TABLE OF CONTENTS · 65 YEARS OF HISTORY 1990 2000 2010 2017 1990 Vale’s EFVM Railway Tunnels...

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ANNUAL SUSTAINABILITY REPORT 2016

Transcript of TABLE OF CONTENTS · 65 YEARS OF HISTORY 1990 2000 2010 2017 1990 Vale’s EFVM Railway Tunnels...

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ANNUAL SUSTAINABILITY REPORT

2016

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TABLE OF CONTENTSMessage from the Board of Directors ..........................................................................................2

Message from the Chief Executive Officer ..................................................................................6

Mission, Vision and Values ...........................................................................................................9

Our Beliefs .....................................................................................................................................9

65 years of history ......................................................................................................................10

Markets in which we operate .....................................................................................................12

Solutions for all stages of a project ...........................................................................................14

Best practices ..............................................................................................................................16

Strategic presence ......................................................................................................................18

Recognized excellence ................................................................................................................19

Mobility and Urban Development .............................................................................................20

Ports ............................................................................................................................................22

Highways .....................................................................................................................................24

Sanitation ...................................................................................................................................28

Multisites and Private Buildings ...............................................................................................32

Public Buildings ..........................................................................................................................36

Oil and Gas ...................................................................................................................................38

Energy ..........................................................................................................................................40

Industry and Mining ...................................................................................................................44

Light Industries ...........................................................................................................................46

Profile of our employees ............................................................................................................48

Sustainability ..............................................................................................................................50

Concremat in numbers ...............................................................................................................52

Index - GRI ....................................................................................................................................53

Concremat Addresses .................................................................................................................55

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Yunbo ChangChairman of the Board of Directors after 2017

THE STRENGTH OF PARTNERSHIPDuring 2016, when seeking a partner in Brazil, China Communications Construction Company (CCCC) chose Concremat Engenharia e Tecnologia. The choice was made based on the fact that Concremat was designed to be a great company, and this decision has guided the 65 years of its history - a company founded inside an engineering and architecture college, adopting the highest engineering standards, taking a clear natural growth path that has helped it maintain the culture of entrepreneurship and technical commitment. As a foreign company that plans to grow as an investor in the infrastructure sector in the South American market, CCCC fully recognizes the strategic importance of being well located and chose Concremat as our local platform, and we now count on the expertise of Concremat.

It is part of our strategies to create an integrated regional organization (CCCC South America Regional Co.) among the companies of CCCC Group, in order to provide consolidated services to our customers in the market, not only as contractors, but also as developers, investors and operators in the Brazilian infrastructure sector.

There are great opportunities for investment in the infrastructure sector in the country. CCCC has set up a new committee, along with Concremat, which reviews all project opportunities. CCCC will rely on Concremat to help it deliver the projects in which CCCC decides to invest. Our mission is to provide better quality services to our customers.

We have strong confidence in the Brazilian market; we have strong confidence in Concremat and in its team. Confidence has made the marriage between CCCC and Concremat possible, and such confidence will allow us to reach greater heights. Together.

TOWARDS NEW CHALLENGEST h r o u g h o u t 2 0 1 6 , C o n c r e m a t intensified its search for economic and financial balance, and adjusted its teams to the new business reality and face the difficult situation that Brazil is going through, safely and with stability.

In fact, last year, we experienced the enormous challenge of the company continuing to trade given the difficult circumstances in Brazil. The political and economic turbulence in Brazil has affected the market and generated a significant reduction in the volume of investments in infrastructure.

In the midst of this scenario, we began a new and fundamental strategic partnership, which was made possible by China Communications Construction Company (CCCC) acquiring 80% of Concremat’s shares, consolidated in January 2017, when we were 65 years old.

From now on, we will face new challenges to reach even higher levels. Especially looking for investment projects for the controlling partner’s portfolio and maintaining our core business of project management at a high standard of performance.

Within these projects, portfolio activities will certainly be expanded over the coming years with a possible participation in EPC contracts, with our technical expertise and capacity to carry it out. With the new partnership, we will also look for the best opportunities for our parent company in other Latin American countries.

We must grant the controlling partner confidence in keeping Concremat operating with a majority of Brazilian professionals, benefiting from its technical capacity and local expertise with the experience gained over this 65-year period. I wish great success to the new Chairman of the Board, Yunbo Chang, certainly, together we are all on a prosperous course in this new phase for Concremat.

In my new role as Vice-Chairman of the Board of Directors, I will unconditionally support the new chairman in business development in Brazil and Latin America.

I would like to conclude with a special thanks to all the employees and clients with whom we have worked in recent years. You are the spark for this company.

Mauro Viegas FilhoChairman of the Board of Directors up to Dec/2016

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A trajectory built on the solid foundations of competence and confidenceOver the last 65 years, Concremat has consolidated itself as one of the most important engineering companies of Brazil, relying on the continuous quest for innovation and on a highly qualified teams as a way to achieve excellence in its services. Even with a scenario of economic and political uncertainties in the country, in 2016, the company was placed first in the category “Projects and Consultancy” of the ranking “500 Great Brazilian Engineering Companies”.

Concremat’s legacy, built on solid foundations of expertise and trust, has attracted the attention of China Communications Construction Company (CCCC), which has acquired an 80% stake in Concremat Engenharia e Tecnologia.

The year of 2017 is already a milestone in our history. The union between the experience in engineering projects in Brazil and the economic strength of the CCCC group will allow for the expansion of our activities and greater competitiveness thus leading to new levels of excellence.

To go further, we maintain our commitment to the quality of our services, counting on the capacity and commitment of our workforce to continued innovation, always with an eye on the future and on behalf of our clients.

Proud to be part of CCCCRanked 3rd in the international ranking of the Engineering News-Record, CCCC is one of the world leaders in the segments of infrastructure projects and construction, with an experience of over 100 years.

The Chinese conglomerate participated in the construction of almost all medium- and large-sized port terminals in China. The group is among the main constructors of ports and railways in the world, and leads the segment of dredging and manufacture of cranes for containers.

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Board of Directors

Honorary President Mauro Ribeiro Viegas

Chairman of the Board of Directors Yunbo Chang

Vice-Chairman of the Board of Directors Mauro Ribeiro Viegas Filho

MembersEduardo Centola

José Francisco Gouvêa Vieira Li Lin

Chief Executive Officer

Mauro Ribeiro Viegas Neto

Executive Vice President Arthur Oliveira Costa Sousa

Corporate Vice President João Carlos de Noronha Viegas

Business Development Vice President Eduardo Salgado Viegas

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Mauro Viegas NetoChief Executive Officer

CONTRIBUTING TO A BETTER WORLD

We have reached the end of 2016 and have significant changes in our profile and organization compared to the start of the year.

In the commercial-operational scope, we have gained new customers and increased the participation in contracts with higher added-value, indicating our progress in the ability to better understand our customers and offer technically innovative and efficient solutions with the best technical staff. In June 2016, we celebrated two market recognitions: 1st place in the national rankings for engineering consultancy (the magazine “O Empreiteiro”) and 2nd place among the most innovative companies in the engineering sector by the newspaper “Valor Econômico”, in the annual innovation.

In an economic scenario that is still very restrictive, we have continued to train teams and improve our operational methodologies. After all, we believe that our uniqueness is increasingly associated with our culture of developing talent and refining our methodologies - such as the dissemination of Building Information Modeling (BIM), Lean Construction and, in the Environmental area, the turn-key service. We have also kept our ten regional offices, located in the main capitals, that allow us to offer our clients greater efficiency and local knowledge, both technical and market.

Within South America, we have intensified our prospects and won new contracts. Our economic-financial performance for the year was below expectations. On the other hand, strategic decisions taken were associated that must be reversed with more robust results in the coming years.

We decided to focus on the design, management, EPCM, quality control, construction, inspection and environment activities and discontinue our maintenance services to Utilities companies, since this activity requires another operational and organizational model.

Another important achievement in 2016 was to join forces with a strategic partner. The requirements of both sides were high: sharing a common business vision, enabling access to capital, and bringing business synergies. For more than 12 months, we have been immersed in understanding CCCC’s profile and intense negotiations with its leaders, who impressed us greatly with their technical capacity, long-term vision and for wanting Concremat to remain as a national company, preserving the Core business and its customer-oriented culture.

In January 2017, CCCC acquired 80% of Concremat Engenharia. With the transaction completed, Concremat received a cash injection of approximately R$ 60 million, arising from credits that the company held with related companies, which strengthened the company’s balance sheet.

In this context, we started 2017 with our teams focused on making an impact with our clients in the projects in which we operate and in prospecting for new opportunities. At the end of the first six months, we are completing a review of long-term planning and positioning given both the profile and strategy of the new controller and the current business environment.

