PROMON 50 YEARS 2 PROMON IN PROFILE 12 STRATEGY 14 CORE BELIEFS AND REASON TO EXIST 20

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1 PROMON ANNUAL REPORT 2009

2 PROMON 50 YEARS 2 PROMON IN PROFILE 12 STRATEGY 14 CORE BELIEFS AND REASON TO EXIST 20 BUSINESSES PROMON ENGENHARIA 24 PROMONLOGICALIS LATIN AMERICA 32 TRÓPICO 38 PROMON NOVOS NEGÓCIOS 42 ASSOCIATED ENTITIES FUNDAÇÃO PROMON DE PREVIDÊNCIA SOCIAL 46 INSTITUTO DE TECNOLOGIA PROMON 48 INSTITUTO RAZÃO SOCIAL 50 PROMON S PROFESSIONALS APRIL MANAGEMENT TEAM 54 1

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6 CARLOS M. SIFFERT, PAULO A. FRAGELLI AND TAMAS MAKRAY In the 1960s, a small group of professionals, headed by Tamas Makray of which Carlos Siffert and Paulo Fragelli among other colleagues were also part conceived the cutting-edge vision of the corporation consolidated as Promon. Since then, the idea of striving for its perpetuation through the dynamics of continuous development and renewal has been ever present. Renewal is used here in the ideal expression of its meaning, encompassing all essential aspects of the organization, from its business portfolio to its technological knowledge; from its shareholding structure to its management. In April 2010, within this open and democratic scenario, the new composition of the Board of Directors and of the Executive Committee of Promon S.A., the group s holding company, was established for the term of office ranging from 2010 to Following a model which has been in place for many years, the new Board of Directors was officially set up through a voting process comprising the company s 1,100 professionals-shareholders, who expressly reaffirmed their confidence in their representatives. Luiz Ernesto Gemignani, who has been with the organization for 32 years and has completed three terms as the Group s Chief Executive Officer was re-elected as Chairman of the Board. Five other professionals are members of the Board of Directors, four of whom are highly knowledgeable of the organization: Gilson G. Krause, Luiz Fernando T. Rudge, Luiz Gonzaga Marinho Brandão and Raul Antonio Del Fiol. As a further evolution of the governance model, the Board of Directors now includes an independent member, José Guimarães Monforte, who will bring his valuable and renowned professional experience to Promon. Carlos Siffert and Paulo Fragelli left the Board after 50 years of continued dedication to Promon. Promon s community pays the warmest and most affectionate tribute to them and to Tamas Makray, who retired from the company back in Promon s Executive Committee will be headed by Luiz Fernando T. Rudge, who took over the position of Chief Executive Officer. It will be also composed by Gilson G. Krause, Ivo Godoi Junior and Felipe Alceu Amoroso Lima as Executive Directors, the first two of them having been members of the Committee in the previous term of office. 5

7 Reflecting its culture and understanding that organizations are living systems, part of a complex ecosystem, years ago Promon decided to define its aspirations and conduct its strategy and business management by encompassing not only the economical and financial aspects, but also a set of eight dimensions that aim to address the perspectives it regards as essential to measure the company s performance and sustainability. In this report, many references will be made to Promon s attitude towards these dimensions. Although Brazil enjoyed periods of accelerated growth, it was also hit by severe crises in the past 50 years. Often it was seen as the country of the future. In other times, its perspectives were the subject of skepticism. Due to a number of circumstances, related both to its historical process and to the course taken by the global development, the country seems to be presently facing a genuine opportunity to reach another development level. The infrastructure-related shortages are basic limiting factors which need to be overcome so that Brazil will not miss the opportunity for further progress. Promon, which celebrates its 50th Anniversary in 2010 and has managed to leave its hallmark on the construction of Brazil s infrastructure, is well prepared to face up to this new challenge. Throughout the past five decades it underwent a number of transformations which were but proof that it was fully capable of adapting and fitting its business model and the solutions devised to the opportunities that the infrastructure development stages in Brazil brought about during this period. Throughout these decades, Promon has strictly been the same company in its essence: the obsession for excellence in whatever it does, the acknowledgement of the people working for it, the use of innovation and application of technological expertise in the solutions it devises, the ethics in its relationships, and the responsibility it embraces in the social environments in which it operates are all the basis for its development right from the onset. The ownership model it adopted 40 years ago became a fundamental element for the establishment of this organizational culture, which is open, participative, democratic, grounded on human values and forged by the overcoming of challenges. The energy of the first 50 years is renewed and the permanent search for an existence with significance keeps on nourishing the organization and its people. LUIZ FERNANDO TELLES RUDGE, LUIZ ERNESTO GEMIGNANI, JOSÉ GUIMARÃES MONFORTE, IVO GODOI JUNIOR, GILSON GALVÃO KRAUSE, RAUL ANTONIO DEL FIOL, FELIPE ALCEU AMOROSO LIMA AND LUIZ GONZAGA MARINHO BRANDÃO PROMON 6

