Odebrecht - Annual Report 2005 - The Global Clearinghouse
Odebrecht - Annual Report 2005 - The Global Clearinghouse
Odebrecht - Annual Report 2005 - The Global Clearinghouse
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><br />
In <strong>2005</strong>, <strong>Odebrecht</strong> celebrated the 15th anniversary of its United<br />
States subsidiary, <strong>Odebrecht</strong> Construction, Inc. (OCI). During that<br />
period, OCI participated in over 20 major projects, including the<br />
expansion of Miami International Airport, the Miami Metro Mover,<br />
the construction in California of Seven Oaks Dam and a stretch of<br />
Route 56. In the past 15 years OCI has established itself in the<br />
American market and is now a recognized brand in the US<br />
economy’s Construction Sector. One of the important projects OCI is<br />
currently working on is the construction of the Miami Performing<br />
Arts Center, considered one of the most advanced arts and<br />
entertainment complexes in the United States. OCI is also<br />
participating in rebuilding the dike system of New Orleans,<br />
cooperating with the Army Corps of Engineers.<br />
annual report <strong>2005</strong><br />
<strong>Odebrecht</strong> Organization<br />
Integrating Company<br />
<strong>Odebrecht</strong> S.A.<br />
Businesses<br />
> Engineering & Construction<br />
Leading Company: Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
> Chemicals & Petrochemicals<br />
Leading Company: Braskem S.A.<br />
> Investments In Infrastructure<br />
<strong>Odebrecht</strong> Investimentos em Infra-Estrutura Ltda.<br />
Support Institutions<br />
OCS – <strong>Odebrecht</strong> Administradora e Corretora de Seguros Ltda.<br />
(captive insurance company)<br />
Odeprev – <strong>Odebrecht</strong> Previdência (pension fund)<br />
Social Action<br />
<strong>Odebrecht</strong> Foundation<br />
www.odebrecht.com
addresses<br />
offices In Brazil<br />
Rio de Janeiro<br />
Praia de Botafogo, 300 – Sobreloja, 2º<br />
e 11º andares – Botafogo<br />
22250 -040 – Rio de Janeiro, RJ<br />
São Paulo<br />
Av. das Nações Unidas, 4777<br />
Edifício Villa Lobos – 6º, 7º,<br />
11º e 13º andares<br />
05477-000 – São Paulo, SP<br />
Brasília<br />
SAS Qd.5, Bl.N<br />
Ed. OAB – 9 o andar<br />
70438-900 – Brasília, DF<br />
Recife<br />
Rua Antônio Lumack do Monte, 128<br />
16 o andar – sala 1603<br />
Ed. Empresarial Center III<br />
Boa Viagem<br />
51020 -350 – Recife, PE<br />
Salvador<br />
Av. Luís Viana, 2841<br />
Edifício <strong>Odebrecht</strong><br />
Paralela<br />
41730 -900 – Salvador, BA<br />
offices worldwide<br />
Angola<br />
<strong>Odebrecht</strong> Angola – Projectos<br />
e Serviços Ltda.<br />
Parque Empresarial <strong>Odebrecht</strong><br />
Rua Eng. Pedro de Castro<br />
Van-Dúnem “Loy”, s/nº<br />
Luanda Sul - Luanda – Angola<br />
Argentina<br />
Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
Reconquista 1166, Piso 10 – Capital Federal<br />
C.P. C1003ABX – Buenos Aires - Argentina<br />
Bolivia<br />
Constructora Norberto <strong>Odebrecht</strong> S.A.<br />
Av. Arce Y Rosendo Gutiérrez<br />
Edificio Multicentro<br />
Torre B, Piso 6 – Of. 602<br />
La Paz - Bolivia<br />
Chile<br />
Constructora <strong>Odebrecht</strong> Chile S.A.<br />
Av. Lib. Bernardo O’Higgins, 292, Of. 21<br />
Metro U. Católica,<br />
CP 6501242<br />
Santiago de Chile – Chile<br />
Colombia<br />
Constructora Norberto <strong>Odebrecht</strong><br />
de Colombia Ltda.<br />
Avenida 15, 101-09 – Piso 6 – Of. 603<br />
Edificio Vanguardia – Bogotá – Colombia<br />
Dominican Republic<br />
Constructora Norberto <strong>Odebrecht</strong> S.A.<br />
Av.Gustavo Mejia Ricart, 106<br />
Esq. Abraham Lincoln<br />
Suite 201, 2o Piso – Piantini<br />
Santo Domingo – Dominican Republic<br />
Ecuador<br />
Constructora Norberto <strong>Odebrecht</strong><br />
del Ecuador S.A.<br />
Av. 12 de Octubre, 1942 y Cordero<br />
Ed. World Trade Center, Piso 8,<br />
Of. 808, Torre A<br />
Quito – Ecuador<br />
Mexico<br />
Constructora Norberto <strong>Odebrecht</strong> S.A.<br />