What can our current and future customers expect from Concremat in this next 2017-2020 cycle?

• An organization that preserves the legacy of a persistent family business culture to create a positive impact on the challenges of its customers, valuing the technical expertise and encouraging a strong sense of ownership, innovation and commitment to the client’s results.

• The positive influence and power of CCCC - an Asian giant that has achieved a great deal in the engineering and construction sector and has an immense respect for local knowledge -, promoting an intense technical and management exchange and access major projects.

• A company that offers its customers a unique combination of experience and methodology at competitive prices.

• A group of individuals determined to improve the standard of quality and efficiency of investments in productive capital and infrastructure in Brazil and Latin America, defending a business environment of free competition and transparency.

These characteristics, together with our strategy of sustainable growth, are the foundation for our customers and employees to create value and positively impact the social-environmental development in the communities in which we operate.

This is our commitment and contribution to building a sustainable and better future for everyone.

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MISSIONWe take on challenges with courage and competence, providing integrated engineering and management solutions to our customers, businesses and the society, always making our best contribution toward the sustainable development of the country.

VISIONTo be a market reference in the areas in which we operate and one of the best companies to work for.

VALUESCOMPETENCETechnical capacity, processes and a differentiated approach in delivering solutions.

COMMITMENTTo be committed to the development of people, to the satisfaction of the clients and shareholders and to long-lasting results.

TRUSTTo develop relationships of confidence, based on responsibility and transparency.

CREATIVITYFostering an environment conducive to differentiated thinking, implementing innovative solutions.

AWARENESSActing ethically and responsibly by promoting the safety of people and sustainability in our day-to-day business.

COLLABORATIONWorking as a team, sharing experiences at all levels, maximizing knowledge and results.

OUR BELIEFSWe believe in the transforming power of Engineering, carried out with competence, innovation and tenacity.

We believe in the ability of our people to create solutions, people who assume their responsibilities courageously. Our business, the market, and the speed of today’s society create an environment that is permanently challenging, to which we respond by overcoming obstacles, which is already our trademark.

Our work is our mission, and often requires us to do what people say is impossible. We like the challenge of creating something we do not know how to do yet, using what we have learned.

We believe in the power of relationships and bet on them. We are talking about relationships of trust and the spirit of cooperation. In the relationships we establish, both with our employees and partners and with our customers, we are in 100% and transparently so. We are not afraid to admit our mistakes and grow from them.

The quest for quality has given rise to what we are and so it is in our DNA. We are aware of our social role and we renew our commitment every day, first and foremost with ourselves, to keep on doing our very best. We want to contribute decisively to raising the standard of quality and efficiency of investments in productive capital and infrastructure in Brazil, as to ensure prosperity and sustainability.

We are Concremat.

We are flexible, hardworking, austere and, above all, human.

We are relentless in our search for opportunities.

We have 65 years of history and are very proud of our legacy to the society and to this country.

And we want to do even more.

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65 YEARS OF HISTORY

1990 2000 2010 2017

1990Vale’s EFVM Railway Tunnels

1992Linha Vermelha

1994Sanitation Program

1999Fortaleza Subway

2000Ford Bahia

2001Sewage System in SP

2003Concremat is elected “Engineering Company of the Year”

2004Alunorte Expansion

2007Manaus Igarapés Sanitation Program

2008International operations

2009Concremat Environment

2010Schlumberger Brazil Research and GeoScience Center

201260 years and national and international expansion

2015BMW Group: German Project Excellence Award for excellence in project management in the construction of the Brazilian factory

2016Leading company in the Brazilian Engineering Ranking in the category Projects and Consulting

2017 Concremat Engenharia e Tecnologia becomes part of the China Communications Construction Company - CCCC group, one of the world leaders in the segments of construction and infrastructure projects

1992The Rio 92 conference takes place to promote sustainable solutions on behalf of the poorest populations.

1994Brazil has a new currency: the Real.

1997The Petroleum Law now allows other Brazilian companies to operate in all of the oil chains.

2007Brazil is confirmed by FIFA as the venue for the 2014 Football World Cup.

2007Launch of the Growth Acceleration Program (PAC).

2008Launch of the Sustainable Amazon Plan, which sets guidelines for the sustainable development of the Amazon Region.

2009Gas discovery in Santos reserve.

2010The southern section of the São Paulo Metropolitan Ring-road opened, enabling road connections between the interior and the south of Brazil to the Port of Santos.

2012Brazil becomes the 6th largest economy in the world.

2014The World Cup in Brazil.

2016Rio de Janeiro hosts the first Olympics in South America.

1950 1960 1970 1980

1964Cia. Siderúrgica Nacional

1965Guanabara Terminal - Tegua

1968Petrobras Headquarters

1969Conceiçãozinha Terminal - TEFER

1952The Company was established

1953Maracanãzinho Arena

1955Marinha Mercante School

1958New partners entered

1959Laboratory in Brasília

1970Investment in Technology Diversification of activities

1972Auracária Refinery - REPAR

1973Ports in Santarém Altamira and Itaituba

1984Transamérica Hotel

1986Inmetro Accreditation

1987Camaçari Petrochemical Complex

1952Creation of the BNDE (National Bank of Economic Development), currently BNDES, to support projects and development of Brazil.

1954Getúlio Vargas formed Petrobras.

1957Construction work of Brasilia started.

1959The Rio-São Paulo airway started operations, formed by the companies VARIG, Cruzeiro do Sul and VASP.

1960Inauguration of Brasília.

1964Formation of the Central Bank of Brazil, to carry out currency exchange on behalf of public companies and the National Treasury.

1968AI-5 Signed.

1969Start of construction work on the Rio-Niterói bridge.

1970The Brazilian currency is again called the Cruzeiro.

1972Inauguration of the Transamazon Highway.

1974Inaugurated Rio-Niteroi bridge, 14km long.

1975Start of construction work on the Itaipu Hydroelectric Power Plant, the largest power generating plant in the world.

1976Inaugurated the Imigrantes Highway, which links São Paulo to Santos.

1982Inaugurated the Itaipu Hydroelectric Power Plant.

1983The people go to the streets to demand elections.

1984Won the right to vote.

19891st president elected after 29 years of dictatorship.

In Brasil

At Concremat

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Light IndustriesConcremat’s portfolio in the segment includes automotive, fabric, cosmetics, beverage, pharmaceutical, telecommunications and food plants. We work from the feasibility study up to the commissioning stage of a new plant and we develop customized solutions, which can cover just one stage or the entire project, such as Design-Build, EPC and EPCM.

Public BuildingsWith a presence throughout Brazil, Concremat is able to provide services for various types of public enterprises, such as buildings, housing, parks, schools and hospitals, among others. We offer all technical support needed so that the social investments are made with the highest quality, on time and within the expected cost.

EnergyConcremat both manages and carries out the engineering of the owner and in the environmental studies of transmission lines and future hydroelectric plants to be developed in Brazil, offering services in the alternative energy and solar energy sector. Our expertise in the sector also includes thermoelectric plants in operation or being deployed.

Industry and MiningConcremat offers its experience in very complex projects in the mining, pelletizing, metallurgy, steel and cement sectors, carrying out basic projects and managing the construction work, improvements and expansion, among other services.

Oil and GasConcremat is the main supplier of studies, projects and management in the natural gas distributor market in Brazil. The services include the inspection of pipeline construction, as well as the management of large petrochemical plants. The company carries out integrated environmental studies for the onshore and offshore oil and gas market, as well as the basic and detailed engineering projects for biogas purification plants.

MARKETS IN WHICH WE OPERATE

SanitationWith extensive experience in water supply systems, sewage collection and treatment, urban drainage, water resources and solid waste, Concremat is one of the main suppliers of master plans, studies, projects and management in the sanitation and water resource market in Brazil.

Multisites and Private BuildingsParticipating in projects and the construction work in the hotel, banking, shopping malls, arenas, commercial and residential sectors, Concremat works from the conception to completion, managing and supervising complex programs that involve a large number of stakeholders. Work in the multisites is a feature. It offers integrated services with a flexible composition, adapted to the needs of each client. We have state-of-the-art technologies that allow the centralization and coordination of a large flow of information, generated by teams allocated in multiple points simultaneously.

TransportWith a broad portfolio of projects in the segment, Concremat Engenharia has specialized technical expertise in highways, railways, subways, ports, airports and waterways and in the integration of transportation and logistics studies.

