Portugal
Renegotiation of the EAC
to work under the free
/ CEMC and Concession
market system, while all other
Extension
generation plants continue to
The CEMCs (contractual
be exploited under the EAC
equilibrium maintenance costs)
agreement. The construction
were born out of the EAC (energy
of this plant was critical to
acquisition contracts). This
ensuring a continued power
process, which was thoroughly
supply at a moment when it
debated, was approved by
was uncertain which direction
the European authorities and
regulation would take.
created the conditions for
It was a bet by the Group on
greater market liberalization,
the liberalized market, which
paving the way for the creation
anticipated by about four
the Iberian Electricity Market
years the creation of the EAC
(MIBEL). It was also thanks to
regimen and the MIBEL.
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Distribution 47,836 GWh 6,149,046 connection points to the grid 220,318 KM of grid 404 substations 63,223 transformer stations EDP is a vertical company that integrates the production, transport and distribution of electrical energy. However, for approximately 20 years — between 1976 and the mid1990s — the then Electricidade de Portugal developed the first phase of a methodical and coordinated plan to modernize and extend the nation’s electricity distribution grid to more than 98 percent of the Portuguese mainland. No less relevant were the creation of regulation and certification entities, ERSE (Portuguese Regulating Entity for Energy Services) and CERTIEL (Electrical Installations Certification). Thus, the business model for electricity distribution and marketing distribution and marketing of electrical energy underwent legislative and regulatory changes, either through the imposition of tariffs or the regulating of customer relations as well as quality of service, commercial and technical requirements. A determining factor in in this panorama was the legislative framework of the last five years of the 20th century, during which the Group opened up to competition and the capture of private
sector capital. In 1997, EDP initiated its first privatization phase, with the consequent dispersion of about 30 percent of the capital in the stock market, the majority of which was in private hands by 2000 — the same year in which REN, the party responsible for the transport of electrical energy in Portugal, exited the EDP Group. It was in this scenario of domestic market liberalization, openness to private capital, and regulatory changes in the distribution and marketing of electrical energy that EDP Distribuição was created in February 2009. Distribuição faced many challenges at athe time, all of which it met with success, thus contributing to the expansion and improvement of the Group’s results. Several other factors are worth noting as well, including the consolidation of its position in the liberalized market; sustained quality of service to the customer; a judicious and timely investment policy; the ensuring of stability with the execution of new concession contracts with municipalities for a period of 20 years; reinforcement of the medium-voltage grid remote
command; continuous improvement in the monitoring and automation of the grid; generalization of the remote metering; and the development of an environmental culture integrated with the management and promotion of energy efficiency. The company achieved all of this while also rationally integrating and positively responding to the profound transformation under way in the electricity distribution sector. Some changes, such as the separation of “grids” from the “commercial” sector, were consequences of the transposition of the national legislative framework to the European Union’s; others were the result of EDP Distribuição’s organizational capabilities and innovative thinking, not to mention vision, which placed the company at the forefront of many future solutions. In particular, Distribuição demonstrated remarkable foresight in terms of the evolution of the business environment, implementing such forward-thinking initiatives as the InovGrid Project, with its intelligent city, “InovCity,” in Évora, microgeneration, and the Mobi-e Project, with its focus on electric vehicles.
+ Internal Audit: betting on accuracy and transparency Recording the evolution of Internal Auditing Department at EDP Group
investor worldwide. As the latter, it had a presence on several different
in the last 35 years allows us to observe how wisely its activity was
continents, a factor that in turn led to new auditing areas, namely EDP
engendered in tandem with the company’s fundamental milestones.
R in Madrid and Houston, and NGE in Bilbao. Currently, the activities
There has been undeniable trajectory of investment made in assuring
undertaken by the Internal Auditing Department concentrate mainly
the accuracy and transparency of the company’s accounts.
on establishing and managing the systematic audits within the Group
The founding of Eletricidade de Portugal, SA led to the creation of
on all matters financial, IT, operational and management, as well as the
a unique internal audit structure, based in Porto and Lisbon, with
monitoring, implementation and maintenance of the SCIRF (internal
specific tasks in support of management and the external auditors.
control and financial reporting system) principles. This team is made
Thirty-five years past, the company’s growth strategy turned EDP
up of 50 staff members in Portugal, Spain, the United States and Brazil.
into the largest Portuguese company traded on the national stock
Mostly young professionals, capable of responding to the Group’s needs
exchange, the largest investor in Portugal and the largest Portuguese
and their own professional commitment.
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A FOUNDATION FOR SOLIDARITY, SCIENCE, CULTURE AND PATRIMONY FOUNDATION
Historically important in 2004 was the
Barragens, already in its third year. Up
creation of Fundação EDP, which emanated
to now, this initiative has benefited 13
from the EDP Group’s will to declare, in no
institutions and more than 15,000 people.
uncertain terms, its commitment to civics, sustainability and modernity. This nonprofit
GREAT EDP ARTE AWARD
organization received the mandate to probe,
It is the most coveted art award in Portugal
disseminate and support the themes of
and has distinguished artists with relevant
energy and environment, culture and the
careers. Over the last 10 years, the Great EDP
arts, as well as socially oriented projects.
Award has been given to big names in the
Installed in the Central Tejo campus, the
nation’s contemporary art scene, including
old plant that for decades was the engine
Lourdes Castro (2000), Mário Cesariny
responsible for lighting the city of Lisbon,
(2002), Álvaro Lapa (2004), Eduardo Batarda
now harbors the Museum of Electricity. The
(2007) and Jorge Molder (2010).
Foundation has, year after year, widened and consolidated its areas of influence
NEW ARTISTS EDP AWARD
through an innovative positioning that has
Names such as Joana Vasconcelos, Leonor
contributed to the increased prominence
Antunes and André Romão, among others,
of its activities. Here are some of the main
have been discovered through this award,
projects that move us and of which we are,
which distinguishes young talents in the
of course, proud.
contemporary art arena.
MUSEUM OF ELECTRICITY
SOCIAL PARTNERSHIPS
With a new notion of musealization, the
Fundação EDP is one of the founders of
museum opened its doors to the public in
the Social Stock Exchange and Pro Bono
May 2006. Nowadays, it is one of the most
Dentists. The Foundation is also a partner of
visited museums in Portugal and receives
the Red Nose Operation, the Nuno Delgado
the most student visits: 190,000 in 2010.
Judo School and the “For You If You Show Up” project, in partnership with the Benfica
EDP SOLIDÁRIA PROGRAM
Foundation.
As one of the biggest national programs in support of social solidarity organizations
PHILANTHROPIST BY EXCELLENCE
in Portugal, this initiative aims to promote
The National São Carlos Theater, the
social inclusion and break the cycle
National Ballet Company, the Youth
of poverty. EDP Solidária has already
Symphonic Orchestra, the House of Music,
supported 100 projects, which have
the Serralves Foundations, the Paula
impacted more than 635,000 direct
Rego Foundation — we are amongst
beneficiaries. In tandem with this program,
the great philanthropic arts organizations
Fundação EDP launched EDP Solidária
in Portugal.
Gas 3,827 KM distribution grid 6.8 TWh of distributed gas 8.9 TWh of gas sales 245,000 customers The EDP Group occupies a place of reference in the Iberian natural gas market through its gas assets holding company — EDP Gás SGPS. In the areas of large consumption natural gas distribution, as well as regulated and free markets, the Group is represented by EDP Gás Distribuição, EDP Gás Serviço Universal and edpgas.com. It also holds interests in Setgás, which operates in the natural gas distribution and regulated markets. In the distribution market, EDP continued to develop concessions by guaranteeing the widening of the supply grid coverage to new counties, namely Vila Nova de Cerveira, Lousada, Valença and Paços Ferreira, as well as market densification that yielded an increase of more than 24,000 supply points (+10.8 percetn vs. 2009). The natural gas sales market was fully deregulated on Jan. 1, 2010. However, in spite of this new reality, EDP Gás Serviço Universal, a company that operates in the regulated market, saw a decrease in the volume of gas sales due to the end of regulated tariffs for large natural gas consumers, although its client base has increased to more than 23,000 this year. On the other hand, EDP Gás Comercial solidified its position as an important agent within the large consumption free market (B2B) by continuing to concentrate its strategy both in trading, while transacting 9.9 TWh of natural gas, and in marketing, where it attained 186 accounts and a 28.4 percent market share. In 2010, EDP Comercial was granted a license to sell natural gas, which meant that, along with marketing electrical energy, it could now also operate in the natural gas market, where it offered its capacity to the business (B2B) and residential and small business (B2C) segments. In the process, EDP Comercial became the first liberalized market operator to present a dual offer to the B2C segment.
