Yearbook IEL 200 Largest Companies Espírito Santo State 2016 by Línea Publicações Customizadas

INDEX Publisher

06 A new cycle of growth Marcos Guerra

110 Vale 114 Hospital Metropolitano 116 Yearbook 20 years

ARTICLE

RANKING OF THE 200 LARGEST COMPANIES

Economic and Social Development 10 The state sets the example Paulo Hartung

Industry

12 T he path of development Robson Braga 14 A strong and active industry Aristóteles Passos Costa Neto

Corporate Management

126 127 128 130 161

Introduction What you will find in this book Methodology General information, analysis and statistics Ideies Analysis

INSTITUTIONAL

182 Findes System 190 IEL’s Forum

24 Education and sustainable development Guilherme Henrique Pereira

Industry

ARTICLE (CONTINUATION)

Economic and Social Development 20 Intelligent and human cities André Gomyde

Economy

22 Development and cooperativism: a contemporary reality Bento Venturim

Economic and Social Development

26 A new chance to Brazil José Armando Campos

Economy

30 The upcoming turnaround Clóvis Vieira

Environment

32 Smart farming and sustainability: intelligence and solution for the world’s agribusiness Enio Bergoli

Industry

34 The Tubarão Complex: 50 years Fabio Brasileiro

Corporate Management

36 Baby boomer companies versus millenial consumers: the generation gap Wallace Vieira

Food and drink Financial Market Health Retail Trade Civil and Heavy Construction Furniture Apparel Education Public Policies Chemistry and Packing Innovation Environment Creative Industry Stones Agroindustry Tourism

Innovation

258 A bridge to innovation Paulo Mól

Economic and Social Development

BUSINESS HIGHLIGHT 96 Sesi 100 Senai 104 Cindes 108 Sicoob

TECHNICAL PRODUCTION = EUVALDO LODI INSTITUTE (IEL-ES) Regional Director: Director for IEL-ES's Affairs: Superintendent:

Marcos Guerra Aristóteles Passos Costa Neto Fábio Ribeiro Dias

Technical Team:

Brand Disigner 200 Largest:

Cristina Xavier

Journalist in charge:

Breno Arêas (MTB-ES 2933)

Address: Av. Nossa Senhora da Penha, 2.053, Ed. Findes, 2º andar, Santa Lúcia Vitória (ES), CEP: 29056-913 Tel: +55 (27) 3334-5754 • Fax: +55 (27) 3225-7958 200maiores@findes.org.br Editorial Production:

People management

www.lineapublicacoes.com.br +55 (27) 2123-6500

276 Leadership recipes William Douglas

Economy

278 Turn to grow Antonio Delfim Netto

Education

Methodology Outstanding entrepreneur Outstanding CEO Outstanding company

Marcelo Ferraz Goggi

272 Return to the right direction of growth Waldemar Rocha

STATE ECONOMY

88 90 92 94

Corporate Superintendent:

Contact: +55 (27) 3334-5721 Iel200maiores@findes.org.br

268 The spirit of capitalism Sidemberg Rodrigues

280 A new necessary agenda Arlindo Villaschi

RESEARCH IEL

Almir José Gaburro, Atilio Guidini, Elias Cucco Dias, Emerson de Menezes Marely, Ennio Modenesi Pereira II, José Carlos Bergamin, José Carlos Chamon, Luiz Alberto de Souza Carvalho, Luiz Carlos Azevedo de Almeida, Luiz Henrique Toniato, Loreto Zanotto, Mariluce Polido Dias, Neviton Helmer Gasparini, Ocimar Sfalsin, Ortêmio Locatelli Filho, Ricardo Ribeiro Barbosa, Samuel Mendonça, Silésio Resende de Barros, Tullio Samorini, Vladimir Rossi

People management

48 B razil needs to return to grow Marcos Pereira

Opening - Scenario and prospect Oil and gas Pulp and paper Logistics and infrastructure Mining and steel industries Energy Foreign trade Services Metal-mechanic

Officers:

Market Relations: Simone Dttmann Sarti – Manager of the Market Relations Unit of Findes System and team

Infrastructure

50 56 60 64 68 72 76 80 84

Chief managing director: Sec. managing director: Chief Financial officer: Sec. financial officer: Third financial officer:

Marketing: Cintia Coelho Dias – Manager of the Marketing Unit of Findes System and team

Justice and Citizenship

Economic and Social Development

Gibson Barcelos Reggiani Aristóteles Passos Costa Neto, Benízio Lázaro, Clara Thais Rezende Cardoso Orlandi, Elder Elias Giordano Marim, Egidio Malanquini, Houberdam Pessotti, Leonardo Souza Rogerio de Castro, Manoel de Souza Pimenta Neto, Sebastião Constantino Dadalto José Augusto Rocha Sérgio Rodrigues da Costa Tharcicio Pedro Botti Ronaldo Soares Azevedo Flavio Sergio Andrade Bertollo

266 The bright side of crisis Sérgio Aboudib Ferreira Pinto

270 The relevance of associativity in moments of crisis Sergio Rogerio de Castro

46 Foreign trade: perpectives Marcilio R. Machado

Marcos Guerra

First vice-president: Vice-presidents:

Justice and Citizenship

38 T he textile and clothing sector in the Fourth Industrial Revolution Fernando Valente Pimentel

42 Espírito Santo: how to turn to grow? Claudio Porto

Chairman:

262 Economy and innovation José Antonio Bof Buffon

Innovation

Economic and Social Development

Economy

ESPIRITO SANTO'S INDUSTRY FEDERATION (FINDES)

F ernando Gomes Pereira - Manager of the Project Implementation Unit and team Cassiano Orsi Hemerly - Business Analyst Antonio Fernando Dória Porto - CEO of Ideies and team Support Team: Carla Mara Pereira Franco - Manager of the Strategic and Administrative Management Unit and team

260 The public accounts’ disorder Ricardo Ferraço

Industry

40 Brazilian democracy and the Supreme Federal Court Ives Gandra da Silva Martins

Year XX – nº 20 – October/2016 - Annual report - not for sale

STATE ECONOMY (CONTINUATION) 194 198 202 206 210 214 218 222 226 230 234 238 242 246 250 254

16 The difference made by a true leader Americo Buaiz Filho

282 Education is the differential Haroldo Corrêa Rocha

Justice and Citizenship

284 Citzenship made with transparency Elda Márcia Moraes Spedo

Editorial Coordenation:

Mário Fernando Souza

Production Coordination:

Cláudia Luzes

Content Coordination:

Márcia Rodrigues

Text by:

na Lúcia Ayub, Fernanda Zandonadi, A Gustavo Costa, Luciene Araújo, Nadia Baptista, Polânia Soares, Roberto Teixeira, Thiago Lourenço e Weber Caldas

Editing:

Michel Sabarense e Genison Kobe

Support:

Mara Cimero

English Version: Gibran Lahud, Henrique de Broutelles e Lorena Caetano Photos by:

Files Next Editorial, Jackson Gonçalves, Leonel Albuquerque e Shutterstock

Revision:

Andréia Pegoretti

Economy

286 Productive chains: important bonds between large and small companies Benildo Denadai

Environment

288 Environmental preservation as a priority to help overcome the crisis Luiz Fernando Schettino

Graphic Production:

www.grafitusa.com.br Tel: +55 (27) 3434-2200

Economic and Social Development

290 Brazil that works well – Espírito Santo reveals itself José Carlos da Fonseca Júnior 294 Index of Publishing

Texto do Selo

Selo do papel

PUBLISHER

A new cycle of growth B MARCOS GUERRA is the chairman of Findes System

razil underwent important changes in the last months. The long process of impeachment against the former President Dilma Rousseff led the country to a political conflict, affecting the economy, inhibiting investments and building uncertainties. However, Michel Temer’s investiture set a new discourse on the agenda of the Federal Government, laying aside ideological differences in favor of a project that, above all things, prioritizes growth, job generation and offer of new opportunities. Since the release of the last Yearbook IEL 200 Largest Companies of Espírito Santo, in October 2015, the state’s industry has been facing a period of great oscillation. Despite leading the material production progress at that time, with a 17.2% of increase in the first semester, strongly influenced by the performance of the extractive sector, our traditional activity faced difficulties. After the tragic accident in Mariana (MG) and the consequent halt of Samarco, in November, the scene changed. In the first six months of 2016, the state’s industry registered a 22.6% decrease. But curiously, in spite of the production setback and the reduction of companies’ posts, the Industry’s Entrepreneur Reliance Rate (Icei) reached the highest level since September 2014. Two contrasting facts that illustrate well the current moment. So, it is time for hope: the Ideies’s climate research, which is available in this Yearbook, reveals that the number of pessimist entrepreneurs fell from 21% to 10% in 2016. Moreover, 50.9% were confident that the state’s economy will grow in 2017. Currently, political and economic organization is an issue that deserves

highlight. Although the nation discusses the adoption of new taxes in order to compensate the losses caused by the last thirteen years of government, our State maintains essential incentives to preserve jobs and ventures. Legal safety and the rectification of the public accounts draw the attention of foreign investors and national large corporations. Our strategic geographical localization, our relevant industry and our friendly people will be an advantage in the post-crisis. In 2016, the Yearbook hits its 20th edition, celebrating its importance and tradition. As new hopes arise in the horizon, this material proves to be essential to the sectors’ planning and to attract new ventures. The data contained here, for instance, reveals that 55% of the 200 Largest Companies’ gross operating revenue derive from industry, highlighting the productive sector’s contribution to the generation of wealth, setting light over the different operational chains and giving assurance to the enterprises that seek partners to invest in the State. Sensitive to the changes that Espírito Santo faces now, we are working to prepare our companies and labors for tomorrow’s opportunities. So, with the State economically neat, added to a strong, innovative and creative industry, and with professionals well trained in Senai’s high-tech labs – refurbished, expanded and upgraded in our administration -, it is being built the basis of a new cycle of growth and development to our children. May this Yearbook be an instrument of reflection, and a compass for the future of the State. Nice reading to all! YEARBOOK IEL 200 LARGEST COMPANIES 2016

ARTICLE ECONOMIC AND SOCIAL DEVELOPMENT

The state sets the example PAULO HARTUNG

Photo: Leonardo Duarte/Secom

is economist and Governor of Espírito Santo State (2003-2010/2015-2018)

he writer Antoine de Rivarol (1753-1801) stated, “The most difficult in times of crises is not accomplishing the duty, but identifying it”. While heading this third mandate, we have defined a fundamental agenda of three edges: to repair and start a strict control of the public accounts, combined with the implementation of innovative programs in the social and management areas; to boost, enhance and expand investments in the state; and, to practice a national advocacy toward a project to set the country back in course. Differently from the former mandates, this last point arises in face of this set of ongoing turbulence that Brazil undergoes. Starting from this third point, which is central, at this moment, to constitute the other two challenges. It is known that Brazil undergoes the greatest crisis in more than 100 years, characterized by fiscal deficit, haunting unemployment, impoverishment of millions of people and high interest rates; all resulted from a number of mistakes in the conduction of the economy, of political slips and ethical problems, started long ago. I have sustained that the country must prioritize the public accounts’ reorganization (essential to the governability and credibility). Also, the enhancement of the regulatory marks, to attract the private capital to the infrastructure projects, and to foster the oil and gas business. Adding to the resumption of large structural reformations. And the qualification of

the educational system, concentrating on the Elementary and High Schools. Obviously, the national crisis affects life in the State. But, our “domestic” problems reveal another connection with this wide scenario: a series of wrong decisions made a long time ago. Furthermore, we also face a critical situation here due to constant irresponsible actions done in the first years of this second decade of the twenty-first century. It can be illustrated with four findings: the Government’s payroll, of R$ 260 million in 2010, was already R$ 430 million per month, in January 2015; the monthly transferences to public authorities and institutions were R$ 83 million, in 2010; and, this amount increased to R$ 146 million, in 2015. The National Treasure Department has revealed an increase of the State Government’s primary deficit, between 2012 and 2014; the overheads grew R$ 2.7 billion, while the net revenue grew just R$ 880 million. As soon as we took office, we inherited an amount of no pawned debts of about R$ 307.3 million. In this critical scenario, worsen by the national circumstances, the Government started taking actions to reduce costs and recover the financial balance, since the very first day of work, besides introducing changes in the administration, in order to enforce the dialog with the society, the transparency and the constant fight against corruption. As in 2015, 2016 is being a challenging year, with the real and successive YEARBOOK IEL 200 LARGEST COMPANIES 2016

revenue decline. However, this severe set shall not inhibit us. On the contrary, we are working with energy and willingness, also taking vanguard actions. In the social area, the following projects were established: the Escola Viva (Live School) and the Ocupação Social (Social Occupation). The public health sector is also under reorganization, which includes the construction of the Cariacica General Hospital. In the Culture area, there was the opening of the Music House (Casa da Música). We’ve recovered the State’s commercial diplomacy. We have sent delegates to China, the United States, the Central America, Argentina, Uruguay, Rotterdam (Netherlands) and to Singapore, and, we have received delegates from 10 countries. In the meantime, with the support of our Senators, we are working hard to retake the construction of the Vitória Airport, and to guarantee the construction of the Railway 118, between Vitória and Rio de Janeiro. In addition, to restart Port of Vitória’s dredging, to move the Port of Barra do Riacho’s polygonal, and to get the authorization to construct the Imetame’s port terminal. This Administration has concluded the licensing proceedings for the Central Port, in Presidente Kennedy, and recovered the natural gas concession, essential for this sector’s full development. It has attracted the MLog to construct a world-class corporate condominium in Linhares, which will also have the support of a port terminal, while striving to effectively start the duplication of the BR 101 highway. In YEARBOOK IEL 200 LARGEST COMPANIES 2016

São Mateus, the first car genuinely built in the State came off of Volare factory, and the Oxford unit, a reference in porcelain, was inaugurated. Even with all budget restrictions, several actions are being done: the conclusion of the Guriri-São Mateus highway’s duplication, the the duplication of the road between Coutinho and Cachoeiro do Itapemirim; the construction of the East-West highway; and, the works of the Mestre Alvaro’s perimeter. In addition, the streamlining of the Reflorestar (Reforest) Program; the implementation of the Water and Landscapes Program; the inauguration of the Reis Magos System, to improve the water distribution onto the Metropolitan Vitória; and the creation of the State’s Program of Dam Construction, which foresees investments of R$ 60 milion for the implementation of more than 60 reservoirs. Even summarily, this panel evidences the triple journey undertaken: to seek every day for the fiscal balance, by ensuring the Government’s operations and by creating innovative policies; to structure the basis of a new horizon for the State, by boosting investments; and to act nationally toward a modern project for the country. It is a time to face multiple crises, whereas we will not be paralyzed. As it was said in the beginning, we know what to do and we are in the pursuit of it, guided by the argument of the Russian writer Leo Tolstoy: “The place we occupy is less important than that toward which we walk”.

“

As in 2015, 2016 is being a challenging year, with the real and successive revenue decline. However, this severe set shall not inhibit us. On the contrary, we are working with energy and willingness, also taking vanguard actions

ARTICLE INDUSTRY

The path of development ROBSON BRAGA DE ANDRADE is the chairman of the National Industry Confederation (CNI)

his is a critical moment, mostly influenced by the political set, and said by many as the worst recession of our Republic. The year 2016 shall be the second year of deep retraction of the Gross Domestic Product (GDP); which already had recorded a stagnation in 2014 and a decrease of 3.8% decrease in 2015. The industrial sector experienced more severe withdrawals than other economic sectors. The largest retraction was due to the strong competitive pressure in the global markets and the little improvement of our competitiveness. Industry displays a very bad picture, with severe losses in all segments. In 2015, the industrial GDP fell 6.2%, and the production fell 8.3%. The worst result in twelve years. The economic hardships are also result of the policies that encouraged the short-term consumption, in the first years of this decade, instead of encouraging investments and the enhancing of the business atmosphere. Nevertheless, some indicators evidence that the Economy stopped worsening. The external sector exhibit recuperation, influenced by the currency exchange and the contraction of the domestic demand, with the rise of the trade surplus and the fall of the current account deficit. Recuperation will be slow. The most important is to know what to do to return to the path of development. There are two prime challenges: to end the fiscal unbalance and to adopt

actions to improve significantly the business atmosphere. Always willing to cooperate with the creation of a favorable atmosphere to the economic and social development, CNI proposed to the new Government the Agenda for Brazil to Escape the Crisis – 2016-2018. The document enrolls 36 measures to address this transition period, and it is the result of the joint work among the CNI, the industry state federations, and the sectoral associations that participate in the National Industry Forum. Another document handed to the Government was entitled 119 Purposes for Competitiveness With Zero Fiscal Impact. This is a relevant initiative in times of fiscal restrictions. In addition, it was presented five emergency actions, that aim at helping industries to overcome the crisis. These fundamental actions are: revising the program of fiscal debts’ refinancing, Refis; extending the deadline to collecting taxes; regularizing the credit conditions to the companies; returning the Reintegra’s rate of 3%; and widening the access to financing resources for exportations. Prioritizing exportations is extremely important in a set of hardships to the internal market. There is a great concern in maintaining a competitive currency exchange that stimulates the companies’ strategies of foreign trade. The adjustment of the Reintegra’s rate is indispensable. This program is necessary to compensate the tax YEARBOOK IEL 200 LARGEST COMPANIES 2016

system’s distortions, while the residues accumulated from collecting taxes in the productive chain are not eliminated. It is necessary to expand the edge of the bilateral trade agreements, concluding the contracts that are under proceedings and opening new negotiations. It is also in CNI’s plans the upgrading of the foreign trade’s financing mechanisms and the conclusion of the trade facilitation’s agenda. In the infrastructure, we need to accelerate the processes of concessions to the private sector, consolidating a regulatory model that is able to attract the companies’ investments. It is necessary to strengthen the regulatory agencies in order to give legal safety and predictability to the private share in these investments. In this context, revising the sharing scheme of the pre-salt fields’ exploitation is an emblematic change. This does not mean only backing the wide share of private companies and a higher competition in the auctions; it also takes off from Petrobras the excessive burden, which restrains the possibility of hiring new blocks and of exploiting resources. Still about the regulatory issue, it is fundamental to discipline the procedures to disregard of the legal entity, which is a vital instrument for the development of trades, and to simplify the environmental licensing process. Both matters give assurance to the companies’ investment decisions. YEARBOOK IEL 200 LARGEST COMPANIES 2016

The new Government’s initiatives go in the right direction to regain reliance. Exemplifying, the changes in the foreign policy, with focus in the country’s economic concerns, the new understanding about infrastructure and the measures of fiscal consolidation, such as the enforcement of a limit to the growth of public costs and the signalization of a reformation in the Social Security System. The path is not simple, and requires firmness in the consolidation of a favorable atmosphere for growth. The economy’s modernization also presumes refreshment of labor relations, refinement of the tax structure and providing the same financial conditions of our competitors. Excessive bureaucratic requirements raise costs and reduce the competitive capacity, especially in times of crisis. An example is the NR-12, which forces unnecessary adaptation costs for machinery and equipment (new and preexisting). Despite the difficulties, it is possible to change this negative outlook, regain trust and return to move ahead under satisfactory rates, with the generation of good jobs and income. It is necessary to make the Government hear us. The public sector needs to understand the importance of a strong, dynamic and competitive industry, without which there is no economic growth, sustained over the time, nor there is a developed country.

“

Always willing to cooperate with the creation of a favorable atmosphere to the economic and social development, CNI proposed to the new Government the Agenda for Brazil to Escape the Crisis – 2016-2018”

ARTICLE INDUSTRY

A strong and active industry ARISTÓTELES PASSOS

is the vice-chairman of Findes, director of IEL’s Affairs and CEO of Inocoopes

e are celebrating one more edition of the Yearbook “200 Largest Companies of Espírito Santo”, in a period of many political and economic uncertainties, with the conviction of overcoming this trouble time. The Findes/Cindes System is investing in 2016 a massive amount of resources in innovation, health, leisure and education, with an unmistakable reliance in the Espírito Santo State’s industry, believing in the immediate recovery of the economy as soon as the political obstacles are troubleshot. The Euvaldo Lodi Institute (IELES), as a Findes System’s organization, has been consolidating its vocation on the qualification in management and the university education. Besides, it has showed itself as the manager of an important database, which makes available now for the market the most relevant economic info about the performance of Espírito Santo State’s companies. This economic database

is essential in the guidance of trends and in directing private investments, besides propitiating a safe evaluation of the conditions in which are the companies in different segments of the State’s economy. Acknowledging the companies’ hardships, the aim is to foster the markets with high quality information. The IEL-ES has been an important partner of the Industry System for the offering of high level products, at reasonable prices, always interested in the benefit of the industries in the State. It is present in all Espírito Santo, through the regional units of the Findes System, and it can be resorted to assist the needs of any industrial company. It is also important to highlight the IEL-ES’s availability to assist all markets, including trade and services companies. This institution’s experience, gained through the years, accredits it and makes it a specialized consultancy, as well as a reference school in management and upper education.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

ARTICLE CORPORATE MANAGEMENT

The difference made by a true leader AMERICO BUAIZ FILHO is CEO of Grupo Buaiz

here are many definitions for “leader”. The one that best expresses the essence and the role of the leader is this: the person that has followers. Right. Nobody is a leader of himself, but he is chosen by those that follow his ideas and purposes. He is the one that defines a direction for many to act, think and live. Therefore, his authority is given by other people, and it is proportional to the number of followers he is able to attract while performing his role. There are several kinds of leaders: political, religious, corporative, artistic, and others. Then, it is common that people follow different leaders, provided that only one person would hardly represent all ideologies of human and professional beings. One first hypothesis arises: there are too many alleged leaders and there is a lack of true leaders. Faithful to the original definition, that leader is the one who has followers, let us considerer how much stimulus there is nowadays, from technologies, from the fast access to information, and from the abundant exposure on the conventional medias and networks. So many people subject themselves under the influence of “opinion makers”, exacerbated and arbitrarily. It is necessary to question the quality of these leaderships, empowered by little content vehicles, which are encouraged and spread by a system ruled by the “image empire”.

This answer implies the qualification of a true leader: the one that has many followers, besides performing his leadership in a consistent, persistent and constructively manner. He is the one that influences individuals, communities and peoples to cultivate words and attitudes based on a true reference, and to evidence a kind of behavior that results in positive actions, able to change the world for better, whether concrete or figuratively. The true leadership does not gain any benefit for itself. On the contrary, it renounces its own interests in favor of others. He is true, and his real magnitude is revealed in his actions now and their reflections in History! Following, some leaders that contributed to humankind and that left, as legacy, true examples of leadership. • Jesus Christ: the greatest leaders of all, by the number of his followers that never ends, and by his teachings, which make the major difference as model of practice for people of any religious belief. • Julius Caeser: he was one of the most influential men before Jesus Christ and the responsible not only to turn the Roman Republic into an empire, but also to make Rome the most important and powerful empire of Antiquity. • Mahatma Gandhi: he influenced more than 350 million people toward a pacific revolution. For 20 years, he fought a “no war”, being the voice of the people and motivating several YEARBOOK IEL 200 LARGEST COMPANIES 2016

leaders of other countries. He was able to make India an independent country. And, his ideas of peace and natural life are an example until now. • Franklin Roosevelt: he was one of the most important American presidents of History. He headed two mandates and brought hope to his people during the Great Depression and the First World War. He managed chaotic situations and brought prosperity to North America. • Martin Luther King: he motivated millions of people through his protests and speeches for the end of racial inequality. He said the unforgettable phrase “I have a dream”. • Abraham Lincoln: he is considered the greatest American president of all. He has administrated the USA during the Civil War and modernized the country’s economy. • Getulio Vargas: he headed Brazil for more than 15 years, being considered the “father of the poor”. He motivated the creation of the labor laws and defended the rights of the unprivileged. When he committed suicide, “he left life to enter History”. YEARBOOK IEL 200 LARGEST COMPANIES 2016

• Nelson Mandela: he dedicated all his life, and 27 years in prison, fighting for the human rights. Finally, the true leaderships, like the ones quoted, have the positive power to make great changes pro bono, while the “pseudo leaderships” (some anchored by the “sacred” popular support and used with “wrong” and selfish purposes) have exactly contrary and destructive effect, making difference for worst. Unfortunately, to exemplify this other kind of leadership, it is not needed to go too far in time, nor even leave Brazil. It is enough to recall some of the Brazilian politicians that occupied, especially in this last decade, the Nation’s Presidency or the Federal Parliament, besides other posts with great authority and influence. Yet, let us not end this article bitterly, nor with bad examples. Let us keep the remembrance of Pope Francis, a new leader that, for only three years as Head of Vatican, has rescued millions of believers in the entire world, and has summarized in a phrase all that a leader must believe to make a true difference: “whoever does not live to serve, does not serve to live”.

“

The true leadership does not gain any benefit for itself. On the contrary, it renounces its own interests in favor of others”

ARTICLE ECONOMIC AND SOCIAL DEVELOPMENT

Intelligent and human cities ANDRĂ&#x2030; GOMYDE is the chairman of the VitĂłria Development Company and of the Brazilian Network of Intelligent and Human Cities of the National Mayors Association

nformation and communication technology companies have learned that the cities are a big market niche to their software and hardware. Because of several problems faced by city halls and people, new equipment and technological solutions began to be developed, providing video monitoring cameras to the cities, detectors to the public parking facilities, intelligent traffic lights and many other tools. Then, the digital cities arose. This enormous quantity of technologies began to generate data that, most times, were lost or wasted, instead of being used to improve the management information systems. These systems are important in the decision-making and could make the cities administration more efficient and effective. For this reason, the idea to seek the integration of these diverse technologies sprang up, creating an inter-operation among them. All information systematically collected would be matched to provide a more precise knowledge about problems and every day activities. Digital cities began to become intelligent cities. The rising of a European network of open cities brought the expectation of transparency on the data collected by city halls. This should be in a way that all the people could have total access to that data and then participate in the building of a management model, to bring better quality of life

to everybody. Notably, at the same time, it also arose the concept of intelligent and human cities. These ones, besides integrating all technologies through open platforms, would reach out the people, supporting their digital inclusion and teaching them to access the data that city halls would make available to them. This data, in turn, would enable the people to present their demands and collectively build a more efficient city. The methodology applied in the intelligent and human cities to promote inclusion and enable people to do better use of technologies is known as living lab. Each neighborhood becomes a big lab of learning and experiences that can be exchanged with the other neighborhoods. This will integrate the whole city and facilitate the administration, with the participation of everybody. The living labs also encourage entrepreneurship, as the people can employ their creative power to generate business and make use of the integration and connection with the world market to trade and make money, boosting the local economy. The intelligent and human city has three fundamental pillars: technological infrastructure, people development and generation of businesses connected with the world market. In 2014, the Brazilian Network of Intelligent and Human Cities was created, inspired in the European model, as part of the National Mayors YEARBOOK IEL 200 LARGEST COMPANIES 2016

Association. In partnership with scholars and diverse representative sectors of companies, it was published the study: “Brazil 2030: Intelligent and Human Cities”, to give guidance to the towns willing to develop in this direction. The work comprises the step by step of the implementation, to be followed by the public managers. Guided by this study, and following the principals of the three fundamental pillars, Vitória City Hall has developed a shared management system, and it is taking the fundamental steps to make Vitória one of the first intelligent and human cities of Brazil until 2030. With the participation of the municipal departments and the Vitória Development Company, the capital city is being planned in the long-term, so that it may have a new economic matrix. All this will make Vitória one of the best places to live in Brazil, and a flourishing economy. YEARBOOK IEL 200 LARGEST COMPANIES 2016

The strategy begins with three major projects: the Technological Park - after 26 years waiting for funds to start its construction; the Factory of Ideas - a partnership with Ifes and Sebrae -, which will be a great formation center in Technology and Entrepreneurship; and the Public Illumination PPP, that will turn our illumination station into a big net of data and a high speed broadband transmission to the worldwide market. The installation of a Fiware junction is being prepared, also in partnership with Ifes. This is a European open platform of technological integration. Acknowledging that the city will only be transformed through planning and realization, we can have a fine confidence that a State strategy has been adopted, and not only a government strategy. The continuity of these actions will be the guarantee of a promising future in which Vitória will be an intelligent and human city.

“

The living labs also encourage entrepreneurship, as the people can employ their creative power to generate business”

ARTICLE ECONOMY

Development and cooperativism: a contemporary reality BENTO VENTURIM is the chairman of Sicoob ES of FGCoop

he model of shared economy is gaining strength in Brazil and in the world, through several initiatives. This contemporary concept of union, in which it is possible to generate profit through the collaborative process, is the basic principle of cooperativism. When people and organizations are integrated by a common purpose and spirit, everyone contributes with something, obtaining consequently the added value that benefits all involved. With this in mind, the cooperativism is consolidated, while promoting the sustainable and inclusive development. This occurs by noticing non-explored opportunities and meeting the needs of the surroundings, which makes the cooperatives big partners of the people. One of the remarkable characteristics of these institutions is the capacity to contribute actively to the social and economic development of the places where they are, whether assisting the demands for services, or offering more affordable products to the target public. For this reason, they are very important to support people and companies in times of economic adjustments. As they are people associations, they play their role with prominence in times like this, as they make their investments continuously. Generally, these organizations are able to troubleshoot crises. They had their origin in 1844, during the Industrial Revolution, exactly because of the harsh economic situation of the

world. At that time, there was a severe unemployment, due to the replacement of workers for machines and, in the meantime, the cooperatives were created and started gaining prominence. According to the Brazilian Cooperativesâ&#x20AC;&#x2122; Organization (OCB), there are about 7 thousand institutions of this kind in Brazil, contributing direct or indirectly to the countryâ&#x20AC;&#x2122;s development in 13 segments. In EspĂrito Santo, there are almost 8 thousand workers contributing to promote the social wellbeing of 237 thousand of associate members and their families. There are 121 cooperatives acting in nine different categories, but with the same goal: the joint gain.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

The loan segment became prominent and developed in the last years, due to the worldwide and national crises. Consequently, its importance in the financial inclusion of millions of people in all Brazil has grown, contributing to strengthen the economy. Some data evidence the dimension of this segment: nowadays, it is near 8.7 million the number of associate members to credit cooperatives in Brazil. The total of deposits done by individuals and legal entities in Brazilian cooperative banks and in credit cooperatives was R$ 83.6 billion in December 2015. Together, these institutions have Brazil’s largest chain of financial services: 5,669 stations. In Sicoob ES, the range of technological and structural investments provide to the associate members a more and more positive experience, setting the rate of 84.5% recorded in the last satisfaction research. The percentage of 97.4% of associate members that recommend the institution to other persons also confirms this perfect partnership. One of the greatest examples of success, linking Sicoob to the regional development, is the city of Governador Lindemberg, in the North of Espírito Santo. There, about 85% of the financial transactions are done through the credit cooperative. Among other

YEARBOOK IEL 200 LARGEST COMPANIES 2016

reasons, the proximity between the institution and the associate members is one of the factors that encourage the large adhesion in that location. The creation of new enterprises and the expansion of existing businesses, through the lines of credit and financing, are some of the outcomes of the partnership among people. This process generates new jobs, offers conditions to quit debts and restores the purchasing power of the consumer. The Cooperative Credit Warranty Fund (FGCoop) is the organization that promotes the solidity of the institutions in this segment. Nowadays, besides ensuring the associate’s deposits, this Fund keeps track of the businesses, working effectively as promoter of stability and growth of the National System of Cooperative Credit (SNCC). Ever more, the United Nations Organization (UNO) recognizes that the cooperatives are an extremely necessary structure for the global development, and ascertains the importance of these corporations for the progress of society. According to the UNO, 16% of the population are clients or members of a cooperative, whose assets figure US$ 20 trillion, when considering that, there are about 2.6 million organizations of this kind, employing 12.6 million people around the world, and that their revenues achieve US$ 3 trillion per year. The learning of the practices and the progressive adhesion to these enterprises encourage the expansion of the cooperative model as a feasible alternative to a sustainable, safe and profitable development. The vision for the future is to harvest the fruits of the good initiatives implemented now, with more satisfaction and with the participation of more and more people.

“

One of the remarkable characteristics of these institutions is the capacity to contribute actively to the social and economic development of the places where they are”

ARTICLE ECONOMIC AND SOCIAL DEVELOPMENT

Education and sustainable development GUILHERME HENRIQUE PEREIRA is an economist, professor and Doctor in Economic Sciences

he revolution of the Brazilian education – in terms of coverage and quality – will only occur, today, with a strong intervention in the high school, in the upper education and in the formation of masters and doctors. The approach manner adopted is to assess the availability of human resources, for the technical progress and, consequently, the sustainable development of the country. The technological changes have raised higher demands for knowledge. A dramatic challenge to Brazil, which registers big failures on the coverage of the upper education and low formation in the technological area. There has been already an effort to expand the assistance in the elementary (until 14 years old) and in the high schools (15 to 17 years old). In the first group, this goal was almost achieved, with the current register rate of 98%. From now on, the necessary investment will be for the conservation and the continuous quality improvement. There has been a proven progress, but there is still a lot to do, especially in the poorest cities. High School demands more attention. Even with important investments, resulting in sufficient offer of seats to students at this age, the figures reveal a high rate of school evasion. The register rate of students at the ages between 15 and 17 is about 55%. It is alarming the number of youngsters that do not study. This is an age with serious problems, demanding a great work of creativity to

vitalize schools, and to raise the inclusion and to drop the evasion rates. In the universities (graduation and post-graduation), Brazil displays the most precarious situation. Prioritizing the elementary school has driven to a total lack of interest in the upper education, since the outlays, at this point, are addressed only for conservation. Notably, the other target publics require higher investments and larger outlays for conservation. Surely, this issue will only be handled by those really interested in the country’s education and development. There are 7.8 million people registered in the upper education. University students between 18 and 24 years old, which is considered the target age group for university level, represent just about 16% of the people. Perhaps the lowest in Latin America, where many countries have already achieved the percentage of 30%. In Europe this rate is about 40%. Besides the low registry in the upper education, only 13% of these students are in technological fields. To make matters worse, there is a tendency to diminish this parcel in the technology and innovation areas; what will worsen the lack of Human Resources for the sustainable development desired. In the Post-Graduation, Brazil is even more undeveloped. Despite the recent growth, the total number of certifications per year still demonstrates a shameful distance between the national figures and the other countries. The figures are as follows: YEARBOOK IEL 200 LARGEST COMPANIES 2016

PROGRAMS Master Degree (MD) Doctorate Degree (PhD)

1996 1,187 630

2014 3,620 1,954

The annual growth was 6.45% average for Master Degree programs, but with an alarming slowdown, for, in the last two years, the increase was only 4.5%. Similarly in the Doctorate Programs: 6.5% of rise in a year, but with no evolution in the years 2013 and 2014. In 1996, the set called “technologies” represented 69.3% of the existing Master Degree Programs, and in 2014 it fell to 52.9%. Concerning Doctor Degrees, there was also a decrease from 72% to 60% in the same period. It is evident that there is a tendency to apply the available resources in certain areas. If the number of certified people are low in the international comparison, the perspectives show an even greater set back in the future, since the formation infrastructure shrinks in relative terms, as seen above. Therefore, it is insufficient to maintain Brazil’s competitiveness in the contemporary world and, assuredly, the country is far from reducing the downfall. Regarding the number of graduations, in 1996 there were 10,482 Masters in Brazil, and 50,206 in 2014 – an increase of about 379% in the period, yet with a slowdown in

the expansion rate in the most recent years. The new Doctors were 2,854 in 1996 and 16,729 in 2014; an increase of 486.2% in the period, or 15% per year. However, what concerns is the lack of rhythm in this growth, which fell down to about 8% per year in the last five-year period. When considering the areas of knowledge, it is observed the decrease in the set “technologies” parcel, from 61.9% of certified Doctors in 1996 to 51.8% in 2014. Once again, it is testified the lack of policies to face the great world challenges. In the international comparison, Brazil’s classification is sadly the third-last in the group of countries of the OCDE: 7.6 per 100 thousand people, against 41.1 in the United Kingdom and 25.1 in South Korea. Thus, it is easy to understand that a possible take off in progress will only be possible for Brazil after a revolution in the educational system. This will only happen through a strong policy of human resources formation in the technological research and development, from the middle level to the upper and higher levels.