Mobility and Urban DevelopmentOperating throughout Brazil, our teams provide advisory engineering services for various types of projects and develop studies for public projects and Public-Private Partnerships. We help define the best composition of interventions, from the perspective of urban, social and environmental aspects, organizing drainage, sanitation, mobility, recovery and environmental preservation and urbanization of favelas.

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IMPLEMENTATION

Implement the Project

• Detailed design• EPC• EPCM• Inspection• Supervision• Project Managing• Project Quality Control (CQP)• Environmental Management• SSO Management• Implementation Management• Commissioning• Program Management• Expediting• Owner’s Engineering• Multisite management• Independent certification/verification for

PPPs and concessions

• Environmental Management

• Environmental supervision and inspection of works

• Social Management

• Implementation of environmental programs (monitoring, social communication, environmental education etc.)

• Assistance for sustainability certifications (LEED, AQUA)

• Managing the sustainability of the work

• Geotechnical Investigation and field and laboratory testing

• Consulting in Construction technology• Technological Testing• Technical supervision and quality control

of works• Geotechnical and structural

instrumentation• Quality control of foundations• Equipment and structure production and

assembling inspection• Non-destructive testing (NDT) on

structures and equipment• Dynamic evaluation of structures• Building performance assessment• Product certification

OPERATION

Operate, maintain and improve the

investment

• Maintenance planning

• Maintenance Management

• Operations Management

• Services Management

• Implementation of environmental programs (monitoring, social communication, environmental education etc.)

• Implementation of the Environmental Management System (SGA)

• Sustainable Development Plan (PDS)

• Management of Operating licenses (LO)

• Inventory and monitoring of greenhouse effect gases (GEE)

• Management system for asset maintenance

• Inspection and instrumentation of civil and geotechnical structures

• Testing, evaluation and design of road surfaces

• Compliance with the dam safety law• Failure analysis on industrial

equipment and civil engineering structures

• Inspection of equipment (Tanks, Pipelines, NR-13)

• Non-destructive testing (EVS, LP, PM, ME, US C-Scan, MFL)

• Certificate of commissioning

• Inspection of decommissioning for civil engineering equipment and installations

• Preservation of assets (layup of machines, equipment and installations)

CLOSEOUT

Eliminate negative

impacts at the end of the

investment’s life cycle

• Decommissioning Plan

• Reconstruction studies of degraded areas

• Legal documentation

• Studies for decommissioning and restoration of degraded areas

• Environmental Remediation Project

Concremat can participate in all the phases of a project, from the analysis - to identify and evaluate opportunities - to the closure, helping to eliminate negative impacts at the end of the investment.SOLUTIONS FOR ALL STAGES OF A PROJECT

• Development Plans

• Master Plans

• Market studies

• Location studies

• Inventories of resources

• Risk assessment

• Assessment of business

• Technical and Economic Due Diligence

• Environmental and social risk assessment

• Strategic Environmental Assessment (AAE)

• Socio-environmental, technical and economic due diligence

ASSESSING ALTERNATIVESClarify development alternatives and the deployment strategy

• Conceptual Design

• Preliminary feasibility studies

• Preliminary assessment of implementation costs

• Modeling

• Organizational and institutional studies

• Modeling of PPP and concessions

• Social and environmental studies on location and technological alternatives

• Preliminary assessment of implementation and operation social and environmental costs

• Assessment of environmental liabilities and remediation projects

• Studies of building material deposits and their suitability

• Geotechnical studies

ENTERPRISE DEFINITIONDetail out the project and define viability

• Front-End Engineering Design (FEED)

• Planning of implementation

• Licenses for implementation

• Budgeting• Technical and economic

feasibility study (EVTE)• Management model• Consulting in Design-

Build, EPC and Built to Suit

• Owner’s Engineering (certification/verification of studies and projects)

• Assistance for the environmental licensing process, organizing public hearings

• Environmental studies for the advance environmental license (LP) and implementation license (LI) - EIA, RIMA, PBA etc.

• Land registration, evaluation and management

• Water flow and soil tests to assess potential contamination

• Local content certification

• Building performance analysis studies

PHASESClient Objectives

COMPANIES AND ITS SERVICES

OPPORTUNITY ANALYSISIdentify and evaluate business strategy opportunities

EN

GE

NH

AR

IA E

TE

CN

OL

OG

IA

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180.4R$

Equity

million826.4R$

Gross Operational Revenue

million

In 2016, Concremat Engenharia e Tecnologia

was ranked as the largest consulting engineering company in Brazil, and

the numbers confirm this recognition

3,020employees

CORPORATE GOVERNANCEConcremat values collective intelligence built from management focused on innovation. Therefore, corporate governance is a crucial tool in our organization. Governance structure is based on three pillars: The Board of Directors, the Executive President and the Executive Committee. The Board has support from the Strategic and New Businesses, Auditing and Risk, Human Resources, Ethics, Sustainability and QSEH (Quality, Safety, Environment and Health) Committees.

ETHICS AND COMPLIANCEAt Concremat, we have adopted an ethical position in every single relationship we have. In 2016, the Operational Compliance Directive was developed, which sets out the standards for conduct and best practices to be followed by all employees within their respective functions, in order to disseminate and institutionalize a culture of compliance and transparency within Concremat Engenharia. In 2017, one of the main initiatives underway is the development of the Compliance policy, as well as a review of internal procedures. After the procedures were issued and alignment with the CCCC’s international compliance program, training will be scheduled that will involve specific measures for leading employees and sectors. The measures also include the implementation of an anonymous reporting channel and a vendor assessment tool.

COMMUNICATION AND AUDIT CHANNELSOpinions, criticisms, suggestions and complaints are treated with respect and confidentiality. The ombudsman and the other channels are available to all staff members, suppliers, clients and even third parties and they are paramount for Concremat to operate in a more transparent manner, socially responsible management and committed to its values and ethical principles. We assess each case and go through it with the sectors responsible, always impartially.

BEST PRACTICESWe believe that day-to-day management, focusing on innovation and valuing collective intelligence, is the secret to achieving good results.

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Concremat Engenharia e Tecnologia is headquartered in Rio de Janeiro and has branches strategically located in nine Brazilian capitals - São Paulo, Belo Horizonte, Vitória, Brasília, Fortaleza, Recife, Salvador, Manaus and Porto Alegre. Internationally, we operate in Mozambique, the Dominican Republic, Paraguay and Bolivia.

STRATEGIC PRESENCE G4-5 G4-6

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RECOGNIZED EXCELLENCEThe year 2016 brought important achievements to Concremat, where our service excellence was recognized in four Brazilian awards.

1st place in the Ranking of the 500 Largest Construction and Engineering Companies in Brazil 2016

Concremat Engenharia was first in the ranking, prepared by O Empreiteiro magazine, in the Projects and Consulting category, being recognized as the main advisory engineering company in Brazil.

Valor Inovação Brasil 2016

The ranking, promoted by the journal “Valor Econômico”, awarded Concremat Engenharia second place in the publication’s Engineering and Infrastructure section.

2016 Época Business yearbook 360°

The award highlighted Concremat Engenharia in the Services category, ranking the company in fourth place in Social Responsibility and fifth in HR Practices.

2016 Corporate Architecture Award

Concremat Engenharia won the first place in the Industry-Project category for the “Administração e Laboratórios building” case, work developed for Fresenius Kabi do Brasil S.A.

OUR TECHNICAL APPROACHWe believe that behind every successful engineering service delivered to a client, there exists the combination of three attributes. These are trained teams, well-disciplined and guided by the management, who work within a rational and precise methodology, making use of tools and technology that ensure greater safety, quality and economy in the final result of the work.Contracts in 2016

by region

AM

DF

CE

PE

BA

MG

SP

ES

RJ

RS

Manaus Fortaleza

Recife

Salvador

Belo Horizonte

Brasília

São Paulo

Porto Alegre

Rio de Janeiro

Vitória

2064710

755

Southeast Region Northeast Region Central-West Region South Region North Region InternationalRegional OfficesInternational Offices

MozambiqueMoatize

Dominican Republic

Bolívia Paraguay

Santo Domingo

METHODOLOGY TRAINED TEAMS TOOLS

CONCREMAT MANAGEMENT TOOLS

CONCREMAT MANAGEMENT SYSTEM

CONCREMAT STUDY AND PROJECT

ELABORATION SYSTEM

CONCREMAT INSPECTION SYSTEM

CONCREMAT INSPECTION AND LABORATORY SYSTEM

Certifications: ABNT NBR ISO 9001:2008, ABNT NBR ISO 14001:2004, OHSAS 18001:2007 and ABNT NBR ISO/IEC 17025:2005.