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Production
Distribution
429 MW in hydroelectric projects 3.444 MW in thermoelectric stations EDP Group is present in the electricity production sector through HC Energía, both in the ordinary and the special regimens. At the end of 2010, HC’s installed ordinary energy capacity held at 3,875 MW, of which 429 MW (11 percent) represented hydroelectric and 3,444 MW (89 percent) thermoelectric stations. In 2010 HC Energía reached its historical hydroelectric production capacity of 1,045 G Wh, having surpassed 1996 numbers.
Spain
Astúrias: 9,452 GWh 628,077 connection points to the grid 7,016 KM of HV grid 46 substations Madrid: 57 GWh 6,863 connection points to the grid 76 KM of HV grid 1 substation
MAIN LANDMARK:
Aragón: 22 GWh 2,961 connection points to the grid 109 KM of HV grid 2 substations Catalunya: 9 GWh 18 connection points to the grid 5 KM of HV grid 1 substations Valência Community: 210 GWh 13,082 connection points to the grid 368 KM of HV grid 3 substation
HC Energía handles the distribution of electricity in five autonomous regions in Spain. It has an approximate geographical grid area of 22,200 kilometers and more than 9 TWh of distributed energy, representing an increase of 2 percent over the previous year. The investment the company has made over the last few years, as well as the procedures it has put into place, allowed it to reduce the supply interruption time to less than one hour in Astúrias, a main distribution zone that covers more than 96 percent of its customers. HC Energía continues to lead in quality of service in the Spanish electricity system.
MAIN LANDMARK:
CASTEJÓN COMBINED-CYCLE STATION
Distribution in new territories Castejón, EDP Group’s first combined-cycle station, represented the starting point for the diversification of electricity generation. The
The arrival of the year 2000 contemplated an important
startup of these combined-cycle stations changed the generation
change in HC Energia’s distribution business. Astúrias,
mix, which traditionally was based on thermal energy, to natural
where the company has operated for almost a century,
gas. Castejón was also the first plant that HC Energía built outside
is no longer the only territory to develop. The company
of its traditional market in Astúrias. Currently, EDP possesses four
first expanded into the Valencia Community, where it
natural gas generation groups in Spain, which represent 44 percent
built low- and medium-voltage grids and then added
of its installed capacity. Castejón 1 was one of three similar plants
high-voltage lines and substations. Today, the Group
that started up in Spain. Six years later, in the same location, this
possesses more than 25,000 supply points for the
plant’s second generation group started up. The Group now holds
distribution of electricity throughout Valencia, Madrid,
an installed capacity volume of 392.9 MW.
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Marketing 1.0 million customers 20.3 TWh free market (11 percent market share) 1.1 TWh regulated market In Spain, EDP is present in the regulated market through its HC Energía Último Recurso (Last Resort) and in the liberalized market through HC Energía and CHC Energía, which compete with other Iberian operators. In 2010, the EDP Group reached a total of approximately 651,000 customers in the free market, which represents a 23 percent increase over 2009’s figures. The B2B market segment recorded energy sales of 18,124 Wh, 41 percent more than the previous year’s. In addition, the customer portfolio’s structure was optimized, thus improving the margins on the major accounts and Companies segment. Depending on the type of actions we undertook, this type of customers’ overall satisfaction level was higher than 95%. The B2C segment strategy has been focused on the analysis of portfolios in order to attract profit-generating customers and to obtain their loyalty by offering dual and residential maintenance services. This type of customer satisfaction level stands at 87 percent.
MAIN MILESTONE: DUALIZATION: BUILDING A STRATEGY HC Energía took a path that, to date, has helped it to maintain the top position in the Spanish liberalized market (as a percentage of the portfolio between free and regulated markets) and thus capture the loyalty of its customers. In 2005, the Group offered its customers the possibility of unifying all their home energy needs — electricity, gas and services — under one contract. This dual formula allowed the company to double the average percentage of customers in the market.
Gas 9,938 KM of distribution grid 45.6 TWh of distributed gas 29.8 TWh of gas sold 824,000 customers
EDP Group is present in the natural gas market in Spain through Naturgas Energia. It is the second-largest distributor of natural gas in Spain, performing the functional coordination role for EDP Gás SGPS. In the transport segment, the highlights are the completion of the construction works of the third and last phase of the BergaraIrún and Serinya-Figueres gasoducts, the Corvera-Tamon gasoduct operation and the beginning of the Bilbao-Treto gasoduct construction. In the distribution area, the volume doubled to more than the previous year’s with the inclusion of high pressure assets, as well as the two Murcia and Cantabria distributors. The number of connected supply points grew by about 20,000 over 2009, with an increase in densification efforts and
new population centers, as is the case for Olvega, Berriaga Monte (La Bilbaina) in the Basque Country, NNP Etxebarria (Basque Country ) and Villarejo Salvanes (Madrid) counties. During 2010, the overall market, reduced demand and increased “spot” supply brought many Iberian players under pressure to drain their long-term firm gas contracts. As a countereffect, Naturgas relied on diversification of its portfolio purchases, resorting to an important “spot” resource during 2010, as well as to its sales portfolio. The company benefited from synergies with EDP’s procurement portfolio joint management, its optimization between the Portuguese and Spanish markets, on the one hand, and between combined-cycle consumption levels and gas retail sales, on the other.
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Distribution 84,636 KM grid 23.7 TWh distributed energy In distribution, EDP in Brazil holds full controlling interest in EDP Bandeirante and EDP Escelsa, which serve around 2.74 million customers and distribute 23.7 TWh of electricity.
Marketing 86 customers 8.1 TWh year of marketed energy
Brazil
Sales in the electrical power segment are handled by the company’s energy distributor, which in 2010 sold 8 TWh to customers in the liberalized market, representing a 12.6 percent market share. The energy level sold in 2010 was 5.2 percent lower than the previous year’s. Besides taking advantage of shortterm strategic opportunities in 2009, contracts sold in the 2009 Adjustment Auction justify the reduction in traded volume, a fact that led Enertrade (oil and gas marketing) to exceed monthly energy trading records.
Production 1,735 MW of installed capacity 7,263 GWh of produced capacity The company’s production activity involves the management of hydroelectric power plants (HEP) and small hydroelectric power plants (SHP), with a total of 1,735 MW of installed capacity through December 2010. During 2010, we developed the Rio Bonito PHC project, which has increased the installed capacity to
1.9 MW, and the Mascarenhas HEP, which is scheduled for completion in 2012. The acquisition negotiations of two SHP projects in the state of Mato Grosso involve the purchase of Cabeça de Boi SHP, with 30 MW of installed capacity, and Fazenda SHP, with a 19.5-MW capacity, totaling 49.5 MW of installed capacity and an
average of 27.5 MW in assured energy. In 2009 EDP, through its joint venture with EDP Renovaveis, acquired full controlling interest in the Elebras Projects company. Among the holdings in Elebras’ 533-MW portfolio was the 70-MW Tramandai wind farm, which went into production in May of this year.