50 40 30 20 10

41 39,7 39,1 35 34,9 34,8 34,4 33,6 33,4 30,5 29 26,3 25,7 25,1 23,1 22,5 21 20,6 19,1 17,6 17,5 12,9 11,5 10,8 7,6 4,2 3,4

56,6

Number of certified doctorates per 100 thousand people, Brazil and countries of the OCDE, 2013

“

The technological changes have raised higher demands for knowledge. A dramatic challenge to Brazil, which registers big failures on the coverage of the upper education and low formation in the technological area”

Slovenia United Kingdom Portugal Slovak Republic Australia Finland Sweden Germany Denmark Ireland Norway New Zealand Austria Netherlands South Korea Czech Republic Spain France United States Israel Estonia Italy Japan Turkey Hungary Brazil Mexico Chile

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Note: All statistics in this article are contained in the research report “Masters and Doctors”, published by the CGEE and available at www. cgee.org.br 25

ARTICLE INDUSTRY

A new chance to Brazil JOSÉ ARMANDO CAMPOS is chairman of the Administration Board of ArcelorMittal Brasil S.A., member of the Administration Boards of Rede Gazeta and Biancogres S.A., and member of the Advisory Board of Espírito Santo em Ação Corporate Group. He is also member of the Director Board of Terra Institute, which works for the recovery of Doce river valley’s ecosystems

ome have already said that 2016 is a year to be forgotten. All reports put the country in disadvantage, by any criteria of performance evaluation, especially in the economic, social and environmental areas. Figures show the strong retraction of the economic activity, the rise of debts of the government and families and the records of inflation and unemployment. When writing History, whereas this time is well contextualized regarding to the global geo-politic and economic scenario, the nation’s performance will be highlighted; especially concerning the number of opportunities to change that were lost. There is no one only sector of Economy as the great loser. Certainly, Industry paid more than other sectors for the mistakes made by the economic policy during the first Presidency mandate of Dilma Rousseff. Generally, there is no segment of Brazilian Industry that has escaped the crisis. Year after year, since 2012, there have been a rise in idleness; which will be another unfortunate record reached in 2016. This was a disaster to whom invested and was expecting a reasonable return. People not only saw expectations vanishing, but they had to deal with the rise of operating costs, the compromising of the working capital, and the consequent cash burning. With the lack of a significant product demand, and with no perspective of companies doing new investments, jobs were lost,

contributing to the drop of workers’ average income, yet eroded by inflation. All this damage could be reputed to a wrong industrial policy. However, the main cause was the lack of responsibility and competence in doing the macroeconomic administration, which resulted in a financial and accounting disorder that shall consume much energy before reverted.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Nevertheless, a new scene begins to come up. Apparently, the worst is already gone. It seems the beginning of a restoration that, by the seriousness of the mistakes, will be slower than wanted and will require much patience and discipline in all segments of economy. All signs point that the GDP will return to rise in the second semester or, at least, it will stop falling down; considering that the last quarter result had the fifth consecutive fall. Notwithstanding, restoring an Economy like this is kind of shifting in 180 degrees the direction of an ocean liner. So, there will still be many negative figures, with recession and unemployment in several economic sectors. The most pessimist may say that the situation is no good. But the perspective of a positive GDP in 2017 may encourage the nation to work hard to enhance the foundations of competitiveness, while “better days” are still and only a hope.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

For more encouragement, it is good to follow the CNI’s reliance indicators or the FGV’s indicators of investment intention. The Icei (Industrial Entrepreneur Reliance Rate) grew up by the third consecutive month, since April. Also, the Industry Investment Intention Rate went up in June, by the first time after 11 quarters falling down. Though in both cases the variations were discrete, they might develop more in the next months, with the consolidation of a better politic governance. Once again, it is worth considering that expectances will only become true if they are anchored by improvements in the ecosystem as a whole. Progress in economy may occur in the short-term, but the growth will only be confirmed and remain stable if the politic-institutional scene and the public governance get settled. May it seem repetitive, but for a long time, the changes in the set of external factors that influence the business atmosphere in Brazil have been claimed, and unfortunately, they have given little practical results. The IMD1, which organizes an annual study about the countries’ relative competitiveness, reveals, through proven data, that there is a big difference within Brazil between the competitiveness of private and public sectors. From the beginning of the last decade until 2013, Brazil was quite efficient in the private sector, featuring in the first half of the most efficient countries. A recognition to the sector’s dynamism, capacity and creativity in meeting the markets’ needs, as well as an acknowledgement to its financial health, management practices and competence, all founded in a solid set of beliefs and values. On the other side, we were very inefficient in the public sector, featuring amongst the 10 last of a list of about 60 countries researched. It means, while Brazil was side by side with competitive nations, it was also competing against the most inefficient and less competitive countries of Africa and Latin America. Up to this point, what was no good became worse. As soon as the boom of the anti-cyclical measures were past, and

“

There is no one only sector of Economy as the great loser. Certainly, Industry paid more than other sectors for the mistakes made by the economic policy”

ARTICLE

boosted by a spectacular rise in the commodities’ prices, the country’s performance started an accentuated fall in the world competitiveness ranking. Unfortunately, our position started to fall continuously in the general list, from the 38th position in 2010 to the 57th, out of 61 countries, in 2016. It is evident that the deterioration of the political governance dragged and risked a big bite of the private sector’s efficiency and productivity that Brazil was achieving. In this year of negative records, the government efficiency fell deep down. Featuring in the last position, even overtaken by Venezuela, our businesses’ efficiency was brought down the 51st position. That is a lesson to learn and not forget: the entrepreneurial class has a great responsibility in improving the public governance, and should foster its beliefs and projects democratically, to help build the country everybody wants. What are some weapons of persuasion? Monitoring those that are elected to public posts and making a continuous effort, founded in good examples, to influence the society with ethic and good values. What is to come in the next months and in the short-term of two years will be essential to recover growth of quality. While the fundamental reformations do not occur, let it be work in the infra-constitutional scope, simplifying the life of those that produce and generate jobs and income. De-bureaucratizing and simplifying should be mottoes and, in a certain way, should be adopted by all, whether in public or private contexts, although it is in our people’s nature and cultural formation to seek protection through privileges and benefits, which are incompatible with the contemporary world. One of the big battles nowadays is the reformation of the Social Security System, deep and global for public clerks, in all levels of government, and also for workers of the private initiative. The Social Security System’s accounts in Brazil, if not conveniently resolved, will become a heavy anchor on the government treasury, suppressing the full development of the nation’s potential. Any action to preserve the current model will be a lost fight, due to the actuarial thing of a country that will soon start to loose demographic advantages. If in the final match there have 28

been victory of corporatism and ideology, it will drive retirees and pensioners, at last, to get the best part of absolute nothing. Another fundamental change to the social and economic development is the country’s political reformation. The multiplication of political parties with no programmatic content or representativeness only makes the government inefficiency to grow and the costs to the taxpayers to raise. Finally, one question: what is the priority to those that militate in the real world of Economy and business, especially, in Industry? To start answering, it is important to repeat this saying: “crisis is synonym of opportunity”, and accept that Economy will always undergo successive highs and lows. If in the decline of their businesses, people are bold enough to take the necessary measures, even unfriendly or painful ones, when returning to growth they will be more fit, and consequently, more prompt to place all energies to deliver better products and fast regain clients. All endeavor to improve productivity will return as enhancement of competitiveness. It is remarkable the work of some Brazilian companies that were forced to slow down. Besides reviewing the strategies of growth, they are assessing their internal processes, in the pursuit of the operational excellence and the better use of their assets. These measures will certainly put them in a higher level compared to the competitors that are not doing the same. This principle is also true for the public sector, and Espírito Santo State can be the best example of it. The countries’ relative attractiveness also works in the national scale, and the State meets almost all conditions to come ahead and receive new investments, when these are recovered. At last, only a deliberate action from the public sector, marked by the sense of urgency, and motivated by the reestablishment of the economic order, as well as the country’s systemic competitiveness, will be able to ensure that the efforts of the private sector will bring enduring results. Brazil cannot lose this chance, discouraging those that endeavor and scrapping a big part of its Industry, once and for all. YEARBOOK IEL 200 LARGEST COMPANIES 2016

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

ARTICLE ECONOMY

The upcoming turnaround CLÓVIS VIEIRA is economist and partner of Vieira & Rosenberg

racking the world, the United Kingdom was caught deluding many with the Brexit - a victory of populism in lands of almost millenary tradition of political maturity. It seems that Great Britain will be the greatest victim of itself. A wave of uncertainty is passing by Europe, drawing attention to the fragility of some financial institutions. China’s economy is cooling down, but it is impossible to tell the limit of this move, considering the opacity of the (little) data that is able to jump the Great Wall in direction to the West. In the meantime, Turkey’s “coup-backlash” complicates the building of reliance in favor of the emerging ones. In Brazil, there are also some discouraging things. Government has never done an effective cut in costs, but only in those that were increasing too much. Thanks to President Michel Termer, they will increase a little less. The reduction of the announced projected deficit of R$ 194 billion to R$ 139 billion will start with R$ 55 billion from indefinite revenues. All the attempts to expand costs, as the readjustment of public services or the authorizations to parliamentary amends, have prospered. In the day by day, it is observed that the recession gets ever deeper, and the unemployment increases, while the Central Bank suggests that it is too early to cut interest rates. Even not advocating for the cause,

the Government tell us all the time that, if resources lack, the Cide and the CPMF may be back. Thus, who expected Temer to lead the approval of the PMDB’s modernizing program “Ponte para o Futuro” (Bridge to the Future), may be very incredulous. However, it has to be recognized that, since the Federal Executive has YEARBOOK IEL 200 LARGEST COMPANIES 2016

taken on power, he demonstrated that he knows how to articulate with the Parliament, electing as Congress President an ally with a market profile. In fact, much of what is attributed to the President’s “weakness” is, indeed, the capacity to conciliate interests around greater goals, like the Impeachment’s decisive voting and the approval of the Constitutional Emend Proposal (PEC) setting a limit to the raise of governmental costs.

The President’s achievements in the economic area are encouraging. Even with the aggravating factor of recession, there are real evidences that the worst was left behind, such as the confidence indicators, which point to an ascending optimism from producers and consumers, the indicators of industrial production, the noncompliance that does not worsen and the YEARBOOK IEL 200 LARGEST COMPANIES 2016

unemployment, which increases, but in descending rates. Concerning to inflation, the news are even more encouraging, as July and August registered inflation under 0.5%, with the possibility to close the annual quarter at less than 6%. This will bring to the market the sensation that the inflation is really marching to the center of the target, which is all that the Central Bank needs to start reducing the interest rates. As it is known, this is the most important measure to return to grow and to reduce the public debts’ rhythm of elevation. With respect to the external accounts, one of the most brilliant examples of turning around a deficit into a surplus is the following. Those that said that the Brazilian economy became unfeasible by the loss of competitiveness must now explain how the country was capable to restore exportations and replace importations with such speed. In fact, the arrival of direct investment will be sufficient to cover the entire deficit in current transactions. In the face of all these, the foreign investor begins to look to Brazilian assets, attracted by the response provoked by the high rates in the lands of negative interest rates. Moreover, this attractiveness only rises when funds of investments, noticing the worldwide stock markets working near to their historic peaks, see that Brazil’s one is laid aside, in the eve of an economic recovery and with an exchange rate that is hard to fluctuate and impose loss to the foreigners. Without any intervention, the exchange rate would easily stay at R$ 3.10 per dollar instead of R$ 3.40. Finally, it is worth highlighting that the United States provide Brazil with the best possible scenario - rising, helping other nations to overcome their difficulties, generating income and sharing wealth, with no inflationary pressure, and, the work market seems to have an unlimited workforce and employs without pushing on salaries. As a result, the raises of the interest rates are adjourned – all that is needed to make them drop with no prejudice of the currency exchange.

“

The reduction of the announced projected deficit of R$ 194 billion to R$ 139 billion will start with R$ 55 billion from indefinite revenues. All the attempts to expand costs, as the readjustment of public services or the authorizations to parliamentary amends, have prospered”

ARTICLE ENVIRONMENT

Smart farming and sustainability: intelligence and solution for the world’s agribusiness T ENIO BERGOLI

is agronomist, post-graduated in Administration and Rural Socio-Economy, public policies coordinator of the Espírito Santo’s Agronomists Society, former secretary of Espírito Santo State’s Agriculture Department and general director of DER-ES (Espírito Santo State’s Department of Highways)

he smart farming will be decisive to mitigate global problems, to assuredly meet the demand for food, fiber and renewable energy, to preserve and restore natural resources and insert new professional profiles in the agroindustry scope, among other relevant issues of the contemporaneity. A recent research by the Monday Morning Institute, in partnership with the United Nations, elicited the five main solutions to the world’s current risks, appointed by 5.5 thousand global leaderships. All the solutions for unemployment, poverty, financial crisis, hunger and malnutrition, carbon emissions, education, and other risks, are direct or indirectly linked to the agribusiness. The area in the fields available to meet the population’s needs is ever shorter. 55 years ago, there were 4,428 square meters of cultivable area per inhabitant in the world. In the year 2000 this indicator reduced to 2,479 square meters and, in 2050, with a projected population of 9.55 billion people in the world, there will be only 1,809 square meters per inhabitant. It is clear the necessity to rethink the farming practices of the last decades, when the main goal was to expand the production by means of increasing the productivity, having in mind that the most important thing was to “fill the people’s stomach”. Now, the technological advances must focus on sustainable production processes, in face

of the shortage and degradation of the natural resources. On the other side of the usher, there must be advances as well. It is common sense that to fight hunger it is necessary to reduce the wastage of food, and to assure the distribution, there must be a solution for the logistic obstacles. All this demands innovation and a proven and disseminated knowledge, with the reduction in costs. At this moment, there is a strong discussion about trends, premises and drivers that will orientate the agri-food system in the future, as well as Sciences, technology and innovation in the agri-industrial systems, regarding the converging technologies, the complex and sustainable systems, the structure, the public policies and the organizational innovation. The Embrapa researchers Silvio Crestana and Claudia De Mori alert that the great challenges to sustainable development, to technology, to knowledge and to innovation will require the application of different disciplines. However, the interdisciplinarity is not enough anymore, being also necessary the transdisciplinarity. For this reason, professionals must be prepared in diverse areas of knowledge. For Jose Luiz Tejon Megido, of the ESPM/SP Agri-business Center, the smart farming concept means the intelligent agriculture associated to the precision agriculture, the genetic design, the graphene revolution and the high scientific knowledge, including YEARBOOK IEL 200 LARGEST COMPANIES 2016

the artificial intelligence for micro and macro farmers. According to the expert Francisco Lavrador Pires, the disciplines and the competences now required to innovate the agriculture include robotics, digital image, global positioning technologies (GPS), scientific solutions, weather forecasting, technological solutions of support to production, environmental control and other things. Frequently, the precision agriculture is called Smart Farming, an “umbrella” expression for a quick comparison with the implementations based on the M2M (machine to machine), such as the Smart Metering and Smart Cities. With the new Smart Farming, the agribusiness is becoming more digital, bringing opportunities to the sector, not only to agronomist, veterinarians, zoo-technicians, forestry engineers, and agricultural technicians. Now, there is place for many professional careers, besides the agrarian and veterinarian sciences, such as the information technology, programming, logistics, communication, marketing, administration, YEARBOOK IEL 200 LARGEST COMPANIES 2016

finances, mechatronics, and civil and mechanic engineering. The pursuit of an intelligent production in the fields includes the use of contemporary detectors and equipment that allow a more detailed control of the agricultural production system as a whole, not only the input application or mapping, but also all the processes involved in the production. Notably, the converging technologies (information, nano-technology, cognitive science and biotechnology) are already involved in the generation of knowledge and production. Besides that, in the next decades humankind will experience harmony between men, machines and nature, based on intelligence. It is time to make a safe plan to meet the different demands imposed to the farms. This plan will lead to an agro-social-environmental revolution. A model that will succeed the “Green Revolution”, but more economical, more socially just and, indeed, more green! The living shall see it.

“

Now, the technological advances must focus on sustainable production processes, in face of the shortage and degradation of the natural resources.

ARTICLE INDUSTRY

The Tubarão Complex: 50 years FABIO BRASILEIRO

is director of logistics of Vale

he Tubarão Complex, the Vale’s operational area in Vitória, is celebrating 50 years. In this half century, both the mining and Espírito Santo State have developed together. The company was already doing port activities in the State since the decade of 1940, but, with the inauguration of the Port of Tubarão, in 1966, it began to participate decisively in the State’s process of industrialization and modernization. Primarily, the transfer of Vale’s port activities from the Atalaia and Paul Terminals, in Vila Velha, to a new location, in Vitória, aimed at meeting the rising demand for iron ore. So, the Port of Tubarao represents a turning in the Company’s strategy. At that time, Vale started to operate an integrated system, involving the mine, the railway and the port that was decisive to the company’s growth and it is a competitive advantage until now. For the Espírito Santo State, Tubarão contributed to the creation of a business atmosphere that benefited the entire chain of services, guaranteeing the transition from a predominant agricultural economy, conditioned to the coffee plantation, to an industrial economy at global scale, with the exportation of ores. The construction of the Tubarão Complex influenced the attraction of important ventures to the State, such as Aracruz Celulose (now Fibria) and the Companhia Siderúrgica de Tubarão – steel industry (now ArcelorMittal Tubarão), whose foundation was supported by the mining. The creation of the Vitória industrial Center (Civit), in Serra, and

the startup of other enterprises were also fruits of Vale, post-Tubarão. Always ahead, the Port of Tubarao was already outstanding at the time of its inauguration. It could bear ships with 150 thousand tons, while most fleets carried no more than 60 thousand tons. Over the time, the port terminal has contributed decisively to the outlet of Vale’s increasing production of 2.9M in 1966 to the current 120M tons of ore and pellets per year, leaving, this way, its footprints in the history of the company, of Espírito

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Santo State and of Brazil. Now, Tubarão is the port of call of about 1,100 ships per year, harboring some of the world’s largest ore carriers, the Valemax, which have the capacity of 400 thousand tons. Since 1969, with the installation of the pellet plants, the port became the Tubarão Complex. Besides handling iron ore, in the Complex are also the Praia Mole Terminal (TPM), which handles mineral coal, coke and manganese ore; the Liquid Bulk Terminal (TGL), which handles fuel; and the Terminal of Other Products (TPD), which handles grains and fertilizers. With 14 square kilometers area, the Tubarão Complex hosts now eight pellet plants and the Operational Control Center (CCO) of the Vitória-Minas Railway, which handles at least 60 kinds of products, besides iron ore, steel, soy, coal and limestone. Over 905 kilometers railway line, it represents about 30% of all the country’s rail cargo. Every day Tubarão accommodates about 20 thousand people, including its own employees, outsourced workers, clients and suppliers, operating as a city, 24 hours a day.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Vale remains as one of the State’s largest companies. It makes 60% of its acquisitions with local companies and responds for 13% average of the state’s GDP. Nowadays, Tubarão is a mature terminal, capable to meet the demands. For many years, it has been the world’s largest ore outlet port, and now, with the expansion of the North System, in Pará and Maranhão, the challenge is no more the volume, but the competitiveness. The company is ever investing to do better in sustainability, safety and stability of the operations. It is concentrated on the automation, the process’ enhancement and the equipment and procedures modernization, in order to be ever more competitive in the consumer market, which is mainly Asia. The operations’ scale, the commitment to construct a legacy, and the relationship with employees and suppliers provide the company with different ways to interact with Espírito Santo’s society. The Vale Museum, the Botanic Park, the Linhares Natural Reserve, the Passengers’ Train and the Knowledge Station are important and acknowledged socio-environmental assets, which foster the State’s environmental, social and cultural development, providing access to recreation, knowledge and social inclusion, and certainly make the company ever closer to the community. Moreover, the doors are open to receive institutions and the public willing to learn more about us. Through the visiting program, available to everyone that goes to Vale’s Botanic Park, more than 50 thousand people visited the company’s premises in the Tubarão Complex in 2015. Over the years, many things have changed: both Vale and the city grew up, the State’s economy diversified, and Espírito Santo’s human development rates were consolidated as one of the best in the country. More than an industrial project, the company’s presence became a vector of local development. This reflects on the 10.5 thousand employees and outsourced workers of Vale in the State, on the social projects supported by the company and on the memory of all that, somehow, was part of these 50 years of work, challenges and outgrow.

“

Vale remains as one of the State’s largest companies. It makes 60% of its acquisitions with local companies and responds for 13% average of the state’s GDP”

ARTICLE CORPORATE MANAGEMENT

Baby boomer companies versus millenial consumers: the generation gap C WALLACE VIEIRA

is CEO of Wattz Consultoria e Inovação Empresarial (Consultancy and Corporate Innovation), lecturer and mentor

urrently, the world is under profound transformations in all aspects: political, economic, social, ethical and religious. These changes affect directly all ways people relate within the consumption chain, influencing all the productive sector: industry, trade and services. More than 100 years ago, the world changed from a strictly extractive and subsistence society, with a system of product exchange based on ballast gold, to a multiconnected society, with information on hand through smartphones and similar stuff, in which a new model of business is quickly created. All that was true until now may change tomorrow. This is called the “disruptive model”. A term that was popularized by the Harvard Professor Clayton Christensen, which means, what changes the way people look and consume certain goods and services. Some examples are the Uber (mobility), o Airbnb (hostage share) and the Bliive (cooperation and knowledge share). Although the society is still very unequal, in which 66% of the global population live with less than US$ 2 per day, according to the World Bank, people with consumption power have great facility to find all kinds of products and services, whether in the street corner, in the malls, by cell phones or in the comfort of their sofas, by delivery. And what does the industry have to do with all this? Simply everything! Why? These are the facts: Until the decade of 1990, industry produced to sell. If it was a good company in a market demanding for

products, producing with quality, with a good marketing (not so necessary) and a customer service (despite a bad service and delays did not cause any harm to the business), it was more than the necessary to gain the game and grow. The demand was so big that the provision and distribution were big obstacles to consumption, generating a strength for the companies. Internet changed everything. In the end of the 90’s, the great fear of the airlines was to loose seats to a new enemy: the teleconference technology, which would make the business trips unnecessary. Notably, this prediction did not take place, for the business trips continued to be essential to companies. Since then the world continued to change. Industries kept their traditional business models, but in a disruptive environment, where new consumers are less faithful to the brands, have more socio-environmental concerns and high level of conscience. They also have a healthier life style and seek the balance between cost and benefit. How to face these new paradigms? Changing the business model! Forgetting about good products at reasonable prices. It is not sufficient anymore! The power is with the people and shopping is in a click, so, companies must be adapted to the new consumption patterns. Looking to Espírito Santo State, there are several productive chains consolidated, with more than 30 years, such as the metal-mechanical, clothing, granite, wholesale markets, plastic and furniture, YEARBOOK IEL 200 LARGEST COMPANIES 2016

and many others. Besides the big industrial plants of oil and gas, steel industry, pulp and paper, and ore, which have their own dynamics and global expertise. What do these companies need to survive another generation? To recreate and innovate their business model. “Do not be jealous of your exclusive product”, someone said. Be concentrated on the consumer, because he is the secret. The former success is behind, and changing is the passport for the future. What hinders the innovation in the companies? Many companies hesitate before a set of continuous changes. The main paradigms and obstacles that stop innovation inside organizations are: 1) The innovation of the business model may cannibalize the current business; 2) The innovation focuses only on the current clients of the company; 3) The company’s managers are instinctively attached to the status quo, it means, they want to minimize risks and variation; 4) The managers are complacent after years of the busines’s success; 5) The managers are concentrated in the business’ ordinary knowledge fields; How can we win in a changing and saturated of everything market, where YEARBOOK IEL 200 LARGEST COMPANIES 2016

the “new” threatens and paralyzes by lack of understanding? It is simple, though not easy: looking to people and acknowledging their needs, through these three factors that influence the new consumer and are the basis of construction of the new companies: empathy, collaboration and sharing. The “new” consumption model is based on the “BEING”, not “HAVING”. It means, the new generation does not need a house on the beach, or yachts, nor luxurious cars, to enjoy all these experiences. They only need to access these things, not to acquire them, like the former generation used to. Moreover, some of the principles of companies prepared to this new world are: concentrate efforts on people (for companies are not done only of processes); qualify the internal and external personnel, forming real leaders and managers; create products and services to supply somebody’s needs; engage clients and consumers in the company’s “causes”, and be seen as an innovative company. How to start? Seeking a new look, from outside inward the company, with the eyes of the consumer, and seeing as he sees it. That is the secret. Good luck!

“

Do not be jealous of your exclusive product”, someone said. Be concentrated on the consumer, because he is the secret. The former success is behind, and changing is the passport for the future”

ARTICLE INDUSTRY

The textile and clothing sector in the Fourth Industrial Revolution FERNANDO VALENTE PIMENTEL is superintendent director of the Brazilian Textile and Clothing Industry Association (Abit)

he continuous integration of the Brazilian textile and clothing industry in the global economy must be through the principles of the Industry 4.0, within the transforming process defined as the Fourth Industrial Revolution. Such a revolution benefits countries like Brazil, that are not lenient with environmental, labor, and social security laws as a manner to reduce costs. Anyway, that old model seems to be fated to end as a competitive advantage, giving place to new technologies. It is what demonstrates the study “The Fourth Industrial Revolution of the Textile and Clothing Sector: A vision for 2030”, made by the Brazilian Textile and Clothing Industry’s Association (Abit), the Senai’s Technology Center of the Chemical and Textile Industry (Senai Cetiqt) and the Brazilian Industrial Development Agency (ABDI). The study clearly reveals how, during the globalization process, the progress of the textile economy is breaking through new and unpredicted ways. The fast fashion and the global chains of value have changed the structures and the concepts of production and consumption. Elevation of labor costs, new development policies, changes in consumers’ habits and political tension were some of the causes that mitigated the competition advantages based on low salaries. The Internet and the information and communication technologies spread the information in real time to every

part of the world, turning the transposal of the physical space into the only factor that separates the markets and the new products. The physical distances between the producer and the consumer are the ultimate obstacle to be surpassed. Consultancies, governmental studies and specialized articles state that the re-industrialization of countries in North America and Europe will be based on

YEARBOOK IEL 200 LARGEST COMPANIES 2016

the creative breaking of the sector’s current structures. Modular and clothing automatizations attract funds of governments and big global investors that used to encourage the move of the production to countries of low cost production. Now the production is doing the way back. To contextualize the textile and clothing sector, the Abit, Senai Cetiqt and ABDI’s study selected ten pervasive technologies with high capacity to enter and spread in the segment: automation and robotics; information and communication technology; detectors and actuators; modeling and simulation; cloud computing; mobile Internet; sustainable technologies; bio-technology; materials technology; big data and 3D printing. These technologies signalize the increase of complexity in the clothing manufacture, with reflection in all the chain of production and consumption value, with the potential to eliminate obstacles as those faced by the lack of dressmakers or by the

YEARBOOK IEL 200 LARGEST COMPANIES 2016

lack of talents in the sector. In complex settings, people work more connected to one another and with other companies, and have to gain a wider knowledge. Their productivity, so, is measured in a more fluid basis. Professionals that are able to create value can be better paid, with no risk to the business’ competitiveness. Moreover, the production virtualization eliminates stores and waste, making the productive work more efficient in the use of energies and material. In the technological environment, micro and small clothing factories will be able to overcome their current difficulties to produce in scale. Automatized and sustainable mini-factories, with intensive technology and highly qualified human resources will meet the requirements of the large retail market and the final consumer. The small clothing factories will explore their own ways to access directly the consumer, reducing the governance power of the large retailers. So, to support this move, the role of the research and development institutions must be to prepare themselves to offer the technical assistance that will help these factories to align their processes and products with the principles of the Industry 4.0. The textile and clothing industry, traditionally regarded as a low-technology segment, will make a great qualitative leap to be one of the most scientific and technological categories, as long as it is able to spread the cyber-physical systems, the Internet of Things, the services Internet and the modular automation in its manufacture. The diversity of products with “dressing” technologies, as well as the employment of bio-technologies and new materials, will create new demands for intelligent and functioning textiles, increasing exponentially the diversity and the technological intensity of threads, fabrics, trims and auxiliary products, necessary to meet the new consumption needs. The dissemination of clothing factories with the advanced manufacture principles will elevate the quality of the textile industry and its scientific and technological development.

“

The fast fashion and the global chains of value have changed the structures and the concepts of production and consumption”

Co-author: Flavio da Silveira Bruno, of Senai Cetiqt, is Doctor in Production Engineering. 39

ARTICLE JUSTICE AND CITIZENSHIP

Brazilian democracy and the Supreme Federal Court IVES GANDRA DA SILVA MARTINS is Doctor Honoris Causa of the Craiova University, in Romania, and of the Paraná and Rio Grande do Sul Catholic Pontifical Universities (PUC). Professor of the Minho University, in Portugal. Chairman of Superior Board of Law of São Paulo State Commerce Federation. Founder and honorary president of the University Extension Center (CEU) of the School of Law/ International Institute of Social Sciences – IICS

hen I was in the constituent works and preparing the Notes to the Constitution, with my beloved friend Celso Bastos, I had the opportunity to not only participate in the public hearing meetings, but also discuss with numerous constituents the necessity of independence among the Powers, with autonomy ensured by their functions. In speeches, television and radio programs, newspaper articles, doctrinal studies and, mainly, in the acquaintances with Ulysses Guimaraes and Bernardo Cabral, my opinion concerning the new model of Supreme Law and the profile of the Three Powers was being formed. Strictly, as the Supreme Law was being prepared for a parliamentary system, the balance among the Powers became, by constitutional determination, the best conformed of all the seven Constitutions of Brazilian History (1824, 1891, 1934, 1937, 1946, 1967 and 1988). These autonomy and independence, ensured by the Article 2, had been respected by the Praetorium Excelsior for many years, until the quick modification of its structure, in a few months later. The referred Article is written this way: “Article 2: The Powers of the Union, independent and harmonious with each other are: the Legislative, the Executive and the Judiciary”. Since 2003, with the Presidents from the Workers’ Party (PT), innumerous

Ministers came up to the Supreme Court, and there are, now, eight judges indicated by them. The Supreme Court did not undergo - since I had spoken there for the first time, in 1962 – abrupt changes, so that any new member could quickly adapt to the spirit of the Collegiate itself, honoring its judgement. It was said, then, that justice was made in the lower courts, being up to the Praetorium Excelsior to give stability to the institutions. For this reason, it was always a Court of negative legislators, it means, concerned to not bear unconstitutional laws, but respecting the political powers in their legislative function. Besides, it was defined in the § 2 of the Article 103 of the Supreme Law, that, in the direct actions of unconstitutionality by omission, when the Parliament is discharged unconstitutionally, the Supreme Court cannot legislate, but only request to the Legislative Power to make the law. This provision is the following: § 2 - Being declared that the unconstitutionality was by omission of an action that would make a constitutional law effective, it will be informed to the respective Power in order to take the necessary providences and, if it is an administrative entity, to do it within thirty days”. However, the quick change of its structure and the beginning of the TV Justiça (Court TV) allowed the access of ordinary viewers to the courts’ disYEARBOOK IEL 200 LARGEST COMPANIES 2016

cussions, what made the Supreme Court a protagonist beyond its own borders, and turned it from a negative into a positive legislator. Since then, it has been legislating about party loyalty, election of trounced candidates to replace removed governors, enlargement of stable union hypothesis to accept couples of the same gender, establishment of impunity for eugenic abortions, culpability without res judicata, with imprisonment on the criminal cases before the final decision (Article 5, line LVII). In addition, the Supreme Court has assumed functions exclusively legislative to remove congressmen, has defined the internal laws of the Legislative Power, while its own internal law is untouchable, besides doing other normative interventions of less impact. I have, repeatedly, declared my admiration for the 11 ministers of the Supreme Court, but being much older than them, I do not really feel comfortable to notice how they are turning from a technical power to a political power. I believe that this ascending prominence will result in legal unsafety. Instead of being a Court that ensures the institutions’ stability, as it used to be, it will bring an even greater level of instability, for it is possible to resort to the Judiciary YEARBOOK IEL 200 LARGEST COMPANIES 2016

against unconstitutional laws, but, against the encroachment of competences, there will be no one to resort to. I believe it is worth thinking, by the eminent jurists of the Higher Court, and also by professors, scholars and Law operators, whether the moment is to return the effective autonomy and independence of the Powers, avoiding the invasion onto alien fields, and giving the due value to the Article 2 of the Supreme Law. The Supreme Court is not a constituent legislator, but, according to the Article 102 of the Supreme Law, exclusively guard of the Republic Letter, in which it is expressed: “Article 102 - To the Supreme Federal Court concerns, mainly, the guard of the Constitution, charged that…”. For this reason, the Brazilian democracy, backed on the Powers’ balance, cannot bear the prevalence of one Power over the others, beneath the penalty that an excessive juridical prominence may put it under risk. In the past, the Executive Power prevailed over the others, with unequivocal distortions. It is essential that the Supreme Court, of eminent masters of Law, turn to be what it was in the past, it means, the support of the other Powers, and not their stand-in.

“

In the past, the Executive Power prevailed over the others, with unequivocal distortions”

ARTICLE ECONOMY

Espírito Santo: how to turn to grow? CLAUDIO PORTO is founder and CEO of Macroplan. Economist (UFPB) and consultant in Construction and Analysis of Scenarios, Strategy and Management for governments, companies and public and private institutions. Co-organizer of the books “2022 – Proposals for a Better Brazil in the Year of the Bicentenary” and “Proposals for the Government 2015-2018, An Agenda for a Prosperous and Competitive Country”

s well as Brazil, Espírito Santo State experiences one of the deepest economic crises in its History. The “Economic Panorama of Espírito Santo – First Quarter of 2016”, published by the Jones dos Santos Neves Institute, with the habitual precision and competence, highlights that: “the outcomes registered by the state’s economy in the first quarter of 2016 were inferior to the national ones, in all comparison basis: “(…) the halt in Samarco’s production, in Anchieta, and the drop in the oil production were determining to the performance of the state’s economy; (…) the quarter indicator of Espírito Santo’s GDP was continuous in its way down (-4.2%), in the comparison with the fourth quarter of 2015 (…); the fifth consecutive negative result (…); and the drought (…), explain the drop in the production of some of the main agricultural products, such as the Conillon coffee (-14.1%), the sugar cane (-10.6%) and the papaya (-20.9%)”. In this set, Espírito Santo experiences the simultaneous effect of two adversities that affect the economy: on the one hand, the greatest exposing of its economic structure and global cyclic changes (mineral and industrial commodities, oil, external trade flow), and on the other hand, the local hardships, like the accident with Samarco’s dam, the drought and, not the least, the “fall” or depression of the state and municipal public finances.

However, looking ahead, the crisis will not last forever, and there are already signs and preceding indicators that the hardship is already to end; unless there are new natural, economic or political disasters. The state companies are beginning to react and, similarly important, Espírito Santo is becoming positively prominent in Brazil, due to the adjustment of the public accounts that the State Government is endeavoring, with no raise of taxes, and the effort to improve the business atmosphere. Periods of crisis and breakthroughs like this are proper to adequate the strategy of development, so that in the future the local economy will be less vulnerable to the cyclical changes. Considering the strengths of the State, there are three strategic moves, coordinated among public and private agents, that can bear Espírito Santo’s future: diversification, associated or complementary to the main productive chains; attraction of private investments to infrastructure; and boosting the state business atmosphere. The diversification must combine the occupation of empty spaces upstream or downstream of the large productive units, with the incorporation of new productive or technological capabilities to the state economic structure. In this context, two initiatives seem to be decisive. First, strengthening the state medium size companies, through intensive projects of productivity, quality and YEARBOOK IEL 200 LARGEST COMPANIES 2016

“

The state companies are beginning to react and, similarly important, Espírito Santo is becoming positively prominent in Brazil”

innovation improvement. And, second, the attraction and the retention of advanced services companies and entrepreneurs of the general industry or the industry 4.0 (for instance: tailored production, specialized technical maintenance, precision mechanic, robotics, high performance logistics, applied research), or the most sophisticated services in the fields of health, education, R&D, financial services, engineering, project and design. YEARBOOK IEL 200 LARGEST COMPANIES 2016

Concurrently, there is a great “opportunity window” to the attraction of private investments in economic (ports, airports, railways, roads, logistic centers, infoways) and social infrastructures (health services chains, school chains or security and prison bureaus), sanitation, macro drainage and urban mobility. The Investment Partnership Program – PPI, recently launched by the Federal Government, can be an important lever to 43

ARTICLE

turn the state opportunities into investments, wealth and good jobs. But, this opportunity can only be seized if there is a previous strong investment in planning, feasibility studies, projects and investment. Finally, but similarly important: it is necessary to take advantage of the fact that Espírito Santo is becoming positively prominent in the investors’ “eyes”, in order to speed up the enhancement of the state business atmosphere. In truth, the State Government is already working toward this, but accomplishing it does not depend only on the Government. It is a comprehensive work – de-bureaucratizing, simplifying taxes and legal requirements, speeding up the Justice’s response time, expanding courts, augmenting the predictability, simplifying authoriza-

tions. All that require great cooperation and alignment between the public and private agents, in all levels. In this set, due to the social capital (the knowledge and reliance relations) achieved, associated to the fact that, at the same time, the State is small sizes and well located, Espírito Santo can and ought to be proactive and take the vanguard of the institutional, managing and business innovations, so as to become a reference in the business atmosphere aspect. Summarizing: for a long time Macroplan and I, personally, are accompanying the Brazilian states and we have seen Espírito Santo as one of the most ppromising cutting edge of development in Brazil. It is time for the state leaderships to rush and do the best future to happen!

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

ARTICLE ECONOMY

Foreign trade: perpectives MARCILIO R. MACHADO is the chairman of Sindiex and director of Famex Importadora and Exportadora Ltda

he total exportations of Espírito Santo in 2000 was US$ 2.79 billion. More than one decade later, in 2011, this activity reached the peak of US$ 15.15 billion. This outcome was mainly thanks to the commodities’ super-cycle, caused by the raise of prices and the increase of China’s demands. On the other hand, the State importations in the year 2000 were about US$ 2.51 billion and, indeed, registered a continuous increase, reaching the amount of US$ 10.7 billion in 2011, due to the State’s daring entrepreneurs. In the following years, both sides of the trade balance dropped. Foreign sales were affected by the reduction of commodities’ prices, and the acquisitions in the foreign market, by the lack of investments in the port sector and by the recession in Brazil. Regarding the market share in the marked, the State exportations are now distributed to three main destinations: 25% to Asia, 24.26% to the European Union and 22.05% to the United States. Meanwhile, the Espírito Santo’s importations are mainly originated in China, the United States and the European Union. In 2016, the facts are not very encouraging. In the first semester, importations shortened about 35%, while the exportations decreased 41%. The result of the local trade balance reflects what happens with the national trade, which was not able to progress in the last years.

In order to boost Brazil’s exportations, several analysts suggest that there should be an ideal currency rate to give competitiveness to the Brazilian industries. Usually, the exporters use the currency rate to exchange the dollars on the invoices for the Real, to pay, among other things, the costs of manufacturing and production inputs that are exported. Rightly, many argue that the depreciation

YEARBOOK IEL 200 LARGEST COMPANIES 2016

of the Real makes the national products cheaper and allows the exporter to have a revenue that covers costs. In this context, it is worth questioning: in face of an inflation, measured by IPCA, higher than 405% in the last 22 years, what would be the ideal currency rate to afford a so high raise of prices? What should be the depreciation of the Real that would enables the companies to, through exportations, afford the rising costs of energy, fuels, governmental bureaucracy, labor charges, taxes, and the obstacles in the road, port and airport infrastructures? Undoubtedly, it is difficult to establish a dollar rate that is sufficient to cover the so-called “Brazil cost”. Consequently, it is a fallacy to say that the currency depreciation has the capacity to enhance the exporters’ competitiveness. A weak currency may give, in some cases, a temporary advantage. But, on the contrary, it is a strong currency that can give

YEARBOOK IEL 200 LARGEST COMPANIES 2016

sustainability to the exportations, through the internationalization of the companies. In fact, it is the companies’ foreign affiliates that strengthens the importations in their countries, as about 60% of the international trade is made through intrafirm relations. Moreover, a strong currency enables the importation of cheaper capital goods, making the production costs to drop and the productivity to rise. It can be deduced that, if Brazil continues to be dependent on the commodities’ exportation, every time that there is a drop in the international market’s prices, the national trade balance will be struck. So, what to do? Maybe we should draw our attention to Germany, that, through the “Mittelstand” companies, was able to escape the financial crisis in 2008 and become a powerful exportation machine. Between 2003 and 2008 Germany was a world leader in the exportation of manufactured products, and in 2014 it had a surplus in the trade balance higher than China. These “Mittelstand” companies, oriented to the exportations, apply a strategy based on market niches, focused on high quality products. They are family business, of medium size, directed to a great social responsibility. Distinctly from Brazil, where 70% of exportations are done by large companies, about 68% of Germany’s exportations are by the “Mittelstand”. What are the implications to Brazil and to Espírito Santo State? Maybe the most import lesson of success to learn from the German enterprises is that they are supported by institutes that provide cheap and high quality researches, so that the small businesses are able to improve their own products and hit the foreign market. Although it is not easy to reproduce a successful model, for it must be adapted to the local culture, if the country wants to reduce the dependence on the exportation of commodities, it must start seeking resources and get closer to the “Mittelstand” companies. Then, it will be possible to understand better what resources are necessary for Espírito Santo State and the country to have a more promising future in the international trade market.

“

It is a fallacy to say that the currency depreciation has the capacity to enhance the exporters’ competitiveness. A weak currency may give, in some cases, a temporary advantage. But, on the contrary, it is a strong currency that can give sustainability to the exportations, through the internationalization of the companies”

ARTICLE ECONOMIC AND SOCIAL DEVELOPMENT

Brazil needs to return to grow MARCOS PEREIRA is Minister of Industry, Foreign Trade and Services

xporting is a sophisticated activity that demands efforts from the Brazilian entrepreneurs, but gives many opportunities, opens entire markets, and expands the possibilities of gain. For this reason, the exporting activity should be in the Brazilian companiesâ&#x20AC;&#x2122; DNA. Especially in this moment, with retraction of the domestic market and currency appreciation. At this point, I would like to digress slightly. Brazil has large exporters consolidated. But, generally, exportation is not part of the day-by-day of companies. What frequently happens is that firms start to export when the domestic market is saturated, and, when it is booming, they turn completely to the internal market. Overall, there are more than 15 thousand Brazilian companies exporting in 2016. This figure is higher than the registered in 2015. Even though, it is far from ideal. There could have been many more, for the country has the potential for it. To contribute to change this situation, Government is working in some fronts. Two of them are very important. To encourage the Brazilian market share in the international set, it was launched the National Plan of Exporting Culture, in all states of the Federation. This is a program that counts on the support of several agents, as the National Industry Federation (CNI), BNDES, Banco do Brasil, and Caixa EconĂ´mica Federal. The Ministry of Foreign Affairs and

the Ministry of Agriculture are also our partners, as well as Sebrae and Apex-Brasil. On the other hand, with the aim at promoting the foreign trade as fomenter of economic growth, the Ministry of Industry, Foreign Trade and Services has been working to expand the participation of Brazil in the worldwide network of international agreements. Despite the good acceptance of the country within this network, it is important to acknowledge that the

YEARBOOK IEL 200 LARGEST COMPANIES 2016

number of negotiations with countries outside the Latin America is very low. Another finding is that the majority of the trade agreements are still allusive to reduction of taxes. Having this in mind, there is a big space to expand the Brazil’s market share in the international trade, through new negotiations, including those that cover non-tariff issues, and progress in the conclusion of trade agreements that are under negotiation. To make qualified inclusion of the country in the global value chains, by deepening its participation in the worldwide agreement network, the Government has been, since last year, performing an aggressive strategy of trade, by signing more agreements with wider coverage of issues. This is going to be a qualified inclusion, based on the assessment of the Brazilian real concerns, designed jointly with the private sector. The new trade strategy is founded in two pillars: expanding the subjects of the regional agreements, by negotiating

YEARBOOK IEL 200 LARGEST COMPANIES 2016

non-tariff agreements, such as the investments, services, trade simplification, regulatory convergence and governmental acquisitions; and expanding the number of agreements of extra-regional trade, aligned with the most modern trends of international trade. In the scope of non-tariff negotiations, what stand out are the first international agreements made by Brazil in History, on investments, services and governmental acquisitions. Two original agreements were made with the United States: regulatory convergence and trade simplification. These agreements led to the elimination of technical barriers imposed to Brazilian products and the simplification of the goods’ flow, on both sides. Furthermore, international labs that certificate products for sale in the NorthAmerican market have settled in Brazil, reducing significantly the exportation costs of Brazilian products to the USA. With the investment agreements, made with Angola, Mozambique, Mexico, Malawi, Colombia, Chile and Peru, the Brazilian companies that invest in these countries began to have the same treatment as national firms. Now they can count on contractual terms of protection to their intakes, prevention and solution of disputes, besides the institutional support given by the Governments that receive the investments. Moreover, the foreign inversions in Brazil are more pushed, because the same terms are applied here. The agreements of governmental acquisitions and services signed with Peru unlock the public bidding, which becomes automatically available for the Brazilian companies, under the same treatment as the national companies. This way, the Brazilian services suppliers can have new and better opportunities to participate in the sectors with great interest for services. Brazil has also signed the Protocol of Services with Colombia and it is negotiating agreements of governmental acquisitions with Chile, Mexico and Colombia.