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Line 17 – Gold of the São Paulo Metrô will link the regions of Jabaquara and Morumbi, along a 17.9 km route of elevated routes using a monorail system, which has modern and non-polluting technology. In all, there are 18 stations, a maintenance yard and a fleet of trains that will also serve the Congonhas

airport. Concremat Engenharia carried out specialized technical services, in a consortium, to prepare the executive designs for civil engineering, finishing, visual communication and landscaping of the stations on Section 1 and the Água Espraiada Yard, besides the technical monitoring of civil works.

Concremat Engenharia was chosen to prepare the studies of alternatives to optimize, consolidate and continue the implementation of the first stage of the Várzeas do Tietê Park, which is 25 km long and has an area of 21 km2, covering the municipalities of São Paulo and Guarulhos. The work aims to define the best composition of interventions, from the perspective of urban, social and environmental aspects, organizing drainage, sanitation, mobility, recovery and environmental preservation and urbanization of favelas and implement this linear

park. Concremat Ambiental already participates in the project, carrying out compliance research in the areas suspected of contamination within the limits of the park’s implementation design. The activities were carried out in ten suspected areas to assess soil and groundwater quality since there are potential changes in its environmental quality. The methodology used to carry out the compliance research stage is based on CETESB and ABNT standards, including a sampling plan, sampling, analysis and the interpretation of the results.

ENVIRONMENTAL STUDIES AND RESEARCH TO IMPLEMENT TIETÊ PARKCLIENT: DEPARTAMENTO DE ÁGUAS E ENERGIA ELÉTRICA – DAEE

EXECUTIVE DESIGN OF STATIONS AND YARD – LINE 17 – GOLDCLIENT: COMPANHIA DO METROPOLITANO DE SÃO PAULO – METRÔThe new BRT Metropolitano de Belém, a joint venture

between the Pará state government and the government of Japan, through the Japanese International Cooperation Agency (JICA), will be 10.7 km long, and have a physical infrastructure with integrated bus channels, passenger stations, footbridges, cycle paths and sidewalks, fully urbanized and illuminated, as well as an Operational Control Center. Concremat Engenharia, the leader of an international consortium with two Japanese companies and a national

one, participates in these urban mobility interventions by contracting the integrated services of research, studies, basic and executive projects, bidding, supervision and management of works. The work, groundbreaking in Brazil, includes the preparation of PCA/RCA, design of the Operational Management Model and specifications of the Intelligent Transportation System (ITS), as well as studies, design and Bidding Tender for the public transportation system by bus for the Metropolitan Region of Belém.

STUDIES, PROJECTS, INSPECTION AND MANAGEMENT OF WORKS – BRT METROPOLITANOS DE BELÉMCLIENT: NÚCLEO DE GERENCIAMENTO DE TRANSPORTE METROPOLITANOS – NGTM

Being 13 km long, Line 13–Jade of CPTM will connect the city of São Paulo, starting at Bras Station and going to Guarulhos International Airport, benefiting more than 120,000 people per day. Part of the route will be at ground level (4.3 km), and part elevated (7.9 km). Since 2014, Concremat Inspeções e Laboratórios has

been participating in the project, carrying out concrete and material technological control services in Lots 1, 2, 3 and 4 of Line 13–Jade The work includes installing support laboratories in the construction sites, aiming to sample and test more often, impacting the decision for to continue the process.

TECHNOLOGICAL CONTROL OF CONCRETE AND MATERIALS – LINE 13 – JADECLIENT: CONSÓRCIO CST

MOBILITY AND URBAN DEVELOPMENT G4-4G4-8

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Located in São João da Barra (RJ), Port of Açu is the main port complex under construction in Brazil with the capacity to dock nearly 47 vessels. Concremat Engenharia manages Terminal Petróleo (T OIL) and Terminal Multicargas (T MULT), besides supervising

the breakwater, the shipping channel, the offshore mooring port structures and the multi-use terminal implementation. Management includes engineering project management, planning, monitoring, control, management and the closure of the project.

PROJECT MANAGEMENT AND IMPLEMENTATION – PORT OF AÇUCLIENT: PRUMO LOGÍSTICA GLOBAL

In order to integrate its operations located on five continents, Vale has a network of ports and terminals, many of them connected to its mines by rail. To keep this huge operation in progress, the miner continuously invests in improving its port structures. From January 2014 to January 2017, Concremat Inspeções e Laboratórios was responsible for carrying out onshore and offshore

civil works inspection services, including tests, diagnostics, reports, technical assessments and recovery projects of five Vale port terminals: Terminal de Produtos Diversos, Terminal de Praia Mole and Terminal de Minério, all located in Vitória/ES; Terminal de Ilha Guaíba, in Mangaratiba/RJ; and Terminal Marítimo Portuário Ponta da Madeira, located near to Porto de Itaqui/MA.

VALE PORT INSPECTION, ASSESSMENT AND RECOVERY PROJECTS CLIENT: VALE

The Paraguay Waterway divides South America in two, from Cáceres in Mato Grosso to Nova Palmira in Uruguay. The Brazilian section goes to the confluence with the Apa River and is 1,272 km long. In order to increase waterway capacity, allowing larger vessels to use it, DNIT intervenes in areas where there is more deposition and/or displacement of sediment, hindering navigation, and identifies new areas that may be used as ports, apart from those already along the waterway, improving their management. To that end, the autonomous body contracted Concremat Engenharia

in August 2016 for technical consulting on engineering. The work encompasses general coordination activities, technical advice on the identification and specification of interventions needed in the sections of the waterway that were not be navigable and technical and administrative consulting in the management of obtaining and maintaining environmental licenses for construction work and waterway projects, among others. At the end of the contract, scheduled for July 2019, the Concremat Engenharia team will have produced a total of 223 technical reports.

ENGINEERING TECHNICAL ADVISORY CONSULTING – THE RIO PARAGUAY WATERWAY

CLIENT: DEPARTAMENTO NACIONAL DE INFRAESTRUTURA DE TRANSPORTE – DNIT

PORTS G4-4 G4-8

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The Camiños Vicinales project is part of the Government of Paraguay’s investments in its road system, which is essential for facilitating the flow of products and the population. Interventions, which serve 16 of the country’s Departments, include improvements to existing roads and

branches using as soil coated material and basalt rocks. Concremat Engenharia was contracted in September 2016 to select the consultants to supervise services for the works inspection to repair branches of secondary roads in the Departments of San Pedro, Caaguazú and Caazapá.

Bisecting the state of Rio de Janeiro, Autopista Fluminense holds the concession for the BR-101 in the stretch that goes from the border with Espírito Santo to Rio-Niterói Bridge, totaling 320.1 km, with 174.2 km single-lane highway and 143.9 km in double-lane highway. The concessionaire duplicated another 80 km of the highway. To assess the environmental impacts of the construction processes and those related to

the action of the weather and to seek the best way to mitigate them, Concremat Ambiental was contracted to carry out environmental supervision services during the duplication work. The work is carried out by a multidisciplinary team of environmental experts who, through regular technical inspections, verifies that it complies with the measures and procedures that minimize environmental impacts.

WORKS INSPECTION – CAMIÑOS VICINALES PROJECT – PARAGUAYCLIENT: MINISTÉRIO DE OBRAS PÚBLICAS Y COMUNICACIONES – MOPC

ENVIRONMENTAL SUPERVISION OF WORKS – BR-101/RJCLIENT: AUTOPISTA FLUMINENSE S.A.

W i t h f i n a n c i n g o f t h e I n t e r n a t i o n a l B a n k f o r Reconstruction and Development (IBRD), the 2nd Integrated Project to Manage the State Highways of Bahia (PREMAR 2) aims to promote greater integration between the various regions of the state and with other regions of Brazil by renewing approximately 2,300 km of paved highways identified as priorities. Since June 2016, Concremat Engenharia has been working on the engineering projects that will be

used to tender the works, on a 550.16 km extension, distributed in lots 1 and 2 along the highways BA-262, BA-263, BA-148, BA-152 and BA-156, including collecting data and recommending solutions. The contract also provides for support to supervise the restoration work included in PREMAR 2, Group III, ensuring that the work is carried out in accordance with the agreed quality standards, projects, specifications and contractual term, taking into account established performance indicators.