MAIN MILESTONES 1996 Arrival in Brazil
2005 - IPO
In 1996, the EDP Group started its
2005 Construction of the Peixe Angical HEP
operations in Brazil. A year later, the
An engineering and environmental
of its initial public offering in the Brazilian
company acquired 25 percen of the
feasibility study was undertaken to
capital market, specifically in the new market
Luis Eduardo Magalhães (Lajeado)
maximize electrical energy generation
segment, the São Paulo Stock Exchange’s
hydroelectric power plant in Tocantins.
and minimize environmental impact
highest corporate governance level arena.
This was the company’s first generation
due to the construction, in a record
investment in the country.
38 months, of the Peixe Angical
July 13, 2005. A historic day for EDP, nine years after arriving in Brazil: the launch
hydroelectric power plant, located on the Tocantins River. As it went into production in 2006, this asset represented a total investment of 1.6 billion reais. The plant currently has an installed capacity of 452 MW and is a partnership between EDP and Eletrobras Furnas.
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EDP Renewables
U.S.A. 3,278 MW of installed capacity 144 MW under construction Portugal 874 MW of installed capacity 50 MW under construction (1) Includes ENEOP2’s 239 MW
Brazil 84 MW France 284 MW of installed capacity 22 MW under construction Spain 2,190 MW of installed capacity 61 MW under construction
Belgium 57 MW of installed capacity Poland 168 MW of installed capacity 22 MW under construction Romania 228 MW of installed capacity 57 MW under construction Canada 100 MW Italy 20 MW
in pipeline
under construction
United Kingdom 1.448MW in pipelines
EDP Renewables is the world leader in the renewable energy sector. Its presence in the most attractive markets continues to expand into new geographies. It is currently the thirdlargest European and global wind power operator, one of three companies with the largest growth in the sector worldwide. EDP Group is represented in the wind energy production arena by its EDP Renewables (EDPR) subsidiary, which by the end of 2010 had a presence in 11 countries: Portugal, Spain, France, Belgium, Poland, Romania, United Kingdom, Italy, the U.S., Canada and Brazil. During 2010, EDPR increased its installed capacity by 1,101 MW (19.7 percent), of which 501 MW (17.9 percent) originated from the European platform and 600 MW (22.9 percent) from the North American subsidiary. This global presence allows the company to hold a significant 4.1 percent share and 8 percent share in the European and U.S. markets, respectively.
United Kingdom
Canada
Belgium
Poland
France
U.S.A
Romania Portugal Spain
Italy
Brazil
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+ Pita de Abreu, EDP Brazil’s President I had the pleasure of being there for 34 of the 35 years
I have observed all of the Group’s different privatization
of EDP’s existence! I saw it start as a public company,
phases, including the three capital-divesting phases on
aggregating and homogenizing the cultures and
the stock exchange market. I watched EDP go global
organizations of several private companies that made up
with its presence in the Brazilian market in 1996, then in
the Portuguese electricity sector, and become nationalized
Spain in 2001, and finally in the United States in 2007. I
in 1975. I saw it take on the dual mission of electrifying the
watched the progressive increase in the flow of wealth
entire Portuguese territory and creating the conditions
produced by our foreign operations. In Brazil, among private
that led to a single rate tariff, nationally, for each type of
sector companies we are now the fifth-largest in terms of
customer. I saw it modernize and expand the production,
production, fourth-largest in distribution and third-largest
transportation and distribution segments. I watched the
in marketing, and for several years consecutively, we
transformation of one company into a Group of Companies,
have served as a key reference for sustainability. EDP has
a holding company with 14 subsidiaries, and again when
continued to grow, expanding its business and transforming
the sector was unbundled in 1994, I was there. Since 1997,
into a global company. We’ve come a long way!
Remembering the past, affirming the present and looking toward the future
TESTIMONIALS FROM THOSE WHO HAVE BEEN WITH EDP DURING ITS 35 YEARS
Maria Natália Torres Faria
Alberto Teixeira
EDP Soluções Comerciais,
EDP Distribuição,
EDP Valor,
Grid Operations Division
Grid and Customers Division
Customer Service and Quality Office
Customer Service Department
Director Lisbon
José Eduardo Marques
I joined EDP straight out of Braga’s city
I have very good memories of the day I
The birth of EDP caught me when I was
hall. At that time the work was done
walked into EDP. I was young, very young!
returning from the colonial war, a historic
manually, typewriters, calculators, etc.
And I was very happy to join the company.
moment for Portugal, full of political,
The records were entered in books and
The working method was more structured
economic and social promise. I would like to emphasize the effort to create production
on paper. Then came computers. Without
and very hierarchy-dependent.
any training, it was complicated, but I had
Today, we work as a team with much
centers capable of boosting the growth
to adapt to the change. The challenge
wider horizons and open and permanent
of the transmission and distribution grids
has been exceeded. Today, we depend
dialogue. At the time the CPPE (EDP back
in order to achieve the company’s long-
on “them” for everything. I believe that
then) was the Portuguese company for
standing plan: boost the economy through
“my company” is a great company:
electricity. Today, EDP is a global company
more and better energy, and raise the level
sustainable, efficient and innovative,
with an all-encompassing vision
of the Portuguese people’s welfare through
with constant challenges and goals;
and strategy.
the universal distribution of energy. Today,
it’s a company that cares about the
As for major changes over the last 35
EDP’s mission and visions have, of course,
environment, social development and its
years, my highlights are opening the
other contours. We continue filling them
employees. So it is gratifying to be one of
organization to new energies, management
as we have for the past 35 years. After
them. The work environment is good; we
formats and geographies. We have become
45 years in the industry, I remember with
share knowledge and help each other.
a multinational company!
admiration those who became my points
It’s good to work at EDP!
Despite these many changes, however,
of reference for their skillful management
there are EDP values that remain
and lessons learned. I recall, and I take my
untouchable: ethics,
hat off to Fernando Ivo Coelho Goncalves,
professionalism and, I want to believe, a
with whom I had the pleasure of working at
love for “wearing the jersey.” After 35 years,
ETP-Empresa Termoeléctrica Portuguesa
I still work at EDP with GREAT
and CPE-Companhia Portuguesa de
PASSION!
Electricidade, from 1967 to 1970, in the capacity of an office boy to the Board of Directors/Management Office.
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human capital A night at the museum The first two days in July were intense for a group of young people who spent ”A night at the Museum” of Electricity. Seventy new and familiar faces—because the EDP family is always growing—gathered there.
Directly from Porto to the Museum of Electricity, several children and grandchildren of employees prepared for an unusual night! Together with the Lisbon group, these young people gathered in teams and began their adventure, learning more and better about the world of energy and exploring the entire museum area. Ricardo Soares, one of the youngest participants, enjoyed the games, the solar cart building studio and all the experiences he lived during his visit to the museum and all the experiences he lived during the visit. André Carreiro was another kid full of enthusiasm for the visit. “I really enjoyed the peddy-paper activity and staying up until 2:30 a.m., but in the morning I still had a little bit of energy left over for activities,” he said. Inês
Assunção enjoyed visiting the Museum of Electricity and interacting with other participants. “This gathering was a good opportunity to meet other people and to visit this museum, where I had never been before. I’m going to tell my friends to visit it when they come to Lisbon.” Housed in the Central Tejo building, a Lisbon architectural landmark and, in times gone by, a pioneering space in the field of electricity, the Museum of Electricity is now an important space for learning. This idea was actually perceived by the young participants in the ‘Night at the Museum’. For Margarida Marques, “this was an opportunity to learn more about electricity and new forms of electric generation.” Even for those who already knew the museum, it was a good experience. “I only have good
things to say when I leave, and I hope to return next year. I already knew the museum. I had visited it with my parents, but this time it was more exciting” said Benedita Macedo. Last night at the Museum of Electricity was greatly enjoyed by all, including the entertainers. “It was a spectacular, highly rewarding experience. The kids have a lot to teach us; they are always so enthusiastic,” said Dominique Silva. At the end of the program, everyone wanted to return in 2012. This event, organized and developed in partnership with the DRH-CC and the Museum of Electricity, under the auspices of the “Program + Conciliar” initiative, is a guaranteed success. Watch out! There’s more to come next year!