Av. Jaime Balmes 08 – 6º Piso<br />
Colonia Los Morales Polanco<br />
CP 11510 – Mexico,D.F.<br />
Panama<br />
Construtora Norberto <strong>Odebrecht</strong><br />
Calle 53, Marbella<br />
World Trade Center, Piso 17, Oficina 1703<br />
Ciudad de Panamá - República de Panamá<br />
Peru<br />
<strong>Odebrecht</strong> Perú Ingeniería<br />
y Construcción S.A.C.<br />
Av. La Floresta 497 – Of. 104<br />
Chacarilla del Estanque – San Borja<br />
Lima – Peru<br />
Portugal<br />
Bento Pedroso Construções S.A.<br />
Quinta da Fonte – Rua Quinta da Quintã<br />
Edifício D. João I, no 4, Piso 1 B<br />
2770-203 – Paço de Arcos<br />
Portugal<br />
United Arab Emirates<br />
Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
Corniche Road - 3 Sails Tower - Suite 1702<br />
Khalidiya – P.O.Box - 37.600<br />
Abu Dhabi – United Arab Emirates<br />
Zommorrodah Building, 1st Floor, Office<br />
15A<br />
Al Zabeel Road, Al Karama<br />
P.O.Box - 114.155<br />
Dubai - United Arab Emirates<br />
United States<br />
<strong>Odebrecht</strong> Construction, Inc.<br />
201 Alhambra Circle – Suite 1400<br />
Coral Gables, Florida 33134 – USA<br />
Venezuela<br />
CBPO Ingeniería de Venezuela S.A.<br />
Centro Empresarial Torre Humboldt<br />
Piso 10 – 0ficina 10-13 – Avenida Rio Caura<br />
Urbanización – Parque Humboldt<br />
Caracas – Venezuela
message from the CEO<br />
><br />
While triumphing over the adverse scenario early in the year, in which<br />
market disturbances threatened to jeopardize the value and liquidity<br />
of overseas contracts and natural catastrophes pushed up the prices<br />
of goods and services in projects in Mexico and the Caribbean, the teams<br />
of <strong>Odebrecht</strong> Engineering & Construction showed their exceptional ability<br />
to adapt to unpredictable external events.<br />
Compared to 2004, corporate Ebitda increased 10.7% to a total<br />
of BRL 457 million, while the value of new international contracts rose<br />
28% to a total of USD 1.8 billion.<br />
<strong>The</strong> prospects for <strong>Odebrecht</strong> look very promising considering our excellent<br />
results and financial performance. <strong>The</strong> real basis of our future strength<br />
rests nonetheless on the emergence from within our ranks of new leaders<br />
and entrepreneurs. A new generation has assumed responsibility and<br />
shown that it can deliver results in a challenging business environment.<br />
<strong>The</strong> performance of this new leadership is backed by a corporate practice<br />
that gives top priority to management training and leadership<br />
development. Personal attributes of leaders such as character and social<br />
commitment are fundamental and essential values in the <strong>Odebrecht</strong><br />
culture. Our responsibility is to build both a successful business and<br />
sustainable communities. This commitment to business and community is<br />
the <strong>Odebrecht</strong> brand and image. Nowhere is this better shown than in our<br />
concern over safety in the workplace. In <strong>2005</strong>, our corporate safety record<br />
improved dramatically. <strong>The</strong> accident frequency rate dropped 49% and the<br />
accident severity rate 70%. This is most of all a sign that the wellbeing of<br />
our workers and their families comes first.<br />
In the years ahead we will target and expand our services to<br />
a new set of global clients. We will enlarge our presence in a variety<br />
of international markets. In Latin America we will be proactive in creating<br />
partnerships to integrate and consolidate a regional infrastructure<br />
system. In Portugal and the United States we will find innovative<br />
opportunities to strengthen our market position. In the Middle East<br />
we will cultivate partnerships with qualified clients to build a firm<br />
foundation for future growth.<br />
Our future will mirror our history. <strong>The</strong> <strong>Odebrecht</strong> record over the past<br />
60 years has been one of serving our clients and the communities where<br />