PREPARATION OF ENGINEERING PROJECTS AND SUPPORT TO SUPERVISE HIGHWAY RESTORATION AND MAINTENANCE WORK – PREMAR 2 PROJECTCLIENT: SECRETARIA DE INFRAESTRUTURA DO ESTADO DA BAHIA – SEINFRA

HIGHWAYS G4-4 G4-8

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Lots 01 and 02 of the Nova Tamoios highway - Caraguatatuba Bypass that will connect the existing Tamoios Highway terminus with the Manuel Hipólito Rego Highway (SP-55), going until borders with the cities of Ubatuba and São Sebastião. In this section, two double tunnels are planned. In June 2016, Concremat Inspeções e Laboratórios was contracted to carry out all the geotechnical instrumentation of the tunnels and landfills, services that are very important for the

safety of the work, mainly during the execution phase, guaranteeing the reliability of the structures and allowing the constant improvement in the performance of executive methods. Among the main services provided are the supply and installation of instrumentation in tunnels and embankments; the operation of instrumentation systems; instrument readings and processing; production of a report of readings; assessment of the performance of the installed instruments and their monitoring.

GEOTECHNICAL INSTRUMENTATION OF THE NOVA TAMOIOS HIGHWAY TUNNEL, CARAGUATATUBA BYPASSCLIENT: SERVENG ENGENHARIA

The Anchieta-Imigrantes System is the main link between the metropolitan region of São Paulo and the Port of Santos and is 176.8km long - the largest in Latin America -, the Cubatão Petrochemical Complex, the industries of ABCD and Baixada Santista. For the highway to be in perfect condition, Ecovias regularly carries out maintenance work and

asphalt recomposition. To ensure that these interventions meet the required quality standards, the concessionaire contracted Concremat Inspeções e Laboratórios to carry out inspections, supervision and quality control services for asphalt and concrete paving works, civil and construction works of new sections of road.

INSPECTION, SUPERVISION AND QUALITY CONTROL OF THE IMPLEMENTATION OF CONSTRUCTION WORK – THE IMMIGRANTS HIGHWAY CLIENT: ECOVIAS

HIGHWAYS G4-4 G4-8

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Seeking to improve the systems for the distribution of treated water and the collection of sewage in São Paulo, SABESP constantly invests in maintenance and the expansion of its network, including ditch backfilling and pavement replacement. One of the company’s premises in these interventions is to audit the quality of the services, materials and products, with a view to achieving qualitative, executive and resource use compliance.

Concremat Inspeções e Laboratórios assists SABESP in this objective by carrying out the technological control of the works in the North Business Unit - Metropolitan Section. SABESP’s contract management software was developed by Concremat. The tool brings together the interventions to be executed and reports on the effectiveness of its realization, generating quality indices that assess the executors of the construction works.

In order to universalize sanitation services in the region of the Jequitinhonha, Mucuri, São Mateus, Buranhém, Itanhém and Jucuruçu rivers, in the northeast of Minas Gerais, comprising all location with a population of between 200 and 5,000 inhabitants, COPANOR has been developing implementation, expansion and improvement of the water supply and sewage systems

of these localities. Concremat Engenharia participates in this project with the provision of management services, technical support and inspection of the works. The work includes coordination, supervision, planning, control and inspection of the activities to implement the works, as well as the technical support in the processes of complying with environmental and land requirements.

TECHNOLOGICAL CONTROL OF WORKSCLIENT: SABESP

MANAGEMENT, TECHNICAL SUPPORT AND INSPECTION OF WORKS AND IMPLANTATION AND EXPANSION OF WATER SUPPLY AND SEWAGE SYSTEMCLIENT: COPASA SERVIÇOS DE SANEAMENTO INTEGRADO DO NORTE E NORDESTE DE MINAS GERAIS S.A. – COPANOR

The implementation and expansion of several new water supply and sewage systems in the São Paulo Metropolitan Region and the Bragantina Region will benefit millions of people after it has been completed. Concremat Engenharia participates in this project, in a consortium, by providing

management and supervision services for important projects. The work also includes planning and physical-financial control; advisory and technical assistance and support to Sabesp to prepare technical packages for bidding purposes and in pre-operation activities of the projects, among other items.

MANAGEMENT AND SUPERVISION OF WORKS RMSP WATER SUPPLY AND SEWAGE SYSTEMCLIENT: SABESP

SANITATION G4-4 G4-8

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Inaugurated in 1939 and located on the Pinheiros River in São Paulo, the Pedreira pumping station fulfills the functions of electricity generation and pumping water to the Billings dam. The Pirapora Dam, located in the municipality of Pirapora do Bom Jesus, was built in 1956 to dam the Rio Juqueri flow and to use them to generate electricity at the Henry Borden hydroelectric power plant. With the objective of drawing up

a plan of interventions for both structures, EMAE contracted Concremat Inspeções e Laboratórios to assess its safety and behavior, in order to determine and classify these anomalies. The work included inspection, field and laboratory tests, the preparation of a mathematical model to assess the structural safety, predict the future behavior and prepare a recovery and instrumentation project.

STUDIES TO ASSESS THE SAFETY AND BEHAVIOR OF CONCRETE STRUCTURES – PEDREIRA PUMPING STATION AND THE PIRAPORA DAMCLIENT: EMPRESA METROPOLITANA DE ÁGUAS E ENERGIA – EMAE

With partial financing from Banco Interamericano de Desenvolvimento (IDB), the Ipojuca River Basin Environmental Sanitation Program will promote the environmental sanitation of the Ipojuca River basin in Pernambuco, through increased sanitation sewage cover and treatment rates of wastewater and

socio-environmental improvements in the basin. The program will benefit 12 cities in Pernambuco. Concremat Engenharia was chosen to carry out, in a consortium, the preparation of a diagnosis, preliminary technical report, basic project and supplementary studies to expand the sewage system of the municipal headquarters of Gravatá.

BASIC PROJECT AND COMPLEMENTARY STUDIES TO EXPAND THE SEWAGE SYSTEM – ENVIRONMENTAL SANITATION PROGRAM OF THE IPOJUCA RIVER HYDROGRAPHIC BASINCLIENT: COMPANHIA PERNAMBUCANA DE SANEAMENTO – COMPESA

SANITATION G4-4 G4-8

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One of the largest retail chains for building materials, finishing, decoration, gardening and DIY, Leroy Merlin has 41 stores in 11 Brazilian states and the Federal District. In 2016, Concremat Inspeções e Laboratórios participated in remodeling and expanding works of the São José dos

Campos unit (SP), auditing the technological control of the spot check, in which a team carries out a sampling survey, at the site - throughout all the constructive steps. The work encompassed foundation, structure and finishing materials, as well inspecting metal structures.

AUDIT OF TECHNOLOGICAL CONTROL – STORE SÃO JOSÉ DOS CAMPOSCLIENT: LEROY MERLIN COMPANHIA DE BRICOLAGEM

MULTISITES AND PRIVATE BUILDINGS G4-4 G4-8

Since 2009, Concremat Engenharia has been developing architectural and infrastructure projects for the implementation of new offices, alterations and adjustments to the layout of administrative areas in the buildings used by Oi

S.A. throughout Brazil. It is a multi-site contract, where services and the execution of projects needs to be quick and needs in-depth knowledge of all interfaces and customer needs. In 2016, projects with a total area of 1,514,358 m2 were carried out.

ARCHITECTURE AND INFRASTRUCTURE PROJECTS FOR OI INSTALLATIONSCLIENT: OI S.A.

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A tourist site and recreation area for cariocas and tourists alike, the Rio de Janeiro Zoo is being revitalized and modernized with new landscapes and scenography and spaces are being set up without barriers that impair the view, allowing an interaction between animals and visitors. Concremat Engenharia participates in the initial stage of the project, being responsible for

the contracting and coordination of architectural and supplementary designs, license management and budget preparation, as well as providing support to the client to contract the construction company that will be responsible for constructing the project. The planning of the construction work considers keeping the zoo in operation, ensuring visits and animal welfare.

PROJECT COORDINATION AND PLANNING OF RIO DE JANEIRO ZOO CONSTRUCTION WORKSCLIENT: GRUPO CATARATAS

Concremat Engenharia was contracted by Varian Medical Systems, the leading multinational manufacturer of equipment and software for oncology treatment, to ensure that the construction work of 80 new radiotherapy centers in several hospitals in Brazil were executed on time and in compliance with all standards and technical requirements. In this partnership with

Varian, Concremat demonstrated its wide capacity of service and how quick it can be mobilized in any region of Brazil. In less than a month from the start of the contract, the entire supervision methodology and supervision services had been developed, and the first construction work for adjustments had been done with the responsible engineers mobilized.