“

In the scope of non-tariff negotiations, what stand out are the first international agreements made by Brazil in History, on investments, services and governmental acquisitions”

OPENING SCENARIO AND PROSPECT

YEARBOOK IEL 200 LARGEST COMPANIES 2016

MORE OPTIMISTIC EXPECTATIONS FOR THE ECONOMY After the negative outcome, state entrepreneurs believe in recovery of the scenario still in 2016

R$ 57 BILLION

It is the amount of investments projected for ES in the period 2015-2020

YEARBOOK IEL 200 LARGEST COMPANIES 2016

ecent figures signalize that the wave of pessimism and lack of prospect that were surrounding several production sectors start to be retreated from the economic environment. Entrepreneurs start to change their behavior when the subject is crisis, even if the numbers are not so favorable yet. There are just tiny indicators of change. According to the Brazilian Institute of Geography and Statistics (IBGE), the national Gross Domestic Product fell 0.6% in the second quarter in relation to the previous period. It is the sixth consecutive quarter of fall. In current values, the GDP was R$ 1.5 trillion. Regarding the sectors evaluated, the farming recorded the largest fall (2%), followed by services, which fell 0.8%. Only the Industry, which had been marking successively negative results, had a slight increase of 0.3%. In the year to date, until June, the drop was 4.6%, which means the continuity of the operation level of Brazilian economy on negative terms, indicating the permanence of recession, which occurs in an environment of high inflation, high interest rates, unemployment (higher than 11%), and also default. For this year, the prognosis of the financial market did not change, projecting an economic shrinkage of 3.16% in face of 3.8% of last year, according to a report by Focus. For 2017, the set will be a bit better, with prospect of a positive GDP. Indeed, analysts dropped their estimations of inflation to 5.14%, and the market foresees a rise of 1.23% for the country in the next year. The industrial business also presented a small reaction in June. The national production went up 1.1%, in the comparison with the previous month, exhibiting the fourth positive result in this comparison, according to IBGE. But, despite the positive outcome 51

OPENING

Fluctuation of the Brazilian GDP by sectors (in %) Industry

in June, the factory performance accumulated a downturn of 9.1% in the first semester – the largest since October 2009. According to the National Federation of Industry (CNI), even not indicating a reversal of the downturn cycle, the data more directly linked to the production reveals an increase in June in relation to the previous month. The rise of 2% in the turnover is the most expressive, though upturns were also registered in the work time of production (0.2%) and in the use of the existing capacity (0.3 percentage points). The work market, however, continues not showing any signs of reaction. The industrial employment underwent another fall, similar to the last months (0.6%), which was also reflected in the fall of 0.6% in the total wages.

FALL IN THE STATE PRODUCTION In the first semester, the reduction in the national production reached 12 of 14 of the states surveyed. Only two states had an increase: Para (10.3%) and Mato Grosso (11.9%). Espírito Santo (-9.85%) had the largest negative result. In June, it removed the rise of 5.6% verified in the previous year. This way, the state production underwent a drop of -22.6% in the semester in relation to the same period of 2015, according to the Educational and Industrial Development Institute of Espírito Santo State (Ideies) and the IBGE. Amongst the main factors that influenced negatively the state businesses are the halt in the operations of Samarco and the drop of -7.5% in the manufacture of iron pellets in Tubarão in the second quarter, due, overall, to the company’s programmed interruption for maintenance. There was also a deep drop in the production of natural gas (-11.6%). The only segment that presented elevation was the food sector (+6%), boosted by the advances in the production of bovine meat, pastas and crystal sugar. Aware, for the moment requires caution, but also considering that the worst moment has already gone, business CEO’s and industrial managers already notice a recovery and become more optimistic about the national scenario. They recognize that it will not be possible to overcome the crisis overnight, but they believe that the growth recovery is nearby. “The fall in the production was boosted mainly by the products of the extractive industry, which had a reversal of -36.4% in the semester, allied to the interruption of Samarco’s operations. Until the end of the year there will be still negative figures, once the State is very dependent on the large 52

0,3

-0,3

-1,3 -1,7 3º tri

4º tri 2015

1º tri

2º tri 2016

Source: IBGE

companies, especially the ore extraction”, explains the President of the Espírito Santo’s Industry Federation (Findes), Marcos Guerra. “But some sectors of the traditional industry, such as clothing, furniture, food, footwear and pulp and paper, should start to get a boost from now on. With the country’s political definition, the dollar remaining stable and the recovery of the reliance of investors and industrial businesspersons, the state economy shall return to grow from the second semester on. I believe that in 2017 the country starts to take off”, Guerra states. The state ornamental rock sector also had losses in the first seven months of the year. In 2016, until July, the segment moved about US$ 561 million, according to the Union of

“With the country’s political definition, the dollar remaining stable and the recovery of the reliance of investors and industrial businesspersons, the state economy shall return to grow from the second semester on.” Marcos Guerra, President of Findes

YEARBOOK IEL 200 LARGEST COMPANIES 2016

“The innovation, professional qualification and investments in management are the ways for us to try to retrieve from this set in 2017” Tales Machado, President of Sindirochas

Ornamental Rocks, Lime and Limestone Industries of Espírito Santo (Sindirochas). This figure represents a shrinkage of -6.37% against the same period of 2015, when the sector moved US$ 599 million. In Brazil, the fall was (-7.68%). For the President of Sindirochas, Tales Machado, there are some obstacles that inhibit a larger expansion of the sector. “There is a deficiency of ports to receive the largest ships that transport containers. Today, about 55% of the state production are exported through the Port of Santos”, he says. He also highlights that there are issues regarding the prices in the foreign market, due to the harder competition, motivated by the economic crisis in the internal environment. “Many companies migrated from the internal to the external market. With more companies in the international market, the competition grew and the average price of dollar went down to almost all imported products. Despite exporting a larger amount in tons of sheets (+7.61%) in 2016, in comparison with 2015, the turnover in dollar reduced (-7.35%). The innovation, professional qualification and investments in management are the ways for us to try to retrieve from this set in 2017”, Tales states. According to the Brazilian Ornamental Rocks Exporters’ Center (Centrorochas), the average price of materials in the international market plummeted (-19.21%) in 2016.

MORE CONFIDENT ENTREPRENEURS For the first time since March 2014, business owners recover their reliance in the Economy. It is what reveals the Industrial Entrepreneur Reliance Rate (Icei) of August, which rose 4.2 points compared to July, reaching 51.5 points in the month, according to data from CNI. The recovery derives, YEARBOOK IEL 200 LARGEST COMPANIES 2016

especially, from the expectations about the companies’ performance and the Economy in the next six months. All the prospect indicators are higher than 50 points. Beyond this level, there are signs of optimism, for, the higher the result, the better the entrepreneurs’ prospects in relation to Economy. “As the reformations are being approved, the recovery process of the Economy should be consolidated”, states the President of CNI, Robson Braga de Andrade. In the face of the elevation in the investors’ reliance, the Espírito Santo’s industry also starts to show signs that the economic crisis is cooling down, though still persisting the negative set. In August, Icei-ES totalized 51.5 points – the same level as the national industry -, increasing 6.6 points in relation to July (44.9), which brings a possible reliance atmosphere in the next months, according to Ideies. The increase was influenced as much as by the indicator of economic conditions as by the expectations, once both went up. For the CEO of Ideies, Atônio Doria Porto, the indicators of reliance make entrepreneurs more confident in the measures announced by the Government regarding the fiscal adjustments, the creation of a limit to public expenditures and the reform of the Social Security System, as well as the program of infrastructure concessions and the changes to be realized in the legislation about the pre-salt exploitation. “Confident entrepreneurs spread optimism over the companies, which encourages investments, the creation of jobs and the production”, notices Doria. “But the indicator that has been up, since May, is of expectations. The indicator of current conditions of economy was stable and only increased in August, which reflects a slight recovery in the industrial production since then. It cannot be discarded the hypothesis that the expectations are being more influenced by the announcements of reformations and changes in economic policies than by the results effectively obtained in the field of the so necessary – but so hard – rebalancing of public accounts. Therefore, it is needed to accompany both indicators, for their approximation needs to happen by the improvements in the current situation of business and, mainly, by the financial conditions of families”, clarifies Doria Porto.

ES WILL RECEIVE R$ 57 BILLION IN INVESTMENTS Until 2020, Espírito Santo will receive R$ 57 billion in investments. The figure represents 621 businesses that comprise the state portfolio of projects for the period 2015-2020 and that, together, will be responsible for generating 25 53

OPENING

thousand jobs, according to data released by the Jones dos Santos Neves Institute (IJSN). The region that leads the ranking of investments is the state South Coast, with R$ 23.8 billion, distributed over 52 projects. In second place, it is the Great Vitoria, with R$ 14.4 billion and 235 projects. The data collection was realized in partnership with the State Secretariat of Development (Sedes), which considered the plans announced in the last five years and that were not executed yet and all those that are being implemented. Only are taken into account those inputs estimated in more than R$ 1 million. The millionaire contribution to the state economy until 2020 comes as a relief in the middle of a panorama of recession and of so many negative numbers, but also reveals how the nationwide political-economic set, especially in the last two years, deteriorated the prospects and reduced the investments. In the period 2013-2018, there was an initial estimate of applying R$ 120.2 billion. Afterwards, in the period of 2014-2019, this estimative shrank to R$ 80.8 billion, which was revised later to R$ 68.5 billion. Many of these projects, indeed, had no progress until today, or were cancelled. The CEO of IJSN, Andrezza Rosalem, explains that the portfolio reflects the present-day of the economy and that, added to it, there was a change in the methodology. “We started to exclude projects that are stagnated for more than five years and removed from the account the enterprises

“The ascertained fall was 16.7%. We will still have about R$ 9 billion of investments per year. This is a very significant volume for such a small State as Espírito Santo” José Eduardo Azevedo, state secretary of Development

“Confident entrepreneurs spread optimism over the companies, which encourages investments, the creation of jobs and the production” Doria Porto, CEO of Ideies

that were concluded until the release of the document. The changes impacted the final calculation”, said the director. According to her, some examples of this are the port of the American company Edison Chouest, which would be constructed in Itapemirim, and the plant of the car manufacturer Zotye, which intended to settle in Colatina; both companies gave up. The finalization of robust projects as the 8th Plant of Vale and the 4th Plant of Samarco also weighed in the decline. “We have now a more realistic portfolio”, evaluated Andrezza. Some of the enterprises of the current portfolio that are under implementation are these: the development and the production of oil by Shell at the Parque das Conchas, in the south coast, an investment of R$ 5.08 billion; the establishment of the Jurong Shipyard (R$ 2.16 billion); the construction woks in the Airport of Vitoria (R$ 728.9 million); and the duplication of BR-101 highway by Eco101 (R$ 2.19 billion). Even with the modifications, the state secretary of Development, José Eduardo Azevedo, still considers as positive retaining more than 80% of the portfolio 2014-2019, which projects investments of R$ 68.5 billion, comparing to this year. “The ascertained fall was 16.7%. We will still have about R$ 9 billion of investments per year. This is a very significant volume for such a small State as Espírito Santo”, he said. According to the secretary, the State has tried to guarantee what has been already announced and attract new investments. “We are working hard to guarantee that these opportunities of investments get realized, but also to attract new enterprises, to generate jobs and income for the state citizens”, he concluded. YEARBOOK IEL 200 LARGEST COMPANIES 2016

YEARBOOK IEL 200 LARGEST COMPANIES 2016

ECONOMY OIL AND GAS

YEARBOOK IEL 200 LARGEST COMPANIES 2016

OIL GUSHES IN THE STATE, BUT THE MONEY DRIES OUT Espírito Santo hits records in the daily production, but loses more than R$ 400 million in royalties due to the crisis in Petrobras and the low price of the barrel

R R$ 433 MILLION

It was the drop of the state revenue from royalties and special shares in 2015

YEARBOOK IEL 200 LARGEST COMPANIES 2016

easons to celebrate should not lack. In 2015, Espírito Santo hit records in the oil production. The average 354.5 thousand barrels per day (bpd) was 6.9% larger than the registered in the previous year: 331.7 thousand bpd. Moreover, a historical daily production mark was reached, in July 10 last year, with 433.2 thousand barrels. In 2016, the State is going to break this record again. Until July, the average daily production reached 381.5 thousand bpd, numbers that consolidate the state oil sector as the second larger in the country, responsible for 16% of the national production – being only behind Rio de Janeiro, with 66% -, according to the National Agency of Petroleum, Natural Gas and Biofuels (ANP). “These marks derive from the results obtained with the P-58 rig, which operates in reservoirs in the pre-salt and the post-salt of the Parque das Baleias, in the South Coast of Espírito Santo. With the capacity to process 180 thousand oil barrels per day and compress up to 6 million cubic meters of gas every day, the P-58 was among the rigs that most produced in the country between July and November 2015”, informed Petrobras, in note. Despite worth highlighting, these records were not able to avoid the millionaire losses to the state economy. The transfers 57

ECONOMY

Photo: Steferson Faria

of oil royalties and special share dropped 25.3%, going from R$ 1.708 billion, in 2014, to R$ 1.275 billion, in 2015. It means, there was a fall of R$ 433 million in the financial compensation paid for the extraction of the natural resources by the oil industries to the State Government and to the 78 towns. Reasons for this blow on the revenue do not lack. Worldwide the price of the oil barrel plummeted in the beginning of 2016. In Brazil, with a debt of US$ 125 billion and unable to obtain credit in the financial market from the time that the Lava Jato Operation revealed a corruption scheme in its Boards, Petrobras sank in an unprecedented crisis. Consequently, it has been reducing constantly its plans of investments. Primarily, the Plan of Business and Management (PNG) of 2014/2018 foretold inputs of US$ 220.6 billion. In the last year, there was an adjustment, with the reduction of 37%, going the PNG 2015/2019 to US$ 130.3 billion – a decrease of US$ 90.3 billion. In January 2016, the stateowned company promoted another cut in this plan. The goal now is to apply R$ 98.4 billion, a value 55.6% lower than the estimated initially. With this cut, some projects expected in the State were abandoned by Petrobras, among which there were two oil rigs: the ES Deep Waters, in the North Coast; and the South Parque das Baleias, in the south of the State. None of them figure in the plan of investments until 2019, as much as it is not included the Gas-Chemical Hub, which would be established in Linhares. “The sector is adapting to a new scenario in the international market, especially regarding the price of the oil barrel. This restructuring caused an impact in Brazil, which still undergoes the consequences of the crisis that affected Petrobras, and of the current moment of the country’s economy. All this affected Espírito Santo strongly, reducing investments and financial compensations, highlights the state secretary of Development, José Eduardo Azevedo. To avoid this capital flight and guarantee more money for the State, Governor Paulo Hartung met, in August, the Chairman of Petrobras, Pedro Parente. He obtained the assurance that the company will invest R$ 5 billion in Espírito Santo, in the next years. “We can already say that these are investments in areas of exploitation and 58

The country’s second larger producer of oil, Espírito Santo reached the average amount of 381.5 thousand barrels per day until July of this year

production of oil, in addition to sciences and technology”, said the Governor, after the meeting. In the same meeting, Hartung also claimed investments that the company refrained from doing in the State, such as the Gas-Chemical Hub of Linhares, which has had an expropriated area and already cost R$ 10 million to the public treasury. Other request from the Government was the revision of the payment of the special shares and royalties, which have had a constant value reduction, even with the oil production increasing in the State – a situation that affects significantly the revenue of the 11 producing towns that receive the larger parcel of the financial compensation from the oil industries. A good example to calculate the loss is the city of Presidente Kennedy, which gets the larger money transfer from the oil in Espírito Santo. The town saw the revenue from the royalties and special shares shrink 29%, between 2014 and 2015, falling from R$ 271.1 million to R$ 189.79 million. YEARBOOK IEL 200 LARGEST COMPANIES 2016

As it can been seen, it is not without any reason that the State Government already foresees, for 2016, a fall in the collection from the oil at the same level registered in the last year, reaching the amount of R$ 400 million. Adding to the retraction of investments from Petrobras, another reason for this estimate is the low price of the oil barrel around the world. The value, which in 2014 got US$ 110, in the beginning of 2016 dropped to US$ 30. In the last months, there was a recovery and, in August, the price was US$ 50. “The fall in the oil price reflects directly on investments. With a lower financial return, some investors prefer to reprogram projects to another moment or even apply in those that require less money. This issue, allied to the economic crisis and to the problems of Petrobras, affects this segment in all the country and in Espírito Santo, which suffers the impact in the collection of revenues and taxes to the State and towns”, explains the secretary of Development. YEARBOOK IEL 200 LARGEST COMPANIES 2016

This valorization of the barrel did guarantee to Petrobras a profit of R$ 370 million in the second quarter of 2016, after three consecutive quarters of loss. The value, though, is 30% lower in relation to the same period of the previous year: R$ 531 million. “The expectation is for retaking the market and for stabilization of the oil barrel price around US$ 60. It is necessary that everyone does the ‘homework’, including Petrobras itself, which has to restructure, cut costs, develop more technology, guarantee more productivity and competitiveness”, analyzed the coordinator of the State Forum of Oil and Gas, Luiz Alberto Souza Carvalho. Articulated by the State Government, by Petrobras and by the Espírito Santo’s Industry Federation (Findes), this Forum was created in 2014 to elaborate strategic actions in the production chain of the state oil sector. It is also a space for public-private interlocution so to optimize the participation of the local industry of goods and services and the other sectors. “The State Government is seeking strategies with Petrobras and other operators to retake investments. We are also working with the State Forum of Oil and Gas in order to encourage the state companies to invest in innovation and technology to respond to the national and international markets”, highlights the Secretary of Development, José Eduardo Azevedo. In a recent meeting of the Forum, the state-owned company confirmed the intention to realize the auction of 36 land concession areas of oil and gas in the north of Espírito Santo, which has the capacity to produce 3 thousand barrels a day. In all the country, the sale of land fields will involve 104 concessions. In the State, the four hubs that will be offered are: the São Jorge-Canaã-Fazenda-Cedro Farm, with nine concessions; Lagoa Parda, with three; São Mateus, with 14; and the Gas, with four, and more 6 contracts of exploitation. With the sale of these assets, Petrobras expects to make cash to focus its business plans in prior projects, as the pre-salt. “Our expectation is to have a recovery of the segment, with more investments and with the raise of businesses to the state companies that are qualifying themselves, developing technology and providing products and services to the internal and external markets”, believes Azevedo. 59

ECONOMY PULP AND PAPER

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Photo: Sagrilo

TROUBLED SCENARIO REPRESENTS CHALLENGE FOR THE PULP AND PAPER INDUSTRY Bad moment of the Brazilian economy made the sector reinvent itself and trace strategies to overcome difficulties

R$ 745 MILLION

It was the profit registered by Fibria in the second quarter of 2016

YEARBOOK IEL 200 LARGEST COMPANIES 2016

he economy in recession made several production sectors strongly feel the impacts of the crisis. Among them, the pulp and paper industry denounced the blow off, revealed by the largest depreciation of its stocks in the Brazilian market, showing that the arm fall between Real and Dollar reflects strongly on the companies that negotiate directly with the foreign market. For this reason, according to Markus Coelho, vice-president of the Pulp and Paper Industry Union of Espírito Santo (Sindipapel), these companies are seeking alternatives to continue exporting and remain balanced in the international market. To operate in the field of commodities, in which the price is dictated by the market, the largest exporter of hardwood pulp of Brazil – Fibria -, whose main unit is settled in Espírito Santo, is working hard in the management and control of costs, in order to remain competitive. The company is also developing projects to incorporate new items in its production, such as biofuel and other wood derivatives that can be used in the industries of car manufacture, chemical and civil construction. And it intends to have, until 2025, 20% of its business constituted by forest based elements other than cellulose. The cellulose is the main product of exportation of the state agribusiness, as announced by the State Department of Agriculture (Seag) in May of this year. But Coelho highlights that this moment of instability does not spare any branch of economy. “The hardships come for all. With the chaos, in which companies are selling less, recording losses 61

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and needing to cut jobs, the majority of the economic-financial indicators and rates turned negative to the industry as a whole. There are sectors that are stable, as the tissue paper (for sanitary purpose), which with the crisis underwent a retraction of 0.4%; and the paper for packaging, with less 0.32%. The pulp and paper segment is boosted by exportations, especially with a favorable dollar. Anyway, the economic set, the political crisis, the retracted market and the low internal demand have a weigh higher than the companies’ internal factors, such as the people management and efficiency. No place for complaining about external factors and not doing the ‘homework’. Many companies already did or are doing the task”, he comments. Although, Marcelo de Oliveira, industrial general manager of Fibria, remarks that the cellulose has remained stable. Over the second quarter of this year, the hardwood market foundations improved significantly, supported by a good global demand and by the increase in the difference of prices between the softwood and the hardwood fiber. “Moreover, it is estimated that about 300 thousand tons of hardwood cellulose were removed from the market in the second quarter of 2016, due to maintenance interruptions and interruptions not-programmed globally. Considering the accumulated in the five-first months of the year, there was an increase of 1.9% in the global sales of hardwood fiber. As the major remark, the sales of this product to the Chinese market raised 7.4% in the period”, highlights Oliveira. Besides the dollar favorable to exportations and the large volume exported, the relative improvement of the most developed economies, the demand recovery in China – after the beginning of a year marked by slowdown in sales and drop of price – contributed for Fibria to capitalize R$ 745 million in the second quarter of 2016.

POSITIVE VISION OF FUTURE Brazil has the lowest production cost of the world and it is the most capable location to manufacture and put in the world market products coming from planted trees. According to Markus Coelho, “since the 60’s the pulp and paper production in the country has grown at rates higher than the other worldwide producers. The most recent data show that the country is nowadays the world’s 4th largest producer of cellulose and the 9th of paper. In the 62

Brazil is the most capable location to manufacture and put in the world market products derived from planted trees

beginning of this year, the projections for the exportation of pulp and paper indicated growth of 10% in the sector, as reported by Bracelpa. Another projection released in the beginning of 2016 estimated a production target of 22 million tons of cellulose in Brazil in 2020, in face of about 15 million in 2013”, he details. Yet Oliveira reveals that in the center of Fibria’s strategy are the planted forests. From that, the company has analyzed global and the sector’s mega trends, strengths and weaknesses of the business and market opportunities, so to elaborate its growth plan until 2025. “We took into account the decline in the use of paper, the most sophisticated technological platforms available, the rise in the elder population, the rural exodus and the climate changes. The next step was defining the strategic pillars that support our project – and prioritize higher competitiveness in a sustainable environment, boosted by long-term relationships. We want to have the greatest operational efficiency in a solid and organized forest basis, to meet the demand for new businesses and projects of innovation that enable Fibria to get prominence beyond the commodities segment”, he concluded. YEARBOOK IEL 200 LARGEST COMPANIES 2016

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

ECONOMY LOGISTICS AND INFRASTRUCTURE

YEARBOOK IEL 200 LARGEST COMPANIES 2016

A LONG WAY TO TRACK Despite the important advances, as the duplication of BR-101 Highway, the dredging of the Port of Vitória and the construction works in the airport, the logistic sector still hampers Espírito Santo’s economy

R$ 290 MILLION

Value to be invested by the Federal Government, in partnership with the State Government, in the works of Mestre Álvaro perimeter

YEARBOOK IEL 200 LARGEST COMPANIES 2016

he beginning of the BR-101 Highway’s duplication. The final phase of the construction of the East-West Highway. The conclusion of the dredging of Port of Vitoria. The resumption of the construction works of the Vitoria Airport. The service order to execute the Mestre Alvaro perimeter. Some of the main logistics obstacles of Espírito Santo started to be solved in 2016. These are old stumbling blocks that hamper the state economy. Whereas all these important works have begun to flow or are being completed, entrepreneurs warn that there is still a long way to walk until the logistic and infrastructure sector of Espírito Santo recovers a historical delay. A number of demands of the transport segment needs to be solved as to not inhibit the state growth. “There is a maxim that says: if economy goes well, the transport goes well. And this is true, for the sector assists all the others and boosts all the production chain. But if the transport fails, lacks food in the supermarket, medicine in drugstores, fuel in the gas stations and the million people that are transported every day will be harmed in their mobility”, observes the chairman of the Transport Companies Federation of Espírito Santo (Fetransportes), Jerson Picoli. According to the research made by the Dom Cabral Foundation, the logistic cost consumes about 11.7% of the companies’ revenues. There is a high level of dependence on highways (98%), qualified professionals (85%), machinery and equipment (78%). The data is of 2015, collected with 142 Brazilian companies of 22 industrial segments, which have a total turnover of 15% of the Brazilian GDP. “For the economy as a whole, logistics are fundamental. Our State does not have an integrated policy of transports. There are modals that do not connect the industrial production and the flow channels to the national and foreign markets. Lacking airport, port and railway infrastructure, 65

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the products are transported on the road modal over long distances, increasing the final cost. Losses are over US$ 300 million (about R$ 1 billion) a year”, complain Constantino Dadalto, chairman of the Thematic Board of Infrastructure (Coinfra) of the Espírito Santo’s Industry Federation (Findes). In Espírito Santo, of the R$ 57 billion projected for investments of the portfolio 2015-2020, about R$ 28 billion will be applied in logistics: R$ 16 billion in port, airport and storage terminals; and R$ 11.7 billion in transport. Of the total, though, less than half are already under implementation: R$ 10 billion. Some of these enterprises started to get off the paper or the spreadsheet in the last months. It is the case of Vitoria Airport, which has been under construction works for more than 10 years due to interruptions resulted from denounces of overbilling, resulting in the need to realize a another bidding. Since June 2015, fortunately, the construction works have been retaken. The investment will be R$ 523.5 million, and the initial date to deliver the structure is September 2017. When it gets ready, the new Vitoria Airport will triple its capacity and receive 10 million passengers a year (nowadays it is 3.3 million). Another promise done years ago is finally being accomplished. Since 1998, the Federal Government has been postponing the solution of an old problem in the Port of Vitoria: the incapacity to berth large vessels. In July this year was assigned the contract to conclude the dredging and landslide in the channel of access to Port of Vitoria Complex, which will gain competitiveness and new uplift, with an increase of 40% in its capacity to handle cargo. The expectation is for the work to end in October this year, with an investment of R$ 120 million. When it is completed, the channel’s depth will go from 11.4 to 14 meters, enabling the Port of Vitoria to receive 12.5 meters draught ships, transporting cargo of 60 thousand tons – today the limit is 10.6 meters, with 40 thousand tons. “This dredging has been expected for a long time. It is a problem that all Brazilian ports have and now we assure the construction works that will double the port’s capacity”, said the minister of Transports, Ports and Civil Aviation, Mauricio Quintella, during the authorization of the service order. For 87% of companies surveyed in the research by Dom Cabral Foundation, the improvement of road conditions is an important factor to reduce the logistic costs. Thus, Espírito Santo starts to unblock this problem with three essential works. The first of them is the BR-101 highway 66

The works of Vitoria Airport were retaken in June 2015, but they still are not assured to have resources for the conclusion

duplication, which started to receive interventions in April 2016, three years after the highway concession to the private sector. In the total, there will be more than 46 kilometers of duplicated road. Eco101, the highway concessionaire, will invest R$ 396 million, and its agreement with the Federal Government is to deliver 50% of the BR-101 duplicated until 2019. To unburden the traffic in the highway stretch that crosses the urban area of Serra, it was also authorized the construction of the Mestre Alvaro perimeter. It will be 19 kilometers of duplicated roads, linking the two points: from the Km 249 (near the Federal Highway Police station) to the Km 275, in the Rodovia do Contorno (contour highway). The work will cost R$ 290 million and is projected to be accomplished in 2019. Another important way to outlay the most different kinds of products will be inaugurated in 2017. The East-West Highway will link the highways BR-101 and BR-262, in Cariacica, to Darly Santos Highway, in Vila Velha, which is an investment of R$ 140 million. “These are important projects, necessary and expected for a long time. But they still represent little to the general logistics”, states Constantino Dadalto, of Findes. “Although still very far from the ideal conditions and the reality of the small, medium and large companies, which have been harmed by the precarious conditions of road, port, airport and railway networks, we are testifying YEARBOOK IEL 200 LARGEST COMPANIES 2016

the retaking of important projects, which will certainly propitiate gain of productivity and competitiveness in the future”, considers Jerson Picoli, of Fetransportes. Constantino Dadalto reminds that some local problems can be solved by the adoption of the project Competitive Southeast, elaborated by the National Industry Federation (CNI), in partnership with the industry federations of the states in this region. According to this study, the Southeast needs R$ 63.2 billion of inputs on the transport networks. With this value, it would be possible to do, until 2020, 86 prior projects to modernize and integrate the logistic systems of Espírito Santo, Minas Gerais, Rio de Janeiro and São Paulo. These interventions would save up to R$ 8.9 billion with the cargo motion for the production sector. One of the projects mentioned in CNI’s study is Vitoria-Rio Railway (EF-118), which envisages the integration

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

of the national railroad network with the ports of Espírito Santo and Rio de Janeiro. With projected budgets of R$ 7.6 billion, the railway line will have 577.8 kilometers length, being 169.2 kilometers in Espírito Santo’s lands. Another demand is the modernization of BR-262, which links Vitoria to Belo Horizonte. Although neither the railway or the highway enter in the recent pack of concessions elaborated by the Ministry of Transports, they can be enabled through public-private partnership (PPP). This uncertainty makes the state entrepreneurs fear that the logistic obstacles last for many years more. “We need that the Government of Espírito Santo, joint with local and national institutions, embrace the project Competitive Southeast and align the priorities in order to, over time, consolidate the adequate infrastructure to enable the big corridor of the Center-West with destination to our ports”, points Dadalto.

ECONOMY MINING AND STEEL INDUSTRIES

YEARBOOK IEL 200 LARGEST COMPANIES 2016

MINING AND STEEL INDUSTRIES REHEARSE A RESUMPTION IN 2016 After layoffs, fall in the production and losses with Samarco and the foreign market, the sector believes a more stable end of year

I - 30% It was the fall of the net profit of Vale in the second quarter of 2016

YEARBOOK IEL 200 LARGEST COMPANIES 2016

f the crisis set in 2016 hit strongly workers and entrepreneurs of all economy sectors, in the mining and steel industries there is one more reason to complain. Besides the setbacks caused by political and market turmoil, an unexpected factor caused unemployment and loss of profit: the breaking of Samarco’s tailings dam, in Mariana, Minas Gerais. The state industry denounced the blow: from January to July 2016, the State registered the largest fall in the industrial production of 15 states. Data provided by the Brazilian Institute of Geography and Statistics (IBGE) points that the decline was 22.6%, against a national average of 9.1% in the same period. Espírito Santo also had a negative result in August, in relation to July, with a decrease of 9.8%. In the accumulated of 12 months, the loss was 14.4%. “The largest decrease was in the extractive industry. The disaster in Mariana happened in November 2015. From January to June of last year, Samarco did work; but this year, it did not. It was an occurrence totally out of the State control. In fact, it happened outside the state territory”, said the secretary of economy and planning of Espírito Santo, Regis Mattos Teixeira, in interview to journals. 69

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The situation remains hard for Samarco. In midst August, Justice kept the decision that the mining company must pay R$ 20.2 billion for investments in the recovery of Doce River’s basins, strongly hit by the mud originated from Fundão dam. This value is due to a suit by the Federal Government and the States of Espírito Santo and Minas Gerais. The State revenue was not spared from the effects of the mining mud. In May, while accounting to the State Legislative Parliament, the Government presented a deficit of R$ 22 million in the state treasury between January and April of 2016. The numbers of the local economy, which were already being affected by the national crisis, by a two-year lasting drought and the fall of commodities prices – which pulled down the numbers in the state trade balance -, worsened with the reduction in the royalties transfer, by the crop failure and by the stoppage of Samarco. “The company is an exporter, i.e., the production does not pay ICMS (Tax over the Circulation of Products and Services), but the inputs used in it do pay. A pellet plant uses a lot of energy and gas and pay a high ICMS. The suppliers of Samarco also pay ICMS, the workers consume and pay ICMS”, said in June the secretary Regis Teixeira, in interview to CBN radio. Before so many uncertainties, the first semester of 2016 passed in pace of wait. “Industry started the year with a lean planning, after cutting costs to overcome the challenges on set since 2015”, said the chairman of Espírito Santo’s Industry Federation (Findes), Marcos Guerra.

VALE Samarco’s mud also spilled on the profit of large companies of the State. Vale, whose results impact directly in the state GDP and were already being harmed by the international decrease of prices of the iron ore, is one of the holders of Samarco, jointly with BHP Billiton. Announced in the end of July, the balance of the second quarter of 2016 of the company had a net profit of R$ 3.58 billion, a value that represents a decrease of 30% in relation to the same period of 2015. Comparing to the first quarter of the year, the decrease was even higher: 43%, worsened by the provision of R$ 3.73 billion that it was obliged to make in face of the disaster of Mariana. “We also had many layoffs in the beginning of the year”, says the present chairman of the Steel and Electrical Material Industries’ Union of Espírito Santo State (Sindifer), Manoel 70

The balance of Vale in the second quarter of 2016 showed a net profit of R$ 3.58 billion

de Souza Pimenta Neto. “The closing of posts was aggravated by the stoppage of Samarco. But we are stable now, the greater impact is already over, and now the layoffs cooled down”, he says. According to Pimenta, “there is a crisis settled in Brazil, and there is no way to ignore it. All want to reverse this situation. But what I can say positively is that we see no more the risk of losing so many jobs every month, as it was happening: were less 3 thousand posts in the last 12 months. And the layoff has a high cost for the workers, as well as for companies, which have to dismiss a qualified workforce they took years to form”, he explains.

NEXT STEPS The hope of the sector’s entrepreneurs is that Samarco retakes its businesses in 2017. This is also Vale’s expectation. YEARBOOK IEL 200 LARGEST COMPANIES 2016

as those that led to the high number of layoffs in the sector all these months”, comments the former president of Sindifer. However, there are still problems ahead. In the beginning of October, the Labor Justice refused a public civil action by the Public Labor Ministry and the Public Prosecution Ministry of Minas Gerais, which requested the readmission of all employees that had been dismissed by Samarco after the disaster in Mariana. The two bodies requested that the mining industry was prevented from dismissing any worker before returning to its operation.

ARCELORMITTAL

The executive-manager of Investors’ Relations, Andre Figueiredo, said, in an event in São Paulo, that it is possible that the company gets the environmental licenses in February of next year, what would enable it to restart the operation in the middle of 2017. Today, besides these authorizations being suspended by environmental entities, Samarco also had the reactivating licenses suspended by Justice. “But, now, the time is for recovery, as it is perceived in the market moves”, highlights Pimenta. “The last meeting we had with the chairman of Samarco gave us hope of returning the activities in the middle of the next year. If this happens, the company will restart to work in November this year. And this will reflect positively in the market. Now, we still cannot affirm that we are improving; only, that we stopped getting worse. We hope that no more there will be so intense impacts YEARBOOK IEL 200 LARGEST COMPANIES 2016

Another world giant that is a fundamental piece of the state industry is ArcelorMittal. As a matter of fact, the company has remained stable in the market. The multinational informed, in July, an increase of 512% of the second quarter’s profit, in the annual comparative, growing to US$ 1.1 billion. Mostly, the gains resulted from the reduction of costs with health insurance in the United States, due to a new labor contract formalized in the country. If there was gain by one side, the revenue of the largest steel industry of the world decreased in production 12.7% from April to June, to US$ 14.7 billion, in the annual comparison. Even though, the company indicated yet, in its results, that it was optimistic about the second semester, despite continuing to show concern with the global excess of capacity of iron offer. “ArcelorMittal is very efficient and has produced 100% of its capacity. It has exported a lot and now, that the matter of ore and oil prices in the foreign market have already had some reversal, we will have a recovery even more rapidly”, says Pimenta. Only this year, ArcelorMittal, following the example of CSN and Usinimas, announced three raises in the prices of their products, in the national market. In June, date of the last readjustment, the quotations of steel went up about 10%, according to estimates of market, what represents a difference of value up to 5% higher in the national market, in relation to the foreign one. This was possible due to the importations of steel that continued to fall, the lack of credit to importers and the low internal demand. Practically, buying less, the freight gets more expensive and the national product, more competitive. 71

ECONOMY ENERGY

YEARBOOK IEL 200 LARGEST COMPANIES 2016

70% It is the percentage that the State imports of the power it uses

DESALINIZATION IS ALTERNATIVE FOR THE SECTOR OF ENERGY IN ES Drought has affected several sectors of the state economy. With this in mind, the use of sea water is one of the solutions

spírito Santo is already in an emergency situation because of the greatest water shortage in more than 80 years. This has a direct impact over the state electrical sector, for the lack of water harms the provision of energy to the houses and companies, once water is the basic material used in Brazil to generate power. The ongoing water deficit tend to worsen, because, according to data from the State Institute of Research, Technical Assistance and Rural Extension (Incaper), the drought will last and endure over the last months of 2016. This unusual phenomenon has a name: atmospheric blocking, which is the dry air mass stagnated above all the State. To reverse this set, an alternative sought has been the desalinization of sea water. “The water crisis is a problem the all segments of our economy has to face firmly and planning. Everybody suffers. However, the sector of energy is seeking alternatives, indeed using means of desalinization to get to enable its projects. Once Espírito Santo is in a coastal part, this possibility becomes feasible”, reveals Fabrício Cardoso Freitas, Director of the Union of Power Generation, Distribution and Transmission Industries’ of Espírito Santo State (Sinerges). This process takes from brackish and salt water the largest part of mineral salts, aiming at turning them useful for some purposes – in this case, to be used in the sector of energy.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

ECONOMY

The sea water in Natura could never be used, for salt is an electrical conductor. So, it must be taken off.

RELEVANCE OF THE SECTOR FOR THE STATE All this concern about the relation between the drought and the challenge of generating and distributing power derives from, according to the director of Sinerges, the sector of energy becomes each day more important for the country and, mainly, for the State, which imports about 70% of the energy it consumes. The business of generating, transmitting and distributing power is extremely important in Espírito Santo, in order to have cheaper taxes for the state consumers, no matter if they are large industries, trades or common users. “The State has fomented, expressively, the attraction of new projects to make the companies self-sufficient and having power generated in the state territory, with local input, in order to raise more jobs and income”, says Freitas. Another factor, besides the drought, which is concerning for the business, is the national economic crisis. The executive highlights that, “with the recession we are undergoing in the last years, the power consumption went deep down. However, with the changes in our policy and a higher legal safety, this set tends to turn with the prospects of growth and, then, the investors will mobilize to apply more resources”, he comments. He even says that the lack of planning and management capacity in the last years created a number of problems, such as 74

The sector of energy has sought alternatives to overcome the water crisis, indeed using methods of desalinization to get to enable its projects

confusing rules and unfeasible projects of power generation and logistics, among others.