we work. This service ethos will continue to be the basis and guiding<br />
force of all our future growth.<br />
Marcelo Bahia <strong>Odebrecht</strong><br />
<strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong> | 1
profile<br />
><br />
<strong>The</strong> leading company of the <strong>Odebrecht</strong> Organization’s<br />
Engineering & Construction division, Construtora Norberto<br />
<strong>Odebrecht</strong> is the largest engineering and construction company in<br />
Latin America, besides being Brazil’s biggest service exporter. ENR<br />
Magazine ranks it as one of the top 25 international contractors,<br />
based on revenues earned outside its country of origin.<br />
Offering integrated engineering, procurement, construction,<br />
assembly and management services for civil construction,<br />
industrial and special technology projects, it operates in North,<br />
South and Central America, Africa, Europe and the Middle East.<br />
In <strong>2005</strong>, approximately 75% of its Gross Revenue originated<br />
from services outside Brazil. Up to 1,400 Brazilian companies<br />
participated in business opportunities, exporting products and<br />
services for <strong>Odebrecht</strong> Engineering & Construction contracts.<br />
<strong>Odebrecht</strong> also works in the environmental area, providing<br />
treatment services for industrial and urban solid wastes, treatment<br />
of waste water (focused on reusing water) and as a concessionaire<br />
operating water and sewage treatment services.<br />
portfolio of services<br />
> Airports<br />
> Dams<br />
> Nuclear power plants<br />
> Petrochemical plants<br />
> Cultural and entertainment complexes<br />
> Real estate and tourism complexes<br />
> Reservoirs and waterways<br />
> Equipment for the oil and gas industry<br />
> Railroads<br />
> Power transmission lines<br />
> Subways<br />
> Process plants<br />
> Offshore oil platforms and services<br />
> Ports<br />
> Environmental management services<br />
> Mining ventures<br />
> Irrigation projects<br />
> Sanitation projects<br />
> Oil refineries<br />
> Hydroelectric power plants<br />
> Iron and steel mills<br />
> <strong>The</strong>rmal power plants<br />
> Roads and Bridges<br />
full subsidiaries<br />
> CBPO Engenharia Ltda.<br />
> <strong>Odebrecht</strong> Empreendimentos Imobiliários Ltda.<br />
> Lumina Engenharia Ambiental Ltda.<br />
2 | <strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>
profile<br />
companies in which <strong>Odebrecht</strong><br />
has shareholder interests<br />
> Aenor – Auto-etradas do Norte (Portugal)<br />
> Águas de Limeira (Brazil)<br />
> Hidropastaza Sociedad Anónima (Ecuador)<br />
> Lusoscut Auto-estradas das Beiras Litoral e Alta S.A. (Portugal)<br />
> Lusoscut Auto-estrada da Costa de Prata S.A. (Portugal)<br />
> Lusoscut Auto-estrada do Grande Porto S.A. (Portugal)<br />
> NSPC – North Sea Production Company (United Kingdom)<br />
> Sociedade Mineira de Catoca (Angola)<br />
> Sociedade de Desenvolvimento Mineiro de Angola<br />
Brazil<br />
worldwide presence<br />
> Angola <strong>Odebrecht</strong> Angola Projectos e Serviços Ltda.<br />
> Argentina Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
> Bolivia Constructora Norberto <strong>Odebrecht</strong> Bolívia S.A.<br />
> Brazil Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
> Chile Constructora <strong>Odebrecht</strong> Chile S.A.<br />
> Colombia Constructora Norberto <strong>Odebrecht</strong> de Colombia Ltda.<br />
> Djibouti <strong>Odebrecht</strong> Djibouti SAZF<br />
> Dominican Republic Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
> Ecuador Constructora Norberto <strong>Odebrecht</strong> del Ecuador S.A.<br />
> Iraq Dhawahi Al-Madina for Construction Contracting LCC<br />
> Kuwait Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
> Mexico Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
> Panama Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
> Peru <strong>Odebrecht</strong> Perú Ingeniería y Construcción S.A.C.<br />
> Portugal Bento Pedroso Construções S.A.<br />