INSPECTION AND SUPERVISION OF WORKS IN RADIOTHERAPY CENTERSCLIENT: VARIAN MEDICAL SYSTEMS

MULTISITES AND PRIVATE BUILDINGS G4-4 G4-8

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Located on Plaza Cayru, in the Comércio district, the historic white-fronted mansion will be fully restored to house the Casa da História Museum in Salvador. Annexed to the museum, a new building will be erected, with ten floors, which will house the Municipal Public Archive. Concremat Engenharia was chosen to provide architectural, urban planning and engineering services

to prepare studies, pre-designs and basic and executive designs of both buildings, including the budgets. The contract also provides for the development of environmental and socio-economic feasibility studies for urban improvements to the Old Center and environmental remodeling of the waterfront in the Stella Maris, Flamengo and Ipitanga sections.

PREPARATION OF ARCHITECTURAL, RESTORATION AND ENGINEERING DESIGNS FOR THE CASA DA HISTÓRIA MUSEUM AND THE SALVADOR MUNICIPAL PUBLIC ARCHIVECLIENT: SECRETARIA MUNICIPAL DE CULTURA E TURISMO DO MUNICÍPIO DE SALVADOR – SECULT

PUBLIC BUILDINGS G4-4 G4-8

Fiocruz, by implementing the new René Rachou Research Center headquarters in Belo Horizonte, aims to expand, develop and transfer scientific knowledge and technology in healthcare, aiming to project Brazil into the context of global technological development. Concremat Engenharia operates in this project providing

management and inspection services of the construction work, among others, with the application of the BIM methodology - Building Information Modeling. The work includes environmental certification support for AQUA-HQE and Procel Edifica and the provision of specialized technical consultancy, including biosafety control.

In September 2015, the renovation works of the TJ-MG–Afonso Pena headquarters building started to modernize the facilities to meet the demands of the TJ-MG. With an area of approximately 54,000 m2 on 18 floors, the building will include 136 cabinets, as well as notary offices and administrative sectors. Concremat Engenharia provides specialist technical services to assist and support the

contract inspection of the TJ-MG refurbishment work. Among the activities performed is the verification that the services performed comply with the respective executive design, technical specifications, calculations, spreadsheet, physical-financial schedule, technical standards and weekly technical reports from a civil, electrical, mechanical and accounting perspective.

MANAGEMENT AND INSPECTION OF WORKS – FIOCRUZ MINASCLIENT: FUNDAÇÃO OSWALDO CRUZ – FIOCRUZ

ASSISTANCE AND SUPPORT FOR THE SUPERVISION OF THE TJ-MG WORKCLIENT: TRIBUNAL DE JUSTIÇA DO ESTADO DE MINAS GERAIS

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With the challenge of reconciling the needs of the Metropolitan Region of Fortaleza with the concept of clean energy and environmental preservation, meeting the expectations of residential, commercial and industrial consumers, CEGÁS began to expand its gas distribution network in the state of Ceará. Concremat was contracted to prepare the designs, aiming to extend the network of pipelines and auxiliary facilities

in accordance with the technical specifications defined by CEGÁS and the Brazilian standards, encompassing health, safety and environmental issues. The work includes preparing the studies and designs to construct and implement gas pipelines to transport natural gas and renewable natural gas, as well as combined City Gate and Gauge Assemblies, involving high automation and telemetry load.

The fifth largest natural gas distributor in Brazil, Copergás implements another large carbon steel connection, this time to take the gas to the interior and outside Pernambuco, extending more than 50 km of the pipeline that previously only went to Caruaru. The new connection went through three more cities, all along

the BR-232 highway: São Caetano, Tacaimbó and Belo Jardim. Concremat Engenharia was contracted, due to its expertise in management and inspection of works within similar complexity and specificity, to inspect the executive design and construct and assemble the Caruaru-Belo Jardim connection.

PROJECTS TO EXPAND THE NATURAL GAS DISTRIBUTION NETWORK AND INSTALLATIONSCLIENT: COMPANHIA DE GÁS DO CEARÁ – CEGÁS

INSPECTION OF THE EXECUTIVE DESIGN, CONSTRUCTION AND ASSEMBLY OF THE CARUARU BRANCH – BELO JARDIMCLIENT: COMPANHIA PERNAMBUCANA DE GÁS – COPERGÁS

ALGÁS, Alagoas natural gas distributor, is implementing its natural gas distribution network in the south of the state. Concremat Engenharia was contracted, through a public bid, to carry out technical inspection services to construct a pipeline from Pilar to Marechal Deodoro and from Penedo to Arapiraca. Construction of the 6” carbon steel Penedo-Arapiraca gas pipeline is being carried out in four stages, with the first and second stages having already completed in a 34 km section. At the end of the project, at

the start of 2018, the project will have a total length of 66 km, starting from the station in Penedo, and going through the municipalities of Igreja Nova and São Sebastião until it reaches the future Pressure Regulation Station (ERP) in the city of Arapiraca. Doubling the pipeline between Pilar and Marechal Deodoro, in carbon steel with 4”, 6” and 8” diameters, with a length of 15 km, it is being carried out in a single stage and takes nine months, and planned to terminate at the start of 2018.

INSPECTION OF WORKS TO IMPLANT A NATURAL GAS INFRASTRUCTURE NETWORKCLIENT: COMPANHIA DE GÁS DE ALAGOAS – ALGÁS

OIL AND GAS G4-4 G4-8

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Located in the state of Ceará, the Pedra Cheirosa I and Pedra Cheirosa II wind farms will have 23 wind turbines, totaling 48.3 MW of power. Since December 2016, Concremat

Engenharia has been providing expediting services, manufacturing processes, inspection and monitoring of loads and shipments of parts of these wind turbines.

With financing from the World Bank, the Energia + project aims to improve the operational and financial performance and corporate governance of Eletrobras’ six distribution companies. The project provides for the implementation of a set of actions to reduce electricity losses, increase collection rates and improve the quality of service provided to electricity consumers. Concremat Engenharia provides

services within the scope of Energia + in the city of Porto Velho (RO) and in the Metropolitan Region of Teresina (PI), carrying out construction work management activities; analyzing supplementary engineering projects; planning the supervision of works; control and monitoring of works; registration of works in the Project Management System and registering consumers, among others.

EXPEDITING THE SUPPLY OF WIND TURBINES – CEARÁ WIND FARMSCLIENT: CPFL RENOVÁVEIS

PROJECT ANALYSIS AND MANAGEMENT OF WORKS – PROJECT ENERGIA + ELETROBRASCLIENT: COMPANHIA ENERGÉTICA DO PIAUÍ – CEPISA E CENTRAIS ELÉTRICAS DE RONDÔNIAS.A. – CERON

Comprising 1,600 km of 230 and 500 kV transmission lines, as well as the construction of 16 substations (4 new and 12 expansions), increasing the reliability of the National Grid (SIN) in Brazil. The project, divided in lots and composed by three concessionaires, established after the three power transmission auctions of the Electricity Regulatory Agency (ANEEL) expired: Transmissora José Maria de Macedo de Eletricidade (responsible for Lot A); Odoya Transmissora de Energia, (with Lot D) and Esperanza Transmissora de

Energia (responsible for Lot E). Concremat Engenharia carries out the engineering services of the owner, monitoring all the stages of the project, such as engineering, supplies and construction, also encompassing environment, land and labor safety. It will be monitored until each sub-stage (substation or transmission line) starts operations, in order to ensure the executive compliance of the designs. Construction work is distributed in the states of Bahia, Pernambuco, Piauí, Rio Grande do Norte and Ceará.

OWNER ENGINEERING – DENISE PROJECTCLIENT: BROOKFIELD

ENERGY G4-4 G4-8

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The implementation of the Paranaíta-Ribeirãozinho transmission line and associated facilities aims to complete the electricity transmission system to connect the Teles Pires hydroelectric complex, increasing the reliability, stability and operation of the National Grid (SIN). The Paranatinga-Canarana transmission line will strengthen the electricity grid in the Center-west region. Concremat Ambiental was hired to carry out specialized licensing and

environmental regularization services, as well as consulting and environmental advice in both projects - which together total 1,273 km, dissecting the state of Mato Grosso. The work includes preparing environmental studies to obtain the Prior and Installation Licenses, as well as the environmental supervision of the construction works and the execution of the environmental programs until the Operating License was obtained.

Located in Ribeira do Piaiu (PI), the Nova Olinda solar power plant will have a 292 MW capacity installed. With constructions expected to end by the second semester of 2017, the photovoltaic park will be the largest one in Latin

America. Concremat Inspeções e Laboratórios participates on the implementation of this huge project, providing quality control for the earthworks and concreting services of the structures for compliance to the project specifications.

EIA/RIMA, PBA AND ENVIRONMENTAL MANAGEMENT OF WORKS ON THE PARANAITE AND CANARY TRANSMISSION LINESCLIENT: PARANAÍTA RIBEIRÃOZINHO TRANSMISSORA DE ENERGIA S.A. E CANARANA TRANSMISSORA DE ENERGIA S.A.