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human capital
Celebrate the experience
Breakfast with the president “A Moment with Energy “is now in its fourth run. An initiative that brings together employees from different locations in a breakfast with the CEO, it is an informal way to discuss ideas and learn more about António Mexia. Started in 2008, this initiative brings EDP employees from different locations together in a breakfast with EDP’s CEO, Antonio Mexia. “A Moment with Energy” is geared toward EDP employees who have worked for the company more than one year and less than four, and who have perfect command of the English language. Those “chosen” had their names submitted by the different Group subsidiaries. These informal occasions are theme-based opportunities, during which world issues are discussed and a specific theme is assigned
for development by the group. This meeting includes networking activities, such as staff meetings with their peers in Portugal and a visit to a technical facility. During the last event, Gabriel Molinero (EDPR Europe), Laura Lazar (EDPR Europe), Phillip Westerby (EDPR America), Maria Esteban Goutayer (HC), Ana Margarida Vicente (EDP Distribuição), Ana Taborda (EDP Serviço Universal), Sara José (EDP, SA), Sofia Féria (EDP, SA), Mirian Herzog (Escelsa) and Marcela Rodriguez (Energias do Brazil) also had the opportunity to visit the Ribatejo Thermoelectric Power Plant.
Celebrating knowledge sharing and valuing our people: These were the key ideas of the meeting held July 6 to launch the “Valuing Experience” program, which brought together 300 employees to participate in the pilot. “Much of the knowledge we have gained comes from books, manuals, the Internet; but there is another type of knowledge — one that sometimes is more difficult to uncover — the one each one of us carries, almost like a living encyclopedia of what we have learned, and, above all, what we have felt and gained from our life experiences. We want to celebrate the knowledge that exists within each one of us, what people are like and celebrate the desire to share knowledge.” Thus did Maria João Martins, EDP’s director of human resources, welcome 300 “Valuing Experience” participants. She added, “You are what you know, the experience you have. You are what EDP does best.” So far, 163 initiatives have already been planned, with 67 of them executed in areas as diverse as training, volunteering, hosting and integration, among others. According to the available information, EDP currently has 2,935 potential candidates for future “Valuing Experience” events.
+ Welcoming the first new employees of 2011! “This is a relaxing way to learn more and
geared to employees who join the company
strategic priorities, values and commitments
better about the company. I really enjoyed
throughout the year. The aim is to raise
are. We feel this must happen as of the
it.” So said Ana Maria Guedes, one of
awareness of the EDP spirit and universe,
day they start working for the company,
the participants in the new employees’
and for these employees to adapt quickly to
because it is of immense value that, when
first quarterly welcome meeting, which
the company’s culture. “The intention here is
you arrive, you understand what you are
gathered about 50 people at the Museum
that there be an ‘owning’ of what it means
being asked to do in terms of mission” said
of Electricity. The welcoming sessions are
to be part of its DNA, and of what our
Maria João Martins.
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our energy
Vintage Cars at the Fratel Dam The Fratel Hydroelectric Project welcomed the Third Classical Nisa, a vintage car show sponsored by the Alentterra Club (Alto Alentejo Outdoors
Association). About 70 drivers and 70 co-drivers left their wheels and went on another trip to discover a hydroelectric plant and understand
the energy generation process. It was a “trip” led by experts from the TejoMondego production center, Rosalino Castro and Samuel Antunes.
Foz Tua in the classroom S. Mamede de Ribatua Preschool in Alijo, in the province of Tras-os-Montes, was the setting chosen by Antonio Vallejo Paes, director of the Foz Tua Hydroelectric Project,António Vallejo Paes, to teach children how to build a dam and how one works, through a fun hands-on learning activity. Using simple tools, such as a beach mill, bowl and bottle of water, he was able to demystify a complex process and explain how a turbine works, by reproducing the model and operation of the turbines used at EDP 42 edpon
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our energy
Children visit greenhouses
A group of students from the “Multiple Disability Specialized Support Unit” of EB1/JI Quinta da Courela School, in Aldeia de Paio Pires, Seixal, visited EDP’s Native Plants Propagation Station greenhouse facilities, located at the Setúbal Thermoelectric Power Plant. Guided by Fatima Rodrigues
and David Loureiro, the National Energy and Geology technicians responsible for managing the Group’s greenhouses, the children had the opportunity to handle and explore the soil and seeds directly, a therapeutic process that helps to stimulate sensory and affective development.
EDP and World Children’s Day Always looking out for its communities of influence, EDP did not let the World Children’s Day celebration in Vila Franca de Xira go unnoticed. The company produced the event planned by the regional authorities by taking hundreds of children to Quinta da Piedade, in Póvoa de Santa Iria, gifting them with a different day. The company produced the event, which was planned by the regional authorities, by treating hundreds of children to a special day at Quinta da Piedade, in Povoa de Santa Iria. Support from the Ribatejo Production Center came through in the form of transportation and gifts of EDP T-shirts and caps, which outfitted the volunteers and all company staff, including seniors and people with disabilities.
EDP — oriented toward the community
At the Cherry Festival Through the Baixo Sabor Hydroelectric Project, EDP Produção supported and participated in the Cherry Festival in Alfândega da Fé, just like it did the year before. The EDP space focused on the exhibition of images pertaining to the advancement of the project and 3D models of the Chapel of Santo Antao, which will be permanently displaced. Of equal mention are the programs developed by Fundação EDP, especially the new activity related to the Agricultural Development Project. In Vila Velha de Ródão EDP Produção was present at the Economic Activities Fair of Vila Velha de Ródão in Castelo Branco with a booth showing off the Alvito Hydroelectric Project. Also at the event were Antonio Castro, director of EDP Producao, Eduardo Guedes, from the Water Business Development Management, and Carlos Alves, manager of the Communications Department.. At the opening session, the mayor of Vila Velha de Ródão, Maria do Carmo Sequeira, praised EDP and the new opportunities that the construction of the Alvito project brings to the region. According to António Castro, the project works should proceed 1,000 the current year and will create approximately one thousand direct jobs.
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SPOTLIGHT
SÉRGIO FIGUEIREDO A Foundation to change Portugal IN THIS INTERVIEW THE CEO OF FUNDAÇÃO EDP EXPLAINS WHY IS IT SO IMPORTANT TO INVEST STRONGLY IN THE COMPANY’S CONNECTION TO THE COMMUNITY
Was 2010 good for Fundação EDP? It was a year of expansion. The difficult economical situation of the country wasn’t an advantage for the Foundation. Our vocation is not to fight poverty, but to promote new ways of social inclusion. Portugal mobilizes a few times a year to collect food, in what is one of the most successful volunteer projects at the national level. Independently of the merits of this initiative, independent the country should not aim to create the largest food bank in the world, because doing so does not solve the underlying problem: poverty. Therefore, our Foundation seeks to promote innovative solutions that the break poverty cycle by going to the solutions that break the cycle of poverty by going to the root of the causes and not their consequences,
thus contributing to reducing the number of people who survive through food donations. Is that the difference between charity and social innovation? It is the difference between subsidy and investment, between charity and innovation. We try to work with formulas that the government does not test and the market also does not find feasible because they are not profitable. Social innovation is no different, from this point of view, than technological or product innovation, which is never profitable in its early phases. Companies that realize this before others do, and recognize social innovation as a factor in the success and competitiveness of an enterprise, already have a greater v
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v advantage, because they are acquiring an asset - social capital and trust from the communities in which they operate. It was this proposition that Fundação EDP has aimed for: to spearhead the creation of this platform between the company and society. This past year brought us pride because, when we say that more than 1.7 million people benefited from Fundação EDP’s initiatives in 2010, it means two key things: the first is that we now have the resources to measure the impact of our work (and this, in itself, is already differentiating the ways in which we manage); the second has to do with the sheer size of the number itself, since in the Portuguese reality it’s fairly representative.