> United Arab Emirates Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
> United States <strong>Odebrecht</strong> Construction, Inc.<br />
> Uruguay Constructora <strong>Odebrecht</strong> Uruguay S.A.<br />
> Venezuela CBPO Ingeniería de Venezuela S.A<br />
Angola<br />
employment<br />
As of December 31, <strong>2005</strong>, <strong>Odebrecht</strong> Engineering & Construction<br />
directly employed 27,159 people. Throughout the year, 6,296<br />
new employees were hired.<br />
> In Brazil: 18,019<br />
> Worldwide: 9,140<br />
Through the Young Partner initiative, we hired 127 new<br />
employees: 73 in Brazil, and 54 in other countries.<br />
Outsourced workers: 6,500<br />
Portugal<br />
4 | <strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>
Argentina<br />
Venezuela<br />
United States<br />
Peru<br />
Ecuador<br />
Dominican Republic
awards and<br />
recognition<br />
> Petrobras Award for Quality, Safety,<br />
Environment, and Health – Maritime Units<br />
Construction category, for the works of the<br />
Autonomous Petroleum Repumping Platform (PRA-1).<br />
> Named Best Company in <strong>2005</strong> by the<br />
Program Management of Engineering Suppliers<br />
of Petrobras.<br />
> Best of Latin America in Engineering &<br />
Construction for the third consecutive year,<br />
according to the special edition of <strong>Global</strong> Finance -<br />
<strong>The</strong> World’s Best Companies.<br />
> Largest International Builder of<br />
Hydroelectric Power Plants, according to the<br />
<strong>2005</strong> edition of the <strong>Global</strong> Construction Guide<br />
produced by the ENR-Engineering News-Record<br />
Magazine. Construtora Norberto <strong>Odebrecht</strong> also<br />
qualified in 15 other categories of the publication.<br />
> Best Company to Work for in Peru, in an<br />
election held by the Great Place to Work Institute.<br />
> Tribute from the Brazilian-American<br />
Chamber of Commerce of Florida, for<br />
<strong>Odebrecht</strong>’s 15 year presence in the United States.<br />
> Good Safety Practices at Work, recognition<br />
by the Army Corps of Engineers for <strong>Odebrecht</strong>-<br />
Austin Consortium’s work at the Arifjan Terminal,<br />
in Kuwait.<br />
> Bolivar Regional Construction Award, with<br />
Special Recognition, in the Services Infrastructure<br />
category, for the construction of the second bridge<br />
over the Orinoco River, in Puerto Ordaz, State of<br />
Bolívar, in Venezuela.<br />
> Excellence in Foreign Trade, granted by the<br />
Ministry of Development, Industry & Foreign Trade<br />
of Brazil and by the Foreign Trade Association<br />
of Brazil.<br />
> Best Social Management & Environment<br />
Company of the Engineering & Construction<br />
sector, according to the magazine IstoÉ Dinheiro.<br />
> First Place in the ranking of 500 Great<br />
Construction Companies, for the ninth<br />
consecutive year, according to the magazine<br />
O Empreiteiro.<br />
> Most Admired Heavy Construction<br />
Company of Brazil, according to CartaCapital<br />
Magazine and the newspaper DCI.<br />
6 | <strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>
<strong>2005</strong> highlights<br />
projects completed<br />
In Brazil<br />
> Ocean outfall, coastal and beach Clean up Project in São Conrado and Leblon,<br />
Rio de Janeiro (Rio de Janeiro)<br />
> Passenger Terminal of Guararapes Airport, Recife (Pernambuco)<br />
> Salitre Irrigation Project, Juazeiro (Bahia)<br />
> Morada dos Cardeais Building, Salvador (Bahia)<br />
> Picada Hydroelectric Power Plant, Juiz de Fora (Minas Gerais)<br />
> Access to Expressway I, Florianópolis (Santa Catarina)<br />
> Recovery of the Marechal Deodoro / Realengo stretch of Avenida Brasil,<br />
Rio de Janeiro<br />
> Oil Treatment Plant of Petrobras, in Fazenda Alegre, Jaguaré (Espírito Santo)<br />
> Expansion of the Tietê Riverbed – Phase II – Lot I, in São Paulo (São Paulo)<br />
In other countries<br />
> Tingo María – Aguaytía Route, in the Ucayali Department (Peru)<br />
> Northwest Aqueduct, Phase 1 (Dominican Republic)<br />