TECHNOLOGY CONTROL – NOVA OLINDA SOLAR POWER PLANTCLIENT: PRODIEL ENERGIAS RENOVÁVEIS

Inaugurated in December 2016, the Jirau Hydroelectric Power Plant (HPP), located on the Madeira River, in Rondônia, has 50 generating units, with an installed capacity of 3,750 MW. To keep the plant fully operational, it has a warehouse with approximately 3,000 spare parts. Concremat Engenharia was hireded to adivised on the implementation of automation in the management of the final warehouse, carried out through an Inventory Management System developed on

specific platforms, adapted to the needs of this type of operation. The work also included a diagnosis of the main difficulties of the current Inventory Management process and its interfaces, a functional analysis of the systems and suggestions for improvements. Concremat is also responsible for the technical specification, identification and standardization of the spare parts of the equipment, its parts and components, to record in a database.

CONSULTANCY ON THE IMPLEMENTATION OF THE MANAGEMENT OF FINAL WAREHOUSE STOCK AT THE JIRAU HPPCLIENT: ENERGIA SUSTENTÁVEL DO BRASIL – ESBR

ENERGY G4-4 G4-8

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This project is of great importance to Vale, the extension of the Carajás Railroad will take the railroad to the Serra Sul de Carajás, where the new S11D mine is located, and double the length of the railroad, to the Port of Ponta of Madeira, in Maranhão. One of the

most important stages of the project is the construction of the Southeast Railroad Branch in Pará. Concremat was requested to manage the 400 km of railroad as result of the long term professional relationship due to proven expertise.

RAILROAD BRANCH PROJECT MANAGEMENT – S11 DCLIENT: VALE

Founded in 1955, Companhia Brasileira de Metalurgia e Mineração (CBMM) is one of the main niobium suppliers worldwide. Based in Araxá where the major niobium reserve rests, the company is in the process of constructing its tailing dam 8. Due to the responsibility of this work, a well-sized dam must be built which

is safe and must be constantly monitored. As such, Concremat Engenharia uses its expertise in the dams segment to manage the construction of dam number 8, including engineering support, planning, supervision and monitoring and control of the project until it has ended.

Located in Sapucaia do Sul (RS) and erected in the 1950s, Gerdau’s Riograndense plant produces rebar, tiles, trusses, wire and steel nails. Faced with the need to assess the durability and stability of the structures and determine the remaining useful life of the Steel Warehouse and the Scrap Yard at the plant, Concremat Inspeções e Laboratórios was contracted to carry out a complete inspection of the reinforced concrete structures of both assets and implement an online monitoring system of the structures. The activities carried out in the years 2000, 2007, 2011 and 2016 included visual inspections, tests to determine the corrosion potential

of reinforcement, chloride and sulfate content on the cement mass and the thickness of the reinforcement and extract concrete samples for characterization (compressive strength and deformation modulus). The work also included periodic reinspection of the structures, installation of several instruments for continuous monitoring, structural analysis and durability considering fatigue and the development of repair and reinforcement projects. Also, for the Trefila II roofing structure, a complete inspection, structural analysis and preparation of repair and reinforcement projects, as well as the inspection of its execution.

MANAGEMENT OF PROPRIETOR CONSTRUCTION WORK AND ENGINEERING – DAMAGE OF TAILINGSCLIENT: CBMM

STRUCTURE INSPECTION – RIOGRANDENSE PLANTCLIENT: GERDAU

INDUSTRY AND MINING G4-4 G4-8

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Located in the municipality of Belo Jardim, in Pernambuco, the new Baterias Moura factory will expand the company’s production capacity, allowing to meet the domestic and international demand. Concremat Engenharia manages the designs and the construction work of the new industrial plant. The activities include, during the design phase, the coordination of the contracted designers for the project and the compatibility and analysis of the documents issued to execute the construction work. The Concremat team also

manages the scope, term, cost, risk and safety of the work, as well as supervising the quality of the services given, working until the construction work has been handed over. Construction work supervision has been enhanced by the use of 3D modeling and 4D planning services, improving measures related to design quality and planning the construction work, allowing the assessment of scenarios for action plans and better results in the implementation of this new industrial plant.

Fresenius Kabi is developing a new building to house administrative offices, locker rooms and physical-chemical and biological laboratories in one of its units located in the municipality of Aquiraz (CE). It is specialized in the production of products and equipment for hemodialysis. Concremat Engenharia elaborated the architectural design of the new building, which is about 3,500.00 m² divided into two floors and a technical roofing structure. The building

was designed in a concrete structure, external masonry end gables using conventional concrete blocks, internal dry-walls and a metallic roofing structure and aluminum thermal tiles. Concremat’s architectural team also had the engineering team’s support in developing supplementary projects. The work earned the company the first place in the “Industry-Project” category in the XIII Corporate Architecture Award in 2016.

MANAGEMENT OF SCOPE AND SUPERVISION OF SERVICE QUALITY – NEW FACTORYCLIENT: BATERIAS MOURA

DEVELOPMENT OF AN ARCHITECTURAL DESIGN FOR A NEW UNITCLIENT: FRESENIUS KABI DO BRASIL S.A.

Since 2011, Concremat Engenharia provides management and supervision services for the works of facilities carried out at Cummins Brasil industrial site in Guarulhos (SP). In this contract, we work on preparing annual capital plans, budget estimates, scope definitions, invitation letters, budget sheets and vendor

lists to execute the BID processes. In addition to these activities, Concremat provides technical support to contract construction companies, monitors the quality of services given, controls costs and follows the schedule to carry out the services, until the scope has finally been received.

MANAGEMENT AND SUPERVISION OF WORKS – GUARULHOS SITECLIENT: CUMMINS BRASIL

LIGHT INDUSTRIES G4-4 G4-8

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NETWORK OF SPECIALISTS AND KNOWLEDGE MANAGEMENTConcremat Engenharia has an internal network of specialists, who share solutions applied in contracts, disseminating knowledge and good practices and sustaining, as such, our value proposal for our clients. The Network of Experts currently has about 129 employees with technical expertise in different subjects, promoting productivity gains, increasing technical quality and team development. In 2017, the Knowledge Portal is scheduled to be launched with the objective of supporting creativity, transfer and application of knowledge in Concremat. The Portal will be the channel to centralize and share information regarding corporate standard instructions, operational standard instructions and technical standards (Brazilian and international), as well as reference documentation of company case studies that were successful.

CAREER DEVELOPMENTIn the area of Organizational Development, we highlight the actions of the Instituto de Desenvolvimento Concremat (ID Concremat), especially carrying out the Performance Assessment Cycle, with individual development follow-up. The completion of the MBA in Company group resulted in the Empreender program, aiming to stimulate the entrepreneurial attitude and the solution of small organizational obstacles based on the company’s strategy and the feasibility of internal application. The lectures of the Knowing Our Business program, focused on contracts that have become a reference for the company and which can contribute as lessons learned for current managers, that was done for all interested employees.

PERFORMANCE ASSESSMENTPerformance assessment is a tool which aims to promote employee development through mapping competence and performance alignment indicators. One of the fundamental aims relies on encouraging interaction among leaders and their teams in order to discuss their career and development expectations.

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DEVELOPMENT INSTITUTEThe Development Institute (DI) is an internal initiative that promotes trainings for employees, with an emphasis on technical, behavioral and business qualification. Among the actions, we may highlight some programs such as the ‘Management School’ (Escola de Gestão), ‘Technical School’ (Escola Técnica) and ‘Understanding Our Business’ (Conhecendo Nosso Negócio), which gather and disclose content by means of lectures and workshops.

1,478 Trained employees

84 Classes taken

306 Hours of training

730 Performance evaluation

Having a close look at our 3,020 employees is a permanent goal of the Human Resources Department, which seeks to provide professional and personal development and is one of the most strategic areas of the organization. We believe that it is through training and human development that we achieved excellence in our services, delivering the best solutions to our clients.

PROFILE OF OUR EMPLOYEES

2,048 Men

972 Women

Number of employees with graduate, postgraduate, masters, doctorate

and postdoctoral degrees1,559

Up to 30 years old

Above 50 years old

From 30 to 50 years old55,7%

13,8%

30,5%

Type of Employment

Full time

2.018 52

920 30

Part time

Age group

2.938 82 100%

INNOVATIONOne of the strategic guidelines of Concremat Engenharia e Tecnologia is to continuously innovate throughout its chain of operation. In 2016, the main strategic drive of corporate innovation was the strengthening of the innovative culture. We launch internal programs such as EMPREENDER (fostering the development of solutions to improve the organization’s processes and products and provide competitiveness and sustainability for the business from entrepreneurship within the company), the INNOVATIVE ATITUDE (program to recognize innovative people who have their stories told) and the NETWORK OF SPECIALISTS, whose objective is the exchange of knowledge - coming from good ideas.