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11 2009 turned out to be a positive year for the Promon Group, despite the uncertainties arising from the world s economic crisis. Supported by its competencies and portfolio of solutions, the organization capitalized on the opportunities presented and rose successfully to the challenges posed. The organization s consolidated revenue amounted to R$ million, with net profits of R$ 86 million, net of the R$ 21.1 million distributed to Promon officers and employees as profit sharing. These amounts were higher than those of the previous year, provided that the non-recurring events of that year are disregarded. Considering Promon s aggregate businesses, regardless of the individual companies which make up its whole shareholding structure, the 2009 revenue reached R$1.2 billion. The investments, allocated particularly to technology development, new businesses and training, totaled R$ 58 million. The Group ended the year maintaining a solid financial situation, with high liquidity and low indebtedness. 10

12 REVENUE R$ million INVESTMENTS IN 2009 total R$ 58 million TECHNOLOGICAL DEVELOPMENT INFRASTRUCTURE NEW BUSINESSES 46% 21% 20% TRAINING 13% NET INCOME R$ million ADDED VALUE DISTRIBUTION R$ million GOVERNMENT EMPLOYEES SHAREHOLDERS THIRD PARTIES WITHHELD SOURCE: FINANCIAL STATEMENTS SOURCE: FINANCIAL REPORTS 11

13 The Brazilian economy held out reasonably well against the effects of the global crisis in Although it was adversely affected by the strong economic slowdown in the developed economies, with the resulting downturn in the foreign demand and in investments, the maintenance of the employment and credit levels allowed the internal market to sustain the general level of activity in the country. Nevertheless, if we consider specific sectors in which Promon operates, it is possible to notice a variety of impacts of different proportions. A positive highlight would be the Oil & Gas Industry, a market in which Promon Engenharia is well positioned and which recorded a significant growth. PromonLogicalis and Trópico generated positive results; however, their business volume suffered from the investment slowdown at the telecom carriers. PROFILE The Promon Group is controlled by the holding company Promon S.A., where the organization s executive and strategic coordination is based. Its only shareholders are the organization s professionals. Democratic, transparent and participatory, Promon s ownership model is the economic translation of the ideals and values of the organization. Through their absolutely voluntary engagement in the model, the professionals deepen their degree of sharing in the wealth created and participating in the life of the company. 12