> Earth Terminal Complex, in Arifjan (Kuwait)<br />
> Expansion of the General San Martín Gas Pipeline, passing through Tierra del<br />
Fuego, Bahía Blanca and Buenos Aires (Argentina)<br />
> Maritime Terminal for receiving liquid bulk cargos (Djibouti)<br />
main contracts awarded<br />
In Brazil<br />
> Santa Genoveva Airport, Goiânia (Goiás)<br />
> Castanhão Aqueduct – Lot 3, Morada Nova (Ceará)<br />
> Modernization of the Luiz Carlos Barreto de Carvalho – Estreitinho Hydroelectric<br />
Power Plant, in Pedregulhos (São Paulo)<br />
> Bridgestone-Firestone Factory, Camaçari (Bahia)<br />
> Renovation of the Maracanã Football Stadium Complex, Rio de Janeiro<br />
> Zé Fernando Small Hydroelectric Power Plant, Juscimeira (Mato Grosso)<br />
> Píer I of the Ponta da Madeira Maritime Terminal, São Luís (Maranhão)<br />
> João Havelange Olympic Stadium – Pan 2007 Consortium, Rio de Janeiro<br />
> Alto de Pinheiros Residential Building, São Paulo (São Paulo)<br />
> Natural Gas Condensation Processing Plant – UPCGN II, Macaé (Rio de Janeiro)<br />
> Expansion of Pier III – CVRD, São Luís (Maranhão)<br />
> Recovery of Petrobras Oil Pipeline, São Sebastião (São Paulo)<br />
In other countries<br />
> Earth Terminal Complex, in Arifjan (Kuwait)<br />
> Expansion of General San Martin Gas Pipeline (Argentina)<br />
> El Carmen Arroyo – Arroyo Concepción – Interoceanic Road Corridor ,<br />
in Puerto Suaréz (Bolivia)<br />
> Multimodal IIRSA North Stretch – Paita-Yurimaguas (Peru)<br />
> Interoceânica Sul Highway– Urcos-Inambari and Inambari-Iñapari streches (Peru)<br />
> Palomino Hydroelectric Power Plant, in San Juan (Dominican Republic)<br />
> North Terminal of the Miami International Airport (USA)<br />
> General Lázaro Cárdenas Refinery – Amine and Naphtha Plant (Mexico)<br />
> Expansion of the Northwest Aqueduct – Phase II (Dominican Republic)<br />
<strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong> | 7
financial indicators<br />
Gross Revenue<br />
Backlog in Brazil<br />
Backlog Worldwide<br />
Contracts Awarded in Brazil<br />
Contracts Awarded Worldwide<br />
2004<br />
BRL 5.85 billion<br />
BRL 3.59 billion<br />
USD 2.33 billion<br />
BRL 2.39 billion<br />
USD 1.41 billion<br />
<strong>2005</strong><br />
BRL 6.33 billion<br />
BRL 3.78 billion<br />
USD 2.33 billion<br />
BRL 2.19 billion<br />
USD 1.81 billion
service exports<br />
Supported by the effort of 1,400 companies<br />
(1,140 of which were small and<br />
medium-sized), Construtora Norberto<br />
<strong>Odebrecht</strong> generated an influx of USD 650<br />
million into the Brazilian economy. Exporting<br />
over 60,000 items to 14 countries generated<br />
in turn 130,000 direct and indirect jobs in<br />
Brazil and countless opportunities for new<br />
business worldwide.<br />
<strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong> | 9
health, safety<br />
and environment<br />
><br />
In <strong>2005</strong>, <strong>Odebrecht</strong> Engineering and Construction achieved its<br />
best results ever in the field of Health and Safety. <strong>The</strong> basis for<br />
this achievement is the practice of an integrated management<br />
program grounded on the concepts of Prevention and Continual<br />
Performance Improvement. Through this program we were able<br />
to reduce the lost-time accident frequency rate and the accident<br />
severity rate by 49% and 70% respectively, compared to 2004.<br />
<strong>The</strong> occupational health and safety programs at our jobsites also<br />
meet the international standards and legal requirements of the<br />
countries in which we do business.<br />
environmental programs<br />
According to the Basic Environmental Management Plan of<br />
<strong>Odebrecht</strong> Engineering & Construction, planning for prevention<br />
and control of environmental impacts at all jobsites includes:<br />
> Identification of potential impacts<br />
> Definition of procedures to eliminate, minimize and control<br />
potential impacts<br />
> Rehabilitation of degraded areas<br />
