Message from the President
and CEO of Odebrecht S.A.
We made decisive progress in 2006 towards surpassing the Vision we set for 2010. Outlined in 2000, the Group’s Vision for the coming decade was an expression of our dream, the level we wanted to reach ten years from then. However, in 2005, when
the performance achieved thus far made that dream a possible reality, our Vision was transformed into Objectives.
Some milestones on the path towards our 2010 Objectives included the renewal of our leadership in late 2001 at the holding company and our businesses as part of the process of planned succession, and the implementation of a new corporate governance model in 2002, when we established the three stages of our “itinerary”:
• consolidating the foundations for growth – from 2002 to 2004;
• growing existing businesses and achieving these goals early (by the end of 2007);
• formulating new strategies and creating new businesses – from 2008 to 2010.
In the last five years, we have obtained over half the projected results for 2010, which include earning gross revenue of USD 15 billion by that year. In 2006, we posted gross revenue of BRL 24 billion (USD 11.2 billion), which represents average annual growth
of 17% during that five-year period, as the following table shows:
In Engineering & Construction, this growth will be maintained as a result of a fresh cycle of opportunities for infrastructure services and businesses in the world market. The highlight here is the promising Brazilian scenario, due to the critical need for investment in the energy and transportation sectors. The willingness of governments and businesses to take part in this tremendous undertaking has already led to results in 2006 that will tend to grow in 2007 and the years to come.
In Chemicals & Petrochemicals, the consolidation of Braskem through the acquisition of companies and industrial plants, as well as strategic partnerships with Petrobras in Brazil and Pequiven in Venezuela to build new industrial projects have increased our access to raw materials and our output of products, while helping maintain our commanding share of the Latin American petrochemicals market. The agreement signed in March 2007 to acquire the Ipiranga Group’s petrochemical assets in partnership with Petrobras was an important step towards achieving an outstanding position in the world market.
In all three of Odebrecht’s business areas, several factors have resulted in well-exploited opportunities and a substantial increase in results derived from international operations. These include greater selectivity when choosing investments, the pursuit of more synergy among our businesses, and the effective application of the Odebrecht Entrepreneurial Technology, which sharpens our entrepreneurs’ focus on ensuring their clients’ utmost satisfaction.
The achievements realized thus far have impelled us to visualize new horizons beginning in 2008, based on the awareness that, with an increased feeling of wealth and a strong sense of environmental responsibility, we must concentrate our internal strengths on the needs of a global market. In this context, our main challenge will be developing the new skills required to meet constantly changing demands on the basis of a changeless foundation: the principles, concepts and values of our entrepreneurial philosophy, which generation after generation of our teams consistently put into action.
A new generation of entrepreneurs groomed in all the countries where Odebrecht is present will play a decisive role in shaping these new horizons, which is a natural step in the cycle of constant renewal that makes any business thrive. United by perennial values and common goals, bolstered by the experience and wisdom of the preceding generations, and structured as a real federation of innovative entrepreneurs who are fully qualified to take responsibility for their businesses, in relation to their clients, shareholders, team members, communities and environment, this new generation is prepared to make Odebrecht a prominent member of the group of major global organizations.
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