14 PROMON GROUP EMPLOYEE SHAREHOLDERS PROMON S.A. FUNDAÇÃO PROMON DE PREVIDÊNCIA SOCIAL INSTITUTO DE TECNOLOGIA PROMON INSTITUTO RAZÃO SOCIAL associated entities PROMONLOGICALIS LATIN AMERICA LTD. PROMON ENGENHARIA LTDA. TRÓPICO SISTEMAS E TELECOMUNICAÇÕES S.A. PROMON NOVOS NEGÓCIOS 30% 100% 60% 100% P2 BRASIL 40% Promon Engenharia Ltda., PromonLogicalis Latin America Limited, Trópico Sistemas e Telecomunicações S.A. and Promon Novos Negócios comprise a group of independently managed entities, through which the core businesses of the organization are developed, at all times aligned with the general strategy, policies and guidelines established by the Group. Promon Engenharia is a wholly-owned subsidiary of Promon S.A. and a leading provider of engineering services focused on strategic industries such as Oil & Gas, Mining and Metallurgy, Electric Power, Chemicals and Petrochemicals, and the Environment. PromonLogicalis Latin America Limited, a joint venture between the UK-based company Logicalis Group Limited and Promon S.A., specializes in systems integration for the Latin American information and communication technology (ICT) market. Promon holds 30% of the company s equity, but is fully responsible for its management. Trópico, a joint venture between Promon S.A., which holds 60% of its equity, Fundação CPqD (30%) and Cisco Systems (10%), specializes in the development of software and hardware for telecom carriers. Promon Novos Negócios, set up in 2008, undertook the mission of developing the Group s entrepreneurial drive in a structured and consistent fashion, based on the organization s competencies and relationship networks, in order to streamline the innovation process and the development of new businesses in sectors associated with infrastructure. P2Brasil is a joint venture between Promon and Pátria Investimentos, oriented to the creation and management of investment funds for such sectors. The framework of the organization is complemented by Fundação Promon de Previdência Social, Instituto de Tecnologia Promon and Instituto Razão Social, the latter maintained in association with two other groups Gerdau and Instituto Camargo Corrêa, with IBM Brazil as the technology partner. 13

15 A major 2009 highlight was the consolidation of a new organizational model which was the result of a process started in the previous years. It grants more autonomy to the entities comprising the Group, for they now have their own managerial teams. As a result, Promon S.A. is assigned the typical role of a holding company. In this new design, special attention is given to the development of mechanisms to preserve Promon s culture, which, along with its reputation and technological expertise, forms the basis of the intangible assets regarded as crucial by the company. Based on the understanding that organizations are living systems, which interact with other systems, influencing them and being influenced by them, Promon establishes its strategies and monitors its performance in dimensions which transcend businesses and financial results. STRATEGY The Group s systemic vision attempts to define the strategic perspectives which must permeate the entire organization. The purpose of these perspectives is to represent the major stakeholders and the main elements in the dynamics of value creation for the Promon Group. For each perspective, macro-objectives are developed as an expression of the Promon Group s aspiration at a certain point in time. 14

16 CLIENTS ESTABLISH STRATEGIC RELATIONSHIPS WITH ALL ECONOMIC GROUPS REGARDED AS IMPORTANT KNOWLEDGE AND PROCESSES RELENTLESSLY PURSUE A LEVEL OF MANAGEMENT EXCELLENCE SO AS TO FULLY ACHIEVE OUR GROWTH GOALS AND MAINTAIN OUR POSITION AS A BENCHMARK FOR THE INDUSTRY SOCIETY AND THE ENVIRONMENT INTRODUCE THE ISSUE OF ENVIRONMENTAL AND SOCIAL SUSTAINABILITY AS A STRUCTURING ELEMENT OF OUR DEVELOPMENT PARTNERS AND SUPPLIERS DEVELOP A NETWORK OF HIGH-QUALITY SUPPLIERS AND PARTNERS, CAPABLE OF PARTICIPATING IN THE ENTIRE PRODUCTION PROCESS IN AN INTEGRATED MANNER PEOPLE CONTINUE TO BE AN EXCELLENT COMPANY TO WORK FOR AND, AS SUCH, ATTRACT, RETAIN, MOTIVATE AND DEVELOP EXCELLENT TALENTS ECONOMIC PERFORMANCE TAKEN INDIVIDUALLY, BUSINESSES MUST REACH A SIGNIFICANT LEVEL OF ACTIVITY TO GENERATE PROFITS SUITABLE TO THE OWNERSHIP MODEL REQUIREMENTS ORGANIZATIONAL CULTURE DEVELOP, WITHIN OUR COMMUNITY OF PROFESSIONALS, A THOROUGH SENSE OF BELONGING BUSINESS PORTFOLIO CONTINUOUSLY RENEWED PORTFOLIO, MADE UP OF PRODUCTS AND SERVICES FOCUSED ON THE BASIC ECONOMIC SECTORS, BASED ON PROMON S UNIQUE COMPETENCIES AND STRUCTURED ACCORDING TO BUSINESS MODELS IN WHICH WE ARE MAJOR PLAYERS 15