> Appropriate handling and final disposal of solid wastes<br />
> Training and competence preparation towards prevention<br />
> Emergency preparedness<br />
> Community interactions and social responsibility practices<br />
in areas near jobsites<br />
certification<br />
> OHSAS 18001:1999 – Safety and Health<br />
> ISO 14001:2004 – Environment<br />
> ISO 9001:2000 – Quality<br />
> PBQP-H Level A – Quality in Buildings<br />
evolution of occupational health indicators<br />
2,5<br />
2,0<br />
2,19<br />
2,37<br />
HHI*<br />
JrODI**<br />
1,5<br />
1,0<br />
0,5<br />
0<br />
0,25<br />
0,10<br />
0,23<br />
0,07<br />
2003 2004 <strong>2005</strong><br />
*Hearing Health Index<br />
** Job-related Osteomuscular Diseases Index<br />
10 | <strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>
innovation award<br />
Since 1992, members of <strong>Odebrecht</strong> Engineering & Construction, from several countries, participate<br />
in the annual Innovation Award Contest. This is one of the main tools at <strong>Odebrecht</strong> for generation<br />
and dissemination of knowledge derived from jobsite experiences and results. <strong>The</strong> <strong>2005</strong> 13th edition<br />
of this Contest brought a new record of 95 case studies and introduced a new category of award in<br />
the area of health, safety and environment – HSE.<br />
Case studies of the award winners presented innovative solutions used in the San Francisco<br />
Hydroelectric Project in Ecuador (Productivity category); in the construction of the autonomous<br />
repumping platform PRA-1, for Petrobras, in Bahia, (Young Partner and Social Responsibility<br />
categories); and in the Vale dos Cristais urbanization project, in Minas Gerais, (Health, Safety<br />
and Environment category).<br />
knowledge circles<br />
Company members with specialized fields of expertise, hold periodical meetings to share<br />
experiences and insights. <strong>The</strong> first circle was organized in 2001 with focus on Dams and<br />
Hydroelectric Power Plants. <strong>The</strong>re are presently 6 active Knowledge Circles covering a range<br />
of different subjects.<br />
historical evolution of workplace safety indicators<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
accident frequency rate<br />
47,05<br />
11,14<br />
33,50<br />
28,31<br />
23,54<br />
26,64<br />
7,86 7,49 6,65 7,17<br />
1997 1998 1999 2000 2001 2002 2003 2004 <strong>2005</strong><br />
18,42<br />
8,79<br />
10,69<br />
5,77 3,74 5,78<br />
No-lost-time<br />
Lost-time<br />
5,40<br />
3,02<br />
3000<br />
2500<br />
2000<br />
1500<br />
1000<br />
500<br />
0<br />
accident severity rate<br />
2.550<br />
1.186<br />
777 768 811<br />
432 534 580<br />
174<br />
1997 1998 1999 2000 2001 2002 2003 2004 <strong>2005</strong><br />
<strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong> | 11
people development<br />
><br />
Construtora Norberto <strong>Odebrecht</strong> and its subsidiaries take pride<br />
in identifying, training and integrating entrepreneur-partners.<br />
Investing in education and training is an important part of the<br />
<strong>Odebrecht</strong> culture and the basis to forge an emerging generation<br />
of new leaders.<br />
education<br />
<strong>The</strong> commitment to prepare a new generation of leaders and<br />
develop abilities and competence at Construtora Norberto<br />
<strong>Odebrecht</strong> led to the creation of a range of programs for<br />
professional and personal growth, including:<br />
> PDE – Program for Developing Entrepreneurs<br />
> PJC – Young Builder’s Program<br />
> MBA Getulio Vargas Foundation – <strong>Odebrecht</strong><br />
> MBA University of São Paulo – Environmental Technology<br />
Management<br />
> MBA IAG Rio de Janeiro Pontific Catholic University – Financial<br />
Decision-Making in High-Risk Conditions<br />
> Qualifying Technicians and Supervisors<br />
> Leadership Seminars<br />
<strong>Odebrecht</strong> Engineering Award – This award is conferred annually<br />
by Construtora Norberto <strong>Odebrecht</strong>, in partnership with the<br />