+
The initiatives of Fundação EDP, in direct language: Pro-Bono dentists: “Change the life of
decline and employment at the level of
a child - as well as yours - by giving them
City Hall by encouraging initiative and
back something they’ve lost: their ability
risk from the school years to the enterprise
to smile.”
start-up stage.”
Operation Red Nose: “An initiative to
EDP Volunteering Program: “The most
humanize the hospital environment
profound and viral way to bring our
in pediatric units through medical
employees and the larger community
methodology and the joy of clowns.”
together in living and rebuilding the
Social Stock Exchange: “The first network of
same reality.”
laboratories in Europe to be linked together
Part of Us: “As the largest voluntary
in the production of vaccines poverty.”
initiative so far engendered by EDP, Part
EDP Solidarity: “The largest national
of Us smashes the dogma of exclusivity
program sponsored by a company to
associated with the company, through the
combat social exclusion. Seven years later,
participation of dozens of other firms in
this cooperative network already comprises
our efforts. This humanitarian intervention,
hundreds of winning social institutions.”
which has been established in a dozen
Generations Orchestra: The mission of
hospitals from north to south, works
this anti-poverty program is to prevent
to improve the physical conditions and
disadvantaged students from dropping
environment of these facilities. It speaks
out of school by fueling their enthusiasm
highly of the Portuguese people and is an
for education in a most unlikely manner:
example by EDP and our business partners
Beethoven and a violin in each child’s hand.
that the current crisis is no excuse for the
Dams Entrepreneurship: “An initiative to
lack of mobilization to achieve concrete
counter the inevitability of demographic
results. It is a journey of great impact.”
What initiatives or projects would you highlight? We have achieved an impressive level of activity, most of which has centered on the Museum of Electricity (almost 200,000 visitors in 2010) and the exhibitions our cultural team conceived, both in-house and externally, which were attended by more than 350,000 people. But we have also acted as a leading influence in changing collective behavior through a network of 250 partners. In 2010 alone, the activities we developed either directly or in partnership touched the lives of people in 400 locations throughout Portugal. Besides that, we had to imbue our strategy with a global vision and ambition. The themes of sustainability are incompatible with parochial approaches — more importantly, a transnational group such as EDP, which does much of its activity abroad, would be inconsistent if it did not promote, at the global level, the good management practices that it is recognized for in the environmental and social areas. Having said this, I will highlight two prominent cases full of symbolism and values. First, the Kakuma Project, which demonstrated our ability to create projects from scratch that result in a strong impact on society. Such initiatives benefit immensely from EDP’s human capital and knowledge, which it has developed on a scope and scale unmatched by any other Portuguese company. The second case is an exact complement of the first. The fact that we have such global ambition, that we are, for instance, in Kenya with the United Nations, does not mean we can neglect our connections to local communities. To that end, the projects that EDP Produção and the Fundação
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are promoting in the areas of the new dams at Trás-os-Montes and Alto Douro center on innovation and social inclusion. For instance, we have included the residents of these communities in our decision-making, a process that is typically centralized and closed. Thus, our company is now managing risk rather than riding on the waves of conflict; it is building the “social right to operate” in areas of influence, a development that goes far beyond what the law allows or guarantees. In this way, does the Fundacao also push EDP’s business to the next level? I usually say that launching a “social stock exchange” in Portugal is as inexplicable and anachronistic for an electric utilities company as it is to invest in energy efficiency. EDP does not hesitate to do one thing or another because it knows how much more it gains by being ahead of the curve than
they’re not enough by themselves. What is different is the relationship that EDP builds with the communities in which it operates, from those in places where dams or wind farms are being built to the homes of the final consumers. This “next level” is defined by the quite different and transformative nature of the relationship we are building with communities of influence connected to the Group and bringing this new dynamic to the “core” of our business management strategy. Will this explanation not sound utopic to many? It‘s no accident that Fundação La Caixa enjoys an annual budget of 500 million euros. It’s because, long ago, those who managed that bank had the ability to build and invest in an “ownership” relationship with Catalan society. Catalonia has two national symbols: a soccer team and a financial group. It’s bizarre; no one has emotional
in thinking that everyone out there loves it. It is something else to see that same company acting responsibly, innovatively and openly to the diffusion of artistic creativity, the restlessness of science, the demands of society and even the criticisms of our adversaries. Until now companies thought it was enough “to do for” and, indeed, that was good enough for quite a while. EDP is increasingly “doing with.” It reached world leader status in the Dow Jones Sustainability Index not because it is big (globally, it is not), but because it is doing things differently from other companies. It is no coincidence that of the nine criteria in which we were classified as “best in class” in the world, six of them fall under the social dimension. This company realized some time ago that people are actually its greatest asset. And this is not just something that sounds good to announce at a conference or post on a PowerPoint presentation — international
We have reached world leader status in the Dow Jones Sustainability Index for one simple reason: We do things differently by resisting change that, like it or not, will eventually happen. And it knows that in doing so, it is not only interpreting but also creating new social phenomena. Put another way: Instead of adapting to the circumstances, it changes the nature of its relationship with people. Having this partnering ability, the sharing of power, the business foundation is clearly based on confidence. Maybe then everybody understands why EDP invests in a more inclusive society and a more efficient use of resources. This is the next level in business management and, therefore, to run a foundation is both a pleasure and a responsibility. Basically, we must always answer a set of questions when we are looking at an option: who benefits from our resources? Who is deprived of them as a result of the decisions we make? What difference can we make in the lives of others? But because we are a corporate foundation, we must obviously seek in the business the legitimacy of our choices. In EDP’s case it is important to realize, given tariff deregulation and full privatization, what is really the key to “keeping” the consumer? Price and quality? Surely, they’re important, but
ties to a bank. It’s weird, but it isn’t inexplicable, because that foundation and its impressive budget reflect a management vision that perceives simply this: Competitiveness goes far beyond interest rates, spreads and quality of service. Someone who invests 500 million euros in culture, society, relationships with universities and science does not do it for luxury or caprice but as a strategic proposition. An energy company that lives day-to-day in an increasingly open and competitive market shares the same story. The relationships that our EDP Group companies enjoy with the Portuguese, Asturian, Basque and Brazilian people is our main asset. Investing in this connection is not utopia, simply clairvoyance. Does this social responsibility contribute to the building of a new corporate identity? Currently, it completely changes the corporate culture itself. EDP could be a very competent but insular company that chooses to keep to itself, in the process confusing feelings of pride with arrogance, and thus become narcissistic
recognition is proof that EDP “walks its talk.” Has the economic crisis changed the direction of Fundacao EDP in any way? We are not indifferent to the context that surrounds us. The social area is today the main priority of our philanthropy policy. But more important than the size of the budget is the way we implement it. Let us return to the issue of hunger in Portugal. I have already explained why we rejected the welfare approach, but this does not mean that we ignore this scourge. Unfortunately, too many people do not have enough to eat. Fundação EDP believes that its response will be more adequate if it contributes to the change in behavior. In EDP´s latest edition of its Solidarity program, we received more than 700 applications that included, as never before, solidarity and community garden initiatives promoted by private social solidarity organizations, parish councils and other institutions that encourage people to turn to the land. Of course, this sudden awakening of the tertiary sector to micro-agriculture came about because of the current crisis v
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v and responds to the needs that, thus far, have been covered by the public systems. Fundação EDP has decided to roll the best of these projects into a new national program, which is now being launched, and will qualify them in a way that would have been impossible had we chosen the individual donation approach. If all was OK in the Portuguese society, would it make sense for this Foundation to exist? If we consider that a foundation serves only to take the place of the government (and not to supplement it), and if we settle for an apathetic and passive civil society, then the question would make sense. If, however, we think we shouldn’t put our collective future in the hands of “others,” if we want a more demanding society, and then the role of foundations becomes more and more important. Assigning them a “social patch” designation is reducing the role