17 The quality of the relationship with the different stakeholders is of utmost importance to Promon. There were major accomplishments to report. The level of client satisfaction remained high for all the Group companies: considering the average of the previous three years, over 83% of clients expressed a high degree of satisfaction with the services delivered by Promon, acknowledging its differentiated position in the market. In relation to suppliers, according to a survey comissioned by Promon Engenharia, the company in the Group whose supplies are the most diversified and offers the longest delivery terms, 70% of them rated the level of relationship with the company above or well above that of the market. PromonLogicalis, in turn, fostered stronger relationships with traditional partners, such as Cisco, and established new alliances to increase and complement its solutions offered to the Information Communication and Technology (ICT) market. It is essential to Promon that it be an excellent company in which to work, capable of attracting, keeping, developing and motivating excellent professionals, providing them with the means that, in regard to knowledge and working processes, will place them head and shoulders above their competitors, qualified to provide their customers with the innovative, quality solutions required by them. The essence of Promon s competitive strategy is the differentiation achieved by means of innovation and quality. Following a path different from that of many companies which downsized because of the global crisis, the Promon Group increased its staff by 8% in 2009, ending the year employing 1,370 professionals in Brazil and another 240 abroad. An additional 110 students are taking part in the Trainee Program. In 2009, a new tool was implemented in the Group companies the Paths Map allowing the professionals to identify the evolutionary path of their careers and to align them with the organization s strategies. To identify potential talents and prepare them to take on future leadership positions are the main objectives of the Programa de Desenvolvimento de Novos Líderes (Program for the Development of New Leaders), with the first group graduating in This one-and-a-half year program will continue in CLIENT SATISFACTION LEVEL 3-year moving average STAFF EVOLUTION as of December 31st % % % SOURCE: CLIENT SATISFACTION SURVEY (OMNI MARKETING) PROMON ENGENHARIA PROMONLOGICALIS (BRAZIL) PROMONLOGICALIS (ABROAD) TRÓPICO CORPORATE/HOLDING , ,611 16

18 The Group took encouraging new paths promoting diversity in its staff with the Programa Atitude para Incluir (Attitude to Include Program) devised to spread the inclusive culture of the company by hiring professionals with physical disabilities and by organizing initiatives intended to raise internal awareness. With its unique practices and ceaseless evolution, the Group is one of the few organizations ranking among the best companies to work for in Brazil since the first issue of the guides published by the magazines Exame-Você S/A and Época-Great Place to Work Institute (GPTW). It was also named once again by the GPTW as one of the best companies to work for in Latin America. With employee satisfaction rates significantly above the average of both domestic and international organizations, duly endorsed by the Pesquisa de Práticas (Survey of Practices) in the organizational environment area conducted in 2009 by an independent consulting firm, Promon regards managing people as one of its strategic endeavors. ORGANIZATIONAL CULTURE Percentage of favorable answers from the Promon Group s employees to a set of questions related to the topics set forth below (organizational environment survey, conducted by the independent consulting firm Towers Watson): DISCOURSE AND PRACTICE DISCOURSE AND PRACTICE Consistency between practices and discourse, across all levels. RESPECT AND EQUITY How the professionals are treated, regardless of their job positions. CONDUCT How the organization handles its external and internal relationships. CONDUCT 93% 94% 95% 80% 78% 78% 79% 78% 79% 92% 92% 91% RESPECT AND EQUITY ENGAGEMENT Percentage of professionals participating in the ownership model ENGAGEMENT 17

