Message from the Chairman

ETH Bioenergy’s Eldorado factory, in Mato Groso do Sul, Brazil

The Survival, Growth and Perpetuity of any company cannot be achieved in isolation. Context is key. Under normal free-market conditions, businesses can only subsist as long as their products and services meet the expectations of the societies that use them. No company can grow without contributing to the growth of society.

Nearly three decades ago, the rapid globalization of the world economy introduced a new dimension: clients could be serviced wherever they were located, but in order to satisfy them, best practices of global standards are fundamental. It is also clear that social well-being and political stability are crucial for both local and global growth.

Today, we are facing a new phenomenon. Ever since the alarm about global warming was sounded loud and clear, the environmental consequences of productive activities and the use of goods and services have become intrinsic and decisive elements of the work process.

In order to stay on the path of perpetuity, businesses must internalize economic, social, and environmental sustainability as a core value that is inseparable from their own survival; as a self-requirement that comes before the legal requirements of governments and the requests of their clients. This stance is not about anticipating the market and staying a step ahead; it is
all about understanding that neither markets nor companies can exist without it.

No entrepreneur with the slightest sense of responsibility would fail to act on behalf of causes that affect their industry’s survival. So now, we have a cause that is equally important to all sectors and industries: the future of humanity. A commitment to this cause presupposes taking two measures:

1. qualifying the development that our companies induce by incorporating sustainability
    as an irrevocable corporate undertaking;

2. responsibly exercising our entrepreneurial mission while joining forces and networking
    with all players in the public and private sectors to find ways to respond simultaneously
    to economic, social and environmental issues – including regions like the Amazon,
    where the lack of alternative sources of income for the people who live and reside there
    and their lack of knowledge and expertise about the creative use of natural resources is   
    clearly the strongest stimulus for the muddled exploitation of the rain forest.

“Ever since the alarm about global
warming was sounded loud and clear,
the environmental consequences
of productive activities and the use
of goods and services have become
intrinsic and decisive elements
of the work process.

Responsible leadership

Putting words into action takes discipline and persistence. Transforming ideas into
an entrepreneurial culture that is effectively internalized and applied requires determination
and tireless effort. However, for those who have chosen to shape the future, giving up immediate results that present social-environmental risks and investing their own resources
in community development becomes as natural and logical as investing in technological
research and development.

Survival, Growth and Perpetuity is the path that the Odebrecht Group chose to follow
some 64 years ago. Over time, sustainability has become a fundamental touchstone for
our businesses and relationships. As this report demonstrates, it was no different in 2007.
This is made clear by:

• Our financial indicators;
• Our social programs, which our teams carry out in partnership with governments, social   organizations and private citizens, and are focused on improving the educational and health
  conditions of the regions in which we are present;

• Our environmental practices, with the most significant example being the engineering
  developed for the Santo Antonio hydroelectric plant on the Madeira River, which is
  considered a model of social-environmental corporate responsibility.

Striving for sustainability and perpetuity, we have attained the leadership positions that our companies currently enjoy in each of their sectors. We will stick to this path, living up to the responsibilities that such leadership entails, while learning the lessons that are indispensable to the ongoing practice of sustainable development through the day-to-day fulfillment of our
commitment to the future.

Emílio Odebrecht