worldwide. After creating the conditions, you have to put them into practice – that’s where we currently are. We manage the program professionally, with a small dedicated team, and in constant collaboration with the heads of HR Departments and other foundations in the locations where we operate. This system must be set in place, so we are accrediting institutions and NGOs that need volunteers. An hour stock exchange is already operating in a kind of labor market where needs and availabilities intersect automatically according to the employee’s choice. We train the volunteers as well as the leadership of all the organizations involved. There is a reporting system in place through which institutions can declare the work done by volunteers and measure its impact. I realize that, at least in the cases studied, what EDP is doing is unique because it is based on the logic of human capital;
social. On the other hand, it is a mistake for society to look at sustainability as a burden that companies are doomed to bear, a moral obligation for shareholders to support - preferably in cash and without asking too many questions. We are currently testing a formula that I would like to see become an example, proving that sustainability should not and does not even have to have a cost. In the Kakuma refugee camp in Kenya, our solutions have helped change lives, but many other people, more than 1.5 billion globally, also have no access to electricity. They are called the base of the human development pyramid - a population that some Nobel Peace Prize winner has declared worthy of access to micro-credit. Fundação EDP has the ambitious goal of proving that this gigantic human mass of the poor is also ‘energizeable’, i.e. that it can be included in the market system through the implementation of renewable
As I see in EDP an agent of change, a transformer of society, I hope that Fundação EDP will grow for and with Portugal assigned to them. Our society is lacking protagonists, and as I see in EDP an agent of change, I hope that Fundação EDP will grow for and with Portugal. Does Fundação EDP feel that it has contributed to a new collective attitude? We are clearly changing behavior in the tertiary sector and, thus, contaminating society with a culture of demands and outcomes. We do not provide support to institutions; we would rather build a path together, by enabling projects that are measured by the people who will benefit from them. This is not an exercise in rhetoric; it is the difference between being a patron or a partner. We prefer the second because it triggers a movement that will inevitably lead to changed mentalities. Society has reached a point where it can depend only on itself. How can the company foster volunteerism in its employees? The first rule is to create incentives that make it possible. This was done some time ago, when the board of directors decided to allocate four hours per month to every employee to perform volunteer work during office hours. This alone places EDP miles ahead of the best practices of corporate volunteering
that is, it is scheduled and managed. In the wise words of engineer António Pita de Abreu, it is like a “virtual enterprise that provides nonprofit services to the community.” The level of employee participation in our company is unprecedented in Portugal and in other countries. We are expressing the character of this company and taking another step forward in building this relationship of trust with our society. Companies, just like people who have neither character nor personality, and no self-esteem, are declared failures. Is there any international project that you would like to see replicated in Portugal? In all modesty, I think EDP is interpreting the concept of social innovation far beyond what most companies do. Social responsibility seen as a passive concept, a mere reaction of the business to external pressures, is passé and condemned to disappear. Companies that face these issues as something “separate” from their management and business, preferring to speak through a megaphone to the outside world, and that believe they are socially responsible when they hold a check in one hand and their logo in the other, are not really responsible and their purpose is hardly
energy solutions. We are working with governments of the Lusophone countries (Angola, Brazil, Cape Verde, Mozambique, etc.), the World Bank and other multilateral institutions to test our concept. Once again, the importance of investing in people ... It is important that the Portuguese people are proud of other things, in addition to Ronaldo and Mourinho. Companies such as EDP are an asset that our Portuguese society had the capacity to build, but which it has not always valued. EDP has a historic heritage: its strong relationship with the Portuguese people. In a context of liberalization, privatization, tariff deregulation and profound changes in the rules of the game, it would be absurd to squander this advantage. At what stage is Fundação EDP’s new cultural center? We need to have a building permit and license, and at this moment, we are awaiting the opinions of the people responsible for the administration of patrimony in Portugal and in the city of Lisbon. Obviously, only if the opinions are favorable will we proceed with the project.
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It is a project that has received much criticism. How do you respond to less positive assessments? I do not see why! When the company decided (and very well!) to invest 50 million euros at current rates (much more than double what the future cultural center will cost) in the recovery of the Central Tejo and transform it into the current Museum of Electricity, was it a bad decision? It receives 200,000 people per year, it is the second-most visited building in the country, it is a unique building in Portugal, does anyone now questions its existence? We tend to self-flagellate? EDP management and shareholders are willing to invest in projects for the city, projects that boost the offer for cultural venues and further open this magnificent space to public enjoyment — this is controversial. Why? Criticism is essential for a society to move forward, as long as it is the will of the people who criticize to correct and then proceed. “Shooting down everything that moves” without presenting a convincing argument, or better alternative, is not the best way to raise the bar on the demands. What legacy do you want to leave to Fundação EDP? There is an important personal challenge in the decision I made more than four years ago: to prove I could do other things besides working in newspapers and training and leading teams in journalism. Doing it in a foundation presented me with two attractive propositions: one, to “bring management” to an area that was not very accustomed to dealing with the concept; the other was that this was perceived by the “market” as something that should be integrated into the “core” of the management of the business itself. The first has been achieved, the second will take longer. Of course, I don’t need to say that all this is due to the vision of António Mexia on the day that he looked at a newspaper director and thought about a foundation. Today, we have a clear vision of our ole and have been able to build options and provide program content for our intervention in society. Fundação EDP is much more than a dispenser of checks. The brand is created at the very moment we are sure of how we want to proceed. Only time will tell whether or not this is a consolidated and irreversible trajectory. The Fundação EDP story did not begin and will not end up with Antonio Mexia and Sérgio Figueiredo. I recognize that the bar has been rising every year. We will also be judged by what remains from what has passed.
From Journalism to the Foundation Sérgio Figueiredo, 45, married and the father of four children, graduated with an economics degree from ISEG.(School of Economics and Management at the Technical University of Lisbon). Since March 2007, he has served as the CEO for Fundação EDP; he is also a member of several EDP Group management committees, including the Committee on Innovation and Sustainability, the Environment Committee and the EDP Institute’s Strategic Board in Brazil. Before assuming his management post in the business sector, Figueiredo was a journalist reporting on economic matters for 19 years and then editorial director of the “Diario Economico” newspaper for five years, between October 1996 and September 2001. Beginning in September 2002, he headed the “Jornal de Negocios” business daily for four-and-ahalf years, until January 2007. On television, he was the author and host of the weekly interview program “Balanço & Contas” and hosted another weekly program “Negócios à Parte.” Earlier at SiC News, he coordinated and presented “Linha de Crédito,” thus beginning a cycle of weekly interviews with several national and international personalities that ran for almost seven years.. In 2000 he was honored as “Journalist of the Year” by the Casa da Imprensa, and in 2006 he received the award for the “Economic Journalism Career” category at the Deloitte Investor Relations Awards. In addition, he was a columnist for “Sábado” magazine and the “Correio da Manhã” and “Público” newspapers, as well as commentator for several Portuguese TV channels and radio stations. At the EDP Group, Figueiredo currently coordinates the stakeholders management project for the new dams regions in Portugual and the Group’s volunteer program. In addition, thanks to the experience Fundação EDP gained through its project in Kakuma, he leads a team that develops pilot projects for renewable energy development.
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sustainability
sustainability Responsibility for the environment
Dow Jones Sustainability Indexes
EDP leads for the second consecutive year EDP Group maintains its global lead in the electricity sector in the Dow Jones Sustainability Indexes, consolidating the first-place ranking it achieved in 2010. EDP has also become a member of the FTSE4Good Index Series.