19 Deeply rooted in Promon s culture, corporate social and environmental responsibility is materialized in its strategies, business portfolio, market solutions, technological choices, work processes and in the relationship with clients, suppliers and communities, increasingly becoming the central structuring element of its development. On the social action front, the Group concentrates its initiatives on educational projects driven by the deeply held belief that this is a key factor in the development of the society and the country. A traditional channel of commitment to such projects is provided through the programs developed by the Instituto Razão Social. Additional activities have been organized by the Group companies, based on a more strategic vision of the topic, which resulted from a more mature approach to the concepts and practices learned in the previous years. These actions involved 900 volunteers in actions and campaigns focused on projects of 17 social entities, providing direct benefits to 15,000 people and favoring 2,000 children and adolescents. DEGREE OF CORPORATE SOCIAL RESPONSIBILITY Results until 2008 indicate the consolidated Ethos indexes for the Promon Group. The 2009 results are shown for Promon Engenharia and PromonLogicalis, company which, scarcely more than a year after its stablishment, already reaches the benchmark area, the reference adopted by the Group. The seven Corporate Social Responsibility (CSR) topics considered by Instituto Ethos are: Values, Transparency & Governance; Employees; Environment; Suppliers; Consumers & Clients; Community; Government & Society. SCOPE 7 CSR TOPICS DEPTH CSR STAGES PROMON ENGENHARIA 2009 PROMONLOGICALIS BENCHMARK AREA SOURCE: INSTITUTO ETHOS DE EMPRESAS E RESPONSABILIDADE SOCIAL 18

20 Promon s commitment to social and environmental issues since its foundation, the detailed follow-up on the projects and the results obtained reflect the degree to which the work has improved, leading the Group to be elected by Exame magazine, for the fourth consecutive year, as one of the twenty role-model companies in the country in the field of corporate sustainability. The Promon Group became a signatory to the United Nations Global Compact in It is also a part of the initiative referred to as Todos pela Educação ( All for Education ) and Nossa São Paulo: Outra Cidade ( Our São Paulo: A Different City ). It is aligned with the Instituto Ethos de Empresas e Responsabilidade Social ( Ethos Institute for Businesses and Social Responsibility ), with Instituto Akatu pelo Consumo Consciente ( The Akatu Institute for Conscientious Consumption ) and is a member of Fundação Nacional da Qualidade FNQ ( The Brazilian Quality Foundation ), whose Board of Trustees includes Promon s Chairman of the Board. All the advances made in every dimension that Promon regards as strategic for sustainable development and the economy s recovery signs lead the Group to adopt a bright perspective for The portfolio backlog of R$1.8 billion at year s end provides the required support for an estimated revenue growth of over 40%. However, the company s future vision stretches over longer time frames. Throughout its five decades of existence, Promon has innovated and reinvented itself a number of times. It is aware of the fact that it will have to dedicate itself even further to follow the dynamics of changes in the contemporary world. For this reason, in 2009, the Group started a scenario assessment exercise, to be intensified in 2010, in an attempt to understand more clearly the demographic, technological, geopolitical and environmental changes which are about to come. Understanding and interpreting such changes and taking them into consideration when devising its strategies is the way to ensure that Promon is prepared to operate in this fast-changing world and, more than that, to be a driver of such changes and of a new development concept. 19