EXPECTATIONS FOR THE BUSINESS Despite the challenging situation for the next months, Fabrício Freitas reveals some plans. “Currently there are projects under different stages of development. Some are more speeded up, other less, but, in their implementation, they might generate direct investments of about R$ 20 billion. However, these inputs depend totally on the growth of the economy so that we have auctions of power realized by the Federal Government”. YEARBOOK IEL 200 LARGEST COMPANIES 2016

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

ECONOMY FOREIGN TRADE

YEARBOOK IEL 200 LARGEST COMPANIES 2016

ESPÍRITO SANTO LOSES COMPETITIVENESS AND FOREIGN TRADE SLOWS DOWN IN 2016 The State R performance was the worst among the main importing states in the first semester

80% Of international trade is done by sea

YEARBOOK IEL 200 LARGEST COMPANIES 2016

esponsible for nearly 50% of the Gross Domestic Product (GDP) of Espírito Santo, in 2016, the local foreign trade undergoes the effects of the economical crisis that devastates the country, in addition to the low competitiveness of the state ports. So much so that imports made by Espírito Santo suffered a fall of 35.2% in the first half of this year compared to the same period last year, according to a survey conducted by the State Export and Import Trade Union (Sindiex) - the worst performance among the major importing states of Brazil. In 2015, Espírito Santo foreign purchases totaled R$ 2.8 billion, compared to R$ 1.8 billion in 2016. The organization’s chairman, Marcilio Machado Rodrigues, points out that the results suffer direct interference from the loss of competitiveness in relation to other Brazilian ports. “Espírito Santo is a reference in the importing sector, but we are losing cargo to other states, whether because of changes in legislation, or by the lack of adequate port infrastructure, especially for containers,” he explains. In the first semester of this year, the largest drop in the state import agenda was registered in operations with vehicles (-56%), followed by clothing (-53%), cellular equipment (-40%), machinery and equipment (-37 %) and coal (-31%). “The result of the first half of this year was the worst in 77

ECONOMY

10 years”, said Machado, adding that the recession the country undergoes inhibits investments in various sectors of the economy, which are afraid to import or delay importations. “The import sector is going through the most difficult times of the last 20 years”, says the chairman of Sindiex.

EXPORTATIONS Exportations done by Espírito Santo also recorded decline in the first half of this year compared to 2015: 41% less, totaling US$ 3.1 billion against US$ 5.3 billion in the same period last year. The oil was the commodity that showed the worst indicator, going down over 70% in sales, followed by iron ore (-66%), iron and steel (-22%), pulp and paper (-14%) and ornamental stones (-4%). Besides being composed of commodities, - that suffers from price fluctuations in the international market – exports in Espírito Santo are also hindered by structural problems. Because of the disability in access to the port, many operations have come to be made from other states. “Once larger ships cannot enter the Vitoria channel, companies need to ship their goods through other ports. We are seeking to solve these issues, which reflects in the transit time and increases operation costs for the state companies, in order to bring more development to business and to Espírito Santo”, says Marcilio Machado. Inadequate infrastructure burdens these business activities. “Much of our exports of coffee and ornamental stones is being made from other ports. Consequently, we have higher costs than our competitors do because we pay the costs of an internal freight to another Brazilian port to facilitate the shipment of our products. Our public container port fails to attract ship owners and larger capacity vessels, which could meet the needs of exporters. Often, they also have to bring empty containers from other states to enable its sales operations abroad”, he laments.

EXPECTATIONS For the second half of 2016, the outlook is for gradual improvement in the scenario, at least regarding importations. “Today is occurring an improvement in the institutions’ reliance, which can increase consumption and, consequently, the result of imports. However, more positive numbers shall only occur in 2017, as the Brazilian economy should end the year in recession, inhibiting investment in the short term”, predicts Marcilio. In relation to shipments, the scenario is less reliable and more uncertain, mainly influenced by iron ore, which directly 78

The exportations made by Espírito Santo State also recorded decline in the first half of this year compared to 2015

affects the state exports, which have, in turn, about 40% of its total represented by commodities”. Since we cannot even accurately say the return of Samarco’s plant to operation, I believe that there should be no improvement in our exports in the closing of this year. In the medium and long term, what we need to do is to diversify our export agenda, to include products with higher added value. For this to happen, it will be necessary for Brazil to advance in the implementation of bilateral agreements, particularly with countries that buy or have the potential to buy manufactured goods”, says the chairman of Sindiex. Confident about the end of the recession, he argues that initiatives should be taken to avoid that the port deficiency persists, because about 80% of the international trade is done by sea”. The reduction in imports affects exports, for it is through imports that we insert our companies in the global supply chains. With a smaller insertion in these chains, our products meant for export end up also being affected. It is very difficult to find an export product, subject to competition in the foreign market, which does not depend on imported inputs”, he says. YEARBOOK IEL 200 LARGEST COMPANIES 2016

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

ECONOMY SERVICES

YEARBOOK IEL 200 LARGEST COMPANIES 2016

SERVICES SECTOR SEEKING ALTERNATIVES TO GROW Consumer caution and falling sales are challenges for the segment

3.552 It is the number of companies that closed their doors in Espírito Santo until July this year

YEARBOOK IEL 200 LARGEST COMPANIES 2016

segment that serves as a thermometer of the economy in general, the sector of services is facing a major battle in 2016. In Espírito Santo, the situation concerns even more the representatives of the segment, and the uncertainties are not unjustified. According to the Monthly Survey of Services (PMS), carried by IBGE in June, these business in the State had a slight increase of 0.2% over the previous month, but decreased 6.8% compared to July 2015. It is a worse result than the national average in the same period (growth of 0.7% in July 2016 and a decrease of 4.5% compared to the same month last year, which is the largest decline for the month of July, in the series started in January 2012). With these results, the national rate accumulated in the first seven months was (-4.8%) and (-4.9%) in the last 12 months. The service sector consists of complementary activities, and the slowdown of other areas of economy influences directly the results. It is what thinks the president of the Trade of Goods, Services and Tourism Federation of Espírito Santo State (Fecomercio-ES), José Lino Sepulcri. “The recession caused this scenario of political and economic instability, especially by high interest rates, rising inflation and scarce credit - even if the indicators have registered enhancement in the last months – which implies a reduction in the demand for services”, he said. For Sepulcri, in the view of families, often, services may be postponed. “That is what most of the consumers have preferred to do in times of crisis: contain spending with leisure and tourism and limit purchases to items considered basic necessities, such as food. Because of the loss of jobs, which interferes directly in household consumption, there is a crisis of reliance. 81

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But gradually, we are identifying an improvement in indicators”, he said. From the point of view of the president of Fecomercio, in times of crisis, sectors such as professional, administrative and complementary services, involving activities such as car rental, law services, travel arrangements, marketing and advertising, advisory and consulting, are more vulnerable. As the people is more cautious, sales of goods and services are affected. Despite the fall of inflation rates - which raises directly the consumer purchasing power - the high household debt and unemployment are factors that influence directly the intention to consume. Everything has consequences on the number of businesses that end up unaccomplished. Until July, 3,552 companies have closed in Espírito Santo. This represents an increase of 53.7% over the last year, which recorded 2,311 corporate lowering in the same period, according to the Board of Trade of Espírito Santo (Jucees). Sepulcri states that most of the discontinued companies are micro and small businesses, especially electronics stores, clothing and gifts. “Majorly, the skyrocketing costs to maintain the business amid the economic crisis has caused companies from various sectors to stop operating in the state. But it is worth highlighting that, however, others were also created: until July this year, 4,785 new businesses were opened”. For him, the entrepreneur is also recovering confidence gradually, and it is expected that many other organizations open the doors and those that are in the market get to keep up, so that they can generate jobs and income in the state again.” Only then, we will give more dynamism to the economy”, he said.

THE WAY TO BOUNCE BACK In the current scenario, the concern of trade is on reducing investment and short-term contracts. For José Lino Sepulcri, the situation demands more assurance in order to encourage the return of contributions by the private sector. The way to overcome this difficult time passes through innovation. “As for the business, the way is to reinvent itself, seek services differentials, as well as quality of services and products offered. Harsh times may bring some opportunities, mainly because the analysis and the entrepreneur’s vision are more ‘tuned’ in the search for alternatives for the survival of the business. Often companies can innovate without resulting in high costs for the business. To qualify the workforce, be attentive to the issue of costs and evaluate which product or service is really perceived as value by the customer”, he said. 82

The service sector consists of complementary activities, and the slowdown of the other areas of the economy influences directly the results

And entrepreneurs are not alone in this quest. The Fecomercio-ES has fostered new partnerships and acted with the Government, from debates in the Legislative Parliament of Espírito Santo (Ales), in alliances with other sector entities, aiming at raising awareness among parliamentarians about the current economic situation of the local trade. There are also teams that seek to discuss and propose action mechanisms for the companies and economy, such as the Working Group of the State Department of Finance (GTFAZ), which promotes debates and proposals on tax legislation and taxpayers’ difficulties in understanding the scope of rules. Some of the key issues are the reduction of ICMS on medicines, studies about reductions in fines of ancillary obligations, and the tax debt installment program, which are actions initiated and conquered by the Group. The same occurs with the Entities and Federations Forum (FSF), which brings together the Federations of Agriculture and Livestock (FAES), Industries (Findes) and Transport (Fetransportes) and the Espírito Santo in Action movement, which also articulates political, economic and social issues. The mission is complicated, but the time is to roll up sleeves. Reduce spending, take advantage of the experience of professionals available and innovate in processes are the watchwords for those who want to overcome the crisis. YEARBOOK IEL 200 LARGEST COMPANIES 2016

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

ECONOMY METAL-MECHANIC

YEARBOOK IEL 200 LARGEST COMPANIES 2016

METAL-MECHANIC PREPARES FOR BETTER DAYS With a fall of 25% in two years, industries of the sector project improvements in the next months

25%

Is the fall in the production of the metalmechanic sector in the last two years

YEARBOOK IEL 200 LARGEST COMPANIES 2016

he worst has gone. This is the judgement of entrepreneurs and managers of the metal-mechanic sector in Espírito Santo. The chairman of the Union of Metal and Electrical Materials Industries’ of Espírito Santo State (Sindifer), Lúcio Dalla Bernardina, reckons that the big companies that support the state industrial hub are recovering from the crisis, which will generate a positive “snowball”, i.e., small and medium sized companies should also benefit from the improvement in the set. The layoffs slowed and the market is about to react. “We have to observe the foreign market as well. If it gets better, our recovery will be faster, with more impulse. What can be said is that we stopped getting worse, but we are still producing far below what we had two years ago. Our production fell by at least 25% in the last two years. This is a very high rate”, he says; he who took command of the Union in August this year. The metal-mechanic industry incorporates all segments responsible for the processing of metals, including from the production of intermediate goods and services to machinery, equipment, vehicles and transport materials. A good way to measure the reaction of the market is the level of employment. In the 12 months between July 2015 and June 2016, the sector laid off 825 posts in Espírito Santo. In Brazil, the social impact of the crisis in this field was very strong, with 74,239 layoffs in the same period. Yet from between January to June 2016, Espírito Santo lost 210 jobs. In the country, the number was 27,009 jobs extinguished, i.e., the first semester of 2016 has proved to be, if not positive, less tragic than the second in 2015. The numbers are from the Employed and Unemployed General Register (Caged), released by the Ministry of Labor and Employment (MTE). 85

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But the picture starts to receive less heavy paint when the indicators of June are observed in comparison to May 2016, at least in Espírito Santo. If in the fifth month of the year the balance of jobs was negative -145 vacancies, in the sixth were less 98. “Layoffs diminished. I think we are in a time of recovery and the way everything is going, I think that amid 2017 we will recommence the businesses with more intensity. Not that we are getting better, because it is not what we see, but we stopped getting worse, which is already positive. We hope, of course, to no more have so hard impacts in economy leading the industry to lay off again”, said Lúcio Dalla. An incentive that is encouraging entrepreneurs is the program named Brazil More Productive, which provides consulting services, in partnership with the National Service of Industrial Education (Senai), envisaging an improvement of at least 20% in the operational processes of manufacturing industries of small and medium size, which have between 11 and 200 professionals and, preferably, are inserted in the Local Production Arrangements (APLs). In the first phase, the eligible segments, due to their greater adherence to lean manufacturing tools, are metal-mechanic, clothing and footwear, furniture and food and beverages. In early August, the minister of Industry, Trade and Services, Marcos Pereira, was at the headquarter of the Espírito Santo’s Industry Federation of (Findes) to launch the program, which will comprise initially the metal-mechanic and the food and beverages segments. The Brazil More Productive will offer technical training to these companies, so that they obtain significant gains in productivity, including reduction in costs. It will mean an assistance service of at least 120 hours, using tools of lean customized manufacturing, a methodology developed by Senai. The focus will be on reducing the seven most common types of wastage in the production process: overproduction, waiting time, transportation, over-processing, inventory, motion and defects. The initiative by the Ministry, together with the National Industry Federation (CNI) and the National Service of Industrial Education (Senai), also has a partnership with the Brazilian Trade and Investment Promotion Agency (Apex-Brazil) and the Brazilian Agency of Industrial Development (ABDI), besides the support of Sebrae, the BNDES, the State Department of Development and the State Center of APLs. It will assist 3,000 small and medium industries in the whole country.

MEC SHOW 2016 Annual event anxiously expected by the industry, the Metal-Mechanic, Energy and Automation Fair (Mec Show), 86

The Metal-Mechanic, Energy and Automation Fair (Mec Show) attracted more than 16,000 visitors from 16 states and 11 countries

which had its ninth edition in July this year, exceeded the expectations of organizers and exhibitors. Acting as a good thermometer of sales, the show recorded a turnover higher than R$ 50 million. There were more than 16 thousand visitors from 16 states in Brazil and other 11 countries. Entrepreneurs guarantee that even with the economic crisis that has taken place in the country, there is much to celebrate. “The attendance to the fair was very good, and we closed good deals. We have participated since the first edition and, next year, we will be here again. If possible, with an even bigger stand”, commented Paulo Kallas, manager of Hipermix, of Eletrosolda Group. Among the agreements closed by the company, the sale of a plasma cutting machine for a manufacturer of Fortaleza, Ceará. A representative for Latin America of the Xuzhou China, the Basalt Revest set up a booth at the Mec Show for the first time, with a product aimed at companies that want to avoid the wear of their equipment by friction with abrasive products. “We had people from Santa Catarina, YEARBOOK IEL 200 LARGEST COMPANIES 2016

main players of the segments that make up the capital goods industry: automation, robotics, compressors, industrial metrology, drives, gearboxes and engines, industrial state-ofthe-art technologies and cutting machines, among others. The event was also the stage of tributes to personalities who contributed to the development of the sector. On the first day, senator Ricardo Ferraço was awarded for all his contribution in the area, since the time he was vice-governor of the state, in the second term of Hartung. “In these four decades that the sector have emerged in the state, we have seen the industry reinventing itself, innovating, resisting. It faces a brutal crisis, and certainly, it will come out much stronger. Wherever it is settled, a metal-mechanical company teaches us how to do it right. So, I can say that what we do in public life is not meant to give ourselves honor, but of course it motivates and encourages us”, he said. Yet, the director of operations of ArcelorMittal Tubarão, Jorge Luiz Ribeiro de Oliveira, received the Industry Personality award, granted by Sindifer and Cdmec, for his incentives to the development of metal-mechanic businesses in Espírito Santo.

INDUSTRY: WHAT COMES NEXT

Rio de Janeiro and Pará with problems in this area, and our proposal is exactly to offer solutions”, said Lino Gomes, Commercial Strategy Manager of Basalt Revest. For Durval Vieira, chairman of the State Metal-Mechanic Development Center (Cdmec), the result of Mec Show could not have been more positive. “It exceeded our expectations, especially in the area of technical content. We had interesting presences, exhibitors with quality products, and the lectures, of course, added valuable knowledge to the public”. Manoel Pimenta, who presided over the Sindifer at the time of Mec Show, confirms the success. “This issue served as a thermometer to indicate that the economy can recover in the short and medium terms. The innovations presented gave us encouragement for the future. We hope that the businesses closed here give results and generate profit this year”. The Mec Show 2016 brought together 130 exhibitors from nine Brazilian states, in an area of 12 thousand square meters in the Carapina Pavilion. Among them were the YEARBOOK IEL 200 LARGEST COMPANIES 2016

Despite the economic scenario, investments in the State remain as priority for large companies. During his lecture at the Mec Show, the manager of Development of Business of Jurong Shipyard Aracruz (EJA), Cícero Grams, made a balance, until this moment, of the entire project executed since 2012, when the construction works in the north Espírito Santo were initiated. But the highlight of his presentation was the announcement of a new selection of students for training in Singapore, Asia. In partnership with the Federal Institute of Espírito Santo (IFES), where the students were selected, the training is a program that enables the work experience in a global and high-tech shipyard for 14 months. “I am announcing to you at first hand that we will continue this work in 2017”, he said. Despite being in an even earlier stage of works, the Central Port project in President Kennedy, in the south of the state, will also continue to be developed by the joint venture between the Port of Rotterdam (Netherlands) and TPK Logistics. The assurance was given by the commercial manager Frans Jan Hellenthal, who also said that the company is moving to start the construction in 2017. The port, which should come into operation in early 2020, will have several terminals, but the implementation will be done by steps. 87

RESEARCH 2016 METHODOLOGY

OUTSTANDING ENTREPRENEUR, CEO AND COMPANY 2016 A s in previous years, the annual “IEL 200 Largest Companies in ES” promoted the election of the Outstanding Entrepreneur, Company and CEO in 2016. The election was conducted through the web, with the participation of a representative audience, composed by companies, Prodfor providers, support and funding agencies, officers, directors, executives and managers of the Findes System, members of the Thematic Councils and the Technical Advisory of Findes, the Trade Federation, journalists and editors of the main communication vehicles of Espírito Santo State, as well as other opinion leaders. The election process occured in two steps: • First step: Election through free vote of the pre-candidates for Outstanding Entrepreneur, CEO and Company 2016; • Second step: The effective election of the Outstanding Entrepreneur, CEO and Company 2016 from the top three in each category in the first phase.

For this purpose, the following concepts were adopted: • Outstanding State Entrepreneur: state entrepreneur who stood out in the year 2016. • Outstanding Company in operation in ES: company operating in Espírito Santo that stood out in 2016. • Outstanding CEO: main executive of a company operating in ES, which stood out in 2016 in the direction post. The whole process and the election system were developed and monitored by IEL-ES staff, on the web environment, through a user interface (voters) and a restricted area for the system’s administrators, in order to meet security and performance requirements, which enabled each recipient to vote only once. The e-mails were sent from system devices, based on the information fed into the database by IEL-ES team. The content of the text made it clear that the form of voting pointed to a link to access the election site, where the system was generating a random code, disallowing new indication. The vote took place in August and September 2016; after this period, the reports with the results counting were generated. YEARBOOK IEL 200 LARGEST COMPANIES 2016

OUTSTANDING ENTREPRENEUR

ETORE SELVATICI CAVALLIERI The story of success of a machinist who now chairs Imetame, a company with 3,800 employees and operations in 11 states and 3 countries

“B

elieving that it is possible makes the difference”. The quote of the CEO of Imetame, Etore Selvatici Cavallieri, 59, reflects the belief of a then young machinist who, together with a partner, started the entrepreneurial life in the year of 1980 in a shed of only 50 square meters in the city of Aracruz, where he was born. The initial capital that made possible the creation of the company came from the money received in the labor termination of a former job, in Aracruz Florestal, and from the sale of two cars, in addition to the financial aid of his father. After almost 36 years, the enterprise has become large: it covers an area of 244,000 square meters, employs 3,800 employees and operates in 11 Brazilian states and 3 countries. The group comprises the companies Imetame Metal-Mechanical, Imetame Granites, Imetame Energy, Imetame and Imetame Logistics. Diversifying businesses, it operates in five fronts: metal-mechanics, energy, granite, logistics and agribusiness. For the entrepreneur, who sought to envisage possibilities and opportunities, the variety of businesses allows a higher assurance in face of the fluctuations of the economy and risks, which in his view are also part of the business and should serve as a learning experience. Married and father to four, appointed as the Outstanding Entrepreneur 2015 in the Euvaldo Lodi Institute (IEL-ES) research, Etore Selvatici Cavallieri’s main hobby is to be with family and friends and do long distance walks.

“The award is a recognition of the professional journey of commitment, love and dedication to Imetame and all the people who have worked there. I believe I was reminded for building a story of pursuit for balance and integration between the business and the employees and their families, the communities and our actions in the social sphere”, he said. Demonstrating these concerns in daily life, the company holds programs of training and technical development, such as the “Schools of Welding and Boiler”, as well as training aimed at self-knowledge and development of leaders and teams. “We create opportunities for people to grow, challenging them to do better every day and to exceed themselves”. This is very strong in our company. It is part of our “way of being”. Which consequently causes the talents to excel. We have a unique personnel management team to monitor, mentor, listen and address the challenges”, he says. The next step for the company will be building a complex that will serve to support oil and gas exploration activities in Espírito Santo, budgeted at R$ 300 million, to be built on an area of 540,000 square meters, also in Aracruz, between Jurong Shipyard and Portocel, Fibria. YEARBOOK IEL 200 LARGEST COMPANIES 2016

OUTSTANDING CEO

MARCELO CASTELLI Operating for more than 25 years in the pulp and paper industry, CEO presides over the largest global producer of eucalyptus pulp

he leadership ability of Fibria’s president, Marcelo Castelli, 52, born in Santo André (SP), is demonstrated by the many leadership positions he held in more than two decades of experience in the pulp and paper segment. Graduated in Mechanical Engineering by Mogi das Cruzes University (SP), holder of a degree in Business Administration by the Associated Colleges of São Paulo (FASP) and an MBA in Business Administration by Dom Cabral Foundation, Castelli led teams in the areas of production, projects and business in large companies of the sector. In July 2011, he took command of Fibria. Before that, he led the Board of Forestry Operations, Supplies, Paper and Strategy of the company. He was also the leader of the Integration Project, which prepared the conceptual and administrative guidelines of the operations union between Aracruz Celulose and Votorantim Cellulose and Paper, the two large Brazilian companies that gave rise to Fibria, which thereafter became the largest global producer of eucalyptus pulp. Castelli believes he was chosen as Outstanding CEO due to the company’s strong performance in Espírito Santo. “The company has here its largest industrial operation, generating about 6,000 direct jobs, and maintains several initiatives that contribute to strengthening the local economy. An example is the priority it gives to the hiring of local companies in the projects developed in the state, which contributes to the strengthening of the supply chain”, he says. For the executive, the enterprise he represents rose in the midst of adversity and has proven its power to surmount. To do more with less. “Today, we are the world’s largest producer and leader in the global market of eucalyptus pulp. Now, the company has cash available

for growth, whether organic or by consolidation. We did a company renewal, evaluated market megatrends and understood the concepts of our business to reposition in this new time”, he says. The focus, today, is to complete the expansion of the second production line at Três Lagoas unit, in Mato Grosso do Sul, called Project Horizon 2. This is the largest project ever undertaken by the company, with the capacity to produce 1.95 million tons of eucalyptus pulp per year. Completed the project, planned for the beginning of the fourth quarter of 2017, Fibria will achieve a total production capacity, including all four units in Brazil, of 7.25 million tons of eucalyptus pulp per year. “This is a big project - worth US$ 2.3 billion (equivalent to R$ 7.7 billion) - that challenges and motivates us”, concludes the executive. YEARBOOK IEL 200 LARGEST COMPANIES 2016

OUTSTANDING COMPANY

FORTLEV

Industry risen in Espírito Santo 26 years ago is proud to win for the first time the Outstanding Company Award of Findes

rom the dream of an entrepreneurial family and the ability to transform opportunities in big business was risen Fortlev. Founded in 1989, the industry is now the undisputed leader in the national market of reservoirs. Its product mix includes water tanks, cisterns, tanks, sewage plants, in addition to PVC pipes and connections. Since its creation, in Espírito Santo, the company made significant expansions in Brazil, with expansion of its plants in the states of Bahia, Santa Catarina, São Paulo and Pernambuco. Relying on the model of continuous relationship with retailers, through more than 350 representatives spread across the country. Nowadays, it has a staff of approximately 1,400 employees. Currently, Fortlev operates six factories: one in Espírito Santo, one in São Paulo, one in Santa Catarina, one in Pernambuco and two in Bahia. It is the reservoir brand more present (90%) in the sales points of Espírito Santo, according to a study by the National Association of Building Material Dealers (Anamaco) - 2015. The more than 250 items in its portfolio were designed to meet construction needs. In addition, the company has more than 50,000 active clients. “Winning this title in our state, in our house, augments our joy. We are aware that such an important prize is, above all things, a recognition to the collective efforts and dedication of all our employees, families, customers, suppliers, professionals in the construction sector and partners, who daily help us build Fortlev’s history”, said the chairman, Eugênio de Vasconcelos Fulgêncio, when informed about winning the Outstanding Company Award 2016, given by Espírito Santo’s Industry Federation (Findes).

TIMELINE 1984 Manufacture of synthetic marble and concrete products, in Cariacica (ES); 1989 Registration of the company with expansion of the product mix and manufacture of fiberglass water boxes and synthetic marble tanks, in Viana (ES); 1992 Company transfer to the city of Serra (ES); 1995 Beginning of production of polyethylene boxes; 2000 Achievement of ISO 9001 certification; 2005 Opening of Bahia unit; 2008 Opening of units of Santa Catarina and São Paulo; 2009 Celebration of 20th anniversary; 2010 Launch of new solutions in water use, focusing on the environment; 2011 Opening of the new factory of Santa Catarina and launching of tubes, fittings and conduits; 2012 Expansion in the PVC market in number of items and resellers; 2013 Consolidation of pipes and connections range with the launching of over 70 new items; 2014 Award by Anamaco, in the category “Pipes and Fittings”; 2015 New factory in Itatiba (SP) and major investments in the structuring for the future of Fortlev; 2016 New plant in Cabo de Santo Agostinho (PE).

YEARBOOK IEL 200 LARGEST COMPANIES 2016

ANÚNCIO

BUSINESS HIGHLIGHT SESI

Sesi Health Care Colatina. Budgeted at R$ 1.5 million, including buildings and equipment, the unit serves workers and residents of the towns that integrate the Findes’ Regional Board of Colatina and surrounds

CARE AND COMMITMENT TO THE CITIZENS Sesi-ES inaugurates health centers and begins to offer medical assistance to the population in general

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lways working to improve the quality of life of Espírito Santo’s workers, Sesi-ES continues to invest in structures able to respond more quickly

and efficiently to the inhabitants of a particular region, avoiding that they have to travel long distances. In 2016, was opened the new health clinic of Colatina. YEARBOOK IEL 200 LARGEST COMPANIES 2016

Opening of Sesi Health Care Colatina

Sesi health care Colatina: Manoel Antônio Giacomin • Estimated attendances (per year): 50,000. • Possibility of agreement with the State Government, municipalities and large companies. • Offering the following specialties: occupational medicine, health care medicine (general practitioner, dermatologist, cardiologist, ophthalmologist, otolaryngologist, and orthopedist), phonoaudiology, psychology, nutrition, dentistry (endodontics and periodontics), audiometric tests, spirometry, visual acuity, EKG, radiology, clinical analysis and accreditation of local laboratories to perform some services. • Wide structure with 10 offices: three medical offices, two dental offices, audiometry room, spirometry room and visual acuity, collection station of clinical analysis, nursing station (preconsultation) and nursing room.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

With investments of R$ 1.5 million, including buildings and equipment, and 766 square meters of total space built, the Sesi-ES Health Care Colatina named after the industrialist and current institutional vice president of Findes in the city and surrounds, Manoel Antônio Giacomin. Its capacity is about 50 thousand medical consultations per year. “With the inauguration, we are moving forward in improving the quality of life of our people and bringing benefits also to the people that will get consultations and examinations with affordable prices”, said the chairman of the Findes System, Marcos Guerra. Governor Paulo Hartung attended the opening ceremony, which took place in March, and recalled the importance of Findes System for Espírito Santo. “In addition to the integration between Findes System and the Government in the educational area, now the organization is moving forward in this important and challenging area of health. I congratulate the system for this opening, which brings a wide range of services. It is a mechanism that integrates the health system of the region and will be an important tool in the consideration of services in this sector, which is a national challenge”, he said. The clinic serves workers and residents of cities that are part of the regional board of Colatina: Baixo Guandú, Colatina, Governador Lindenberg, Marilândia, Pancas, São Domingos do Norte, São Gabriel da Palha, São Roque do Canaã and Vila Valério. There will have medical attendances of various specialties, with special focus on occupational medicine and safety. The professional staff includes general practitioner, cardiologist, dermatologist, ophthalmologist, otolaryngologist and orthopedist. The physical space is divided in medical clinics of phonoaudiology, psychology, nutrition, dentistry, among others. There will also be conducted exams of audiometry, spirometry, visual acuity, EKG, clinical laboratory and radiology. After a few months of activity, the balance could not be more positive, says the executive manager of SESI-ES, Yvanna Miriam 97

BUSINESS HIGHLIGHT

Sendi Locks, health coordinator of SESI-DR SC, Eduardo Antônio Muzzi, Healthy Life manager of Sesi-DN, and Marcos Alex Silva, manager of SESI-ES Health Division, receiving the awards in the Marca Brasil Award

Pimentel Moreira. “The people’s acceptance was very significant, and the demand has exceeded our expectations. Choosing Colatina was strategic, since it has many companies and a large transit of people. With the arrival of the unit, Colatina and surrounds now have a quality service and a large modern structure”, she highlighted. And there will be more things. By the end of 2016, Cachoeiro de Itapemirim and Linhares shall also make projects along these lines. “These towns are important centers of our economy and also have many workers. It will certainly be an extra facility for these people. In addition to the two units, we will also inaugurate another in Aracruz”, said Luis Carlos Vieira, superintendent of Sesi-ES and regional director of Senai.

BEYOND THE INDUSTRY: REPOSITIONING AND ACHIEVEMENTS To ensure the health and welfare of professionals, Sesi-ES invests continuously in prevention, through occupational health and safety programs.

Sesi Health Care Units in Espírito Santo • Already operating: Vitória, Serra and Colatina • To be delivered in the next months: Aracruz, Cachoeiro and Linhares

However, this year the organization decided to go further and expand its activities, embracing the general population. “We have increased our range of services. From our focus, which is occupational medicine, we have extended to medical support, in services such as cardiology, nutrition, and examination. And we have expanded the attendance to the public as a whole. We started in 2016 in the units of Vitória, Serra and Colatina. The service will also be offered in the units that will be opened. We are doing outreach work, calling the population to this option. There is a deficiency of care and we offer quality services at an affordable price. It is a work that shows that SESI-ES is repositioning and approaching increasingly to Espírito Santo’s citizens”, emphasized the executive manager. The Sesi-ES won the Marca Brasil Award (Brazilian brand) in the category “Occupational Medicine”. For Luis Carlos, the achievement is important for the organization to demonstrate its representation in the country when it comes to occupational medicine. “We invest heavily to give attention to industry workers. Thus, we offer medical care and assistance on legal documentation for the workers”, he noted. For Marcos Alex Silva, manager of Sesi-ES Health Division, by promoting initiatives to care for the well-being and maintaining a good and healthy working environment, the industry as a whole gains in productivity, competitiveness and, consequently, profit. “A worker that is not well, of course, cannot fully accomplish his work. But if he is healthy, consequently affects positively the environment and the company’s productivity”, he said. Caring for and looking after the fundamental pieces that make the state industry to always keep up and running, Sesi-ES goes on using the pillars of Education, Leisure and Culture, Safety and Occupational Health and Corporate Social Responsibility to leverage the development. YEARBOOK IEL 200 LARGEST COMPANIES 2016

DESTAQUEHIGHLIGHT BUSINESS EMPRESARIAL COIMEX SENAI

The new Professional Education Center Lucas Izoton Vieira, opened in March, is expected to register 4,000 enrollments per year

QUALIFIED WORKER, STRONGER INDUSTRY Senai-ES invest in construction works and in acquisition of machinery and equipment

fter a storm comes the calm. Following this popular saying, Findes System invests about R$ 250 million in its organizations, preparing and enabling the industry to the moment of retaking the growth, eagerly awaited in a still troubled scenario in the country’s economy.

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When it comes to training, the strong arm of the Federation is the National Service for Industrial Training (Senai), created with the purpose of forming and perfect professionals for the production sector. In Espírito Santo, the entity officially operates since 1952, and has trained more than 1.5 million workers. Currently, it has YEARBOOK IEL 200 LARGEST COMPANIES 2016

WORKS ACCOMPLISHED BY SENAI AND SCHEDULED DELIVERY DATE: • The Professional Education Center Lucas Izoton Vieira (Anchieta) – Delivered; • The Professional Education Center Jones Santos Neves (Serra) – Delivered; • The Education and Technology Center Arivaldo Fontes (Vitória) – 2017; • The Araçás Senai Centromoda Fashion Center (Vila Velha) – 2017; • The Mário Rezende Education Center (Cachoeiro de Itapemirim) – 2017; • The Professional Education Center Albano Franco (Colatina) – 2017;

10 educational units and a range of over 250 courses, besides developing others in customized ways. The Senai educational units in Espírito Santo have been under construction works that will create or expand their efficiency, a mark of the institution, seeking to meet in ever better ways the demands of the work world through mid-level technical courses, qualification, improvement, professional training and industrial training. “The schools are the result of the dialogue with the leaders of the YEARBOOK IEL 200 LARGEST COMPANIES 2016

regions, which allowed us to develop solutions together to meet specific demands of a certain production sector. An effort that our administration has done to bring economic development to the Great Vitoria Metropolitan Region and beyond. The units expand the access to professional education, create new opportunities for youngsters and strengthen the economy of each region”, said the chairman of Findes System, Marcos Guerra. In Anchieta, the new Professional Education Center Lucas Izoton Vieira, opened in March, is expected to register 4,000 students per year. In a structure with more than 4,600 square meters of built area, the new unit has 13 classrooms and 14 laboratories/workshops, equipped with cutting-edge technology to meet the demand for skilled workforce in the industrial segments of metal-mechanical, civil construction, electronics, information technology, environment and occupational safety. “The Regional Board of Anchieta concentrates one of the industrial areas of greatest relevance to the state economy. Besides Samarco, who donated the land for the construction of the unit, the region has an extensive supply chain of small industries that generate income and opportunities”, said Guerra. In August it was the turn of Serra, with the inauguration of the works of renovation and expansion of the Professional Education Center Jones Santos Neves, in Civit neighborhood, with classrooms, workshops and laboratories, adding new 2,400 square meters of built area to the current space. The unit offers technical courses in Power Engineering, Computer, Plastics, Mechanical, Computer Networks, Refrigeration and Air Conditioning and Occupational Safety, besides qualification opportunities for welder, boilermaker and lathe operator, and professional development courses in Autocad, hydraulics, pneumatics and forklift operator, among others. Still in the city, 50 new stations were tendered only for the learning of welders. In addition, a number of new equipment has been acquired for all the state, including 3D printers, which already reached the classrooms. A demand that has emerged from the opening of the Senai Plastic School, in Serra unit, was that the printer was used in prototyping education. In Cachoeiro do Itapemirim, the facility will have state-of-the-art equipment, which will be distributed among 16 new classrooms, in addition to setting up of laboratories and workshops in various fields, construction, mechanics, electronics and automotive. And the most important economic sector of the city, the ornamental rocks, will also gain a specific lab in the local unit. In Vila Velha is being built the fashion center Centromoda Araçás, with tailoring laboratories, scratch and cutting, shaping, embroidery, design, printing and machinery mechanics. Finally, in Colatina, town in which also the clothing industry stands out and where a fashion center is already run, eight new classrooms were built. Improvements in the layout and in administrative areas of the unit were also made. For the regional director of Senai-ES and superintendent of Sesi-ES, Luis Carlos Vieira, all of these works will be crucial in the coming 101

BUSINESS HIGHLIGHT

years”. Espírito Santo has favorable conditions and balanced accounts. When the crisis is gone, that who will be in better conditions of competitiveness is the one that is organized. This is the way we are going through”, he said.

CENTER IS HIGHLIGHT IN TECHNICAL COURSES In Vitoria, the Education and Technology Center Arivaldo Fontes also undergoes renovations. Reference in technical courses since 1987, the unit has opportunities in industrial automation, mechanical, electrical, computer networking, computer, automotive maintenance, environment and occupational safety. The manager of Education and Technology of Senai, John Mark Del Puppo, highlights the importance of investing to improve the structure. “Vitoria unit is the oldest school of Senai in the state, but since the 80’s it did not undergo a renovation in its physical structure. So far, there was obviously a technological upgrade, but the physical space did not follow these changes. The renovation will impact on the aesthetic and functioning. The training courses that were held in the unit, such as Electrician and Welding, will be moved to Serra and Vila Velha. We seek to specialize the Education and Technology Center of Vitoria in technical courses and post-technical. Furthermore, we will expand the living area and the library. There will also be re-fitting of spaces, optimizing the use of the rooms by area”, explained Del Puppo. The superintendent Luiz Carlos Vieira emphasizes that investments have enabled significant improvements in the instruction and learning processes throughout the state, since Senai’s teaching is based on “learn to do by doing.” “All units are being modernized; the goal is to have the same technological level in each of the 10 units of Espírito Santo, respecting the regional vocation and specialization of units, but without losing sight of a certain standardization in infrastructure. We encourage instructors and students to use the Senai’s cutting-edge technologies, so that the training process is more effective, and that the students, at the end of a course, are able 102

In the Professional Education Center Jones Santos Neves, in Civit, new equipment, such as a 3D printer, have been acquired

to the industrial work according to the professions in which they are formed. This has been a long-lasting mark of Senai”, remarked Vieira.