Once again, EDP is the world’s most sustainable electricity company. The Group continues to hold first place in the Dow Jones Sustainability Indexes and has reinforced its position compared to 2010. The company’s great performance in this area was also recognized by its recent inclusion into the FTSE4Good Index Series. EDP has been included in the Dow Jones Sustainability Index World (DJSI World) and
the European Dow Jones Sustainability Index Europe (DJSI Europe) for four consecutive years. “It is the recognition of the company’s economic, social and environmental reliability and valuation strategy, which reflects the ability to create competitive and different advantages,” said CEO Antonio Mexia. “This is good news for shareholders, for our people, for
customers and for the communities where we operate,” he added. This year, the company reached a classification of 86 points, up 2 points from 2010, and is a world leader in the social arena. On the economic vector, EDP continues to be one of the best companies. It isimportant also to mention that we held the maximum score on the Risk & Management criterion. The improvement of our position in the
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+ EDP joins FTSE4Good The FTSE4Good Index Series assesses the sustainability of companies listed in stock exchanges. This index has been around for 10 years and differs from the Dow Jones Sustainability Indexes in terms of the pertinent sustainability aspects and how they are measured — in the economic dimension, only the environmental, social and corporate governance components are assessed. It should noted, however, that the FTSE4Good is geared mostly toward European and Asian investors. This Index assesses 2,300-plus companies, less than half of which are eligible for inclusion.
environmental category corresponds to an improved alignment with best practices and is the result of efforts that have been developed both in the biodiversity and environmental management areas as well as in our climate change strategy. Of special note is the maximum score Group attained in the Biodiversity and Climate Change criteria. In a set of 22 criteria, EDP holds the best
practices category in 10 criteria and reached the maximum score in six of them. EDP’s inclusion in the Dow Jones Sustainability Indexes is a reflection of its commitment to sustainable development, which it has pursued through improvements in corporate government best practices, expansion of renewable energies and more energy-efficient production, long-term development of
human resources, close liaisons with stakeholders, and social responsibility. Inclusion in the Dow Jones Sustainability Index is predicated on a rigorous evaluation process conducted by the SAM Group, which incorporates a 116-point questionnaire in which key aspects of sustainable development, spread over the economic, environmental and social areas, are appreciated and highlighted.
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The return of the osprey In partnership with the Research Centre for Biodiversity and Genetic Resources (CIBIO), EDP led the project to reintroduce the osprey in Portugal. The recovery of this species’ breeding population, which had stopped nesting in Portugal at the beginning of the last decade, is the great challenge for the next five years.
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Neves de Carvalho presented this project at the EDP Sustainability space
ine years ago, Portugal saw the last female osprey become extinct and with it the chances for reproduction of this species in our country. Since 2002, Portugal has been a mere pass-through on the migratory route of these birds of prey to Africa. Almost a decade later, EDP and CIBIO brought the hope of reintroducing the osprey as a nesting species in Portugal by importing these birds from nests in Sweden and Finland, where the species is stable and abundant, and bringing them to the banks of the Alqueva. It represents an investment of 640,000 euros for EDP, a company that once again shows it is possible to reverse biodiversity losses through the adoption of adequate conservation measures. Thus, in Portugal we now have 10 osprey offspring. “The idea of bringing these young birds was for them to imprint the environment and know they belong here. If we had brought adults, they would have flown back to their original environment,” comments CIBIO biologist Pedro Beja. The habitat chosen for these birds, originally from Scandinavian countries, is the Herdade do Roncão, next to the Alqueva’s large lagoon. This location is ideal, as it has been minimally disturbed and is characterized by lots of space and abundant fish. Inside the stilt-mounted wooden
N
cages, all of the ospreys’ movements are monitored by a closed circuit television and followed closely by a team of biologists. This adaptation to the Portuguese ecosystem is critical to the success of the project. The idea is for the birds to recognize the Alqueva as their place of birth on their migratory route, thus improving the chances of the species nesting and reproducing in our country.After the osprey are released, they will be able to return to wooden structures placed on the shores of the lagoon, where they can perch and eat fish from feeders. AN ONGOING PROJECT The first steps have been taken, but there is still a lot to do. Each year, for a minimum period of five consecutive years, 10 birds will arrive in Portugal to reinforce the recovery of this species’ breeding population. According to Neves de Carvalho, director of EDP’s Department of Sustainability and Environment, this is a project that “continues EDP’s strategy to add value to biodiversity.” This is the consecution of an older project enjoying the institutional support Nature and Biodiversity Conservation Institute, that is being developed in partnership with TAP - Air Portugal, Sociedade Alentejana de Investimentos e Participações and Empresa de Desenvolvimento e Infra-estruturas do Alqueva. At the international level, this project involves researchers from the birds’ donor countries, Finland and Sweden, along with a close collaborative effort with Spanish partners, with whom a similar project has been developed with great success since 2003.
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foundation Over a period of two years, photographer Edgar Martins explored 19 dams along many rivers, from the Douro and Douro International to the Tejo-Mondego and Cávado Lima. "Time Machine" exhibition is the result of this visual endeavor.
THE TIME MACHINE Futuristic scenarios drawn decades ago. It is this "exciting history of technological innovation and optimistic belief in the future" that Edgar Martins gives us in "The Time Machine," an exhibition at the Museum of Electricity the last week of October. The artist was enchanted by the architecture of the engine room at the Miranda and Fratel dams, by the Castelo de Bode and Vila Nova museum display, the vividness of the colors in Cave do Pocinho, by the 100-meter well in Alto Rabagão (riverbed in picture) and the classic aesthetics of Picote, and Bemposta. "To me, the most interesting aspect was to explore these spaces with some freedom — within the safety parameters previously discussed—and thus to better understand the dynamics of these spaces and their fascinating temporality," says Martins. These images, the result and testimony of the long history of electricity as witnessed through the spaces, machinery, tools and technologies of the industry, will be published in an upcoming book.
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FUNDAÇÃO EDP LAUNCHES THE URBAN GARDENS PROGRAM Sustainable urban gardens produce food and contribute, thusly, to the livelihood of its users, as well as to the sustainability of the social welfare institutions that manage them. As part their users mission to break the cycles of poverty and dependency, Fundação EDP is launching the Urban Gardens Program in partnership with the Gulbenkian Foundation, whose mission is to create a national network of urban gardens. The first 10 urban garden areas have already been identified in Algarve, Lisbon, Aveiro, Condeixa, Porto, Santarem, Sintra, Ericeira and Telhal Braga. The idea was born as an initiative of the EDP Solidarity Program, to which many charities have applied this year with the submission of solidarity urban garden projects. These projects seek to promote the integration of disadvanted people into society.
EDP Solidária Barragens with a record of 92 applications This year, the third EDP Solidária Barragens (EDP Solidarity Dams) received a record number of 92 applications from charities, representing double the number of candidate projects submitted in 2010. Up to now this program has benefited 13 institutions and more than 15,000 people; it is a growing contribution to the improvement of the quality of life of the populations in the towns affected by EDP’s new hydroelectric developments: Baixo-Sabor, Tua,
Fridão, Alvito and Ribeiradio, as well as by the generation reinforcement works in Picote and Bemposta. Projects are promoted and benefits are shared. This year, besides the number of applications and greater geographic coverage, the program also increased its funding capacity, having now reach half a million euros. The winners of the 2011 initiative were announced Oct. 10 in a ceremony at the new EDP headquarters in Porto.
+ AGENDA Our cultural proposals until the end of this year:
Museum of Electricity in Lisbon What Makes a Writer Great Photographs by Julião Sarmento September 22 to December 11
Recovering the country's electricity assets Converting power plants into museums, maintaining old boilers, recovering engines and bringing old generators to life. Six projects — Alcobaça, Seixas, Lousal, Serpa, Seia and Torres Novas — "serve as candidates for the program "Ilumina a Patrimonio," launched this year by EDP Fundação to support the preservation, enhancement and dissemination of Portugal's national electric industrial historic assets. OR of historic assets of Portugal's national electricity industry. By the end of the year, Fundação EDP will select which proposals will receive the grants. Opening these historically valuable assets to the community is one of the pillars of the Foundation's mission, which supports the National Network of Energy Museums. The recovery of the Pólvora Negra Plant in Oeiras (see picture to left) is an example of the work being done on the ground.