21 CORE BELIEFS _A company is a living system, which forms an integral part of a social, economic and natural ecosystem, with which it interacts, on which it depends and with which it holds co-responsibility. _Knowledge will be the tool for the accomplishments of individuals and of the society provided it is used in a shared and conscious manner. CORE BELIEFS AND REASON TO EXIST The culture of a community or a group of people is the ultimate and highest expression of their beliefs, values and shared purposes, acting as a substrate from which accepted practices and standards of conduct are developed and considered suitable by the group. As for corporations, culture is the key element for differentiation, competitive positioning and, particularly, perpetuation. It is a matrix defining the format and, frequently, even the content which determines the relationship of a company to its stakeholders. It is exactly in this regard that one can state that Promon s organizational culture is probably its major asset. REASON TO EXIST Promon is a knowledge-based community of professionals and stands out for its capacity to innovate, embracing the pursuit of excellence as its guiding concept. It seeks to: _develop and offer infrastructure-related solutions which add value to clients and other stakeholders; _offer conditions for the professional and human accomplishment of its professionals; _be an active agent for the society s development process and the environment s preservation. THE COMMUNITY_Means sharing elements and understandings that transcend the parts which form the company. Community means the willingness to observe principles and rules but it also implies voluntary cooperation, which is much richer and involves less planning. Collaboration is different from altruism. It comes about when people share a common cause, when they feel they are united towards a shared destiny. A community may be described, and formally mapped, but it also reflects an emotional undertone, a sense of connection, of union. Communities have a body, but they also have a soul. PURSUIT OF EXCELLENCE_When we refer to excellence, we tend to think about quality. Excellence, however, transcends quality and sets limits to it. Quality in excess is not excellent because it lacks value. The concept of excellence, as applied to our organization, must be understood more comprehensively, because in addition to including quality in our activities, it also incorporates the quality of our people and of their lives in the company, implying high technical standards and stringent ethical and aesthetic standards. It presupposes high-level relationships with our clients, partners, associates and suppliers, as well as among all professionals in the organization. At all times, it urges us to make our companies better than they are and to strive to contribute to the society in which we live. Excellence lies in the horizon. If, for an instant, we believe we have reached it, that is exactly the moment that we missed it. In fact, instead of speaking of excellence, we should rather talk about searching, pursuing, challenging. Such pursuit is reflected as an attitude, a state of mind, which is contagious and self-stimulating. 20

22 The basis on which this culture is defined was set forth in the Carta de Campos do Jordão (Campos do Jordão Charter), a document written in 1970, which still expresses world values, ideals and a vision. It is from this culture, values and core beliefs shared by a community of professionals that Promon draws out its vital energy. Promon s culture is its essence and identity. CARTA DE CAMPOS DO JORDÃO (CAMPOS DO JORDÃO CHARTER) 1_Promon is a professional organization engaged in technical and consultancy services in the fields of engineering and architecture. It performs studies and research, and conducts scientific and technological development activities. 2_Promon s permanent objective is to provide its clients with services of a high technical standard, with strict observance of the principles of professional ethics. 3_Promon is the expression of the merit of its professionals; it is the result of the cooperative efforts of individuals with related vocations aimed at creating conditions for their professional and personal fulfillment. 4_Professional and personal fulfillment will be assured through: a. stimulating creativity and respecting the dignity of the individual; b. providing opportunities for the development and advancement of all, according to the qualifications and merit of each; c. membership in a cohesive, stable working community; d. fair compensation. 5_Participation in the community implies willingness to waive individual interests in the group s benefit. 6_Individual participation in the company s management is to be encouraged. The search for a consensus shall be present in the decision-making process and in the exercise of authority. 7_All Promon s professionals, and they alone, shall have access to ownership of the company s equity capital. As an independent organization, Promon shall enter into no commitments that might detract from its impartiality in the examination of technical and economic matters with which it is entrusted. 8_While constituting an indispensable prerequisite for the company s stability and development, profit is nevertheless not one of its basic objectives. It is, rather, a means for the achievement of its ends. Campos do Jordão December

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24 BUSINESSES PROMON ENGENHARIA PROMONLOGICALIS LATIN AMERICA TRÓPICO PROMON NOVOS NEGÓCIOS 23