MOBILE UNITS Senai also works through mobile units, which take professional education to locations that do not have fixed schools of the entity. On that front, the remarkable feature is the flexibility to meet the demands of the industry; the mobile units offering various courses, according to the industrial segments. Currently, there are three units of civil construction in operation in Espírito Santo; two of metal-mechanics, with courses in welding and sawmill; two of clothing; two of baking; one of fridge, the only one in the country and a pioneer project in the state; one of forest harvesting; and one of wood and furniture. There is indeed a projected state kitchen unit and a general automotive mechanics. The target audience is made up of residents of the regions of low human development index, without professional qualification; in need of rehabilitation, vocational training and leisure services and sports. The unit also serves leaders and management teams of the companies located in areas that have no fixed units settled. By the end of 2016, there shall be made 6 thousand registrations. “These units show that Findes System has prioritized investment in education and internalization of the state development. We are bringing state-of-the-art technology, with cutting-edge equipment and a rare mobile unit model in the country. We do not prioritize quantity, but the quality of professionals that we form”, said Marcos Guerra. For the chairman of Findes, the goal is always that the workers grow in the industry, innovate, improve their quality of life and, consequently, help Espírito Santo to progress. YEARBOOK IEL 200 LARGEST COMPANIES 2016

DESTAQUEHIGHLIGHT BUSINESS EMPRESARIAL COIMEX CINDES

Setting of the event “Telling Histories”: the project researches and share the experiences of great entrepreneurs of the State

CINDES: SYNONYM OF INTEGRATION IN INDUSTRY The entity promotes the gathering of industries, foments the entrepreneurship and registers great accounts about the economic development of the State

he Industry Center of Espírito Santo (Cindes) arose from the need of entrepreneurs to come together to discuss matters of their concern. Since its creation in 1969, the organization is a partner of the Findes system and acts in carrying out actions as well as economic and political events, focusing on the development of the sector and the State. To idealize and consolidate an environment of interaction among its members by fostering business, products and services and strengthening the sustainable

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competitiveness of the state production chain, Cindes accounts with administrative bodies that comprise the General Assembly, Council Board and Executive Board, in addition to the Fiscal and Advisory Councils. These bodies are formed by associated companies, represented by a partner or shareholder with management power, which in regular meetings monitor, analyze and manage the entity with professionalism and integrity, leading it in partnership with other institutions of Findes System to achieve their goals. YEARBOOK IEL 200 LARGEST COMPANIES 2016

ACTIONS AND/OR PROGRAMS OF CINDES • Cindes Youth

• Integration Trip

• Telling Histories

• Industry Meeting

• Connection with Industry

President emeritus of the System and advisory counselor of Cindes, Helcio Rezende Dias, remembers how the creation of the entity by the first President of Findes, Jones Santos Neves Filho, was important for the industry as a whole. “The main reason for its creation, at that time, was that there were only six or seven unions, which actually did not represent all the industries of Espírito Santo, and also by the fact that during the military dictatorship Findes had to comply certain rules. Then, people felt the need to seek new funding sources to better meet their commitments. Due to the reputation of Jones Santos Neves Filho onto the entrepreneurs of industry and trade, 100 member-owner interests were sold quickly. My interest was number 7. And further, there were many other contributing partners. For the businessmen and their wives, the creation of Cindes represented the opportunity for a more intense interaction between themselves, because every month there was a social gathering with dinner and live music, which enabled, in a short time, to create new employers’ associations, coming to 14 unions. President Jones made more of an effort and created the redeemed partner interest. YEARBOOK IEL 200 LARGEST COMPANIES 2016

With this money, the head office was bought, in Caparaó building, in Vitória downtown, and the restaurant was set up successfully”, he recalled. Dias still talks about the increasing number of trade unions, from 14 to 21, and the acquisition of new head office of Findes, under the management of Oswaldo Vieira Marques, between 1977 and 1983. He also points out how was his time as chairman of the Federation, between 1983 and 1989, marked by the integration among the entities. “Because of the expansion of the number of trade unions, the head office of Findes became small. That was when Oswaldo managed to get with the then CNI president, Albano Franco, the purchase of the new building. It was opened in my tenure as president of Findes, on September 13, 1983, when all organizations linked to Findes were set, such as Cindes, Senai, Sesi, Ideies and IEL. With the sale of the former office, Cindes bought the ground floor of the Findes building, where nowadays are achieved some financial results”, he noted. The president emeritus mentioned the first meetings promoted in the new structure. “We used to make a monthly joint meeting of the boards of Findes and Cindes. We held also monthly lectures with important personalities. We received seven federal ministers and several presidents of industry federations from other states. It was the golden era for those entities. At the end of our mandate, we had got 27 associated unions to Findes”, he emphasized. In its action plan, Cindes debates issues relevant to the everyday life of the business community, such as taxes, citizenship, sectoral representation, institutional and sectoral exchange. Regular meetings are promoted, which address the needs of the companies and enable partnerships to expand the professional horizons of this public. Through thematic lectures, business trips, sightseeing trips and cultural events, Cindes came to be perceived as a big club of Espírito Santo’s industry. Initiatives such as the Telling Histories - which brings a series of meetings in which personalities of the state are invited to share their personal and professional experiences - became a success. After the end of the first season of the Telling Histories, with the participation of 10 persons, in June 2013, were released a book and a documentary DVD, a milestone for the historical and cultural record of the state. And more releases are scheduled. “We will deliver our target public the second edition of the book Telling Histories, which will complete a cycle of over 10 history tellers”, informed the managing director of Cindes, Cristhine Samorini. Another highlight is the series of meetings named Connection with Industry, which aims to discuss and study important issues of the local industry. From there, businesses won a major broadcast channel, knowledge and training, always with the discussion of issues from divergent views presented by professionals and experts. Meanwhile, the Integration Trip is a corporate journey comprising a set of activities carried out with the group, always with the objective of developing in each individual the attri105

BUSINESS HIGHLIGHT

butes in the areas of planning, leadership, motivation, teamwork and competitiveness. Finally, in the Industry Meeting, Cindes celebrates its anniversary with a corporate party, in which is realized the award ceremony Merit Medal of the State Industry, for entrepreneurs working in the State; and, every three years, the investiture ceremony of Cindes Board.

ENCOURAGING NEW ENTREPRENEURS Guided by the goal to integrate, develop, unite and represent, social and professionally the industrialists, Cindes supports and encourages the next great entrepreneurs through the Cindes Youth, which promotes talents in the areas of leadership and management. The program is compound by young associated entrepreneurs, aged from 16 to 35, that have achieved prominence with actions that envisage solutions for the market. The Cindes Youth works in partnership with the Association of Young Entrepreneurs (Fecaje), which includes 17 entities of the state youth, and in national levels is linked to the National Federation of Young Entrepreneurs (Conaje). Among the programs and projects of Cindes Youth is the Day of Tax Freedom. Established by Federal Law 12,325 / 2010, the project was created by Conaje in order to discuss the Brazilian tax system, informing the population of the high tax burden that it has to pay every day. Since the adoption of the law, the day May 25 became the National Day of Respect for Taxpayer and, in this context, the Cindes Youth helds every year an event in partnership with restaurants, gas stations or any local partners that are willing to facilitate the trade of their products or services without taxes, showing the weight of the tax obligations on the daily routine of all citizens. Another initiative is the Big Tax Fair, informing and warning the population about the rates levied on services and consumer goods. During the action it is pointed out the amount of taxes paid and their impact on the minimum wage. In the Global Entrepreneurship Week (SGE), which is a movement that seeks to strengthen entrepreneurship by integrating, training and inspiring people, Cindes Youth realizes activities such as lectures and competitions for different audiences. These actions follow the schedule consolidated in more than 130 countries, contemplating thousands of organizations and millions of people. The mobilization always happens in November. The Cindes Youth participates in the Lusophone Entrepreneur Congress, which 106

Team of the Big Tax Fair 2016: a project of Cindes Youth that informs and warns the people about the high tax burden over goods and services

brings together entrepreneurs from Portuguese-speaking countries (Angola, Brazil, Cape Verde, Mozambique, Portugal, Guinea-Bissau, Sao Tome and Principe and East Timor). The idea is to promote integration and exchange experiences in the key business relationships and opportunities. The 2012 edition took place at the Vitória Convention Center and was attended by 1.2 thousand entrepreneurs. But there is also a social initiative in Cindes Youth. This is the case, for example, of the Distribute Smiles, aimed at reaching out to the children. Every year in December, Cindes seeks partners and supporters to enable a fun morning with children in a community in Cariacica. For the vice president of Cindes, Aristóteles Passos Costa Neto, Cindes Youth is another example that the institution is upgrading. “This group, formed by young entrepreneurs, represents the future of Cindes. For the present is already a success. Cindes Young has brought numerous contributions in the fields of political, social and technological knowledge”, he said. Speaking about the future, the union leader said that the organization is moving to be even more effective within its scope. “In the purpose of rethinking the role of Cindes, we have worked to accomplish new projects and products to meet the business class concerns. Not easy this diagnosis. For this, we counted with an active Council Board and the Cindes young team, which has acted in a propositional way, and very integrated to the administration”, he said. This opinion is shared by Cristhine Samorini, who foresees that in the next year there shall be hard work. “I also believe that Cindes has more potential than demonstrated today, for we can reach a wider audience than the other boards of the system. We are an entity not only linked to the industry; we have as associates service providers, among others. For 2017 we have a little more robust ideas. We believe that we can establish more expressively what Cindes can do best, which is to organize events and lectures of general interest to society”, said she. With respect to the past and work in the present, and preparing for new horizons, Cindes goes on in a path of many achievements. YEARBOOK IEL 200 LARGEST COMPANIES 2016

BUSINESS HIGHLIGHT SICOOB

SICOOB ES HITS RECORD OF ASSOCIATES T he consumer wants to purchase goods and services of quality at fair prices, but also seeks to be part of the process of meeting his own needs. Attentive to these demands and investing in approaching actions with associates, Sicoob ES has gained increasing memberships of individuals and companies. From January to September this year, an average of 2,351 new members per month joined the eight unions affiliated to the system in the state. August recorded a historical record, with the admission of 2,998 associates. The period ended with the number of 197,600 individuals and corporations that move their financial resources and carry out projects through Sicoob in the state. For the president of the institution in Espírito Santo, Bento Venturim, this advance is based on several advantages of the credit cooperatives in face of the conventional banking market: “We provide products and high quality services at competitive costs and closer relationship.” The union leader said these and other factors, such as personalized service, make the cooperatives more attractive than other financial institutions. Satisfaction surveys show rates above 84%. In the last survey, completed in January of this year, 97.4% of the associates declared they indicate Sicoob to their relatives and friends. These positive experiences, in the evaluation of the

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president, result from the perspective of people about the results they have achieved when coming together to find solutions. “Modern consumers do not want only to receive goods and services that are sold to them. They are willing to seek new ideas that serve them better and involve them. Thus works the cooperative”. Venturim also highlights the acknowledgement of the regional economy, which provides proper guidance and rational use of resources. Another aspect highlighted as a strengthening factor of the relationship with the client is the access to goods and services. The technological solutions that facilitate the service to members, contribute to the growth of the system, he said. In Espírito Santo, Sicoob manages R$ 4.9 billion in assets, and has achieved the status of largest private financial institution in the state, in released credit volume. The annual growth has surpassed the level of 20% of the previous five years. The country’s largest credit cooperative system, Sicoob works with typical banking products and services by lower than market prices. The members, who are business owners, have the same assurance of customers of conventional banks, because the institution ensures R$ 250.000 of coverage per customer. YEARBOOK IEL 200 LARGEST COMPANIES 2016

BUSINESS HIGHLIGHT VALE

Photo credits: Vale Agency

VALE, INVESTING IN TECHNOLOGY AND INNOVATION A truck the size of a two-story building, a train with more than 3 kilometers long, and a machine of 39 meters height used in ore handling. If it is already difficult to imagine giant equipment like these, operating them is an even greater challenge. Vale adopts the technology of 3D and 4D simulators to train professionals to operate these super machines, which are part of the daily activities in mines, railways and ports. Besides facilitating learning, such tools allow employees to improve themselves safely before entering the field. Several of these simulators are in the Center of Logistics Engineering (CEL), which offers railway and port technical training to Vale’s employees and the professional market. With units in Brazil (Vitória, São Luis and Minas Gerais) and Mozambique, the CEL has trained more than 25,000

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people since the opening of its first unit in 2001. In the center, there are simulators in the railway and port operation and maintenance fields. One of the structures is a model that represents the path of trains and facilitates learning, in addition to a software that shows virtually all parts of a locomotive engine. The center also has simulators of train, port equipment, such as forklifts, reclaimers and ship loaders, which are key in the loading and unloading of Vale’s ships.

THE EXISTING SIMULATORS OF VALE The mine equipment simulator - In Brazil, Vale has 11 of these machines, which can be used as simulators of several equipment operating in a mine. Currently, eight are used to play off-road trucks, two for excavator and one YEARBOOK IEL 200 LARGEST COMPANIES 2016

Photo: Sagrilo

for crawler bulldozer (equipment responsible for making the mine ground leveling). By 2014, Vale had four of such equipment in Pará and Minas Gerais. But last year the company acquired seven modern machines, which have a 180-degree curved screen and a mobile base where are the seat and the panel, which faithfully reproduces the movements of a real equipment, such as terrain bumps. It is the technology known as 4D. Five of the new machines are in Minas Gerais and two in Pará, but as they are in containers, they can be moved from one state to another, according to the demand for training. The equipment allows full interaction between the student and the images available on screens that bring the mine scripts. Sitting in the chair, the student finds himself in a perfect reproduction of a cabin truck off road, and in front of a virtual space that simulates, accurately, the mine area in which he will work. In this system, the student notes how it is to operate whether during the day or at night, or in fog and rain situations. The bleep and lighting warning are also resources reproduced. With the approximate height of a two-story building and a tank that holds 4.5 thousand liters of diesel oil, the equipment is one of the most important involved in the operation of a mine. Some models can carry up to 400 tons in the bucket, but the most used in Carajás supports 280 tons. Their tires measure more than three meters high. If we consider 1.70m as the average Brazilian stature, we would need two adults standing one on top of another, just to reach the top of the tire. The train operation simulator - Inside a cabin that reproduces exactly the cabin of a locomotive, with on-board computer, panel, accelerator and brake, and other equipment, the student feels the emotions of operating a machine with up to 6 thousand horsepower engine under different weather conditions such as sun, fog and rain. Among the compositions operated by Vale, it is one of the longest trains in operation in the world, consisting of 330 wagons, pulled by three locomotives simultaneously. The set is 3.3 kilometers long and capable of carrying 33 thousand tons of iron ore at once, the equivalent of a thousand trucks. To command it, it was necessary to develop its own technology, the Locotrol system, which enables to control the traction (force) and the braking, synchronized and independently. To operate this supermachine requires hard training. The future professionals need to undergo 556 hours of training, of which 40 is in a simulator. The machine reproduces exactly the entire line of railways operated by Vale in Brazil and in the world, with its curves, uphills and slopes. Regarding the train of 330 wagons, its operation occurs in the Carajás railroad (EFC), which connects the mine in Carajás, the largest iron open pit mine of the world, in YEARBOOK IEL 200 LARGEST COMPANIES 2016

Train Simulator

the southeast of Pará, to the Ponta da Madeira Maritime Terminal, in São Luís (MA). Bucket wheel reclaimer - To bring minerals to all continents, Vale has a fleet of large ships, including Valemax, the largest ore carrier in the world. Capable of carrying about 400 tons of iron ore per trip, the ship has seven holds to store the charge, with opening dimensions of a tennis court. The complexity of these operations requires a lot of technology. The reclaimer is one of those heavyweights equipment used in the operation. Being up to 39 meters high, the equivalent of an eight-story building, the machine removes the ore from the port stockyard piles and feed the conveyor belts, which, in turn, carry the charge to the ship loader. To operate it is necessary much training, which begins in the simulator. The machine reproduces exactly the ore yard of Vale around the world, simulating iron ore recovery in different conditions such as rain, fog, strong wind and even defects in machines. The software also considers, in a virtual reality environment, all the characteristics of the reclaimers, as speed of turning, lifting and translational movements. It also allows the operation of two machines on the same bulk pile as well as the execution of alarms and overloads due to the type of operation carried out by the student. The simulator of ship unloader - large machines that weigh more than 2.2 tons and measure 64 meters high, the equivalent of a 20-story building, the ship unloaders (DNs) are a key player in the ship product transportation to the stockyard. In the Terminal of Tubarão, there are four DNs that are used in the coal unloading. Operators of these supermachines also undergo intense training. 111

Photo credits: Vale Agency

BUSINESS HIGHLIGHT

In partnership with Virtualy, an incubator company of the Federal University of Rio de Janeiro (UFRJ), Vale has developed a 4D simulator that reproduces faithfully the whole operation of DNs. Still in testing, the equipment, unprecedented in Brazil, has a motion system to provoke sensations in 4D. The training takes place within an adapted and equipped cabin with LED monitors and joysticks that visually reproduce the ship’s operating environment. The motion system, in turn, creates movement and vibration characteristic of real ship unloaders. The simulation also considers different scenarios, involving from the operation in nighttime atmosphere and adverse climate conditions, such as rain or strong winds, to restrictions or defects in the ship unloader. The software also shows, in detail, the whole area of the Port of Tubarão, considered the most efficient in the world in terms of stockyard operation. It is foreseen that, in the future, the equipment will be applied to simulate also the operation of ship unloaders that integrate the logistic structure of Vale in the Sultanate of Oman, in the Middle East and Malaysia. The ship loader simulator - The equipment plays in a virtual environment, real situations of the operators that work in the loading of iron ore ships, in the Ponta da Madeira Maritime Terminal, in São Luís (MA). The ship loader receives the ore through a system of conveyor belts, which carries it to the equipment. This, in turn, distributes the load in the holds of ships. The training is done in a cabin fully adapted. In practice, the technology works with the use of screens that display images in 3D animation, able to simulate adverse situations, such as rainy days and bad visibility caused by the absence of natural light. Other challenges allow the operator to find failures in the equipment and return to activity without loss. The geometric correction simulator - The equipment, which is part of the structure of Governador Valadares Railway Training Centre (MG), is used in operation trainings of track geometric correction equipment, as well as ballast regulation of the rail network of the Railroad Vitória-Minas (EFVM), which connects part of Vale’s mines, in Minas Gerais, to the Port of Tubarão, in Vitória, and the Carajás Railroad (EFC). The remote operation simulator of port equipment - Technology used for training and recycling in remote operation of equipment such as reclaimers, forklifts, reclaimers-forklifts and stacker-car dumpers. 112

Mine equipment simulator, with truck set out of road

The simulator includes the operations of all Vale’s ports that have this technology implemented. Installed in Tubarão Complex, in Vitória (ES), the Vale’s Logistics Engineering Center (CEL) brings together structures for research and training of employees working in the areas of railway and ports. From 2009, CEL has expanded its operations with the application of practical experience in an integrated manner to the theoretical classes. The initiative aims also to increase the quality of Vale’s logistic services and, in parallel, to support the increase of the company’s production in Brazil and abroad. Furthermore, there are also an office in São Luís (Maranhão) and a unit in Governador Valadares, focused on the training of the teams that work in the maintenance of Permanent Way and Electrical-electronics of Vitória-Minas Railway (EFVM). CEL aims at being one of the best integrated structures for training and logistic development in Brazil. Thus, it has different simulators of rail and port operations, technical library, rooms for training, railcar loading simulator, railway model for operational regulation exercises, 3D software for railway training and content capture room for the constituting of teaching materials, among other structures. At the same place, it is possible to perform technical training of railway and ports, with both theoretical and practical approaches. A maintenance technician can, for instance, learn the procedures in the classroom, how to perform a repair on a conveyor belt and, subsequently, put into practice the teachings in a belt available on site. CEL will also be used for practical applications of research development projects and technologies related to Logistics, which Vale keeps with academic and technological institutions in Brazil and abroad. YEARBOOK IEL 200 LARGEST COMPANIES 2016

BUSINESS HIGHLIGHT METROPOLITANO HOSPITAL

METROPOLITANO HOSPITAL: 20 YEARS BUILDING A HISTORY OF SUCCESS T o be a center of excellence in healthcare solutions. This is the Metropolitano Hospital vision, whose mission is to innovate in health solutions with social commitment, reaffirming every year its leading position in the area. Regardless of the challenge, Metropolitano is prepared with qualified professionals, modern infrastructure, cutting-edge technology and constant investment in improvements. The history begins 20 years ago, result of the gathering of 17 doctors, with their own resources, decided to start a project to meet the local demand.

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YEARBOOK IEL 200 LARGEST COMPANIES 2016

Always seeking quality, the hospital adopted a model of professional management, customer- oriented, and obtaining results, with incentives to the merit of partners. The structure, robust in several areas, rise in prominence in EspĂrito Santo. There are 134 beds spread over general ICU, cardiovascular ICU, geriatric unit, general hospital, complete surgical center to perform all kinds of procedures, and two special rooms for high complexity surgeries. There is also a specialty center that brings together several medical offices in one place: 24 hours emergency, clinical analysis lab, neonatal ICU, among other services. Investments carried out in recent years represented a return of R$ 60 million and increased the hospital net equity (PL) more than 20 times. Services inaugurated by 2015 increased the operating capacity and provided the quality enhancement of services, the satisfaction of employees and clinical staff, besides releasing new areas for more beds and sectors oriented to support the activities. All these achievements are an encouragement for the team to continue thinking about the future. One example is the strategic plan prepared for the triennium 2016/2018, which provides interventions on the hospital building structure, bringing the total existing capacity to 163 beds, of which 50 are for ICU and 113 for hospitalization. Moreover, the

YEARBOOK IEL 200 LARGEST COMPANIES 2016

number of medical attendances will be expanded to about 400 thousand people a year. Proven return of these contributions is the excellent results obtained last month by the Organizational Climate Survey conducted by the National Association of Private Hospitals (ANAHP). The Metropolitano ranked third among private hospitals in the country associated to ANAHP. With infrastructure and state-of-the-art technology, qualified and motivated team, the result is an excellent delivery of care and services for patients, as well as the proven effectiveness of processes. That is a point also reflected in the maintenance of the accreditation by the National Accreditation Organization (ONA), achievement obtained in 2012 and that demonstrates safety in patient care, with Level 3 of excellence. No wonder for five years the hospital has been in the list of 250 small and medium companies that grow the most in Brazil, according to a study conducted by Deloitte in partnership with the Exame PME magazine. The administrative and financial director of Metropolitano, Benoni Santos, states: â&#x20AC;&#x153;We have invested a lot in people development, techniques of customer service and quality management, as well as material improvements in the hospital. This gives us a market differential and results in an excellent reputation earned with clients, suppliers, employees and services providersâ&#x20AC;?. 115

SPECIAL YEARBOOK 20 YEARS

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YEARBOOK IEL 200 LARGEST COMPANIES 2016

YEARBOOK IEL-ES 200 LARGEST: TWO DECADES AS REFERENCE IN THE STATE MARKET With more than 1 million readers of the business segment in Brazil and abroad, the publication is a tool that disseminates Espírito Santo’s potential and contributes to attract investments

O 4.900

Content pages produced in 20 editions of the IEL-ES Yearbook 200 Largest Companies

YEARBOOK IEL 200 LARGEST COMPANIES 2016

ne of the main publications of economic and business reference within and outside the State, the IEL-ES Yearbook 200 Largest Companies of Espírito Santo hits its 20th edition. With more than 1 million readers of the private sector in the country and abroad, it is a dissemination tool of Espirito Santo’s potential. Over these 20 years, Findes System had four different presidents and even the IEL-ES has changed its management, but the yearbook remains in production, which shows its importance to the local market. “My tenure is to continue all that was already being done right in Findes. Not according to my opinion, but listening what says the Council Board. In this pitch, I decided for continuing to release the IEL-ES yearbook, understanding that it consists of a good source of research, a document that positively shows Espírito Santo and serves as base for future investments in the State, evidencing its strength to Brazil and also to the international market”, explains the chairman of Findes System, Marcos Guerra. According to the director of Findes for IEL-ES Affairs, Aristóteles Passos Costa Neto, “the System leaders are proud to boast the long-lasting mark 117

TIMELINE

ESPECIAL 1997

In the 1st edition of the Yearbook, when the 150 largest companies were still being listed, who presided over Findes System was the entrepreneur José Bráulio Bassini. Among the topics of the publication, the 1,200 days of the Real Plan and what Espírito Santo could provide to large companies that were coming to establish in the state.

1998

This edition stood out for having among its writers the former Minister Atônio Delfim Netto, the then Senator José Serra and the businessman Américo Buaiz Filho.

1999

IEL-ES starts to work in the publication of the Yearbook from the 3rd edition, when the Institute and Ideies came to share the same administration. It was the first time that an edition brought a text work on the Business Highlight, which was about the Companhia Docas do Espírito Santo (Codesa-Port Authority). The Article by Luciano Moura Raizer was about the creation of an unprecedented program for development and qualification of local suppliers, the Prodfor.

2000

In its fourth year, the Yearbook started to elect the Outstanding Company and the Outstanding Entrepreneur, bringing Viação Águia Branca (coach company) and Aylmer Chieppe, respectively. Among the main topics, the prospects for investments in Espírito Santo and the participation of the Administrative Council for Economic Defense (Cade) on mergers in Brazil, anticipating a discussion that from 2002 would start involving the State, with the purchase of Garoto by Nestlé.

2001

Already 15 years ago, the IEL-ES Yearbook 150 Largest Companies addressed a common theme in this current period of financial crisis: the need to make a fiscal adjustment in the public accounts of Brazil, as discussed in an article by the economist Alberto Furuguem.

2002

In this edition, among the main issues discussed were the need for a tax reform, for the sake of growth and competitiveness of the national industry, as well as the importance of the internal market for the state economy.

2003

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In his first year in office as Governor of Espírito Santo, Paulo Hartung was interviewed by IEL-ES Yearbook 150 Largest Companies, in which he commented the actions for Espírito Santo’s economy and the relevance of Prodfor and Petrobras’s entry in the program.

“I decided for continuing to release the IEL-ES yearbook, understanding that it consists of a good source of research, a document that positively shows Espírito Santo and serves as base for future investments in the State” Marcos Guerra, Chairman of Findes System

of success and credibility. We have in this annual publication a reference recognized by the market as an important and reliable source of economic and financial information about the state companies”, he adds. Although the 1st edition of the yearbook was launched in 1996, its story begins a few years before, in the late 1980’s, as the ranking of the largest companies of Espírito Santo was already being produced. “We did a survey of the 100 largest companies in Espírito Santo, which was filed in Findes and was provided on demand. As at the time we received the visit of many entrepreneurs willing information about the State, we thought about making a compendium, which evolved into the 150 Largest Companies of Espírito Santo”, says José Bráulio Bassini, the entrepreneur who was president of Findes System from 1992 to 2000. The technical director of Sebrae-ES, Benildo Denadai, was then superintendent of Ideies, organization responsible for the development of the first yearbooks. Later, the institution and the IEL-ES began to share the same administration, yet having Benildo ahead, until the time the publication began to be in charge of IEL-ES, from the eighth edition, with Denadai in the superintendency of the Institute. “The idea was exactly to create a publication that would give more visibility to the study, including more about Espírito Santo’s economy, articles and sector rankings by trade, services, agriculture and industry. It was also provided the possibility of local companies to produce content, which we called Business Highlight. Since then, the distribution started to go internally in all units of the CNI YEARBOOK IEL 200 LARGEST COMPANIES 2016

TIMELINE

2004

Commemorative Edition of 35th anniversary of IEL-ES, which is now directly responsible for the preparation of the Yearbook. The entrepreneur Lucas Izoton became the new chairman of Findes System and gave an interview announcing the goals of his tenure.

System, including Sesi, Senai, IEL and other federations, as well as embassies and consulates, which in the years later motivated the elaboration of the version in English”, says Denadai. The current superintendent of IEL-ES, Fábio Dias, says that when he took over in 2010, he already knew the yearbook, but then he could look deep into the work and better see its relevance to the State. “It is a publication that has the seal of Findes, an entity of much credibility, i.e., there is recognition and trust, by the society, regarding the methodology and the seriousness of the institutions involved. We had the obligation to continue this work, already consolidated, but also to expand its scope and include new things, such as the possibility to access the content through mobile devices such as tablets and smartphones”, he adds.

CURIOSITIES ABOUT THE YEARBOOK The Yearbook is free for the main segments of industry and trade, besides being widely promoted to the public and private sectors, in the State and worldwide. For 20 years, there have been more than 4.9 thousand pages covering management, finance, economics, innovation and other topics, relevant onto the market, with articles written by experts and news bringing an X-ray of the current state scenario. The 18th was the largest edition, launched in 2014 with 352 pages.

2005

The discovery of oil in pre-salt gives rise to a wave of positive estimates for the state economy. In article, it was foreseen a boom in Espírito Santo after the findings that should make Brazil self-sufficient in oil.

2006

It was in its 10th edition that IEL-ES Yearbook was expanded from 150 to 200 Largest Companies of Espírito Santo, also counting on the booklet in English.

2007

In addition to the Outstanding Entrepreneur and Outstanding Company, this edition brought the election of the Outstanding CEO. In an article signed by the former President Fernando Henrique Cardoso, it addressed the need for the country to continue carrying out reforms.

2008

Near the 40 years of work of IEL in Espírito Santo, the publication discussed the progress and continuous improvements in the institution’s services. The then Chief Minister of the Secretariat for Strategic Affairs, Roberto Mangabeira Unger, was one of the interviewed in the edition.

2009 “We have in this annual publication a reference recognized by the market as an important and reliable source of economic and financial information about the state companies” Aristóteles Passos Costa Neto, director of Findes for IEL-ES Affairs

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

The 40 years anniversary edition of IEL brought an explanation about the services that the Institute provided to the state companies. The then Chief of Staff, Dilma Rousseff, was interviewed and commented about Brazilian industry, before and after the pre-salt.

2010

It was the first edition with Fábio Dias as superintendent of IEL-ES. Among the topics of the Yearbook, a discussion about the growth, whether sustainable or not, of Brazilian economy and the logistic obstacles for the economic development of Espírito Santo.

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SPECIAL

TIMELINE

2011

Marcos Guerra took over the presidency of the Findes System in this commemorative edition of the 15th anniversary of IEL-ES Yearbook 200 Largest Companies, which was also marked by the expansion of the sectoral issues on the state economy, going from seven to 19.

“It is a publication that has the seal of Findes, an entity of much credibility, i.e., there is recognition and trust, by the society, regarding the methodology and the seriousness of the institutions involved” Fábio Dias, superintendent of IEL-ES

2012

In editorial, President Marcos Guerra commented the effects for the state economy with the change in the format of the Development Fund of Port Activities (Fundap).

2013

The Findes System celebrated 55 years of foundation. The Yearbook now has Ideies Analysis with the weight of the 20 largest companies for the state economy.

In its two decades of history, there have been 525 articles by 365 experts from different fields, including the journalists Ricardo Boechat and Miriam Leitão, the former Minister Antônio Delfim Neto, the former Governor Renato Casagrande, and former President Fernando Henrique Cardoso. Among the companies, the main ranking of the Yearbook - 200 Largest Companies by Gross Operating Revenue in Espírito Santo - had Vale occupying the first position

2014

This edition celebrated 45 years of creation of IEL-ES and addressed topics such as the planned investments from north to south of Espírito Santo, the strengthening of professional education and the tax reform.

2015

The great new of this edition was the IEL-ABRH Award, electing the best company to work in Espírito Santo. This year, in which Paulo Hartung returned to the Anchieta Palace, the paths to the resumption of development were discussed, the urgent measures demanded by the national and international scene, and the challenges for a new industrial policy in Brazil.

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“As at the time we received the visit of many entrepreneurs willing information about the State, we thought about making a compendium, which evolved into the 150 Largest Companies of Espírito Santo” - José Bráulio Bassini, president of Findes System from 1992 to 2000

YEARBOOK IEL 200 LARGEST COMPANIES 2016

HIGHLIGHTS OF THE YEARBOOK IEL-ES 200 LARGEST YEAR

COMPANY

ENTREPRENEUR

CEO

2000

Viação Águia Branca

Aylmer Chieppe

2001

Aracruz Celulose

Américo Buaiz Filho e Carlos Augusto Lira Aguiar

2002

Aracruz Celulose

Domingos Sávio Rigoni

2003

Aracruz Celulose

Otacílio José Coser

2004

Aracruz Celulose

Lucas Izoton

2005

Cia Siderúrgica de Tubarão

José Armando de Figueiredo Campos

2006

CST Arcelor Brasil

José Armando de Figueiredo Campos

2007

CVRD

Étore Selvatici Cavallieri

Carlos Augusto Lira Aguiar

2008

Petrobras

Salvador Turco

José Armando de Figueiredo Campos

2009

União Engenharia

Salvador Turco

Fausto Costa

2010

Vale

Américo Buaiz Filho

Fausto Costa

2011

Lorenge

Renan Chieppe

José Tadeu de Moraes

2012

Lorenge

Luiz Wagner Chieppe

Ricardo Vescovi de Aragão

2013

Grupo Águia Branca

Elder Giordano Marim e Étore Selvatici Cavallieri

Elcio Alves

2014

Lorenge

Luiz Wagner Chieppe

Ricardo Vescovi de Aragão

2015

Wine

Rogério Salume

Ricardo Vescovi de Aragão

11 times, consecutively, between 2007 and 2012. Besides Vale, EDP Escelsa, ArcelorMittal and Fibria are the only companies in all 19 editions released until 2015 that were always in the top 10 positions. And the big news in 2016 is the full version in English. All articles, news and the ranking are being entirely rendered in English. “It is a project that, besides spotlighting, also became a support for academia, becoming a source of research for several educational institutions. Moreover, through the Yearbook, the investor can understand the situation of the state economy and realize what Espírito Santo can offer when it comes to national-based companies, as well as the state robust supply chain, able to meet demands with quality”, concludes Fábio Dias. YEARBOOK IEL 200 LARGEST COMPANIES 2016

“The idea was exactly to create a publication that would give more visibility to the study, including more about Espírito Santo’s economy” Benildo Denadai, director of Sebrae-ES

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RANKING INTRODUCTION

T FÁBIO DIAS is superintendent of IEL-ES

126

he year 2016, in particular the month of October, is striking for the editorial environment. The launching of the 20th edition of the IEL Yearbook 200 Largest is an impressive feat, for it has been reached not only the consolidation of the vehicle, but also its maturity and methodological consistency, which places us as one of the main sources of information about the state economy. In fact, the yearbook has been recognized in our state and across the country, with significant increase of consultations since it was made available on the Internet and by access on mobile devices applications. In these two decades, the yearbook has showed and accompanied indicators, which revealed in numbers, percentages and rates, the expressions of joy and concern reflected on the faces before the euphoria of growth and tension with the crises and future uncertainties. Keeping fundamentally its commitment to serve the state community as a consistent instrument, with reliable data for the planning, adjustments, proposals and consolidation of initiatives, the publication has synthetized the dynamism of the state economy in the cyclical context of each moment. With this purpose, the publication has become part of the sources of information for business owners, executives, public officials, students and researchers of educational institutions, being part of ambiences like meeting rooms, presentation rooms, airports, libraries and other places where the main subject is the development of Espírito Santo. We have come a long way, without compromising the quality, the methodological accuracy, as well as the respect for the companies participating in the research, the advertisers and sponsors, constantly seeking innovation. Year after year, IEL-ES, as responsible for this vehicle, seeks to expand the number of companies surveyed and bring content that is in accordance with the economic and corporate reality in an increasingly global stage.

The methodology applied underwent adjustments over this time, following the changes in accounting, such as compliance with the guidelines of the International Financial Reporting Standards (IFRS), published by the International Accounting Standards Board (IASB), and the use of the web, which enabled many functions and the production of statistic data. Thus, the data collected for the ranking of the 200 largest show total gross operating revenues (GOR) of US$ 30.07 billion generated in the state. A decrease of -11.2% compared to the previous year, when it was recorded US$ 33.9 billion. As for direct jobs, the average was 557 jobs per company only in Espírito Santo. Further analysis in the ranking, taking into consideration the state geographical characteristics, jobs generated and distribution of companies’ participation in the sectors (industry, trade and services) of the 200 Largest and the business climate research. That is what you will find in this yearbook, in “Ideies Analysis”. As in previous years, aiming at recognizing the efforts and initiatives of companies and entrepreneurs, we also present in this edition the ranking of the largest private companies with capital control in the state; the Best Company according to criteria of growth, return on sales and net equity, profitability per employee and current liquidity; added to the main ranking according to the GOR, the sectoral rankings and several performance indicators. Finally, we express recognition and appreciation to all the participants of the “Yearbook IEL 200 Largest Companies in Espírito Santo” over all these past 20 years, to entrepreneurs, to it writers, partners and advertisers, to the Educational and Industrial Development Institute of Espírito Santo (Ideies) and the entire team of Findes System. Special thank to the staff of the Euvaldo Lodi Institute (IEL-ES), which made a high quality and relevant of work for society in general. YEARBOOK IEL 200 LARGEST COMPANIES 2016

WHAT YOU WILL FIND IN THIS BOOK | RANKING

The 200 Largest Companies of EspĂrito Santo ranked by gross operating revenue, with economic, accounting, and financial data and analysis.

Consolidated data of the industrial, trade and services sectors, and by business activity.

The 20 companies with the best performance according to several economic, accounting, financial and social indicators. The largest companies by segments: food, importing and exporting services, wholesale trade, retail trade, construction, car dealership, furniture manufacturing, transport, health insurance, metallic products manufacturing, hospital services and financial services and insurance.

The best company in 2016.

The 100 largest private companies with capital control in the state ranked by the net operational revenue.

Ranking of the largest corporate groups according to criteria of net equity, with economic and financial data consolidated.

RANKING METHODOLOGY

he Yearbook IEL 200 Largest Companies of Espírito Santo, considered one of the most important evaluation publications of the state economy, brings content about the financial performance of companies and corporate groups operating in the State. The 20th edition presents information referent to the year 2015, based on economic and financial data provided by the organizations, such as: gross operating revenue, net operating revenue, net profit, net equity, number of employees, the return on equity, liquidity, among others. In establishing the ranking of the 200 Largest by Gross Operating Revenue (GOR), there have been used the following data provided by the companies: 1- Companies with head office in Espírito Santo that appropriated the total of their revenues; 2- For companies with head office in another state, it was considered the percentage of revenue generated in Espírito Santo. The company whose head office is in another state and did not provide the accounting records specific for the operations realized

128

in Espírito Santo has been signalized with “N/D” (Not Disclosed) on the tables. The mark N/D also features in the situations in which there is lack of some information requested. The edition 2016 of the research of the largest companies of Espírito Santo was realized from over 5,500 contacts and the evaluation of data of approximately 300 companies, added to corporate groups in the State. There have been analyzed the data of operations of the companies and corporate groups that provided their accounting statements or responded the web query by August 19, 2016. The survey universe includes listed and unlisted companies, cooperatives, non-profits and limited liability companies. The methodological changes done in the edition 2015 were preserved, adjusting the Yearbook to the accounting practices of the companies and in accordance with the announcements of the Committee on Accounting Procedure (CAP), as well as the current accounting standards. However, the ranking of the 200 largest companies remains based on the gross operating revenue (GOR), including information of the net operating revenue

YEARBOOK IEL 200 LARGEST COMPANIES 2016

(NOR) regarding the companies that disclosed this data. As in previous years, the research considered the results of all respondent companies in stablishing the sectoral rankings, the 20 largest according to the main indicators and the largest companies by activity. Thus, it is possible that a certain company is not classi-

fied among the 200 largest, but if it had sent the requested data, it might feature in some specific ranking. This method allows the organizations, no matter their size, to be positioned by performance according to the criteria of the indicators used in the publication. The table below brings a summary of the main concepts employed.

Methodological concepts INDICATOR

CONCEPT

Gross operating revenue

Revenue from the total of sales of goods and services provided by the company.

Variation of the gross operating revenue

Shows the changes of the gross revenue from sales, in percentage.

Net operating revenue

It is calculated by reducing the returns and discounts, and taxes over sales, from the value of sales.

Variation of the net operating revenue

Shows the changes of the sales revenues, in percentage.

EBITDA

Abbreviation of the term: Earnings Before Interest, Taxes, Depreciation and Amortization, i.e., the profit before deducting interest rates, taxes over the profit, depreciation and amortization. Essentially, it is the treasury generated by the company’s operations.

Variation of EBITDA

Shows the changes of the EBITDA, in percentage.

Net profit of the year

The year’s result, ascertained according to legal norms, after discounting the income tax and the social insurance contribution over the profit.

Variation of the net profit of the year

Shows the changes of the net profit, in percentage.

Net equity

The sum of capital, reserves and adjustments in the patrimony evaluation, minus the sum of integrating capital, the treasury stock and accumulated losses. It measures the company’s richness.

Return on sales

It is calculated dividing net profit by net revenue.

Return on Net Equity

It measures the return on investment for the shareholders. Results from the division of net profit by net equity.

Current liquidity

The division of the current assets by liabilities and indicates the company’s capacity to pay its debts in the short-term.

Overall Indebtedness

The sum of debts in the short and long terms. The result is demonstrated in percentage, in relation to the total asset, and represents the amount of funds borrowed by the company.

Long-term indebtedness

Indicates the amount of debts in the long term that the company has. It is demonstrated in percentage, in relation to the total asset.

Employees in ES

Number of employees by December 31, 2015.

To elaborate the ranking of the 200 largest companies, the research used the criteria of the gross operating revenue, an indicator of the company’s contribution to society in terms of resources generated with sales of goods and services. Added to it, the study brings further information such as net revenue, Ebitda, net profit, net equity and the number of employees in Espírito Santo. Not less important, it is also presented the indicators of economic and financial analysis, such as: net equity profitability, current liquidity, overall indebtedness and long-term indebtedness.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

The Yearbook also brings other lists of companies, organized by sector of economy; state companies, consolidated by activity, among others. We point out that, for the version of the Yearbook in English, the figures were converted to US currency, considering the average selling commercial dollar of the year 2015, which closed at R$ 3.3387, according to data of the Central Bank (http://www4.bcb.gov. br/pec/taxas/port/ptaxnpesq.asp?id=txcotacao). We also highlight that the reader is likely to find differences in the figures presented, but that it is a result from the rounding off done by the system employed and had no influence over the ascertained outcomes.