Regional Board of Engineering, Architecture and Agronomy<br />
of the State of Pernambuco, to distinguished students in Civil<br />
Engineering from the Federal University, the State University<br />
and the Catholic University, all in Pernambuco.<br />
Partnership with universities – <strong>Odebrecht</strong> Engineering &<br />
Construction has partnerships with 6 universities in Brazil,<br />
10 in Peru, 3 in Portugal, 1 in Angola, 1 in Ecuador and 2 in<br />
the Dominican Republic.<br />
cultural action<br />
<strong>Odebrecht</strong> Engineering & Construction supported various<br />
cultural projects, particularly the publications DEP (Diplomacy,<br />
Strategy and Politics), a Brazilian magazine focused on South<br />
American issues and the book Nuestra Pátria (Our Country), an<br />
encyclopedia of Civic Education and National History, published<br />
in Ecuador. It sponsored the electronic formatting of the 178<br />
year-old collection of the Diário de Pernambuco, the oldest<br />
newspaper in Latin America, and the oldest periodical in<br />
circulation published in Portuguese. It also sponsored the<br />
exhibition De Caracas à Amazônia (From Caracas to Amazônia),<br />
by the Venezuelan photographer Andrés Manner. Other projects<br />
were sponsored in Ecuador, Mexico and the Dominican Republic.<br />
12 | <strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>
social action<br />
<strong>Odebrecht</strong> Engineering & Construction supports social<br />
development projects in several communities near its<br />
construction sites. Highlights in <strong>2005</strong> were:<br />
> Sustainable Development Project in São Roque do<br />
Paraguaçu, Bahia – This initiative included setting up<br />
a community cultural center with a five thousand volume<br />
library and a computer access facility available to employees<br />
and local residents.<br />
> Invisible Security Belt, Venezuela – In the municipality of<br />
Jesus Enrique de Lossada, near Maracaibo, 800 families are<br />
participating in the installation of the El Dilúvio-Palmar<br />
irrigation project. <strong>The</strong> aim is to reduce the risks of conflicts and<br />
to support an improvement in the population’s quality of life.<br />
> School 103 of Camuxiba, Angola – Comprising 12<br />
classrooms, a computer room and library, the new school<br />
benefits 1,600 students of the Samba region, in Luanda.<br />
> Mobile Information Center, Angola – Installed in a bus,<br />
it offers information on the progress of the third stage of<br />
the Águas de Luanda Project and on sanitary education<br />
to the population.<br />
> Agricultural Development, Ecuador – Taking advantage<br />
of the infrastructure of the Carrizal-Chone Irrigation System,<br />
this action supports structuring of self-sustainable productive<br />
chains, the sale of its products and the relationship between<br />
producers and distributors<br />
> Education for Work, Alagoas – In Marechal Deodoro,<br />
professional courses conducted in partnership with Braskem<br />
train youngsters and adults to enter the employment market.<br />
<strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong> | 13
Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
and subsidiaries<br />
Balance sheet at december 31 (in thousand of U.S. dollars)<br />
assets<br />
consolidated<br />
Current assets<br />
Cash, banks, financial investiments<br />
and marketable securities<br />
Trade accounts receivable<br />
Inventories<br />
Other accounts receivables<br />
<strong>2005</strong><br />
608,842<br />
458,445<br />
131,576<br />
253,056<br />
1,451,919<br />
2004<br />
487,782<br />
375,745<br />
100,342<br />
311,440<br />
1,275,309<br />
Long-term receivables<br />
Trade accounts receivable<br />
<strong>Odebrecht</strong> Organization companies<br />
Other accounts receivable<br />
Permanent assets<br />
Total assets<br />
364,205<br />
198,352<br />
153,626<br />
716,183<br />
331,742<br />
2,499,844<br />
285,599<br />
128,220<br />
99,298<br />
513,117<br />
261,044<br />
2,049,470<br />