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26 Promon Engenharia achieved outstanding results in 2009, despite the economic scenario which adversely affected many players in the market in which it operates. The revenue totaling R$ 680 million exceeded the budget forecast and represents a growth of 75% as compared to The global crisis, however, caused major impacts on many segments. It was a year marked by competitive bidding process cancellations, and delays and changes to the profile of contracts which affected nearly all clients. Despite this context, Promon Engenharia s portfolio backlog amounted to as much as R$1.6 billion by the end of 2009, slightly above the R$1.5 billion recorded in the previous year. REVENUE R$ million SOURCE: FINANCIAL REPORTS PORTFOLIO Such positive performance is greatly due to the Oil & Gas Industry. Petrobras share in the company s revenue, which has always been historically meaningful, continued to be significant in 2009, owing to major contracts awarded to the oil refining sector. Among the highlights of the sector, all following the EPC model (engineering, procurement and construction), are the ongoing activities at the Delayed Coking Unit of the Presidente Getúlio Vargas Refinery (Repar), in Araucária (Paraná), and in the Hydrotreatment Unit at the Henrique Lage Refinery (Revap) in São José dos Campos (São Paulo). Other major projects were the Hydrodesulfurization Units at Revap and at the Alberto Pasqualini Refinery (Refap) in Canoas (Rio Grande do Sul), and the Sulfur Removal Unit at the Capuava Refinery (Recap) in Mauá (São Paulo). By the end of 2009, Promon Engenharia won the bid for the project of the Vacuum and Atmospheric Distillation Unit of the Petrochemical Complex in Rio de Janeiro (Comperj), whose activities will start in Petrobras satisfaction level relative to Promon Engenharia, historically high, rose even further in 2009 and the company assumed a more solid positioning relative to Progefe, Petrobras Engineering Supplier Management Program an evaluation system whose results are decisive for the supplier qualification in respect of future projects. In all the items evaluated, Promon obtained rates significantly higher than those required for qualification, reaching the maximum score in management and engineering. Although at a slower pace, important projects maintained their momentum in the other sectors in which the company is active. As regards Fosfertil, a Fertifos consortium-controlled company, Promon Engenharia started in 2009 the expansion of the third plant of fertilizers in Uberaba (Minas Gerais) and conducted engineering studies and budgeting analysis for the 25

27 construction of the new production unit in the city of Patrocínio (Minas Gerais). In the relationship with Fosfertil, it is worth mentioning the contract mode adopted, based on an alliance structure, which allows decisions, risks and gains arising out of the investment cost reduction to be shared between both companies, so as to establish an even stronger partnership. For the Cosan Group, the largest sugar and ethanol producer in the country, the company completed the construction of the new plant in the city of Jataí (Goiás). Regarded as one of the most modern units for the production of ethanol and energy generation worldwide, it is a highly automated plant, with reduced waste generation and low consumption of water. The schedule of the project aimed at replacing a cogeneration unit of Usina da Barra facility in Barra Bonita (São Paulo) underwent some changes owing to the global crisis and will be completed by mid In the steel and metal sectors, Promon Engenharia continues to perform the process engineering and infrastructure contract with Companhia de Alumina do Pará (CAP) in which Vale is the major shareholder. In all its initiatives, Promon Engenharia has always relied on advanced environmental practices, with the development and modification of processes and procedures to minimize the impact and capitalize on the concepts of ecoefficiency. The construction sites, for example, incorporate differentiators such as rainwater harvesting and use, and energy-saving systems, among other innovations. The assessment of the environmental risk posed by each project, according to requirements beyond the mere compliance with the applicable legislation, has begun to be a decisive criterion for any contract to be accepted also marked the start of a new field of activity for Promon Engenharia. The company conducted studies to enlarge its portfolio in the Oil & Gas Industry, traditionally concentrated on refining projects, in the area of oil extraction and production. As the result of such studies, especially driven by the potential of opportunities related to offshore oil extraction activities, an action plan has been developed to be implemented in the period of An initiative associated with this market, launched in 2008, is the equity investment in DeepFlex, a manufacturing company of flexible pipes used in the oil and gas production and distribution market. In 2009, the US-based company broke into new markets and regions and has been negotiating contracts for testing its products with Petrobras. The implementation of a new production unit in Brazil is in the pipeline, provided that the said tests are approved. 26