3. - Zagope

Chairman’sStatementIn 2010, the companies that operate in theconstruction sector once again faced greatdifficulties, arising from the economic scenario.Despite the unfavourable conditions, Zagopeachieved results that show the efficacy of theinternationalisation strategy adopted in 2004.The consolidation of business in the African andMiddle Eastern markets, with the entry in newcountries like Mozambique and Mali, has made itpossible for 82% of the company’s turnover to beearned through international operations.As a consequence, in 2010 Zagope increased itsturnover to 625 million Euros, a 9% growth overthe previous year.In Portugal, among other projects, Zagopeproceeded with the works at the Douro LitoralConcession. The company is part of theconcession and of the construction joint venture.Other projects carried out in 2010 include worksin the gallery between the existing terminal andthe new Reboleira Station (Lisbon Subway) andthe conclusion of the Anaerobic Digestion centre –Tratolixo (RSU).The new contracts in Equatorial Guinea, Mali,Mozambique and Republic of the Congocontributed to the widening of the internationalbacklog, now amounting to 1.71 billion Euros. Thisgrowth has also been made possible bya significant investment in equipment in the last5 years, surpassing 250 million Euros.These results translate the efforts of an engagedand consistent team, capable of identifyingimportant business opportunities in marketniches, allied to a driven management thatinvests in a sustainable manner in human andtechnical resources.Zagope is proud to wager on the personal andprofessional development of its more than 6thousand employees. In 2010 we reinforcedthe trend of recruiting qualified personnel inthe countries where the company is present,and, with the “People Cycle” project, analysedthe results of the performance evaluations withviews to distinguishing career developmentopportunities within the company.The culture of the company, based on its values,has now been translated in 12 behaviourorientatingprinciples. Our leaders were essentialin diffusing our corporate culture, that focus increative, capable, ambitious and passionatepeople.In this report, we proudly publicise some otherpublic achievements for Zagope: being classifiedas the 4th among the Greatest and Largestcompanies in the construction sector in Portugal;the 32nd among the 500 greatest Portuguesecompanies; the 9th greatest exporter and the16th largest employer in the country. Distinctionsmade possible by the endeavour of all of you –employees, shareholders, clients, suppliers andpartners – working together to make a greaterand better company.Leandrode AguiarChairman of the Board of DirectorsDespite the difficultconditions, Zagope achieved agrowth of 9% that confirmedthe efficacy of its strategy.06 / 07