liabilities and stockholders’ equity<br />
consolidated<br />
Current liabilities<br />
Debts<br />
Suppliers and subcontractors<br />
Taxes, rates, salaries and payoll charges<br />
Other accounts payable<br />
<strong>2005</strong><br />
46,319<br />
308,505<br />
97,991<br />
216,306<br />
669,121<br />
2004<br />
155,233<br />
238,877<br />
85,790<br />
140,573<br />
620,473<br />
Long-term liabilities<br />
Debts<br />
Advances for customers<br />
Other accounts payable<br />
Minority interests<br />
Stockholders’ equity<br />
Total liabilities and stockholders’ equity<br />
500,075<br />
363,162<br />
150,198<br />
1,013,435<br />
1,847<br />
815,441<br />
2,499,844<br />
437,965<br />
290,385<br />
121,996<br />
850,346<br />
570<br />
578,081<br />
2,049,470<br />
This financial information has been translated using the exchange rate prevailing on ecach date<br />
(12/31/<strong>2005</strong> - BRL 2.3407:USD 1.00; 12/31/2004:USD 1.00)<br />
14 | <strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>
Construtora Norberto <strong>Odebrecht</strong> S.A.<br />
and subsidiaries<br />
Statement of income<br />
Years ended december 31 (in thousand of U.S. dollars)<br />
consolidated<br />
Gross services revenue<br />
Taxes and contributions on services<br />
Net services revenue<br />
Cost of services rendered<br />
Gross profit<br />
General and administrative expense<br />
Income after general and administrative expenses<br />
Financial income, net<br />
From investments in subsidiaries and associated companies<br />
Operating profit<br />
Non-operating results<br />
Income tax and social contribution<br />
Management profit sharing<br />
Minority interest<br />
Net income for the year<br />
<strong>2005</strong><br />
2,705,450<br />
(50,343)<br />
2,655,107<br />
(2,298,240)<br />
356,867<br />
(238,189)<br />
118,678<br />
4,856<br />
4,631<br />
128,165<br />
(11,536)<br />
(53,049)<br />
(5,298)<br />
(1,156)<br />
57,126<br />
2004<br />
2,204,871<br />
(36,891)<br />
2,167,980<br />
(1,906,036)<br />
261,944<br />
(152,884)<br />
109,060<br />
76,439<br />
(13,796)<br />
171,703<br />
7,442<br />
(60,894)<br />
(4,747)<br />
(47)<br />
113,457<br />
This financial information has been translated using the exchange rate prevailing on ecach date<br />
(12/31/<strong>2005</strong> - BRL 2.3407:USD 1.00; 12/31/2004:USD 1.00)<br />
<strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong> | 15
corporate officers of Construtora<br />
Norberto <strong>Odebrecht</strong> S.A.<br />
Entrepreneurial Leader (CEO)<br />
Marcelo Bahia <strong>Odebrecht</strong><br />
Senior Officers<br />
In Brazil<br />
Benedicto Barbosa da Silva Junior, South & Southeast<br />
Henrique S. do Prado Valladares, Energy & Mercosur<br />
João A. Pacífico, North, Northeast & Mid-West<br />
Jorge C. Azevedo Filho, Real Estate Ventures<br />
Márcio Faria, Industrial Plants<br />
Marco Cruz, Environmental Engineering<br />
Miguel Gradin, Oil & Gas Services<br />
Worldwide<br />
Ernesto Baiardi, Dominican Republic<br />
Euzenando Azevedo, Venezuela<br />
Fernando L. Santos-Reis, Ecuador & Panama<br />
Jorge Barata, Peru & Bolivia<br />
Luiz A. Mameri, Angola<br />
Luiz Teive Rocha, COO - Vice President for International Business<br />
Alessandro Gomes, United Arab Emirates<br />
Carlos Armando Guedes Paschoal, Portugal<br />
Gilberto Neves, United States<br />
Marcelo Jardim, International Business Development<br />
Miguel Peres, Mexico<br />
Paulo Suffredini, United States – Federal Government Contracts<br />
Directors<br />
Paulo Lacerda de Melo, Vice President for Engineering & Business Ventures<br />
Adriano Jucá, Legal Affairs<br />
André Amaro da Silveira, Service Exports & Structured Projects<br />
Carlos Fadigas, Finance & Information Technology<br />
Carlos J. Hupsel de Azevedo, Planning & Development<br />
Roberto Dias, Institutional Relations<br />
Romildo Santos Filho, Business Development<br />
Sergio Leão, Occupational Health, Safety & Environment<br />
16 | <strong>Odebrecht</strong> Engineering & Construction | <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>