Bosão de L Paintings by José Loureiro Opening at the end of October Marginália Paintings by Ana Luisa Ribeiro Opens December 6 At Fundação EDP Porto My Choice Selected works by Paula Rego from the British Council Collection Until October 23 The Fortuitous Hunter Drawings and paintings by Paula Rego. Until October 23
Remade 5 Design objects made from recycled materials by Portuguese creators, Opens November 4 A ‘Diário de República’ Photos of the Kameraphoto collective
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photographic essay EDP concert in Rio Douro
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CONCERT ON THE DOURO To celebrate its 35 years of existence, EDP held an unprecedented concert. A stage floating on the River Douro carried the show, which featured performances by Rui Veloso, Rodrigo Leão & Cinema Ensemble, and The Gift. The concert, organized in partnership with SIC television, was fully broadcasted on the EDP website and SIC International TV station. This show had the participation of a team of 70 TV professionals, 3 exterior cars and 15 cameras. The local audience, which filled the two riverbanks was surprised by a unique and unforgettable show that had the participation of some 70 TV professionals, three exterior cars and 15 cameras. The concert is part of the company’s strategy in recent years of promoting events in its hydroelectric projects’ areas of influence. edpon 57
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1 - Rui Veloso, one of the greatest ambassadors for the city of Porto.
that composed the musical theme for EDP’s new ad campaign.
2 - EDP’s and SIC’s joint initiative brought thousands of people to both banks of the Douro.
5 - More than a musical show, this initiative was a great celebration of light and color, which delighted all who attended
3 - Bárbara Guimarães was the host of the big show, which was broadcasted live by SIC 4 - Sónia Tavares, lead singer of The Gift, a Portuguese band
6 - Hundreds of guests joined António Mexia, EDP’s Chairman of the Executive Board of Directors in applauding this initiative. 58 edpon
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+ Concert particulars:
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400 guests (150 barges + 250 Millennium Douro) 5 months of preparation 1 week of travel (barge round-trip) 2 weeks of assembling in the port of Leixões 300 staff involved during assemblies and events 150 staff embarked on the barge during the event, including artists LED screens, each weighing a ton Assembling the same stage three times (Leixões, final testing, disassembly and strapping for navigating in the Douro, Douro assembly, testing the day before, disassembling equipment for protection during the night and assembly on the day of the event) Barge measuring 45 x 25 meters Towing of the barge by tuggers 1,000 liters of diesel for generators 2 500 KVA + generators (for service cranes) 4 electric cranes assembled for anchoring in the Douro, each with 80 meters of cable 7 official entities involved: • IPTM (Instituto Portuário e dos Transportes Marítimos) the port and maritime transports institute • APDL (Administração dos Portos do Douro e Leixões, S.A.) Douro & Leixões Ports Authority • Captaincy of the Porto and Leixões Ports • Porto Subway System • Gaia City Hall - Gaianima • Porto City Hall - PortoLazer • Gaia Pier 8 official security entities • Civil Protection • ISN (Instituto de Socorros a Náufragos) Water Rescue Institute • Inem (Instituto Nacional de Emergência Médica de Portugal) Portugal’s national medical emergency nstitute • Port area volunteer firefighting company • Coimbrões volunteer firefighting company • Port area professional firefighting company • PSP (Polícia de Segurança Pública) Public Security Police • Marine Police 5 rescue boats in the water during the event, including divers 30,000 watts of sound 180,000 watts of lighting 20,000 watts of LED wall
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Happy family The photos speak for themselves: The EDP Group is united more than ever before, by a brand that belongs to everyone!
Camilo Castelo Branco, 43, Lisbon 60 edpon
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Boavista, Oporto
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JosĂŠ Malhoa, Lisbon
Camilo Castelo Branco, 46, Lisbon
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MarquĂŞs de Pombal, Lisbon
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in focus PEDRO VASCONCELOS, Chief of Staff to the Chairman of the Executive Board of Directors (CEBD)
What are the biggest challenges you face in your job? So far, my experience as chief of staff has presented two main challenges. The first relates to the proper prioritization of the dozens of daily solicitations directed to the CEBD. And the second relates to the ability to anticipate the CEBD’s concerns. This, of course, is limited to the scope of the responsibilities assigned to the chief of staff.
“I am ready to accept any challenge”
What is your day-to-day routine? No two days are alike. Every day something new comes along that needs to be anticipated, done or resolved, which makes it difficult, albeit necessary, to follow a routine. So the day is spent preparing the issues involving the CEO in the weeks to come, driving parallel projects sponsored by the CEBD, and dealing with last-minute concerns. How do you hope to make a difference? My predecessors have raised and maintained an extremely high bar; my goal is not to lower that bar. Who really makes a difference is the CEBD. What are your expectations for the future? I am an EDP employee, and as such, I am ready to accept any challenge, whether it be in Portugal or abroad. After having recently lived for two years in the U.S., I have to admit that developing my career abroad is quite an attractive proposition, one which to me is not entirely out of the question. What essential features must a chief of staff possess? A combination of pragmatism and organization. Without these two qualities, the days can be quite long ... What is your best memory so far from this job? The day they set the price of EDP Renováveis shares for the IPO process. It represented the culmination of the largest project that I have ever been involved in, a project that lasted several months and included more than a few sleepless nights.
What are your hobbies? I have two great passions: an older one, which is the sea, and another more recent, jiu-jitsu. Everything having to do with the sea has always fascinated me; at a young age I started surfing in Baleal, and I’m still addicted to it on the weekends. Spearfishing and sailing are also sports I practice. Jiu-jitus is for me a weekly refuge from which I frequently leave very tired but with a smile on my face.
Do you have a life motto? John Wooden, a famous American basketball coach of the sixties, put into words, better than I ever could hope to, something I try to achieve every day: “Success is peace of mind, which is a direct result of selfsatisfaction in knowing you made the effort to do your best to become the best that you are capable of becoming.”
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moveon EDP Planet Po
v
Portugal
rt
Po
rt
Es
p
EDP Staff Meetings
The Lisbon MBA
Natural Gas Seminar
Time to share opinions, know results and
This management training initiative relies
First workshop for senior management
mingle with colleagues.
on meetings, highly qualified faculty, and
organized by EDP University’s “Gas School”
Nov. 21 in Porto and Nov. 23-24 in Lisbon.
lectures with managers and leaders of
in Bilbao. Matters such as the operation of
reference. At the Museum of Electricity.
organized markets or the development of the Iberian gas market were discussed.
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Es
11
p
16
Es
20
11
p
Al
10
e
Economy of the Gas Change Naturgas Course
New Naturgas Energía logo
GERG Meeting
The company will introduce its new logo in
Second Annual Meeting of the Board of
Team-taught this lecture-based course
a concert with one of Spain’s most popular
Directors of the European Gas Research
organized by the Spanish Energy Club in
pop-rock groups - Amaral. At the Kursaal
Group, which Naturgas Energía presides in
Madrid.
Congress Palace and Auditorium in San
the persons of two employees from Naturgas
Sebastian.
will attend. In Essen, Germany.
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10
12
28
11
10
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Presentation of EDP Renováveis’ Results
EDP 2020 - Conference Cycle
Meeting Key Customers
The EDP 2020 conference on intelligent
The marketing arm of EDP will meet with
EDP Renovaveis presents its
distribution networks is held. The EDP 2020
major customers to expound on the Group’s
third-quarter results at the end
prize seeks to turn the company into a leader
good growth rates, as well as talk about the
of October.
in innovation and to build management
Brazilian economic environment and market.
models to prepare it for this new decade.
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US
10
08
A
Br
11
a
CanWEA Annual Conference and Exhibition
Timber Road Wind Farm Dedication
Electricians Rodeo
Several EDP Renewables North America
This event celebrated the start of operations
showed off their good energy and work-safety
employees will took part in the largest
on the first large-scale wind farm in the state
rules through a year of competitons. In São
wind energy conference in Canada. Held in
of Ohio.
Paulo (10/15) and Espírito Santo (10/29).
Electricians in São Paulo and Espírito Santo
Vancouver.
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10
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10
Renew
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