G4-10 G4-11 G4-LA9 G4-LA11

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86%

84,5%

85%

G4-PR5

Our main indicators in 2016Concremat seeks to incorporate sustainability into its management and operations through a set of values that permeates its activities and points out ways to ensure that environmental, economic and social results are positive for employees, clients, society and the environment. Understanding the promotion of sustainability as a long-term goal, we take into account, in planning activities that have potential environmental impacts, the precautionary principle and the aim of socio-environmental responsibility in our work.

SUSTAINABILITY

Greenhouse Gas Emissions

TOTAL GGE 3,899.58 t CO2 and

185 items of clothing

45 volunteers

17 institutions benefitted

152items of cleaning

and personal hygiene

985 toys

459kg of food

100 packs of diapers

Voluntary work: contributing to a fairer world

Fugitive emissions: = 2%Own fleet = 62%Electricity = 6%Waste = 12%Air travel = 18%

62%

2%

6%

12%

18%

Water and EnergyThe conscious use of electricity and water is a premise in the company. In 2016, the volume

of water consumed in 11 facilities totaled 14,953.30 m3. The consumption of electric

energy was also around 2,341,646.97 kwh, comprising 15 installations.

G4-EN15

G4-14 G4-15 G4-16

G4-EN8 G4-EN3

Result of client satisfaction survey

The results of the Client Satisfaction Survey have shown to be a valuable contribution to continuous improvement. The survey is carried out every six months, and it is controlled and calculated by the QSEH department which is responsible for recording and following up on the treatment of non-compliance.

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BALANCE SHEET AS AT DECEMBER 31 (IN THOUSANDS OF REAIS)

2016 2015 2014 2013

ASSETS

Current 226,660 355,705 295,676 258,537

Non-current 132,233 105,320 95,347 140,470

Total Assets 358,893 461,025 391,023 399,007

LIABILITIES

Current 139,313 171,706 172,273 165,730

Non-current 39,175 69,197 27,645 25,614

Net Equity 180,405 220,122 191,105 207,663

Total Liabilities 358,893 461,025 391,023 399,007

CONCREMAT IN NUMBERSCONSOLIDATED INCOME STATEMENT AS AT DECEMBER 31 (IN THOUSANDS OF REAIS)

2016 2015 2014 2013

Gross Operational Revenue 826,388 1,064,309 1,168,011 1,018,828

(-) Deductions from Revenue (102,519) (132,771) (150,601) (135,409)

= Net Operating Revenue 723,869 931,538 1,017,410 883,419

(-) Cost of Services Rendered (603,682) (731,344) (830,135) (694,274)

= Gross Profit 120,187 200,194 187,275 189,145

(-) Operational expenses (143,140) (157,236) (142,068) (115,323)

= Profit from Operations (22,953) 42,958 45,207 73,822

Net finance profit or loss 1,344 1,076 5,625 1,016

Profit before Tax (21,609) 44,034 50,832 74,838

(-) IRPJ/CSLL 2,075 (7,685) (18,431) (23,994)

Profit for the period (19,534) 36,349 32,401 50,844

EBITDA (12,763) 52,886 54,151 80,443

The financial information can be found in the annual publications published by the company in the Official Gazette and in widely-read newspapers.

INDEX - GRIIndex Description Pages

G4-1 Message from the CEO 6

G4-3 Name of Organization 9

G4-4 Major Brands, Products and Services 14 & 15

G4-5 Location of the organizational headquarters 18

G4-6 Number of countries in which the organization operates and name of the countries in which its main operations are located or which are relevant to sustainability 18

G4-8 Markets served12 & 13,

20 - 46 & 55

G4-9 Size of organization 18

G4-10 Total workforce 48

G4-11 Percentage of employees covered by collective bargaining agreements 48

G4-13 Significant changes in the period covered by the report 5

G4-14State whether and how the organization adopts the precautionary approach or principle

50

G4-15Letters, principles or other externally developed economic, environmental and social initiatives that the organization subscribes to or endorses

50

G4-16 Participation in Brazilian or international defense associations and organizations 50

G4-17Entities included in the organization’s consolidated financial statements or equivalent documents

52

G4-34The organization’s governance structure, including committees of the highest governance body

5 & 16

G4-56Values, principles, standards and rules of behavior of the organization, such as codes of conduct and ethics

16

G4-57Internal and external mechanisms for obtaining guidance on ethical and legal behavior and issues related to integration

16

G4-EC1 Direct economic value generated and distributed 52

G4-LA9Average number of hours of training per year per employee, broken down by gender and category

48 & 49

G4-LA11Percentage of employees who regularly receive performance and career development analyzes, broken down by gender and functional category

48 & 49

G4-PR5 Results of the customer satisfaction survey 51

G4-EN3 Energy consumption within the organization 50

G4-EN8 Total water use by source 50

G4-EN15 Direct greenhouse gas emissions 50

G4-17 G4-EC1

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CONCREMAT ADDRESSES G4-8

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RIO DE JANEIRO (RIO DE JANEIRO)Rua Euclides da Cunha nº 106São Cristóvão – Rio de Janeiro – RJCEP: 20940-060Tel.: +55 21 3535-4000

Rua Fonseca Teles nº 40São Cristóvão – Rio de Janeiro – RJCEP: 20940-200Tel.: +55 21 3535-4000

SÃO PAULO (SÃO PAULO)Av. das Nações Unidas nº 13771 – Bl. I / 2º, 5º e 6º andares Chácara Itaim – São Paulo – SPCEP: 04794-000Tel.: +55 11 3250-7400

Rua Madre Emilie de Villeneuve nº 434Jardim Prudência – São Paulo – SPCEP: 04367-090Tel.: +55 11 5567-1900

AMAZONAS (MANAUS) Rua Belo Horizonte nº 150 / 2º andarAdrianópolis – Manaus – AMCEP: 69057-060Tel.: +55 92 3629-6592

BAHIA (SALVADOR)Rua Rubens Guelli nº 68 / Sala 305Edifício Elvira Vidal Orge ItaigaraSalvador – BACEP: 41815-135Tel.: +55 71 3351-0795

CEARÁ (FORTALEZA) Av. Santos Dumont nº 1789 / Salas 304 a 307Aldeota – Fortaleza – CECEP: 60150-161Tel.: +55 85 3208-6350

REPÚBLICA DOMINICANACalle Desiderio Arias, 54 , local 6Bella Vista - Santo Domingo, DNRepública DominicanaTel.: 1 809 5337207

DISTRITO FEDERAL (BRASÍLIA) SH/SUL – Quadra 06 – Conjunto A – Bloco A / Sala 412 Centro Empresarial Brasil XXIBrasília – DFCEP: 70316-000Tel.: +55 61 3213-8750

ESPÍRITO SANTO (VITÓRIA) Av. João Baptista Parra nº 673 / Sala 1.101Ed. Enseada TowerPraia do Suá – Vitória – ESCEP: 29052-123Tel.: +55 27 3015-2255

MINAS GERAIS (BELO HORIZONTE)Av. João Pinheiro nº 274 / 2º andarLourdes – Belo Horizonte – MGCEP: 30130-180Tels .: +55 31 3116-4400 / 3441-1799

PERNAMBUCO (RECIFE)Rua Capitão José da Luz nº 58 / Salas 401 a 403 Edifício Empresarial Capibaribe CoelhosRecife – PECEP: 50070-540Tel.: +55 81 3221-8071

RIO GRANDE DO SUL (PORTO ALEGRE)Rua Furriel Luiz Antônio Vargas nº 380 / Sala 202 Bela Vista – Porto Alegre – RSCEP: 90470-130Tel.: +55 51 3328-0006

MOÇAMBIQUEVila Carbomoc, casa 20, MoatizeTete - MoçambiqueTel.: 258 8233 45257

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CREDITS

General CoordinationEduardo Salgado ViegasBusiness Development Vice President

Project coordinationShanna HonórioMarketing and Communication Manager

Marketing TeamGiselle Barros and Washington Rodrigues

Content verification and writingMariana Belmont

Graphic design and reviewMobile Comunicação

TranslationFlash Traduções

PhotosFelipe CohenAndré MaceiraGustavo RampiniConcremat collection and photos provided by clientsMobile Comunicação collection For questions related to the report, contact us at [email protected]. This report is based on Global Reporting Initiative (GRI) guidelines.

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