129

RANKING OF THE 200 LARGEST COMPANIES

RANKING OF THE 200 LARGEST COMPANIES According to the Gross Operating Revenue (GOR) in ES (Values in US$ thousand) RANKING 2015

COMPANY

SECTOR

ACTIVITY/BUSINESS

GROSS OP. REVENUE

VAR. GOR 15/14

NET. OP. REVENUE

VAR. NOR 15/14

VARIATION EBITDA 15/14

EBITDA

PETROBRAS - UO - ES

Industry

Oil and Natural Gas Extraction

5.405.189

-30,78%

N/D

VALE

Industry

Mining

2.092.018

25,36%

N/D

ARCELORMITTAL BRASIL

Industry

Steel and Metal

1.961.698

37,64%

N/D

HERINGER

Industry

Chemical and Petrochemical

1.921.743

6,23%

1.889.479

5,99%

59.353

-40,29%

ESCELSA

Services

Energy and Gas

1.611.351

56,05%

882.115

21,26%

110.259

-15,32%

CISA TRADING

Services

Importing and Exporting Services

1.240.693

7,34%

953.215

4,92%

46.558

102,78%

BR DISTRIBUIDORA

Wholesale Trade

1.228.542

-7,39%

N/D

FIBRIA CELULOSE

Industry

Pulp and Paper

1.201.666

50,11%

N/D

BANESTES

Services

Financial Services and Insurance

821.309

21,39%

801.014

21,74%

N/D

TROP COMÉRCIO EXTERIOR

Wholesale Trade

769.296

15,67%

642.232

15,38%

40.870

N/D

GAROTO

Industry

Food

621.383

-1,57%

444.164

-1,64%

19.318

128,92%

BANCO DO BRASIL

Services

Financial Services and Insurance

508.510

42,71%

N/D

COLUMBIA TRADING

Services

Importing and Exporting Services

494.365

10,38%

416.848

13,52%

-3.530

-892,14%

VIX LOGÍSTICA

Services

Transport

394.301

4,08%

346.088

3,50%

71.427

2,42%

SERTRADING (BR)

Services

Importing and Exporting Services

392.536

2,59%

317.675

-0,06%

15.437

8,05%

HORTIFRUTI

Retail Trade

350.139

19,99%

328.628

18,95%

N/D

UNIMED VITÓRIA

Services

Health Insurance

299.178

11,49%

291.362

11,45%

6.943

-6,66%

FRISA FRIGORÍFICO

Industry

Food

297.008

21,78%

282.274

23,52%

11.459

15,30%

KURUMÁ VEÍCULOS

Retail Trade

Car Dealership

290.600

-1,67%

268.973

-5,40%

3.272

-63,52%

UNICAFÉ

Wholesale Trade

280.677

10,63%

278.743

10,36%

22.333

-11,90%

LEÃO ALIMENTOS E BEBIDAS

Industry

Food

265.633

-7,43%

197.381

-8,48%

N/D

UNILIDER

Wholesale Trade

254.619

12,01%

198.765

11,45%

9.474

-1,61%

CESAN

Industry

Col., Purifi. And Distribution of Water

210.581

3,11%

191.028

3,05%

46.332

-24,82%

TANGARÁ FOODS

Industry

Food

200.108

-9,63%

183.212

-7,57%

1.923

634,44%

CASAGRANDE

Retail Trade

195.135

9,49%

173.534

10,12%

58.450

10,26%

TRISTÃO

Wholesale Trade

192.527

12,29%

189.983

12,48%

N/D

WEG LINHARES EQUIPAMENTOS ELÉTRICOS

Industry

Electr. Machinery and Equip. Manuf.

181.256

8,99%

131.841

7,73%

16.485

7,01%

VITÓRIA DIESEL

Retail Trade

Car Dealership

154.308

-30,30%

131.552

-32,06%

933

-67,33%

EXCIM

Wholesale Trade

150.978

-19,73%

127.115

-19,60%

1.240

-16,76%

SUPERMERCADO PERIM

Retail Trade

143.800

9,94%

126.142

11,62%

N/D

NIBRASCO

Industry

Mining

133.317

16,52%

120.985

16,52%

118.875

16,04%

COOABRIEL

Wholesale Trade

128.907

31,53%

120.341

33,02%

790

-29,16%

FORTLEV

Industry

Rubber and Plastic Manufacture

122.403

2,39%

N/D

EMPRESA LUZ FORÇA SANTA MARIA

Services

Energy and Gas

118.255

57,32%

74.805

28,92%

N/D

RDG PRODUTOS SIDERÚRGICOS

Wholesale Trade

115.600

1,20%

95.753

2,59%

N/D

DUCOCO ALIMENTOS

Industry

Food

110.899

16,21%

94.974

18,27%

N/D

LORENGE

Industry

Construction

109.326

-14,54%

54.127

-39,98%

1.839

-80,73%

PERFILADOS RIO DOCE

Industry

Steel and Metal

107.996

-24,02%

86.510

-24,11%

N/D

COOPEAVI

Retail Trade

105.241

5,42%

101.632

5,79%

4.002

-18,12%

NICCHIO SOBRINHO CAFÉ

Wholesale Trade

103.359

50,08%

99.997

51,80%

601

1.292,10%

*Data of the National Agency of Oil, Natural Gas and Biofuel - ANP

130

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Considered the “Largest Company” in the Yearbook IEL 2016, Petrobras receives highlight as an encouragement for it to go on doing actions of improvement in its management. This recognition honors us and increases our responsibility to society, governments, shareholders, partners, clients and employees of Petrobras in Espírito Santo. Being a company with a technical staff, with tradition in overcoming challenges, which constantly seeks technological and management solutions to increase efficiency in work processes. These pillars will help Petrobras to retake the direction of efficient financial management, as well as strengthen the work on process and business safety”. Ricardo Pereira de Morais, general-manager of the Exploitation and Production Operations Unit of Petrobras in Espírito Santo.

“

NET EQUITY

VARIATION NET PROFIT 15/14

TOTAL ASSETS

NET EQUITY

RETURN ON SALES

RETURN ON EQUITY

CUURRENT LIQUIDITY

OVERALL INDEBTEDNESS

LONG-TERM INDEBTEDNESS

EMPLOYEES IN ES

RANKING 2015

N/D

1.464

N/D

7.493

N/D

6.091

-100.628

-4319,19%

998.446

73.686

-5,33%

-136,56%

0,6

92,62%

2,42%

212

37.976

-30,17%

946.699

289.390

4,31%

13,12%

1,3

69,43%

38,66%

925

14.668

-22,39%

376.978

67.627

1,54%

21,69%

1,3

82,06%

16,97%

N/D

1.541

45.185

12,83%

5.436.094

347.604

5,64%

13,00%

0,7

93,61%

18,79%

2.337

19.205

70,07%

183.352

60.730

2,99%

31,62%

1,6

66,88%

7,93%

10.720

122,60%

352.154

12.350

2,41%

86,80%

0,9

96,49%

22,99%

1.969

N/D

1.471

-5.958

-1140,38%

110.613

1.562

-1,43%

-381,51%

0,9

98,55%

6,21%

20.194

31,70%

392.773

159.105

5,84%

12,69%

2,2

59,49%

39,56%

2.767

4.490

-23,71%

109.832

12.378

1,41%

36,27%

1,0

88,73%

1,42%

6.228

-18,28%

137.645

44.139

1,90%

14,11%

0,8

67,93%

30,47%

308

3.771

70,58%

138.076

38.265

1,29%

9,86%

1,1

72,29%

24,93%

2.372

3.672

-36,63%

99.694

39.186

1,30%

9,37%

1,5

60,69%

15,22%

1.541

-5.671

-206,11%

64.440

6.127

-2,11%

-92,56%

1,4

39,74%

0,05%

523

4.729

-62,52%

140.761

79.978

1,70%

5,91%

1,5

43,18%

0,00%

158

N/D

975

5.697

6,94%

55.864

12.587

2,87%

45,26%

1,5

77,47%

12,92%

350

19.580

-35,11%

761.277

617.680

10,25%

3,17%

1,3

18,86%

12,74%

1.501

-1.588

36,61%

148.154

35.961

-0,87%

-4,42%

2,2

75,73%

47,47%

299

4.427

13,75%

52.700

30.863

2,55%

14,35%

2,0

33,03%

2,15%

2.661

12.665

173,71%

159.339

68.875

6,67%

18,39%

1,4

56,77%

6,53%

N/D

13.264

2,61%

90.044

64.339

10,06%

20,62%

3,0

28,55%

11,31%

2.680

-2.801

-6440,56%

63.171

5.028

-2,13%

-55,71%

1,2

92,04%

26,13%

348

669

330,12%

210.111

10.576

0,53%

6,32%

1,3

94,97%

24,39%

190

6.228

7,97%

34.090

17.105

4,94%

36,41%

1,5

49,82%

0,00%

N/D

87.233

38,68%

288.094

238.522

72,10%

36,57%

3,1

17,21%

1,35%

N/D

247

-12,51%

86.894

16.858

0,21%

1,46%

1,0

80,60%

0,19%

246

N/D

621

7.732

24,88%

67.714

44.838

10,34%

17,24%

1,4

33,78%

7,16%

N/D

14.166

-13,98%

133.576

119.503

14,79%

11,85%

2,1

10,54%

0,73%

347

-581

-423,50%

41.312

12.694

-0,61%

-4,58%

1,7

69,27%

16,98%

N/D

-10.042

-438,04%

180.125

67.071

-18,55%

-14,97%

2,0

62,76%

23,84%

345

10.570

-18,39%

125.247

118.682

12,22%

8,91%

25,4

5,24%

2,64%

316

1.078

-58,77%

63.909

22.194

1,06%

4,86%

1,1

65,27%

13,85%

542

417

3786,12%

32.429

12.625

0,42%

3,30%

1,6

61,07%

1,44%

YEARBOOK IEL 200 LARGEST COMPANIES 2016

131

RANKING OF THE 200 LARGEST COMPANIES

RANKING 2015

132

COMPANY

SECTOR

ACTIVITY/BUSINESS

GROSS OP. REVENUE

VAR. GOR 15/14

NET. OP. REVENUE

VAR. NOR 15/14

EBITDA

VARIATION EBITDA 15/14

ÁGUIA BRANCA

Services

Transport

98.943

-2,83%

84.294

5,01%

9.727

PELICANO CONSTRUÇÕES

Industry

Construction

95.761

-1,29%

77.057

-4,17%

30.730

22,09%

WINE.COM.BR

Retail Trade

88.939

31,64%

72.825

33,70%

1.977

736,08%

KOBRASCO

Industry

Mining

88.836

22,16%

80.619

22,16%

79.327

22,48%

SAMP ES

Services

Health Insurance

87.267

8,85%

85.723

8,66%

4.382

51,33%

ECO 101

Services

Highways Concessionaire

86.232

-4,20%

81.487

-6,49%

21.138

366,12%

HOSPITAL EVANGÉLICO DE VILA VELHA

Services

Hospital Services

85.128

-0,63%

83.551

-1,99%

1.758

-47,17%

BRAMETAL

Industry

Steel and Metal

78.703

-8,30%

67.177

-12,09%

15.123

-9,64%

SELITA

Industry

Food

75.731

-4,35%

70.924

-2,22%

2.838

2.291,89%

ITABRASCO

Industry

Mining

71.229

71,41%

64.641

71,41%

63.293

16,83%

SÃO BERNARDO SAÚDE

Services

Health Insurance

69.717

2,20%

68.951

1,29%

3.453

12,24%

TERRA NOVA

Wholesale Trade

68.454

-15,46%

51.298

-17,51%

-58

-112,22%

FIBRASA SUDESTE

Industry

Rubber and Plastic Manufacture

68.440

-2,10%

54.724

1,99%

6.483

N/D

QUIMETAL

Services

Importing and Exporting Services

67.407

14,35%

56.491

15,03%

2.206

-52,21%

UNIMED SUL CAPIXABA

Services

Health Insurance

66.678

14,98%

64.947

15,87%

-725

-901,82%

REALCAFÉ

Industry

Food

66.200

20,67%

64.060

22,12%

9.130

198,02%

BUAIZ ALIMENTOS

Industry

Food

65.475

-3,49%

61.333

-3,76%

3.385

31,93%

CONCREVIT

Industry

Construction

60.189

1,31%

55.896

1,48%

3.627

-59,30%

HOSPITAL MERIDIONAL

Services

Hospital Services

59.894

14,94%

57.016

16,73%

9.741

73,43%

ALCON

Industry

Chemical and Petrochemical

59.663

44,26%

57.342

41,22%

15.729

43,35%

COSENTINO LATINA

Industry

Non-Metalic Materials Manufacture

58.213

31,17%

52.992

33,19%

19.986

194,20%

CEDISA

Wholesale Trade

56.537

-18,08%

43.766

-17,26%

675

-69,25%

EXTRAFRUTI

Wholesale Trade

55.760

10,29%

55.097

9,50%

4.946

8,54%

ELKEM

Industry

Chemical and Petrochemical

55.616

-1,35%

43.806

-1,19%

6.233

52,61%

SICOOB LESTE CAPIXABA

Services

Financial Services and Insurance

55.219

31,15%

15.005

17,41%

10.871

-6,78%

CVC

Retail Trade

Car Dealership

54.905

-39,69%

53.414

-39,69%

771

-31,15%

MERCOCAMP

Services

Importing and Exporting Services

54.656

-9,20%

39.835

-11,66%

N/D

HISPANOBRÁS

Industry

Mining

52.916

48,92%

48.019

48,93%

47.836

-7,02%

SAVIXX

Wholesale Trade

51.571

-49,28%

43.379

-48,04%

-589

-204,07%

BANESTES SEGUROS

Services

Financial Services and Insurance

50.357

4,72%

47.391

4,32%

10.243

19,36%

IRMANDADE DA SANTA CASA DE MISERICORDIA

Services

Hospital Services

49.831

9,64%

47.771

9,59%

2.960

-45,85%

HOSPITAL SANTA RITA

Services

Hospital Services

48.318

11,24%

46.546

14,84%

2.860

-32,82%

TVV

Services

Management of Ports and Terminals

47.435

-12,38%

43.741

-11,62%

N/D

VENEZA

Industry

Food

46.799

8,76%

45.718

9,22%

2.654

1.075,54%

MAFRICAL

Industry

Food

46.267

3,16%

45.704

3,99%

N/D

SICOOB SUL SERRANO

Services

Financial Services and Insurance

45.453

30,72%

9.054

17,51%

4.395

-14,20%

CPVV

Services

Management of Ports and Terminals

45.445

-5,48%

40.198

-5,57%

7.406

-25,19%

SICOOB CENTRAL ES

Services

Financial Services and Insurance

44.634

65,88%

2.759

48,96%

6.380

210,81%

PORTOCEL

Services

Management of Ports and Terminals

43.496

15,09%

38.379

14,99%

14.397

60,72%

DAMARE

Industry

Food

42.524

0,46%

41.011

2,93%

3.605

104,55%

COFRIL - ABAV

Industry

Food

41.913

10,56%

38.120

10,61%

974

31,14%

SPASSU

Services

Information Technology

41.513

13,47%

37.993

12,77%

3.588

129,62%

VIMINAS

Industry

Non-Metalic Materials Manufacture

40.703

-6,42%

29.719

-7,81%

2.317

-1,97%

KIFRANGO

Industry

Food

40.544

11,76%

39.566

12,12%

N/D

SICOOB SUL

Services

Financial Services and Insurance

40.359

34,35%

12.134

36,88%

6.599

2,17%

BERTOLINI SIST. DE ARMAZENAGEM

Industry

Metal Structure Manufacture

40.275

-14,52%

33.817

-9,05%

N/D

SUPERMERCADOS SANTO ANTÔNIO

Retail Trade

40.231

-1,65%

36.549

-1,41%

N/D

TAI MOTORS

Retail Trade

Car Dealership

40.214

-5,12%

39.738

-1,48%

573

-21,28%

VAMTEC VITÓRIA

Industry

Steel and Metal

40.072

14,17%

31.337

14,31%

6.560

1,30%

PORTO DE VITÓRIA

Services

Management of Ports and Terminals

39.821

1,92%

35.423

2,10%

4.873

-31,62%

SICOOB NORTE

Services

Financial Services and Insurance

39.776

31,35%

6.755

-19,75%

6.630

-24,25%

PERFIL ALUMÍNO

Industry

Metal Products Manufacture

37.795

15,62%

30.679

14,32%

3.702

-0,54%

JSL

Services

Transport

37.009

2,78%

N/D

VITORIA MOTORS CHRYSLER

Retail Trade

Car Dealership

36.170

95,59%

34.888

93,25%

633

39,86%

VILA PORTO

Wholesale Trade

35.145

25,06%

28.867

25,43%

-1.702

-459,04%

-43,67%

YEARBOOK IEL 200 LARGEST COMPANIES 2016

NET EQUITY

VARIATION NET PROFIT 15/14

TOTAL ASSETS

NET EQUITY

RETURN ON SALES

RETURN ON EQUITY

CUURRENT LIQUIDITY

OVERALL INDEBTEDNESS

LONG-TERM INDEBTEDNESS

EMPLOYEES IN ES

RANKING 2015

1.283

-71,48%

175.103

111.858

1,52%

1,15%

1,1

36,12%

21,06%

1.158

17.681

21,67%

57.885

41.491

22,95%

42,61%

4,0

28,32%

10,24%

311

3.947

189,24%

46.339

1.940

5,42%

203,50%

0,8

95,81%

9,65%

424

53.417

31,15%

188.616

144.553

66,26%

36,95%

2,3

23,36%

0,86%

N/D

3.122

44,26%

22.262

8.464

3,64%

36,88%

1,5

61,98%

9,08%

397

1.241

154,16%

141.140

37.748

1,52%

3,29%

0,2

73,26%

1,82%

419

-42

-102,44%

35.708

5.917

-0,05%

-0,71%

1,2

68,46%

10,13%

2.909

14.202

1,67%

77.424

56.234

21,14%

25,26%

3,2

27,37%

2,19%

520

2.456

1799,10%

35.077

15.116

3,46%

16,25%

1,5

56,91%

17,84%

419

40.697

11,00%

148.279

113.952

62,96%

35,71%

2,5

23,15%

1,13%

1.405

-18,77%

31.578

11.195

2,04%

12,55%

1,4

64,55%

21,65%

186

-58

-117,74%

31.878

1.597

-0,11%

-3,62%

1,0

94,99%

1,90%

839

-95,68%

67.586

38.692

1,53%

2,17%

1,8

42,75%

22,30%

308

1.812

-47,28%

36.115

7.657

3,21%

23,67%

1,7

78,80%

34,49%

272

-23,99%

31.755

10.793

0,42%

2,52%

1,3

66,01%

19,58%

733

6.656

270,34%

65.866

28.469

10,39%

23,38%

1,1

56,78%

6,65%

365

1.148

-42,64%

83.613

43.264

1,87%

2,65%

1,1

48,26%

25,92%

405

409

-92,93%

24.728

15.688

0,73%

2,61%

1,4

36,56%

8,61%

207

5.176

62,59%

45.948

17.451

9,08%

29,66%

0,9

62,02%

26,72%

1.623

10.577

65,32%

65.856

40.753

18,44%

25,95%

3,0

38,12%

24,47%

322

-6.264

-805,80%

68.424

14.071

-11,82%

-44,52%

1,4

79,44%

37,26%

183

-714

-173,97%

29.306

15.010

-1,63%

-4,76%

2,9

48,78%

21,65%

185

3.314

12,09%

13.716

7.525

6,01%

44,04%

1,9

45,14%

4,41%

780

3.372

45,13%

47.343

27.775

7,70%

12,14%

3,2

41,33%

25,88%

168

19.478

26,51%

290.617

73.729

129,81%

26,42%

1,0

74,63%

4,38%

183

420

-26,75%

27.935

15.139

0,79%

2,78%

1,1

45,81%

23,53%

275

11,69%

21.769

440

0,13%

11,78%

0,8

97,98%

37,79%

N/D

29.333

-17,08%

150.866

130.389

61,09%

22,50%

5,1

13,57%

1,99%

-240

-153,47%

14.638

1.188

-0,55%

-20,20%

1,1

91,88%

8,29%

6.016

12,29%

92.979

37.499

12,69%

16,04%

0,9

59,67%

5,29%

104

1.810

-58,79%

47.194

27.882

3,79%

6,49%

1,2

40,92%

7,36%

2.198

2.860

-32,82%

62.958

46.758

6,14%

6,12%

2,9

25,73%

8,35%

1.596

4.771

-63,46%

64.077

24.091

10,91%

19,80%

0,7

71,79%

38,18%

N/D

695

149,82%

20.769

6.591

1,52%

10,55%

0,7

68,27%

7,79%

428

1.552

-2,84%

6.895

2.991

3,40%

51,88%

1,5

100,00%

46,13%

N/D

12.599

26,40%

237.139

55.507

139,16%

22,70%

0,9

76,59%

3,22%

231

4.696

-23,83%

31.307

23.279

11,68%

20,17%

2,3

25,64%

11,77%

128

2.521

47,85%

404.918

30.504

91,40%

8,27%

0,7

92,47%

0,90%

9.046

112,38%

48.525

38.480

23,57%

23,51%

3,7

20,70%

8,49%

265

974

934,58%

27.389

7.845

2,38%

12,42%

0,7

71,36%

20,01%

270

379

56,71%

10.871

7.054

0,99%

5,38%

1,9

35,11%

2,17%

661

2.480

64,83%

6.218

1.903

6,53%

130,34%

1,3

69,40%

0,63%

839

1.855

-3,22%

24.332

20.014

6,24%

9,27%

2,3

17,74%

0,23%

388

-97,42%

25.083

4.870

0,08%

0,68%

0,9

80,58%

42,77%

753

15.110

41,39%

202.015

55.856

124,53%

27,05%

1,1

72,35%

6,19%

164

1.631

-53,26%

31.801

16.832

4,82%

9,69%

1,9

47,07%

21,63%

175

-772

-264,91%

11.997

2.446

-2,11%

-31,58%

1,0

79,61%

15,57%

940

-60

-122,41%

7.856

2.709

-0,15%

-2,20%

0,8

65,52%

2,40%

3.968

48,37%

13.887

5.512

12,66%

71,99%

1,2

60,31%

9,20%

101

3.559

-21,82%

144.698

95.793

10,05%

3,71%

2,5

33,80%

26,60%

335

10.094

-5,21%

221.123

50.050

149,43%

20,17%

1,1

77,37%

6,76%

199

2.398

11,70%

15.471

7.969

7,82%

30,09%

1,7

48,49%

9,50%

311

N/D

1.459

-486

-557,91%

11.608

948

-1,39%

-51,20%

1,6

91,83%

46,24%

-230

-224,58%

29.117

361

-0,80%

-63,51%

1,4

98,76%

52,92%

YEARBOOK IEL 200 LARGEST COMPANIES 2016

133

RANKING OF THE 200 LARGEST COMPANIES

RANKING 2015

COMPANY

SECTOR

ACTIVITY/BUSINESS

GROSS OP. REVENUE

VAR. GOR 15/14

NET. OP. REVENUE

VAR. NOR 15/14

EBITDA

VARIATION EBITDA 15/14

VITÓRIA APART HOSPITAL

Services

Hospital Services

34.449

11,87%

31.914

12,18%

2.563

-9,48%

BANDES

Services

Financial Services and Insurance

33.474

2,63%

17.081

-5,27%

2.225

-48,84%

VITÓRIA MOTORS

Retail Trade

Car Dealership

33.340

44,64%

32.687

47,11%

888

71,39%

CLAC

Services

Importing and Exporting Services

33.300

-28,58%

25.831

-29,31%

N/D

100

HOSPITAL VILA VELHA

Services

Hospital Services

32.046

13,22%

30.408

13,23%

5.125

22,18%

101

SICOOB CENTRO-SERRANO

Services

Financial Services and Insurance

31.794

36,65%

6.007

40,94%

5.505

46,19%

102

UNIMED NOROESTE CAPIXABA

Services

Health Insurance

30.412

14,06%

29.870

14,99%

N/D

103

RIMO MÓVEIS

Industry

Furniture Manufacture

30.284

-2,50%

22.663

-2,84%

911

-40,37%

104

BERTOLINI MÓVEIS DE AÇO

Industry

Furniture Manufacture

30.191

70,00%

26.094

83,38%

N/D

105

UNIMAR

Services

Transport

30.121

-5,72%

28.163

-6,65%

4.100

N/D

106

PROSEGUR BRASIL

Services

Surveillance and Security

29.977

32,63%

N/D

107

SOL COQUERIA

Industry

Steel and Metal

28.915

-18,05%

26.241

-18,05%

17.244

-35,35%

108

MARBRASA

Industry

Non-Metalic Materials Manufacture

28.312

3,91%

25.984

5,57%

2.890

-39,17%

109

METALOSA

Industry

Metal Products Manufacture

27.836

-2,80%

22.801

-0,95%

N/D

110

TUBOS SOLDADOS ATLÂNTICOS

Industry

Metal Products Manufacture

27.617

-27,72%

21.020

-35,29%

N/D

111

HOSPITAL METROPOLITANO

Services

Hospital Services

27.255

0,83%

25.704

2,74%

3.334

-26,63%

112

NUTRIAVE INDÚSTRIA E COMÉRCIO

Industry

Food

27.160

4,96%

22.282

4,60%

N/D

113

DIAÇO

Wholesale Trade

26.845

-15,61%

22.257

-15,59%

2.848

-32,14%

114

ELSONS PRODUTOS ALIMENTÍCIOS LTDA

Wholesale Trade

26.751

2,55%

22.435

0,63%

N/D

115

DECOLORES MÁRMORES E GRANITOS DO BRASIL

Industry

Non-Metalic Materials Manufacture

26.700

17,88%

25.676

18,90%

14.292

71,39%

116

MORAR CONSTRUTORA

Industry

Construction

26.268

-5,09%

22.512

-13,10%

4.132

31,68%

117

SUPERMERCADO PORTO NOVO

Retail Trade

25.217

6,39%

23.432

7,38%

321

N/D

118

ISH TECNOLOGIA

Services

Information Technology

24.791

-6,42%

20.062

-12,85%

2.207

-27,75%

119

VIXPAR

Wholesale Trade

24.455

N/D

24.442

N/D

120

SERDEL

Services

Cleaning and Conservation Services

24.367

-1,77%

21.225

-1,93%

2.444

-6,93%

121

MEDSÊNIOR

Services

Health Insurance

22.419

31,57%

21.888

30,51%

288

114,54%

122

PANAN MOVEIS

Industry

Furniture Manufacture

21.042

-19,27%

17.436

-19,01%

1.640

-12,65%

123

SICOOB CREDIROCHAS

Services

Financial Services and Insurance

20.966

37,82%

3.046

7,10%

376

-79,34%

124

HOSPITAL DR. BENÍCIO TAVARES PEREIRA

Services

Hospital Services

20.666

9,21%

20.666

9,21%

N/D

125

MAGBAN

Industry

Non-Metalic Materials Manufacture

20.381

33,76%

19.632

34,11%

13.357

85,35%

126

SANTA FÉ TRADING

Services

Importing and Exporting Services

20.350

18,25%

16.216

21,39%

890

11,05%

127

FACULDADE CATÓLICA DO ESPÍRITO SANTO

Services

Education

20.322

12,86%

N/D

128

LASA

Industry

Chemical and Petrochemical

20.089

39,40%

19.524

41,44%

N/D

129

HOSPITAL RIO DOCE

Services

Hospital Services

20.073

11,87%

19.962

11,74%

N/D

130

UNIMED NORTE CAPIXABA

Services

Health Insurance

19.619

13,57%

15.819

15,73%

352

77,26%

131

ENGE URB

Services

Collect., Proc. And Distr. Of Residues

19.353

19,17%

17.680

20,51%

6.193

67,78%

132

ESPIRAL ENGENHARIA

Services

Construct. Machin. and Equip. Rental

18.794

6,29%

15.969

2,24%

481

-12,88%

133

LAND VITÓRIA

Retail Trade

Car Dealership

18.668

157,30%

17.867

157,02%

484

-174,91%

134

BENEVIX ADMINISTRADORA DE BENEFÍCIOS

Services

Health Insurance

18.105

32,46%

16.527

32,45%

8.269

12,05%

135

ELETROMIL

Wholesale Trade

17.953

-6,77%

15.380

-6,06%

2.596

-28,13%

136

PBA STONES

Wholesale Trade

17.416

33,31%

17.287

33,94%

-2.187

-167,68%

137

RODOSOL

Services

Highways Concessionaire

17.253

36,60%

N/D

138

SHOPPING VITÓRIA

Services

Shopping Mall Management

17.250

-1,35%

16.896

-1,22%

15.489

38,91%

139

ATACADO SÃO PAULO

Wholesale Trade

16.909

3,22%

13.596

-0,97%

2.390

40,01%

140

SERRA AMBIENTAL

Services

Collect., Proc. And Distr. Of Residues

15.843

317,15%

14.377

317,15%

N/D

141

EXPRESSER

Services

Transport

15.441

-4,37%

12.689

-3,86%

N/D

142

MÓVEIS PEROBA

Industry

Furniture Manufacture

15.394

7,56%

11.465

6,05%

N/D

143

USINA PAINEIRAS

Industry

Food

15.112

-52,61%

13.541

-52,51%

N/D

144

POLITINTAS

Retail Trade

14.988

-4,79%

12.561

-3,94%

569

12,39%

145

COFERVIL

Wholesale Trade

14.592

-19,23%

11.850

-20,67%

N/D

146

UNIMED PIRAQUEAÇU

Services

Health Insurance

14.345

16,44%

14.314

16,37%

103

-83,57%

147

ANDRADE STONE COMPANY

Wholesale Trade

14.219

N/D

14.136

N/D

155

N/D

148

SICOOB SUL LITORÂNEO

Services

Financial Services and Insurance

13.960

27,90%

2.695

17,22%

1.118

-17,67%

149

PLANTÃO SERVIÇOS DE VIGILÂNCIA

Services

Surveillance and Security

13.949

-3,77%

N/D

150

TEGMA

Services

Importing and Exporting Services

13.888

13,78%

N/D

134

YEARBOOK IEL 200 LARGEST COMPANIES 2016

VARIATION NET PROFIT 15/14

NET EQUITY

TOTAL ASSETS

NET EQUITY

RETURN ON SALES

RETURN ON EQUITY

CUURRENT LIQUIDITY

OVERALL INDEBTEDNESS

LONG-TERM INDEBTEDNESS

EMPLOYEES IN ES

RANKING 2015

-592

-402,42%

45.711

14.709

-1,85%

-4,02%

1,0

67,82%

33,88%

1.232

2.550

-14,58%

449.501

105.195

14,93%

2,42%

1,7

76,60%

51,58%

188

214

188,04%

8.987

2.609

0,65%

8,20%

1,2

70,97%

0,00%

-76,48%

35.257

1.115

0,03%

0,72%

0,8

96,84%

11,86%

2.921

154,76%

22.168

10.372

9,61%

28,17%

1,3

53,21%

21,61%

1.341

100

7.759

41,02%

167.442

30.974

129,18%

25,05%

0,9

81,50%

13,17%

164

101

79,34%

15.653

3.063

0,03%

0,30%

1,0

80,43%

29,58%

404

102

-125

-121,36%

14.044

4.111

-0,55%

-3,04%

1,5

70,73%

21,77%

349

103

4.132

229,81%

34.279

5.169

15,84%

79,95%

0,7

84,92%

33,26%

266

104

-349

-535,56%

33.140

22.615

-1,24%

-1,54%

2,2

31,76%

15,36%

1.467

105

N/D

1.661

106

12.232

-14,30%

418.749

385.087

46,61%

3,18%

0,8

8,04%

4,76%

107

654

-72,41%

38.243

17.135

2,52%

3,82%

2,2

55,19%

27,83%

359

108

-341

-131,57%

11.970

6.691

-1,50%

-5,10%

2,2

44,10%

10,23%

257

109

3.606

586,46%

37.814

34.765

17,16%

10,37%

37,0

8,06%

5,90%

N/D

110

416

-54,27%

35.992

10.956

1,62%

3,80%

1,1

69,56%

37,74%

N/D

111

763

41,69%

24.322

5.600

3,42%

13,62%

0,6

76,98%

5,53%

474

112

1.237

-26,92%

22.166

19.209

5,56%

6,44%

7,6

13,34%

6,11%

130

113

-186

-1,34%

7.743

3.131

-0,83%

-5,94%

1,0

59,57%

0,00%

242

114

10.925

60,76%

36.746

26.731

42,55%

40,87%

3,2

27,25%

1,31%

115

2.423

-24,07%

42.470

18.769

10,76%

12,91%

2,1

55,81%

25,26%

116

211

845,11%

5.455

1.496

0,90%

14,10%

1,1

72,57%

9,02%

533

117

247

-74,88%

15.224

3.961

1,23%

6,23%

1,1

73,98%

12,29%

107

118

26.400

N/D

64.233

57.471

108,01%

45,94%

44,5

10,53%

9,60%

N/D

119

1.789

0,12%

5.021

2.835

8,43%

63,11%

2,4

43,54%

4,52%

2.428

120

240

146,31%

9.271

3.319

1,10%

7,23%

0,9

64,20%

5,29%

124

121

157

-63,62%

14.266

2.302

0,90%

6,83%

1,4

83,87%

34,53%

251

122

4.107

17,29%

104.417

17.878

134,82%

22,97%

0,9

82,88%

3,69%

123

311

287,88%

5.486

729

1,51%

42,69%

1,4

130,97%

86,71%

N/D

124

8.034

168,61%

33.279

27.886

40,92%

28,81%

8,8

16,20%

7,00%

103

125

668

24,08%

5.447

1.325

4,12%

50,44%

3,4

75,68%

46,71%

126

N/D

1.415

127

-2.344

-122,30%

74.515

37.837

-12,00%

-6,19%

1,2

49,22%

38,55%

867

128

-990

-294,48%

8.190

219

-4,96%

-452,29%

0,7

97,33%

10,82%

N/D

129

-43,18%

10.062

2.997

0,26%

1,36%

1,0

70,21%

12,86%

297

130

3.831

144,83%

35.357

27.701

21,67%

13,83%

4,5

21,65%

0,66%

581

131

242

-33,76%

13.171

6.283

1,52%

3,86%

0,8

52,30%

11,25%

598

132

-554

25,60%

6.543

950

-3,10%

-58,34%

1,1

85,47%

26,86%

133

6.953

11,18%

8.217

3.095

42,07%

224,65%

1,3

62,33%

0,00%

134

2.038

-33,85%

9.250

6.501

13,25%

31,34%

3,2

29,72%

4,21%

159

135

-2.187

167,68%

22.894

4.203

-12,65%

-52,03%

2,2

81,64%

56,24%

101

136

N/D

137

11.689

33,21%

29.219

17.784

69,18%

65,72%

1,4

35,82%

7,32%

340

138

1.669

45,53%

4.922

3.875

12,28%

43,08%

3,6

21,27%

1,24%

168

139

-403

26,99%

18.689

6.532

-2,81%

-6,18%

1,5

125,61%

65,05%

N/D

140

-1.224

61,58%

12.521

4.624

-9,65%

-26,48%

3,0

63,07%

40,00%

194

141

548

28,86%

6.670

5.747

4,78%

9,53%

7,4

13,83%

4,67%

N/D

142

-2.204

-287,88%

104.037

26.055

-16,28%

-8,46%

0,7

74,96%

63,74%

281

143

-94,95%

5.696

3.064

0,14%

0,58%

1,8

46,22%

1,14%

196

144

-50,68%

30.609

10.276

0,33%

0,38%

1,1

66,43%

6,70%

278

145

-46

-112,38%

7.890

4.004

-0,32%

-1,16%

1,9

49,25%

5,94%

146

105

-657,68%

8.875

408

0,74%

25,74%

1,1

95,40%

0,51%

147

3.664

27,97%

66.593

15.994

135,97%

22,91%

1,0

75,98%

6,25%

148

N/D

766

149

N/D

282

150

YEARBOOK IEL 200 LARGEST COMPANIES 2016

135

RANKING OF THE 200 LARGEST COMPANIES

RANKING 2015

151

COMPANY

ANDRADE MÁRMORES E GRANITOS

SECTOR

Industry

ACTIVITY/BUSINESS

Non-Metalic Materials Manufacture Maint., Repair e Inst. Of Machi. And

GROSS OP. REVENUE

VAR. GOR 15/14

NET. OP. REVENUE

VAR. NOR 15/14

13.477

3,69%

12.796

5,69%

3.622

78,48%

13.147

-0,44%

11.089

-1,01%

753

-49,52%

EBITDA

VARIATION EBITDA 15/14

152

CSV BENETECH BRASIL

Services

153

PW BRASIL

Industry

Clothing and Acessories Manufacture

13.054

14,90%

11.451

13,89%

2.226

3,47%

154

SICOOB CORRETORA DE SEGUROS

Services

Financial Services and Insurance

13.052

22,15%

12.188

22,16%

11.397

21,44%

155

ACP MÓVEIS

Industry

Furniture Manufacture

12.964

-42,97%

9.971

-43,42%

-1.742

-144,06%

156

APART HOSPITAL

Services

Hospital Services

12.881

0,66%

12.146

3,38%

3.138

534,71%

157

VENAC

Retail Trade

Car Dealership

12.649

-51,30%

11.669

-50,53%

350

-77,05%

158

GM MANUTENÇÃO INDUSTRIAL

Services

Maint., Repair e Inst. Of Machi. And Equip.

12.630

5,68%

10.823

5,76%

N/D

159

CIMOL MÓVEIS

Industry

Furniture Manufacture

12.437

-8,67%

9.626

-8,25%

740

-45,14%

160

TV VITÓRIA

Services

Information and Communication

12.415

-18,01%

11.677

-18,73%

1.446

-49,43%

161

ANDRADE INDÚSTRIA E MINERAÇÃO LTDA

Industry

Non-Metalic Minerals Extraction

12.339

25,27%

11.218

27,81%

1.172

-67,47%

162

TERCA

Services

Logistics

12.232

-23,99%

9.704

-24,07%

497

-54,34%

163

COOPGRANEIS

Services

Transport

11.762

-13,74%

11.274

-13,82%

-122

-145,51%

164

COFRIL FRIGORÍFICO

Industry

Food

11.457

-5,59%

10.832

-4,97%

2.345

-31,47%

165

IND DE MARM E GRAN PEDRA DO FRADE

Industry

Non-Metalic Materials Manufacture

10.807

29,52%

10.264

23,03%

10.264

31,82%

166

TECVIX

Services

Maint., Repair e Inst. Of Machi. And Equip.

10.429

-25,02%

8.933

-25,13%

N/D

167

BRASPRESS

Services

Transport

10.197

-15,86%

N/D

168

CETURB-GV

Services

Transport

10.076

-1,45%

9.702

-1,52%

-1.665

-105,49%

169

HOSPITAL PRAIA DA COSTA

Services

Hospital Services

10.014

14,00%

9.587

20,03%

N/D

170

REDE BRISTOL

Services

Accomodation and Meals

9.985

-13,80%

N/D

171

MATRICIAL

Industry

Construction

9.525

-42,80%

8.926

-41,76%

N/D

172

METROPOLITANA TRANSPORTES SERVIÇOS

Services

Transport

9.099

8,50%

8.917

8,50%

N/D

173

GUINDASTES CENTRO OESTE

Services

Construct. Machi. and Equip. Rental

8.764

-11,57%

8.425

-9,53%

7.259

75,57%

174

SANTA FÉ ENERGIA

Services

Energy and Gas

8.463

5,43%

8.134

5,17%

4.837

18,72%

175

BEBIDAS REGIANNI

Industry

Food

8.092

-4,91%

4.894

-6,88%

N/D

176

FRISA COMERCIAL

Retail Trade

Food

8.074

18,87%

7.910

19,23%

451

24,79%

177

VIAÇÃO TABUAZEIRO

Services

Transport

8.043

-9,16%

7.641

-9,17%

2.461

322,34%

178

SOLUÇÃO EPI

Wholesale Trade

7.989

-6,58%

6.539

-8,11%

678

-21,14%

179

TROP FRUTAS DO BRASIL

Industry

Food

7.968

-43,24%

6.680

-42,04%

N/D

180

REDE ANCORA ES

Wholesale Trade

7.912

8,44%

6.835

-2,67%

-68,16%

181

LACCHENG ENGENHARIA

Industry

Construction

7.754

7,82%

6.910

9,77%

1.704

19,13%

182

HOSPITAL SÃO FRANCISCO

Services

Hospital Services

7.314

13,63%

6.899

14,44%

N/D

183

EDP GRID

Services

Energy and Gas

7.276

190,04%

6.718

186,58%

N/D

184

BRASIL EXPORTAÇÃO

Industry

Non-Metallic Minerals Manufacture

7.079

-6,50%

6.993

-5,44%

1.939

101,31%

185

TRANSCAMPO

Services

Transport

6.532

-6,94%

5.355

-7,42%

N/D

186

EMBALI S/A INDÚSTRIAS PLÁSTICAS

Industry

Rubber and Plastic Manufacture

6.450

-14,13%

4.857

-20,99%

204

59,95%

187

METALSER

Industry

Steel Products Manufacture

6.425

-48,60%

4.931

-52,00%

N/D

188

FACULDADE NOVO MILÊNIO

Services

Education

6.062

18,67%

5.331

26,49%

N/D

189

GRAFITUSA

Services

Printing Services

5.993

-7,07%

5.338

-6,57%

397

-67,44%

190

BUTERI COMERCIO E REPRESENTAÇÕES

Wholesale Trade

5.887

-18,56%

5.635

-15,69%

396

23,32%

191

ESTÁCIO DE SÁ

Services

Education

5.833

16,05%

N/D

192

TEREME ENGENHARIA DE MANUTENÇÃO

Services

Machi. and Equip. Install. and Maint.

5.412

7,76%

4.654

8,58%

N/D

193

LISA

Services

Logistics

5.159

-38,92%

4.085

-38,06%

N/D

194

AFFINITY REALTY SHOPPING CENTERS

Services

Real Estate

5.047

296,91%

4.862

296,91%

4.862

19,92%

195

HOSPITAL SÃO LUIZ

Services

Hospital Services

4.827

28,36%

4.622

29,08%

N/D

196

GRÁFICA SANTO ANTÔNIO

Services

Printing Services

4.374

-25,70%

3.987

-22,75%

N/D

197

ELETROSOLDA

Wholesale Trade

4.370

-5,10%

3.579

-3,12%

857

-4,70%

198

RHODES

Services

Transport

4.237

-16,20%

3.871

-16,20%

N/D

199

ELETROMARQUEZ

Industry

Machi. and Equip. Install. and Maint.

4.193

8,83%

4.001

3,84%

N/D

200

INSPECTION

Wholesale Trade

4.093

-55,56%

3.234

-56,93%

N/D

136

Equip.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

VARIATION NET PROFIT 15/14

TOTAL ASSETS

3.489

177,24%

25.544

16.556

27,27%

21,08%

5,0

35,19%

23,83%

151

-792

-253,54%

6.278

-872

-7,15%

90,87%

1,3

113,89%

50,47%

137

152

-45

-103,92%

26.533

14.738

-0,40%

-0,31%

2,9

44,45%

29,07%

278

153

9.878

20,93%

2.245

81,05%

22.744,45%

2,2

98,07%

57,25%

154

-1.742

-144,06%

8.154

3.240

-17,47%

-53,76%

1,4

60,26%

24,38%

182

155

1.074

-6,77%

19.371

11.123

8,85%

9,66%

1,4

42,58%

28,17%

322

156

-435

-153,97%

10.751

8.713

-3,72%

-4,99%

3,3

18,96%

4,07%

101

157

753

42,84%

2.398

1.175

6,96%

64,10%

2,6

51,01%

18,70%

N/D

158

-97,28%

6.785

3.689

0,20%

0,51%

2,2

45,63%

10,10%

126

159

964

-64,03%

13.802

8.264

8,26%

11,66%

1,9

40,13%

29,46%

270

160

2.964

117,55%

20.084

15.285

26,42%

19,39%

3,9

23,90%

7,80%

161

-948

-212,83%

24.835

19.450

-9,77%

-4,87%

1,1

21,68%

14,31%

150

162

-123

-154,23%

2.415

1.235

-1,09%

-9,96%

2,0

48,87%

10,88%

163

1.746

-42,89%

6.862

5.774

16,12%

30,23%

7,2

13,89%

2,12%

437

164

4.016

75,35%

13.578

7.900

39,13%

50,84%

1,7

41,82%

0,00%

N/D

165

-564

2,06%

3.039

751

-6,31%

-75,06%

0,8

75,28%

13,82%

N/D

166

N/D

177

167

-2.603

-55,71%

25.750

758

-26,83%

-343,24%

0,6

97,05%

90,92%

211

168

729

2217,14%

4.515

2.176

7,60%

33,49%

1,5

51,82%

16,08%

N/D

169

N/D

170

524

-61,12%

10.285

7.306

5,87%

7,17%

4,1

28,97%

9,61%

236

171

-1.217

9,15%

15.514

4.505

-13,65%

-27,01%

0,2

70,96%

51,72%

N/D

172

1.108

128,43%

24.996

7.937

13,16%

13,96%

0,5

68,23%

50,61%

173

2.740

38,29%

51.729

35.762

33,69%

7,66%

2,2

30,87%

23,83%

174

-21,06%

10.171

2.308

1,77%

3,74%

1,0

77,31%

20,59%

175

285

17,43%

1.801

1.309

3,60%

21,75%

3,0

27,32%

0,00%

176

-2.461

-122,34%

14.200

4.164

-32,21%

-59,12%

0,1

70,68%

24,31%

559

177

-139

-124,57%

3.607

1.263

-2,13%

-11,02%

1,4

64,99%

15,11%

178

-785

19,55%

20.011

1.411

-11,75%

-55,64%

0,7

92,95%

21,84%

114

179

-76,09%

1.780

580

0,22%

2,62%

1,5

67,40%

3,24%

180

1.501

25,49%

8.405

4.100

21,72%

36,61%

1,6

51,22%

20,51%

201

181

941

64,54%

3.358

1.630

13,64%

57,72%

1,4

51,46%

13,08%

N/D

182

3.112

77,17%

30.664

5.152

46,32%

60,40%

1,0

83,20%

52,04%

N/D

183

513

-9,82%

33.273

18.856

7,34%

2,72%

1,4

43,33%

25,70%

184

189,31%

2.825

2.231

1,59%

3,82%

1,8

21,02%

1,00%

103

185

-346

-198,19%

2.310

-472

-7,12%

73,23%

0,7

120,43%

46,65%

137

186

66,42%

13.565

4.837

0,61%

0,62%

1,6

64,35%

7,97%

130

187

1.023

469,51%

3.195

1.226

19,18%

83,44%

2,3

61,64%

38,25%

266

188

118,98%

4.352

2.326

1,41%

3,24%

1,4

46,55%

28,19%

189

115

15,08%

3.472

2.685

2,04%

4,28%

2,2

22,66%

0,79%

190

N/D

289

191

312

59,95%

1.263

881

6,71%

35,45%

2,0

30,25%

1,30%

140

192

-381

-151,96%

9.313

2.736

-9,32%

-13,91%

1,3

70,63%

0,67%

N/D

193

5.838

49,55%

89.175

65.724

120,06%

8,88%

1,6

26,30%

25,16%

194

192

280,06%

2.163

381

4,15%

50,39%

1,4

82,38%

49,47%

N/D

195

-297

-119,56%

3.167

2.697

-7,46%

-11,02%

3,6

14,84%

2,12%

N/D

196

587

-2,48%

4.726

2.779

16,40%

21,13%

5,1

41,20%

31,16%

197

1.052

-17,19%

6.456

6.131

27,17%

17,15%

10,4

5,03%

0,08%

N/D

198

2.516

268,71%

3.709

2.890

62,89%

87,06%

6,2

22,06%

11,22%

N/D

199

-1.465

-323,01%

3.880

3.261

-45,28%

-44,91%

6,6

15,93%

0,69%

N/D

200

NET EQUITY

YEARBOOK IEL 200 LARGEST COMPANIES 2016

NET EQUITY

RETURN ON SALES

RETURN ON EQUITY

CUURRENT LIQUIDITY

OVERALL INDEBTEDNESS

LONG-TERM INDEBTEDNESS

EMPLOYEES IN ES

RANKING 2015

137

RANKING | SECTORAL PARTICIPATION OF COMPANIES

CONSOLIDATION OF THE 200 LARGEST C0MPANIES By Gross Operating Revenue (GOR) in ES - Figures in US$ thousand SECTOR OF BUSINESS

NUMBER OF COMPANIES

GROSS OP. REVENUE (GOR)

NET. OP. REVENUE (NOR)

EBITDA

TOTAL ASSETS

NET PROFIT

NET EQUITY

EMPLOYEES IN ES

TRADE Food

8.074

7.910

451

285

1.801

1.309

Wholesale Trade

3.681.362

2.142.540

86.339

88.095

1.309.138

523.057

3.567

Retail Trade

1.117.998

1.006.854

65.319

18.563

421.002

128.275

5.952

Car Dealership

486.546

459.236

7.904

-6.571

138.120

37.195

1.051

TOTAL

5.293.980

3.616.541

160.013

100.372

1.870.061

689.836

10.599

Food

1.990.271

1.666.672

57.631

25.722

1.082.283

257.539

9.456

Collect., Purifi. and Distribut. of Water

210.581

191.028

46.332

19.580

761.277

617.680

1.501

Clothing and Acessories Manufacture

13.054

11.451

2.226

-45

26.533

14.738

278

Construction

308.824

225.429

42.033

12.496

323.898

154.425

1.355

Non-Metallic Minerals Extraction

12.339

11.218

1.172

2.964

20.084

15.285

Oil and Natural Gas Extraction

5.405.189

N/D

1.464

Rubber and Plastic Manufacture

197.293

59.581

6.687

493

69.897

38.220

1.066

Metalic Structures Manufacture

40.275

33.817

N/D

1.631

31.801

16.832

175

Non-Mettalic Minerals Manufacture

31.363

30.053

15.826

8.019

72.395

43.312

146

Metalic Products Manufacture

99.673

79.430

3.702

5.693

78.820

54.262

698

Non-Mettalic Products Manufacture

174.309

154.004

52.841

15.205

201.024

105.838

1.130

Machi. and Electric Materials Manufac.

181.256

131.841

16.485

13.264

90.044

64.339

2.680

Furniture Manufacture

122.311

97.256

1.550

2.990

84.197

24.258

1.174

Machinery and Equip. Install. And Maint.

4.193

4.001

N/D

2.516

3.709

2.890

N/D

Mining

2.438.317

314.263

309.330

210.681

775.854

627.417

7.493

Pulp and Paper

1.201.666

N/D

1.541

Chemical and Petrochemical

2.057.110

2.010.152

81.315

-89.023

1.186.159

180.051

1.569

INDUSTRY

Steel and Metal

2.217.384

211.265

38.927

40.972

635.307

565.514

7.028

TOTAL

16.705.407

5.231.461

676.058

273.158

5.443.282

2.782.599

38.844

Shopping Mall Management

17.250

16.896

15.489

11.689

29.219

17.784

340

Accomodation and Meal

9.985

N/D

Hospital Services

412.697

396.792

31.480

14.807

338.761

150.304

11.221

SERVICES

Real Estate

5.047

4.862

5.838

89.175

65.724

N/D

Collec., Proc. And Distr. Of Residues

35.196

32.057

6.193

3.428

54.046

34.233

581

Highway Concessionaire

103.485

81.487

21.138

1.241

141.140

37.748

419

Education

32.216

5.331

N/D

1.023

3.195

1.226

1.970

Energy and Gas

1.745.344

971.773

115.096

51.559

1.096.806

375.143

925

Management of Ports and Terminals

176.198

157.742

26.677

22.072

288.607

181.643

728

Printing Services

10.366

9.326

397

-222

7.518

5.023

Information and Communication

12.415

11.677

1.446

964

13.802

8.264

270

Construct. Machin. and Equip. Rental

27.558

24.393

7.740

1.351

38.168

14.220

668

Logistics

17.391

13.789

497

-1.329

34.149

22.186

150

Machin. and Equip. Install. and Mainte.

5.412

4.654

N/D

312

1.263

881

140

Machin. and Equip. Install., Repair and Mainte.

36.205

30.845

753

-603

11.714

1.054

137

Health Insurance

627.739

609.400

23.065

15.767

274.762

85.194

4.642

Cleaning and Conservation Services

24.367

21.225

2.443

1.789

5.021

2.835

2.428

Financial Services and Insurance

1.718.865

935.129

65.740

138.962

7.675.085

820.834

5.298

Importing and Exporting Services

2.317.194

1.826.110

61.560

15.741

696.012

92.103

363

Information Technology

66.304

58.054

5.795

2.727

21.442

5.863

946

Transport

635.761

517.993

85.929

14.636

680.697

317.227

8.112

Surveillance and Security

43.926

N/D

2.427

TOTAL

8.080.920

5.729.535

476.299

301.749

11.500.582

2.239.488

41.917

TOTAL

200

30.080.307

14.577.538

1.312.370

675.279

18.813.925

5.711.923

91.360

138

YEARBOOK IEL 200 LARGEST COMPANIES 2016

RANKING THE LARGEST COMPANIES ACCORDING TO THE MAIN INDICATORS

s in previous years, with the definition of the ranking of the 200 Largest Companies of EspĂrito Santo in 2016, IEL prepares the classification according to the main economic and financial indicators, highlighting the best performances. However, it is important to note that were only included in these rankings those companies that provided information for the preparation of these lists.

The 20 largest by productivity per employee

The Largest Productivity per Employee registered was US$ 104.20 thousand. A ratio 51% lower than 2014. An average of US$ 14.57 million per employee. This ratio was US$ 23.99 thousand in 2014.

The 20 largest by net equity (NE)

As for the net equity criterion, the 20 largest companies totaled US$ 3.83 billion, representing 67% of the amount of NE of the 200 largest in 2016. An average of US$ 192.17 million per company.

The 20 largest by generation of jobs

In the classification of the largest employers among the 200 largest, the 20 largest generated 49,770 direct jobs, equivalent to 54.5% of the total. This data shows a fall in relation to the survey 2015, when 53,172 posts were recorded among the 20 largest employers. A fall of 6.4% in the comparison.

The 20 largest by raise of GOR and NOR

Among the companies that grew the most in 2016 in terms of gross operating revenue, it was observed that 5 of them belong to the industrial sector, 4 to the trade sector (3 being in the retail segment and 1 wholesaler) and 11 of the services sector. Regarding the net operating revenue, it is noted that four companies that featured among the largest by raise of GOR do not feature in the list of the largest by raise of NOR.

The 20 largest by return on sales

Among the higher profitability of sales, stand out 18 companies of the services sector, 1 of the trade sector and 1 of agribusiness. This indicator pointed in the Yearbook 2015 an average of 587.5%, while this year this average was 735.6%.

The 20 largest by profitability per employee

The average profit per employee among the 20 best performances in this indicator was US$ 329.47 thousand, remaining

140

virtually unchanged in comparison with the previous year. The average profit was US$ 6.38 thousand per employee. This indicator found along the 200 largest companies was US$ 7.4 thousand.

The 20 largest by return on equity

The average profitability of the NE of the 20 largest companies in this indicator was 1,233.40%. This percentage was strongly influenced by the results of Sicoob Insurance, which showed an indicator of 22,744.45%.

The 20 largest companies by Ebitda

In this indicator the total ascertained was US$ 479 million, well below the results of the survey 2015, when it was registered the sum of US$ 1.74 billion. A fall of 72.4%. The 20 largest in this indicator represent 35.9% of total Ebitda reported by the companies participating in the research.

The best companies by Current Liquidity

In the verification of the largest companies by current liquidity, there is a predominance of services companies, with 45% of share, followed by industrial companies with 40%, 10% of companies in the trade sector and 5% of the agricultural sector. Just as occurred with the 20 Largest by Return on Equity, among the Best in Current Liquidity there was also a different indicator: the Rio do Frade, whose data presented was 415.4%. Excepting this data, others had more harmonic variations as seen in 2014.

The 20 most profitable companies

The 20 most profitable companies presented altogether a profitability of US$ 569 million, about 1.9% of the GOR earned in the year. This ratio was 3.95% in 2014.

The 20 largest assets

The 20 largest assets totaled US$ 13.15 billion, reflecting a decrease of 27.7% in comparison to the data of 2014. However, these companies hold 70% of total assets provided by the 200 largest in the state. The results of these indicators can be noticed in the following tables:

YEARBOOK IEL 200 LARGEST COMPANIES 2016

THE 20 LARGEST IN GENERATION OF JOBS

THE 20 LARGEST BY NET EQUITY

Ranking of Companies by Number of Employees in ES

Ranking of Companies by Net Equity - in US$ thousand

POSITION

RANKING 2015

VALE

Industry

7493

CESAN

Industry

617.679.636

ARCELORMITTAL BRASIL

Industry

6091

107

SOL COQUERIA

Industry

385.087.010

HOSPITAL EVANGÉLICO DE VILA VELHA

Services

2909

BANESTES

Services

347.603.991

VIX LOGÍSTICA

Services

2767

ESCELSA

Services

289.390.481

WEG LINHARES EQUIPAMENTOS ELÉTRICOS

Industry

2680

229

CARAIVA

Services

250.504.153

CASAGRANDE

Retail Trade

2661

NIBRASCO

Industry

238.522.479

120

SERDEL

Services

2428

221

CAMPO PARTICIPAÇÕES IMOBILIÁRIAS

Services

177.097.468

UNIMED VITÓRIA

Services

2372

VIX LOGÍSTICA

Services

159.105.115

BANESTES

Services

2337

KOBRASCO

Industry

144.552.970

IRMANDADE DA SANTA CASA DE MISERICORDIA

Services

2198

HISPANOBRÁS

Industry

130.388.774

GAROTO

Industry

1969

RDG PRODUTOS SIDERÚRGICOS

Wholesale Trade

119.503.140

106

PROSEGUR BRASIL

Services

1661

PERFILADOS RIO DOCE

Industry

118.681.668

HOSPITAL MERIDIONAL

Services

1623

ITABRASCO

Industry

113.952.437

HOSPITAL SANTA RITA

Services

1596

ÁGUIA BRANCA

Services

111.858.208

FIBRIA CELULOSE

Industry

1541

BANDES

Services

105.195.136

FRISA FRIGORÍFICO

Industry

1541

PORTO DE VITÓRIA

Services

95.793.484

CESAN

Industry

1501

222

RIO DO FRADE

Services

85.191.935

BANCO DO BRASIL

Services

1471

UNICAFÉ

Wholesale Trade

79.978.475

105

UNIMAR

Services

1467

SICOOB LESTE CAPIXABA

Services

73.729.340

PETROBRAS - UO - ES

Industry

1464

HERINGER

Industry

73.685.586

COMPANY

SECTOR

EMPLOYEES

POSITION

RANKING 2015

COMPANY

SECTOR

NET EQUITY

*Data of the National Agency of Oil, Natural Gas and Biofuel - ANP

THE 20 LARGEST BY RETURN ON NET EQUITY

THE 20 LARGEST COMPANIES BY EBITDA

Ranking of Companies by Net Profit of the Year Over Net Equity - %

Ranking of Companies by the Operating Result - In US$ thousand

POSITION

RANKING 2015

RETURN ON NET EQUITY

POSITION

RANKING 2015

154

SICOOB CORRETORA DE SEGUROS

134

BENEVIX ADMINISTRADORA DE BENEFÍCIOS

Services

22744,45%

NIBRASCO

Industry

118.875

Services

224,65%

ESCELSA

Services

110.259

WINE.COM.BR

Retail Trade

203,50%

KOBRASCO

Industry

79.327

SPASSU

Services

130,34%

VIX LOGÍSTICA

Services

71.427

245

UCONNECT TELECOM

Services

116,93%

ITABRASCO

Industry

63.293

242

AUTVIX ENGENHARIA

Services

115,23%

HERINGER

Industry

59.353

232

DVF EDUCAÇÃO EMPRESARIAL

Services

106,67%

CASAGRANDE

Retail Trade

58.450

243

CÁRITAS ARQUIDIOCENA DE VITÓRIA

Services

97,27%

HISPANOBRÁS

Industry

47.836

152

CSV BENETECH BRASIL

Services

91,55%

CISA TRADING

Services

46.558

199

ELETROMARQUEZ

Industry

90,87%

CESAN

Industry

46.332

GAROTO

Industry

87,06%

229

CARAIVA

Services

45.703

188

FACULDADE NOVO MILÊNIO

Services

86,80%

TROP COMÉRCIO EXTERIOR

Wholesale Trade

40.870

104

BERTOLINI MÓVEIS DE AÇO

Industry

83,44%

PELICANO CONSTRUÇÕES

Industry

30.730

186

EMBALI S/A INDÚSTRIAS PLÁSTICAS

Industry

79,95%

UNICAFÉ

Wholesale Trade

22.333

VAMTEC VITÓRIA

Industry

73,23%

ECO 101

Services

21.138

220

SERVICE GROUP

Services

71,99%

COSENTINO LATINA

Industry

19.986

138

SHOPPING VITÓRIA

Services

71,05%

GAROTO

Industry

19.318

158

GM MANUTENÇÃO INDUSTRIAL

Services

65,72%

107

SOL COQUERIA

Industry

17.244

120

SERDEL

Services

64,10%

WEG LINHARES EQUIPAMENTOS ELÉTRICOS

Industry

16.485

213

COOPTTEC

Services

63,11%

ALCON

Industry

15.729

COMPANY

YEARBOOK IEL 200 LARGEST COMPANIES 2016

SECTOR

COMPANY

SECTOR

EBITDA

141

RANKING

THE 20 MOST PROFITABLE COMPANIES

THE 20 LARGEST ASSETS

Ranking of companies by net profit - in R$ thousand

Ranking of Companies by Total Assets - In US$ thousand

POSITION

RANKING 2015

COMPANY

SECTOR

NET PROFIT

RANKING 2015

COMPANY

SECTOR

TOTAL ASSETS

NIBRASCO

Industry

87.233

BANESTES

Services

5.436.094

KOBRASCO

Industry

53.417

HERINGER

Industry

998.446

229

CARAIVA

Services

45.243

ESCELSA

Services

946.699

BANESTES

Services

45.185

CESAN

Industry

761.277

ITABRASCO

Industry

40.697

BANDES

Services

449.501

ESCELSA

Services

37.976

107

SOL COQUERIA

Industry

418.749

HISPANOBRÁS

Industry

29.333

SICOOB CENTRAL ES

Services

404.918

119

VIXPAR

Wholesale Trade

26.400

VIX LOGÍSTICA

Services

392.773

VIX LOGÍSTICA

Services

20.194

CISA TRADING

Services

376.978

CESAN

Industry

19.580

GAROTO

Industry

352.154

SICOOB LESTE CAPIXABA

Services

19.478

SICOOB LESTE CAPIXABA

Services

290.617

TROP COMÉRCIO EXTERIOR

Wholesale Trade

19.205

NIBRASCO

Industry

288.094

PELICANO CONSTRUÇÕES

Industry

17.681

229

CARAIVA

Services

252.228

221

CAMPO PARTICIPAÇÕES IMOBILIÁRIAS

Services

15.170

SICOOB SUL SERRANO

Services

237.139

SICOOB SUL

Services

15.110

SICOOB NORTE

Services

221.123

CISA TRADING

Services

14.668

EXCIM

Wholesale Trade

210.111

BRAMETAL

Industry

14.202

SICOOB SUL

Services

202.015

RDG PRODUTOS SIDERÚRGICOS

Wholesale Trade

14.166

KOBRASCO

Industry

188.616

WEG LINHARES EQUIPAMENTOS ELÉTRICOS

Industry

13.264

TROP COMÉRCIO EXTERIOR

Wholesale Trade

183.352

TRISTÃO

Wholesale Trade

12.665

221

CAMPO PARTICIPAÇÕES IMOBILIÁRIAS

Services

182.053

THE 20 LARGEST COMPANIES BY RAISE OF GROSS OPERATING REVENUE

THE 20 LARGEST COMPANIES BY LIQUIDITY Ranking of Companies by Liquidity Rate - %

Ranking of Companies by raise of Gross Operating Revenue - %

POSITION

RANKING 2015

222

RIO DO FRADE

Services

229

CARAIVA

Services

119

VIXPAR

110

142

POSITION

CURRENT LIQUIDITY

POSITION

RANKING 2015

415,4

222

RIO DO FRADE

Services

422,44%

55,7

140

SERRA AMBIENTAL

Services

317,15%

Wholesale Trade

44,5

194

AFFINITY REALTY SHOPPING CENTERS

Services

296,91%

TUBOS SOLDADOS ATLÂNTICOS

Industry

37,0

183

EDP GRID

Services

190,04%

232

DVF EDUCAÇÃO EMPRESARIAL

Services

31,0

210

BANESTES DTVM

Services

167,04%

207

SOIMPEX

Services

28,6

133

LAND VITÓRIA

Retail Trade

157,30%

219

TERVAP

Services

25,9

207

SOIMPEX

Services

118,42%

PERFILADOS RIO DOCE

Industry

25,4

VITORIA MOTORS CHRYSLER

Retail Trade

95,59%

225

PARATI - CREDITO FINANCIAMENTO E INVESTIMENTOS

Services

23,9

205

COEX COMÉRCIO EXTERIOR

Services

75,11%

223

VESTSUL CALÇADOS

Industry

14,7

ITABRASCO

Industry

71,41%

217

CENTRALFER

Industry

11,0

104

BERTOLINI MÓVEIS DE AÇO

Industry

70,00%

198

RHODES

Services

10,4

SICOOB CENTRAL ES

Services

65,88%

236

PRODUTORA AVICOLA E AGRICOLA

Agrobusiness

8,8

EMPRESA LUZ FORÇA SANTA MARIA

Services

57,32%

125

MAGBAN

Industry

8,8

ESCELSA

Services

56,05%

206

STAN

Industry

8,3

FIBRIA CELULOSE

Industry

50,11%

113

DIAÇO

Wholesale Trade

7,6

NICCHIO SOBRINHO CAFÉ

Wholesale Trade

50,08%

226

VTO POLOS EMPRESARIAIS

Services

7,6

HISPANOBRÁS

Industry

48,92%

142

MÓVEIS PEROBA

Industry

7,4

VITÓRIA MOTORS

Retail Trade

44,64%

164

COFRIL FRIGORÍFICO

Industry

7,2

ALCON

Industry

44,26%

227

QUIMETAL DISTRIBUIDORA

Services

6,9

BANCO DO BRASIL

Services

42,71%

COMPANY

SECTOR

COMPANY

SECTOR

VAR. 15/14

YEARBOOK IEL 200 LARGEST COMPANIES 2016

THE 20 LARGEST COMPANIES BY RAISE OF NET OPERATING REVENUE

THE 20 LARGEST COMPANIES BY PRODUCTIVITY PER EMPLOYEE

Ranking of Companies by Raise of Net Operating Revenue - %

Ranking of Companies by Net Revenue per Employee - In US$ thousand

POSITION

RANKING 2015

222

RIO DO FRADE

140

SERRA AMBIENTAL

194

VAR. 15/14

POSITION

RANKING 2015

Services

422,49%

COLUMBIA TRADING

Services

104.212

Services

317,15%

CISA TRADING

Services

52.956

AFFINITY REALTY SHOPPING CENTERS

Services

296,91%

TROP COMÉRCIO EXTERIOR

Wholesale Trade

37.778

183

EDP GRID

Services

186,58%

SERTRADING (BR)

Services

31.767

210

BANESTES DTVM

Services

167,04%

SAVIXX

Wholesale Trade

14.460

133

LAND VITÓRIA

Retail Trade

157,02%

TERRA NOVA

Wholesale Trade

12.824

207

SOIMPEX

Services

151,57%

HERINGER

Industry

8.913

VITORIA MOTORS CHRYSLER

Retail Trade

93,25%

126

SANTA FÉ TRADING

Services

8.108

104

BERTOLINI MÓVEIS DE AÇO

Industry

83,38%

CLAC

Services

6.458

205

COEX COMÉRCIO EXTERIOR

Services

80,92%

210

BANESTES DTVM

Services

2.127

ITABRASCO

Industry

71,41%

197

ELETROSOLDA

Wholesale Trade

1.789

NICCHIO SOBRINHO CAFÉ

Wholesale Trade

51,80%

UNICAFÉ

Wholesale Trade

1.764

SICOOB CENTRAL ES

Services

48,96%

QUIMETAL

Services

1.314

HISPANOBRÁS

Industry

48,93%

NICCHIO SOBRINHO CAFÉ

Wholesale Trade

1.190

VITÓRIA MOTORS

Retail Trade

47,11%

VILA PORTO

Wholesale Trade

1.155

128

LASA

Industry

41,44%

HORTIFRUTI

Retail Trade

1.067

ALCON

Industry

41,22%

VITORIA MOTORS CHRYSLER

Retail Trade

969

240

COMEX

Services

41,21%

ESCELSA

Services

954

101

SICOOB CENTRO-SERRANO

Services

40,94%

VITÓRIA MOTORS

Retail Trade

860

SICOOB SUL

Services

36,88%

TAI MOTORS

Retail Trade

750

COMPANY

SECTOR

COMPANY

THE 20 LARGEST COMPANIES BY PROFITABILITY PER EMPLOYEE

THE 20 LARGEST COMPANIES BY RETURN ON SALES

Ranking of Companies by Net Profit per Employee - In US$ thousand

Ranking of Companies by Sales Mark up - %

POSITION

RANKING 2015

210

BANESTES DTVM

Services

TROP COMÉRCIO EXTERIOR

Wholesale Trade

CISA TRADING

NET PROFIT PER EMPLOYEE

NET REVENUE PER EMPLOYEE

SECTOR

POSITION

RANKING 2015

1.784

229

CARAIVA

Services

8895,89%

1.130

221

CAMPO PARTICIPAÇÕES IMOBILIÁRIAS

Services

1475,24%

Services

815

222

RIO DO FRADE

Services

886,13%

SERTRADING (BR)

Services

449

219

TERVAP

Services

827,71%

154

SICOOB CORRETORA DE SEGUROS

Services

395

243

CÁRITAS ARQUIDIOCENA DE VITÓRIA

Services

397,87%

126

SANTA FÉ TRADING

Services

334

239

FAZENDA OURO VERDE

Agribusiness

372,76%

197

ELETROSOLDA

Wholesale Trade

294

244

MMP & TRÊS PARTICIPAÇÕES

Services

246,91%

240

COMEX

Services

187

240

COMEX

Services

162,26%

219

TERVAP

Services

135

SICOOB NORTE

Services

149,43%

115

DECOLORES MÁRM. E GRAN. DO BRASIL

Industry

113

SICOOB SUL SERRANO

Services

139,16%

134

BENEVIX ADMINISTRADORA DE BENEFÍCIOS Services

112

148

SICOOB SUL LITORÂNEO

Services

135,97%

SICOOB LESTE CAPIXABA

Services

106

123

SICOOB CREDIROCHAS

Services

134,82%

SICOOB SUL

Services

SICOOB LESTE CAPIXABA

Services

129,81%

125

MAGBAN

Industry

101

SICOOB CENTRO-SERRANO

Services

129,18%

207

SOIMPEX

Services

SICOOB SUL

Services

124,53%

BANESTES SEGUROS

Services

194

AFFINITY REALTY SHOPPING CENTERS

Services

120,06%

PELICANO CONSTRUÇÕES

Industry

119

VIXPAR

Wholesale Trade

108,01%

SICOOB SUL SERRANO

Services

203

AGRO PECUÁRIA CARVALHO BRITTO

Industry

99,64%

123

SICOOB CREDIROCHAS

Services

SICOOB CENTRAL ES

Services

91,40%

SICOOB NORTE

Services

241

VIANA INVESTIMENTOS IMOBILIARIOS

Services

85,76%

COMPANY

YEARBOOK IEL 200 LARGEST COMPANIES 2016

SECTOR

COMPANY

SECTOR

VAR. 15/14

143

RANKING THE LARGEST COMPANIES BY SECTOR

eeping the goal of giving highlight to the segments of the local economy, enhancing areas and companies whose activities contribute decisively to the development of the state economy, IEL identified the businesses and organizations in order to enable the participation of leading companies of various sectors, aiming at the preparation of the sectoral rankings. To form these rakings by the segments contained in this technical study, there have been used the data provided by the companies to the research “200 Largest Companies of Espírito Santo.” The rankings are compound by the largest companies that develop common activities, whether they are or not among the 200 largest. In other words, featuring in the following tables does not depend on their classification in the overall ranking of the 200 largest companies, since many of them do not have sufficient gross operating revenue for inclusion in the overall ranking. Again, several companies and sectors were invited to participate in the research in order to maintain the rankings that have been already published in previous years, and new ones were included in this edition. Once again, we consider important to note that the absence of any prominent companies in the sector rankings is due to the fact that there was no interest in participating in the research, or because their balance sheets and income statements were closed after the deadline for the survey’s completion, or by not sending information in a timely manner. There may occur in these cases a variation in the number of companies that make up the rankings when compared to previous years.

144

Similarly, average calculations were made in accordance to the received information, i.e., if there was any missing data, it was not considered in the statistical calculations generated. Regarding to 2015, the following rankings were prepared: The largest food companies: Amounted gross revenues of approximately US$ 1.8 billion in Espírito Santo and generated on average 800 direct jobs per company. These figures exceeded the results of 2014; when they registered revenues of US$ 1.53 billion and an average of 498 employees per company, 17.6% and 60.6% higher than 2014. Despite the significant increase in these results, the negative aspect is the drop in the ratio revenues per employee of -42.4%. The largest hospitals: They recorded a total gross revenue of US$ 389.37 million, with 25% of growth compared to the previous year. The average employee in 2015 was 1,603 per company against 1.070 in 2014. About 50% more, which points to a lower productivity, despite the growth; there was a decrease of -20.5% in the comparison of the years. The largest car dealership companies: They remained stable in revenues when compared to the year 2014. It was recorded in 2015 a decrease of 0.9% on the average GOR in the segment. The number of employees per company followed this retreat, showing, however, a more significant percentage of -12.8%. These numbers enabled a higher revenue per employee, going from US$ 419,324.00 to US$ 449,277.00, which is about 7.1%. The largest furniture manufacturing companies: It is a new indicator among the largest companies by segment. Composed of six companies, the total GOR ascertained was YEARBOOK IEL 200 LARGEST COMPANIES 2016

US$ 122.32 million, an average of US$ 20.4 million per company. Regarding employees, the average was 235 workers per company, leading to a GOR per employee of US$ 86,860. The largest companies of health insurance: Another new in the edition 2016, the largest companies of health insurance had a US$ 628.98 million GOR in 2015 and 4,642 employees, with an average of US$ 69.76 million per company and US$ 135.08 thousand per employee. The largest metal products manufacturing companies: This is another highlight in the year 2016, the ranking of seven companies presented a total GOR of US$ 102.06 million in 2015. An average of US$ 14.59 million per company. Regarding the number of employees, a total of 790 was informed. An average of 132 per company. It is also worth noticing the fact that there are, among the seven respondent companies, six with negative variations in their income in the years 2014 and 2015. The largest importing and exporting services companies: They presented a total revenue of US$ 2.31 billion, according to data of 2015. In this ranking, two companies fell in comparison with 2014, and three accounted negative variations of NOR, considering the registry of one company without this data. The average number of employees was 73 per company. These figures show a low average revenue, compared to the year 2014, which was -52.2%. The figure contrasts with the comparative of this segment in 2014 and 2013, when there was an increase of about 47.7% in this indicator. The largest companies of wholesale trade: They totalized revenues of US$ 3.26 billion and a total personnel of 1,425 workers. An average of US$ 2.07 million per employee. The average calculated in 2014 was US$ 1.74 million. An increase of about 19%, partly justified by the fall in YEARBOOK IEL 200 LARGEST COMPANIES 2016

the number of employees and the increase of revenues from foreign trade businesses. The largest retail trade companies: They kept the track of growth when compared to segment performance in 2014. Total revenues increased by 10.3%. Yet the average revenue per company rose about 23%, from US$ 98.24 million to US$120.41 million per company, employing on average 801 workers per company, against 446 in the previous year. The largest transport companies: Totalized gross operating revenues of US$ 628.99 million and contributed with 8,009 posts (according to those that reported the data). There was no significant variation in the turnover of the 10 largest in the segment compared to the previous year. But the total number of employees went down by 1,477 jobs (-15.6%). The average GOR per company was US$ 62.51 million, and employees were 890 per company. With these data, the average revenue per employee was US$ 70.08 thousand, 18.5% higher than 2014. The largest construction companies: They revealed a gross revenue of US$ 329.47 million in the State, offering 1,527 jobs, among the respondents, and according to 2015. Compared to the year 2014, revenues increased by 1.9%. On average, the companies employed 191 workers, providing an average revenue of US$ 165.33 thousand per employee. An important data recorded with this group is that eight companies reported decline in their revenues in comparison with 2014 and 2015. The largest financial services and insurance companies: The gross revenue of this group of companies had an increase of 30.2% between 2014 and 2015, totaling US$ 1.68 billion, generating 5,118 direct jobs in EspĂrito Santo, and remaining stable before the 5,111 recorded in 2015. There is a significant rise in the ratio revenue per employee, from US$ 251.59 thousand per employee to US$ 329.47 thousand per employee. A variation of 30.9%. 145

RANKING | THE LARGEST COMPANIES BY SECTOR

THE LARGEST COMPANIES OF IMPORTING AND EXPORTING SERVICES By Gross Operating Revenue (GOR) in ES - In US$ thousand POSITION

RANKING 2015

COMPANY

GROSS OP. REVENUE

VAR. GOR 15/14

NET. OP. REVENUE

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

CISA TRADING

1.240.693

7,34%

953.215

4,92%

14.668

67.627

COLUMBIA TRADING

494.365

10,38%

416.848

13,52%

-5.958

1.562

SERTRADING (BR)

392.536

2,59%

317.675

-0,06%

4.490

12.378

QUIMETAL

67.407

14,35%

56.491

15,03%

1.812

7.657

MERCOCAMP

54.656

-9,20%

39.835

-11,66%

440

N/D

CLAC

33.300

-28,58%

25.831

-29,31%

1.115

126

SANTA FÉ TRADING

20.350

18,25%

16.216

21,39%

668

1.325

150

TEGMA

13.888

13,78%

N/D

282

205

COEX COMÉRCIO EXTERIOR

3.088

75,11%

2.940

80,92%

629

1.679

N/D

For Cisa Trading, to be a highlight in the segment of importing and exporting is an important recognition to the work of the company, and confirms the correct choice made 20 years ago, on the company’s foundation, when it was adopted the model of Japanese trade companies. Cisa creates value for the customers because it does better, at a lower cost, and is distinguished in the market by innovating, permanently, developing ideas, methods and processes that make it a reference in the sector along with customers, suppliers and government organizations. This achievement results from a combination of factors: the company itself, that is capable of making the supply chain more efficient; the customers’ reliance, gained by a serious and structured work; a structure that enables to expand the range of operations and finance the operations of the clients, with capital from its own equity and from large national banks; and the constant focus on innovation, seeking new solutions for the company’s customers.” Antônio José Pargana, president of Cisa Trading

“

THE LARGEST COMPANIES OF WHOLESALE TRADE By Gross Operating Revenue (GOR) in ES - In US$ thousand POSITION

RANKING 2015

COMPANY

GROSS OP. REVENUE

VAR. GOR 15/14

NET. OP. REV.

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

BR DISTRIBUIDORA

1.228.542

-7,39%

N/D

TROP COMÉRCIO EXTERIOR

769.296

15,67%

642.232

15,38%

19.205

60.730

UNICAFÉ

280.677

10,63%

278.743

10,36%

4.729

79.978

158

UNILIDER

254.619

12,01%

198.765

11,45%

5.697

12.587

350

TRISTÃO

192.527

12,29%

189.983

12,48%

12.665

68.875

N/D

EXCIM

150.978

-19,73%

127.115

-19,60%

669

10.576

190

COOABRIEL

128.907

31,53%

120.341

33,02%

247

16.858

246

RDG PRODUTOS SIDERÚRGICOS

115.600

1,20%

95.753

2,59%

14.166

119.503

347

NICCHIO SOBRINHO CAFÉ

103.359

50,08%

99.997

51,80%

417

12.625

TERRA NOVA

68.454

-15,46%

51.298

-17,51%

-58

1.597

Wholly-owned subsidiary of Petrobras, BR Distribuidora (distribution) operates in the trading and distribution of oil derivatives throughout Brazil. In Espírito Santo, the concessionaire is responsible for the distribution of piped natural gas in 13 towns: Anchieta, Aracruz, Cachoeiro de Itapemirim, Cariacica, Colatina, Itapemirim, Linhares, São Mateus, Serra, Sooretama, Viana, Vila Velha and Vitória. To serve residences, commerce, industry or the growing car fleet, the quality and good service of the concessionaire are its trademarks. With this representativeness and the large number of satisfied customers, it is no surprise that BR is the number one in the category “Wholesale Trade” of the Yearbook IEL 200 Largest Companies in Espírito Santo.

146

YEARBOOK IEL 200 LARGEST COMPANIES 2016

THE LARGEST COMPANIES OF RETAIL TRADE By Gross Operating Revenue (GOR) in ES - In US$ thousand COMPANY

GROSS OP. REVENUE

POSITION

RANKING 2015

VAR. GOR 15/14

NET. OP. REV.

VAR. NOV 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

HORTIFRUTI

350.139

19,99%

328.628

18,95%

6.228

44.139

308

CASAGRANDE

195.135

9,49%

173.534

10,12%

4.427

30.863

2661

SUPERMERCADO PERIM

143.800

9,94%

126.142

11,62%

6.228

17.105

N/D

COOPEAVI

105.241

5,42%

101.632

5,79%

1.078

22.194

542

WINE.COM.BR

88.939

31,64%

72.825

33,70%

3.947

1.940

424

SUPERMERCADOS SANTO ANTÔNIO

40.231

-1,65%

36.549

-1,41%

-772

2.446

940

117

SUPERMERCADO PORTO NOVO

25.217

6,39%

23.432

7,38%

211

1.496

533

144

POLITINTAS

14.988

-4,79%

12.561

-3,94%

3.064

196

A pioneer in its business and management model, though often putting itself against the market, Hortifruti remains a reference in the category “Retail Trade”. For the company, the recognition is the result of the hard work done since its foundation. Hortifruti always kept during its history two strong characteristics, responsible for its success and resilience: strong culture, able to establish a strong relationship of commitment and engagement with its employees; and continuous development, enabling the company to always seek to do the best at any time. When recognition comes, it shows us that it was worthy all the effort and determination guided by the dream that we have always strived for. To be a reference of retail specialized in fruits, vegetables and healthy eating. No doubt, it is a moment of achievement and great joy!” Walquyria Majeveski, president of the chain Rede Hortigil Hortifruti S/A

“

THE LARGEST CONSTRUCTION COMPANIES By Gross Operating Revenue (GOR) in ES - In US$ thousand COMPANY

GROSS OP. REVENUE

POSITION

RANKING 2015

VAR. GOR 15/14

NET. OP. REV.

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

LORENGE

109.326

-14,54%

54.127

-39,98%

-10.042

67.071

345

PELICANO CONSTRUÇÕES

95.761

-1,29%

77.057

-4,17%

17.681

41.491

311

CONCREVIT

60.189

1,31%

55.896

1,48%

409

15.688

207

116

MORAR CONSTRUTORA

26.268

-5,09%

22.512

-13,10%

2.423

18.769

171

MATRICIAL

9.525

-42,80%

8.926

-41,76%

524

7.306

236

181

LACCHENG ENGENHARIA

7.754

7,82%

6.910

9,77%

1.501

4.100

201

206

STAN

2.570

-24,51%

2.240

-26,74%

N/D

3.813

209

BRICK ENGENHARIA E COMERCIO LTDA

2.311

-61,34%

2.232

-60,17%

155

2.409

N/D

219

TERVAP

1.498

-28,83%

1.290

-30,09%

10.677

69.206

230

INCOSPAL

500

-20,09%

439

-11,41%

-546

271

N/D

Once again, Lorenge is the first place when it comes to “Construction”. For the company, it is a singular moment to measure the potential of leaderships and its visibility along with customers. The real estate market is part of our corporate vocation for 36 years. The recognition and distinction are the result of the solidity and credibility of the group of entrepreneurs. It is present in our work philosophy to serve the customer as he likes to be entertained, meeting his expectations, especially with quality real estate. Lorenge is proud of deliveries made, compatible with the company’s ideals of quality. Only in 2016, 850 residential and commercial units were delivered to future residents.” José Élcio Lorenzon, president of Lorenge

“

YEARBOOK IEL 200 LARGEST COMPANIES 2016

147

RANKING | THE LARGEST COMPANIES BY SECTOR

THE LARGEST CAR DEALERSHIP COMPANIES By Gross Operating Revenue (GOR) in ES - In US$ thousand COMPANY

GROSS OP. REVENUE

POSITION

RANKING 2015

VAR. GOR 15/14

NET. OP. REV.

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

KURUMÁ VEÍCULOS

290.600

-1,67%

268.973

-5,40%

-5.671

6.127

523

VITÓRIA DIESEL

154.308

-30,30%

131.552

-32,06%

-2.801

5.028

348

CVC

54.905

-39,69%

53.414

-39,69%

420

15.139

275

TAI MOTORS

40.214

-5,12%

39.738

-1,48%

-60

2.709

VITORIA MOTORS CHRYSLER

36.170

95,59%

34.888

93,25%

-486

948

VITÓRIA MOTORS

33.340

44,64%

32.687

47,11%

214

2.609

133

LAND VITÓRIA

18.668

157,30%

17.867

157,02%

-554

950

157

VENAC

12.649

-51,30%

11.669

-50,53%

-435

8.713

101

First place in the category “Car dealership”, Kurumá follows reaping the good fruit of good management, a suitable structure for the work of teams and differentiated customer service. Achieving this leadership position in our segment is the result of this work. We do business in our companies always thinking to do better today than we did yesterday. And, to do better tomorrow than we did today. Another relevant factor is the maturity of the market, which is increasingly demanding, seeking safety in business and shopping. In Kurumá, with Toyota products and services, we have always been attentive to this movement of our client. And I think he is recognizing that.” Riguel Chieppe, director of the Trade Division of Águia Branca Group

“

THE LARGEST COMPANIES OF FURNITURE MANUFACTURING By Gross Operating Revenue (GOR) in ES - In US$ thousand COMPANY

GROSS OP. REVENUE

POSITION

RANKING 2015

VAR. GOR 15/14

NET. OP. REV.

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

103

RIMO MÓVEIS

30.284

-2,50%

22.663

-2,84%

-125

4.111

349

104

BERTOLINI MÓVEIS DE AÇO

30.191

70,00%

26.094

83,38%

4.132

5.169

266

122

PANAN MOVEIS

21.042

-19,27%

17.436

-19,01%

157

2.302

251

142

MÓVEIS PEROBA

15.394

7,56%

11.465

6,05%

548

5.747

N/D

155

ACP MÓVEIS

12.964

-42,97%

9.971

-43,42%

-1.742

3.240

182

159

CIMOL MÓVEIS

12.437

-8,67%

9.626

-8,25%

3.689

126

Rimo leads the category “Furniture Manufacture”, one of the new categories in the survey IEL Yearbook 2016. With 27 years in the market, the company is proud to be among the top six, in a segment represented by more than 30 thousand factories in the country, with certifications ISO 9001 and 14001. We create many products for our customers and on several ranges. Thus, all consumers can have Rimo furniture, from bedroom wardrobes and modulated furniture to spare parts and complete ambiences. With the acquisition of digital electronic machinery in the production lines, we can serve all customers. We also make furniture for hotels, shops, offices and hospitals and doors for buildings; more recently, we launched the brand Dinamika Planejado, a state-of-the-art product.“ Luiz Rigoni, CEO of Rimo

“ 148

YEARBOOK IEL 200 LARGEST COMPANIES 2016

THE LARGEST TRANSPORT COMPANIES By Gross Operating Revenue (GOR) in ES - In US$ thousand COMPANY

GROSS OP. REVENUE

POSITION

RANKING 2015

VAR. GOR 15/14

NET. OP. REV.

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

VIX LOGÍSTICA

394.301

4,08%

346.088

3,50%

20.194

159.105

2767

ÁGUIA BRANCA

98.943

-2,83%

84.294

5,01%

1.283

111.858

1158

JSL

37.009

2,78%

N/D

1459

105

UNIMAR

30.121

-5,72%

28.163

-6,65%

-349

22.615

1467

141

EXPRESSER

15.441

-4,37%

12.689

-3,86%

-1.224

4.624

194

163

COOPGRANEIS

11.762

-13,74%

11.274

-13,82%

-123

1.235

167

BRASPRESS

10.197

-15,86%

N/D

177

168

CETURB-GV

10.076

-1,45%

9.702

-1,52%

-2.603

758

211

172

METROPOLITANA TRANSPORTES SERVIÇOS

9.099

8,50%

8.917

8,50%

-1.217

4.505

N/D

177

VIAÇÃO TABUAZEIRO

8.043

-9,16%

7.641

-9,17%

-2.461

4.164

559

Vix Logística continues to be a highlight in the ranking in the category “Transport”. The company, which is part of Águia Branca Group, works with rental and management of fleet, people transfers, transport, handling and storage of products, port operations and also in the distribution of kilometer zero vehicles and automotive parts. To be number one involves values such as respect for people, ethics in business, commitment to customers and innovation. To remain as first in the category is very rewarding, because it indicates that we are following the best way, always striving for excellence in our activities and the consequent satisfaction of our customers. The engagement of our team and willingness added to the effort to always go beyond are part of our identity and are directly reflected in the quality of services and in the successful track record we are building.” Kaumer Chieppe, general-director of the Logistics Division of Águia Branca Group.

“

THE LARGEST COMPANIES OF HEALTH INSURANCE By Gross Operating Revenue (GOR) in ES - In US$ thousand COMPANY

GROSS OP. REVENUE

POSITION

RANKING 2015

VAR. GOR 15/14

NET. OP. REV.

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

UNIMED VITÓRIA

299.178

11,49%

291.362

11,45%

3.771

38.265

2372

SAMP ES

87.267

8,85%

85.723

8,66%

3.122

8.464

397

SÃO BERNARDO SAÚDE

69.717

2,20%

68.951

1,29%

1.405

11.195

186

UNIMED SUL CAPIXABA

66.678

14,98%

64.947

15,87%

272

10.793

733

102

UNIMED NOROESTE CAPIXABA

30.412

14,06%

29.870

14,99%

3.063

404

121

MEDSÊNIOR

22.419

31,57%

21.888

30,51%

240

3.319

124

130

UNIMED NORTE CAPIXABA

19.619

13,57%

15.819

15,73%

2.997

297

134

BENEVIX ADMINISTRADORA DE BENEFÍCIOS

18.105

32,46%

16.527

32,45%

6.953

3.095

146

UNIMED PIRAQUEAÇU

14.345

16,44%

14.314

16,37%

-46

4.004

With 2.3 thousand associate doctors and approximately 324 thousand clients, Unimed Vitória is in the first position of the category “Health Insurance”, which debuts in this edition of the Yearbook IEL 200 Largest Companies of Espírito Santo. To achieve this highlight, the company invests in cooperative management, innovation and quality of its cooperates. We are focused on providing quality service and for that we believe in making investment and innovation, which have transformed Unimed Vitória a health insurance plan of recognized excellence throughout Brazil. We have a wide network of own and medical resources, references in their areas. It is important to note that we are pioneers in innovative projects, such as the implementation of the assistance model of primary health care, a global trend that is a new thing in the segment in the country. “ Dr. Márcio de Oliveira Almeida, CEO of Unimed Vitória

“

YEARBOOK IEL 200 LARGEST COMPANIES 2016

149

RANKING | THE LARGEST COMPANIES BY SECTOR

THE LARGEST COMPANIES OF METAL PRODUCTS MANUFACTURING By Gross Operating Revenue (GOR) in ES - In US$ thousand POSITION

RANKING 2015

COMPANY

GROSS OP. REVENUE

VAR. GOR 15/14

NET. OP. REV.

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

PERFIL ALUMÍNO

37.795

15,62%

30.679

14,32%

2.398

7.969

311

109

METALOSA

27.836

-2,80%

22.801

-0,95%

-341

6.691

257

110

TUBOS SOLDADOS ATLÂNTICOS

27.617

-27,72%

21.020

-35,29%

3.606

34.765

N/D

187

METALSER

6.425

-48,60%

4.931

-52,00%

4.837

130

217

CENTRALFER

1.723

-35,51%

1.574

-35,51%

649

9.491

233

CAMPO CONSTRUTORA

359

-56,40%

328

-56,40%

-175

-579

234

SRF USINAGEM

330

-0,30%

298

-0,55%

297

The continuous pursuit of improvement, with creative alternatives to problems, especially aiming at reducing costs. This is the routine of Perfil Alumínio (aluminium), first place in the category Metal Products Manufacture. We always seek to provide that all staff work in a joy and positive environment, despite the difficulties of everyday life. May coming to Perfil be a fortune for our professionals. This is Perfil: a company that manage with love and joy. That seeks to learn and excel, always giving its best. We were not afraid to invest and then we are the first aluminum extruder in the State. We formed a team of experts in their fields, who has helped us to professionalize the management without losing momentum. With this, we aim at the customer loyalty, even in times of crisis. We have managed to keep sales at a relatively stable level. Perfil is distinguished by having passion for what it does. Attentive to the market. Always doing right. Never losing sight of it.“ Carlos Geraldo Machado, CEO of Perfil Alumínio.

“

THE LARGEST HOSPITALS By Gross Operating Revenue (GOR) in ES - In US$ thousand COMPANY

GROSS OP. REVENUE

POSITION

RANKING 2015

VAR. GOR 15/14

NET. OP. REV.

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

HOSPITAL EVANGÉLICO DE VILA VELHA

85.128

-0,63%

83.551

-1,99%

-42

5.917

2909

HOSPITAL MERIDIONAL

59.894

14,94%

57.016

16,73%

5.176

17.451

1623

IRMANDADE DA SANTA CASA DE MISERICORDIA

49.831

9,64%

47.771

9,59%

1.810

27.882

2198

HOSPITAL SANTA RITA

48.318

11,24%

46.546

14,84%

2.860

46.758

1596

VITÓRIA APART HOSPITAL

34.449

11,87%

31.914

12,18%

-592

14.709

1232

100

HOSPITAL VILA VELHA

32.046

13,22%

30.408

13,23%

2.921

10.372

1341

111

HOSPITAL METROPOLITANO

27.255

0,83%

25.704

2,74%

416

10.956

N/D

124

HOSPITAL DR. BENÍCIO TAVARES PEREIRA

20.666

9,21%

20.666

9,21%

311

729

N/D

129

HOSPITAL RIO DOCE

20.073

11,87%

19.962

11,74%

-990

219

N/D

156

APART HOSPITAL

12.881

0,66%

12.146

3,38%

1.074

11.123

322

The single philanthropic institution in the state with certification ONA level III (ONA – National Organization of Accreditation). Entity of excellence and featuring among the best of the country in its area, according to the National Health Agency (ANS). Evangélico Hospital, in Vila Velha, was highlight in the category “Hospital Services.” It is the result of a competent and participative work that requires a continuous process of transformation, involving technical, and especially human and behavioral aspects. The Evangélico Hospital of Vila Velha refused to be part of the crisis and moved on in pursuit of improvements, including investments.” Sebastião Vicente, chairman of the State Evangelical Charity Association (Aebes)

“ 150

YEARBOOK IEL 200 LARGEST COMPANIES 2016

THE LARGEST COMPANIES OF FINANCIAL SERVICES AND INSURANCE By Gross Operating Revenue (GOR) in ES - In US$ thousand POSITION

RANKING 2015

COMPANY

GROSS OP. REVENUE

VAR. GOR 15/14

NET. OP. REV.

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

BANESTES

821.309

21,39%

801.014

21,74%

45.185

347.604

2337

BANCO DO BRASIL

508.510

42,71%

N/D

1471

SICOOB LESTE CAPIXABA

55.219

31,15%

15.005

17,41%

19.478

73.729

183

BANESTES SEGUROS

50.357

4,72%

47.391

4,32%

6.016

37.499

104

SICOOB SUL SERRANO

45.453

30,72%

9.054

17,51%

12.599

55.507

231

SICOOB CENTRAL ES

44.634

65,88%

2.759

48,96%

2.521

30.504

SICOOB SUL

40.359

34,35%

12.134

36,88%

15.110

55.856

164

SICOOB NORTE

39.776

31,35%

6.755

-19,75%

10.094

50.050

199

BANDES

33.474

2,63%

17.081

-5,27%

2.550

105.195

188

101

SICOOB CENTRO-SERRANO

31.794

36,65%

6.007

40,94%

7.759

30.974

164

In the category “Financial Services and Insurance”, the leadership was taken by Banestes, which operates minimizing the effects of the economic crisis on the supply of credit to Espírito Santo’s companies, especially micro, small and medium businesses. While banks reduced the credit supply in the real estate market, Banestes increased by 74% in the first semester. We also launched the Banestes/BNDES credit card, for companies and the Banescard, for individuals. Banestes has been getting return from several advances and recognition from the market, as a result of the continuous improvement of services, and the growth on a sustainable basis, while maintaining high levels of capitalization and liquidity.” Guilherme Dias, CEO of Banestes

“

THE LARGEST FOOD COMPANIES By Gross Operating Revenue (GOR) in ES - In US$ thousand COMPANY

GROSS OP. REVENUE

VAR. GOR 15/14

NET. OP. REVENUE

POSITION

RANKING 2015

VAR. NOR 15/14

NET PROFIT

NET EQUITY

EMPLOYEES ES

GAROTO

621.383

-1,57%

444

-1,64%

10.720

12.350

1969

FRISA FRIGORÍFICO

297.008

21,78%

282.274

23,52%

3.672

39.186

1541

LEÃO ALIMENTOS E BEBIDAS

265.633

-7,43%

197.381

-8,48%

N/D

975

TANGARÁ FOODS

200.108

-9,63%

183.212

-7,57%

-1.588

35.961

299

DUCOCO ALIMENTOS

110.899

16,21%

94.974

18,27%

-581

12.694

N/D

SELITA

75.731

-4,35%

70.924

-2,22%

2.456

15.116

419

REALCAFÉ

66.200

20,67%

64.060

22,12%

6.656

28.469

365

BUAIZ ALIMENTOS

65.475

-3,49%

61.333

-3,76%

1.148

43.264

405

VENEZA

46.799

8,76%

45.718

9,22%

695

6.591

428

MAFRICAL

46.267

3,16%

45.704

3,99%

1.552

2.991

N/D

First place in the category “Food” according to gross revenue, Garoto is the largest chocolate factory in Latin America and one of the 10 largest in the world. The company, which has about 12 thousand employees, is a large showcase of the State to the world. The great strengths of Garoto are the brands and the way how the company gets along with the consumer. It is a relationship of close proximity. To narrow this relationship ever more, the company always develop actions to encourage the contact. In 2017, new things will be presented, showing that innovation is intrinsic to our business, collaborating with the connection and closeness that Garoto has with its consumers.” Daniella Silva, executive-manager of Human Resources of Garoto

“

YEARBOOK IEL 200 LARGEST COMPANIES 2016

151

RANKING | THE BEST COMPANY IN ESPÍRITO SANTO IN 2015 SICOOB CORRETORA

he Yearbook “IEL 200 Largest Companies in Espírito Santo”, over 20 years, has established itself as one of the most important vehicles of promotion of companies, economy and the state of Espírito Santo. And it has been seeking, in every edition, to keep its technical standard, innovate and improve in quality, with methodological rigor that make the data and results more consistent.

THE BEST COMPANY Grading by the best economic financial performance

152

CLASSIF.

COMPANY

SECTOR

GRADE

SICOOB CORRETORA DE SEGUROS

Services

4,4

BENEVIX ADMINISTRADORA DE BENEFÍCIOS

Services

3,15

DVF EDUCAÇÃO EMPRESARIAL

Services

BANESTES DTVM

Services

2,9

WINE.COM.BR

Retail Trade

2,8

TERVAP

Services

2,5

SPASSU

Services

2,45

SOIMPEX

Services

2,4

UCONNECT TELECOM

Services

2,1

VIXPAR

Wholesale Trade

Thus, the Yearbook is increasingly consolidated as one of the most important verhicles of information about the state economy, business management and promotion of organizations. The classification of the “Best Company” is a result of the performance indicators obtained through the financial statements of all companies that participated in this edition of the Yearbook. So, it is possible that companies that are not included in the list of the 200 Largest are featuring in this evaluation. The calculation methodology promotes the comparison of results according to aspects of growth, profitability, financial health and productivity per employee, excluding the share of holdings. Thus, the study consists of attributing points for the performance in each of the five indicators, being 10 to the first, 9 to the second, and so on until the tenth company, which receives one point. Next, the points are multiplied by the weight assigned to each indicator. It is important to clarify that the establishment of the best company in 2015 is not a choice based on skills and performance of companies in their YEARBOOK IEL 200 LARGEST COMPANIES 2016

Winner in the category “Best Company” Sicoob Corretora de Seguros records a significant growth in results, marked by a democratic management that puts the dedicated staff at the center of the organization. The award is a recognition to the strong commitment with the customers and the consequent delivery of value to them. It represents the achievement of reliance and a collective work, developed by professionals committed to the mission and vision of the company. Transparency and ethics are inherent to organizational actions. Sicoob Corretora de Seguros integrates Sicoob System and also operates in other states of the Southeast, besides the Northeast, North and Midwest.” Bento Venturim, CEO of Sicoob Corretora de Seguros

“

Best company respective markets, for the classification is not segregated by sector. The performance indicators and their weights are as follows:

Sales growth - Weight 20 Indicates whether the company’s market share has increased or decreased and its capacity, in growing, to generate jobs.

Return on Sales - Weight 10 It measures the percentage of net sales that remains in the company as profit of the period, i.e., the percentage that is left to the company, after deducting all costs and expenses. The analysis indicates how much profit the company earns for every US$ 100.00 sold.

Return on equity - Weight 35 It measures the return on capital invested by the shareholders, being a result of the company’s efficiency in managing the business. The calculation of the return on equity enables to acknowledge how much the administration, through the assets, obtained of return with its structure, whether financed with equity or borrowed resources. The return on equity is used as a tiebreaker among the companies that got the same number of points in the overall performance. YEARBOOK IEL 200 LARGEST COMPANIES 2016

CORPORATE NAME: S icoob Administradora e Corretora de Seguros Ltda FANCY NAME: Sicoob Corretora de Seguros BUSINESS: Financial Services and Insurance NUMBER OF EMPLOYEES IN ES: 25 SALES GROWTH: 22,16% RETURN ON SALES: 81,05% RETURN ON EQUITY: 22744,45% CURRENT LIQUIDITY: 2,2 TURNOVER: 13.051.501

Profitability per employee - Weight 15 It measures the profitability generated per employee and the average contribution of each one to the profit generated by the company.

Current Liquidity - Weight 20 An important indicator of the company’s financial health, indicating the assurance that it is operating in the short term. The higher the current liquidity, the better the company’s capacity to finance its working capital needs. It represents how much resources are available in the short term to liquidate the debts of short-term as well. Therefore, the higher the value ascertained, the better will be the company’s solvency. Thus, according to the criteria defined above, “The Best Company in Espírito Santo in 2015” is SICOOB CORRETORA DE SEGUROS (Insurance Broker). 153

RANKING | THE 100 LARGEST PRIVATE COMPANIES WITH CAPITAL CONTROL IN THE STATE

eeping the initiative of recent years, IEL prepared the ranking of the “100 Largest Private Companies with Capital Control in the State”. This ranking is a recognition to companies that contributed to the development of Espírito Santo and an appreciation of organizations that are essentially of the state. The classification methodology is applied in descending order of net operating revenue. And, for the characterization as a private company with capital control in the state, the following criteria were defined: 1. Share Control and origin of the private capital in the state; 2. Location of the head office in Espírito Santo; 3. Company originally incorporated in Espírito Santo; 4. Company has an operation unit in Espírito Santo. It is worth highlighting, however, that the fulfillment of these criteria and the consequent definition of the ranking was in accordance to the information provided by the companies through the web query, being the respondents fully responsible for the data, not fitting the IEL questions or verification of data. In the analysis of the ranking results, it was observed that the 100 Largest Private Companies with Capital Control in the State totaled a net operating revenue of US$ 8.45 billion, which is 28.1% of the GOR of the 200 Largest, and an average personnel of 561 workers per company (not counting the companies that did not report the number of workers in ES), showing an average NOR per employee of US$ 172.82 thousand. Having observed the distribution of the companies over the activities, the services sector maintained its leadership with 39 companies, followed by the industrial sector (31 companies) and the trade sector, with 30 companies classified in this group. The performance of the services sector according to net operating revenue was US$ 3.65 billion (43.4%). The trade sector recorded US$ 2.79 billion (32.8%) and the industrial sector registered among the state companies a total of US$ 2.01 billion, 23.7% of the amount of the 100 largest. Regarding the jobs created, 12,819 are in the industrial sector (26.3%) and 9,300 in trade sector (19.1%). The services sector accounted for 26,679 employees, which is 54.7% of the total. However, there was no information of some companies, making it difficult to ascertain precisely those numbers.

The data collected indicate a net operating revenue per employee of US$ 298.35 thousand in the trade sector, US$ 156,35 thousand in the industrial sector and US$ 137.48 thousand in the services sector. For the entire list of the 100 Largest Companies in the State, this indicator was US$ 173.09 thousand per employee. Comparing the results with the established in 2014, these figures reveal a drop in productivity per employee of -8.3% for the trade companies, which is a growth of 11.8% for the services companies and 37.3% for companies in the industry sector. In the general outlook of the 100 Largest, it was found an increase of 13.1% in this ratio. The good performance of the industry in this indicator is partly by the drop in the number of jobs in the sector, of about -5.3%, and the increase in the NOR of 30% in comparison with 2014. Observing the set of the companies that comprise this group, there are 36 that presented negative indicators of the NOR variation. In addition, 21 other companies registered deficit in the net operating revenue.

Progress of the sectoral participation (%) 40 35

Number of Companies (%) - Trade

30 25

Number of Companies (%) - Industry

20 15 10

Number of Companies (%) - Services

5 0

2013

2014

2015

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes’ System

Besides being a reference in importing and exporting services, Cisa Trading won the first place in the category “100 largest private companies with capital control in the State”. The company’s success is related to its differentiated business model. It enables us to offer customized services of management of importations; take care of the customers’ sales channels; make the management of service orders and information about the availability of products; offer the best cost-delivery time; make the distribution and the inventory control in real time; provide fiscal and tax advice, besides having specific systems of flow management. All in order to ensure the best service.“ Antônio José Pargana, president of Cisa Trading

“ 154

YEARBOOK IEL 200 LARGEST COMPANIES 2016

THE 100 LARGEST PRIVATE COMPANIES WITH CAPITAL CONTROL IN ES By Net Operating Revenue (NOR) in ES (in US$ thousand) POSITION

RANKING 2015

COMPANY

SECTOR

NET. OP. REV.

FLUC. NOR 15/14

NET PROFIT

EBITDA

NET EQUITY

RETURN ON SALES

RETURN ON EQUITY

CUURRENT LIQUIDITY

EMPLOYEES ES

CISA TRADING

Services

953.215

4,92%

14.668

67.627

1,54%

21,69%

1,3

GAROTO

Industry

444.164

-1,64%

19.318

10.720

12.350

2,41%

86,80%

0,9

1.969

COLUMBIA TRADING

Services

416.848

13,52%

-3.530

-5.958

1.562

-1,43%

-381,51%

0,9

VIX LOGÍSTICA

Services

346.088

3,50%

71.427

20.194

159.105

5,84%

12,69%

2,2

2.767

HORTIFRUTI

Retail Trade

328.628

18,95%

N/D

6.228

44.139

1,90%

14,11%

0,8

308

SERTRADING (BR)

Services

317.675

-0,06%

15.437

4.490

12.378

1,41%

36,27%

1,0

UNIMED VITÓRIA

Services

291.362

11,45%

6.943

3.771

38.265

1,29%

9,86%

1,1

2.372

FRISA FRIGORÍFICO

Industry

282.274

23,52%

11.459

3.672

39.186

1,30%

9,37%

1,5

1.541

UNICAFÉ

Wholesale Trade

278.743

10,36%

22.333

4.729

79.978

1,70%

5,91%

1,5

158

KURUMÁ VEÍCULOS

Retail Trade

268.973

-5,40%

3.272

-5.671

6.127

-2,11%

-92,56%

1,4

523

UNILIDER

Wholesale Trade

198.765

11,45%

9.474

5.697

12.587

2,87%

45,26%

1,5

350

TRISTÃO

Wholesale Trade

189.983

12,48%

N/D

12.665

68.875

6,67%

18,39%

1,4

N/D

CASAGRANDE

Retail Trade

173.534

10,12%

58.450

4.427

30.863

2,55%

14,35%

2,0

2.661

VITÓRIA DIESEL

Retail Trade

131.552

-32,06%

933

-2.801

5.028

-2,13%

-55,71%

1,2

348

EXCIM

Wholesale Trade

127.115

-19,60%

1.240

669

10.576

0,53%

6,32%

1,3

190

SUPERMERCADO PERIM

Retail Trade

126.142

11,62%

N/D

6.228

17.105

4,94%

36,41%

1,5

N/D

COOABRIEL

Wholesale Trade

120.341

33,02%

790

247

16.858

0,21%

1,46%

1,0

246

COOPEAVI

Retail Trade

101.632

5,79%

4.002

1.078

22.194

1,06%

4,86%

1,1

542

NICCHIO SOBRINHO CAFÉ

Wholesale Trade

99.997

51,80%

601

417

12.625

0,42%

3,30%

1,6

RDG PRODUTOS SIDERÚRGICOS

Wholesale Trade

95.753

2,59%

N/D

14.166

119.503

14,79%

11,85%

2,1

347

DUCOCO ALIMENTOS

Industry

94.974

18,27%

N/D

-581

12.694

-0,61%

-4,58%

1,7

N/D

PERFILADOS RIO DOCE

Industry

86.510

-24,11%

N/D

10.570

118.682

12,22%

8,91%

25,4

316

SAMP ES

Services

85.723

8,66%

4.382

3.122

8.464

3,64%

36,88%

1,5

397

ÁGUIA BRANCA

Services

84.294

5,01%

9.727

1.283

111.858

1,52%

1,15%

1,1

1.158

HOSPITAL EVANGÉLICO DE VILA VELHA

Services

83.551

-1,99%

1.758

-42

5.917

-0,05%

-0,71%

1,2

2.909

ECO 101

Services

81.487

-6,49%

21.138

1.241

37.748

1,52%

3,29%

0,2

419

PELICANO CONSTRUÇÕES

Industry

77.057

-4,17%

30.730

17.681

41.491

22,95%

42,61%

4,0

311

EMPRESA LUZ FORÇA SANTA MARIA

Services

74.805

28,92%

N/D

7.732

44.838

10,34%

17,24%

1,4

N/D

SELITA

Industry

70.924

-2,22%

2.838

2.456

15.116

3,46%

16,25%

1,5

419

SÃO BERNARDO SAÚDE

Services

68.951

1,29%

3.453

1.405

11.195

2,04%

12,55%

1,4

186

BRAMETAL

Industry

67.177

-12,09%

15.123

14.202

56.234

21,14%

25,26%

3,2

520

UNIMED SUL CAPIXABA

servi

64.947

15,87%

-725

272

10.793

0,42%

2,52%

1,3

733

REALCAFÉ

Industry

64.060

22,12%

9.130

6.656

28.469

10,39%

23,38%

1,1

365

BUAIZ ALIMENTOS

Industry

61.333

-3,76%

3.385

1.148

43.264

1,87%

2,65%

1,1

405

ALCON

Industry

57.342

41,22%

15.729

10.577

40.753

18,44%

25,95%

3,0

322

HOSPITAL MERIDIONAL

Services

57.016

16,73%

9.741

5.176

17.451

9,08%

29,66%

0,9

1.623

QUIMETAL

Services

56.491

15,03%

2.206

1.812

7.657

3,21%

23,67%

1,7

CONCREVIT

Industry

55.896

1,48%

3.627

409

15.688

0,73%

2,61%

1,4

207

EXTRAFRUTI

Wholesale Trade

55.097

9,50%

4.946

3.314

7.525

6,01%

44,04%

1,9

780

FIBRASA SUDESTE

Industry

54.724

1,99%

6.483

839

38.692

1,53%

2,17%

1,8

308

LORENGE

Industry

54.127

-39,98%

1.839

-10.042

67.071

-18,55%

-14,97%

2,0

345

CVC

Retail Trade

53.414

-39,69%

771

420

15.139

0,79%

2,78%

1,1

275

TERRA NOVA

Wholesale Trade

51.298

-17,51%

-58

1.597

-0,11%

-3,62%

1,0

IRMANDADE DA SANTA CASA DE MISERICORDIA

Services

47.771

9,59%

2.960

1.810

27.882

3,79%

6,49%

1,2

2.198

BANESTES SEGUROS

Services

47.391

4,32%

10.243

6.016

37.499

12,69%

16,04%

0,9

104

HOSPITAL SANTA RITA

Services

46.546

14,84%

2.860

46.758

6,14%

6,12%

2,9

1.596 428

VENEZA

Industry

45.718

9,22%

2.654

695

6.591

1,52%

10,55%

0,7

MAFRICAL

Industry

45.704

3,99%

N/D

1.552

2.991

3,40%

51,88%

1,5

N/D

ELKEM

Industry

43.806

-1,19%

6.233

3.372

27.775

7,70%

12,14%

3,2

168

CEDISA

Wholesale Trade

43.766

-17,26%

675

-714

15.010

-1,63%

-4,76%

2,9

185

YEARBOOK IEL 200 LARGEST COMPANIES 2016

155

RANKING | THE 100 LARGEST PRIVATE COMPANIES WITH CAPITAL CONTROL IN THE STATE

THE 100 LARGEST PRIVATE COMPANIES WITH CAPITAL CONTROL IN ES By Net Operating Revenue (NOR) in ES (in US$ thousand) RANKING 2015

TVV

Services

43.741

-11,62%

N/D

4.771

24.091

10,91%

19,80%

0,7

SAVIXX

Wholesale Trade

43.379

-48,04%

-589

-240

1.188

-0,55%

-20,20%

1,1

DAMARE

Industry

41.011

2,93%

3.605

974

7.845

2,38%

12,42%

0,7

270

CPVV

Services

40.198

-5,57%

7.406

4.696

23.279

11,68%

20,17%

2,3

128

MERCOCAMP

Services

39.835

-11,66%

N/D

440

0,13%

11,78%

0,8

N/D

KIFRANGO

Industry

39.566

12,12%

N/D

4.870

0,08%

0,68%

0,9

753

COFRIL - ABAV

Industry

38.120

10,61%

974

379

7.054

0,99%

5,38%

1,9

661

SPASSU

Services

37.993

12,77%

3.588

2.480

1.903

6,53%

130,34%

1,3

839

SUPERMERCADOS SANTO ANTÔNIO

Retail Trade

36.549

-1,41%

N/D

-772

2.446

-2,11%

-31,58%

1,0

940

VITORIA MOTORS CHRYSLER

Retail Trade

34.888

93,25%

633

-486

948

-1,39%

-51,20%

1,6

VITÓRIA MOTORS

Retail Trade

32.687

47,11%

888

214

2.609

0,65%

8,20%

1,2

VITÓRIA APART HOSPITAL

Services

31.914

12,18%

2.563

-592

14.709

-1,85%

-4,02%

1,0

1.232

PERFIL ALUMÍNO

Industry

30.679

14,32%

3.702

2.398

7.969

7,82%

30,09%

1,7

311

100

HOSPITAL VILA VELHA

Services

30.408

13,23%

5.125

2.921

10.372

9,61%

28,17%

1,3

1.341

102

UNIMED NOROESTE CAPIXABA

Services

29.870

14,99%

N/D

3.063

0,03%

0,30%

1,0

404

VIMINAS

Industry

29.719

-7,81%

2.317

1.855

20.014

6,24%

9,27%

2,3

388

VILA PORTO

Wholesale Trade

28.867

25,43%

-1.702

-230

361

-0,80%

-63,51%

1,4

105

UNIMAR

Services

28.163

-6,65%

4.100

-349

22.615

-1,24%

-1,54%

2,2

1.467

108

MARBRASA

Industry

25.984

5,57%

2.890

654

17.135

2,52%

3,82%

2,2

359

CLAC

Services

25.831

-29,31%

N/D

1.115

0,03%

0,72%

0,8

111

HOSPITAL METROPOLITANO

Services

25.704

2,74%

3.334

416

10.956

1,62%

3,80%

1,1

N/D

115

DECOLORES MÁRMORES E GRANITOS DO BRASIL

Industry

25.676

18,90%

14.292

10.925

26.731

42,55%

40,87%

3,2

119

VIXPAR

Wholesale Trade

24.442

N/D

26.400

57.471

108,01%

45,94%

44,5

N/D

117

SUPERMERCADO PORTO NOVO

Retail Trade

23.432

7,38%

321

211

1.496

0,90%

14,10%

1,1

533

109

METALOSA

Industry

22.801

-0,95%

N/D

-341

6.691

-1,50%

-5,10%

2,2

257

103

RIMO MÓVEIS

Industry

22.663

-2,84%

911

-125

4.111

-0,55%

-3,04%

1,5

349

116

MORAR CONSTRUTORA

Industry

22.512

-13,10%

4.132

2.423

18.769

10,76%

12,91%

2,1

114

ELSONS PRODUTOS ALIMENTÍCIOS LTDA

Wholesale Trade

22.435

0,63%

N/D

-186

3.131

-0,83%

-5,94%

1,0

242

112

NUTRIAVE INDÚSTRIA E COMÉRCIO

Industry

22.282

4,60%

N/D

763

5.600

3,42%

13,62%

0,6

474

113

DIAÇO

Wholesale Trade

22.257

-15,59%

2.848

1.237

19.209

5,56%

6,44%

7,6

130

121

MEDSÊNIOR

Services

21.888

30,51%

288

240

3.319

1,10%

7,23%

0,9

124

120

SERDEL

Services

21.225

-1,93%

2.444

1.789

2.835

8,43%

63,11%

2,4

2.428

110

TUBOS SOLDADOS ATLÂNTICOS

Industry

21.020

-35,29%

N/D

3.606

34.765

17,16%

10,37%

37,0

N/D

124

HOSPITAL DR. BENÍCIO TAVARES PEREIRA

Services

20.666

9,21%

N/D

311

729

1,51%

42,69%

1,4

N/D

118

ISH TECNOLOGIA

Services

20.062

-12,85%

2.207

247

3.961

1,23%

6,23%

1,1

107

125

MAGBAN

Industry

19.632

34,11%

13.357

8.034

27.886

40,92%

28,81%

8,8

103

128

LASA

Industry

19.524

41,44%

N/D

-2.344

37.837

-12,00%

-6,19%

1,2

867

133

LAND VITÓRIA

Retail Trade

17.867

157,02%

484

-554

950

-3,10%

-58,34%

1,1

131

ENGE URB

Services

17.680

20,51%

6.193

3.831

27.701

21,67%

13,83%

4,5

581

122

PANAN MOVEIS

Industry

17.436

-19,01%

1.640

157

2.302

0,90%

6,83%

1,4

251

138

SHOPPING VITÓRIA

Services

16.896

-1,22%

15.489

11.689

17.784

69,18%

65,72%

1,4

340

126

SANTA FÉ TRADING

Services

16.216

21,39%

890

668

1.325

4,12%

50,44%

3,4

132

ESPIRAL ENGENHARIA

Services

15.969

2,24%

481

242

6.283

1,52%

3,86%

0,8

598

130

UNIMED NORTE CAPIXABA

Services

15.819

15,73%

352

2.997

0,26%

1,36%

1,0

297

135

ELETROMIL

Wholesale Trade

15.380

-6,06%

2.596

2.038

6.501

13,25%

31,34%

3,2

159

SICOOB LESTE CAPIXABA

Services

15.005

17,41%

10.871

19.478

73.729

129,81%

26,42%

1,0

183

140

SERRA AMBIENTAL

Services

14.377

317,15%

N/D

-403

6.532

-2,81%

-6,18%

1,5

N/D

146

UNIMED PIRAQUEAÇU

Services

14.314

16,37%

103

-46

4.004

-0,32%

-1,16%

1,9

147

ANDRADE STONE COMPANY

Wholesale Trade

14.136

N/D

155

105

408

0,74%

25,74%

1,1

100

139

ATACADO SÃO PAULO

Wholesale Trade

13.596

-0,97%

2.390

1.669

3.875

12,28%

43,08%

3,6

168

156

COMPANY

SECTOR

NET. OP. REV.

VAR. NOR 15/14

EBITDA

NET PROFIT

NET EQUITY

RETURN ON SALES

RETURN ON EQUITY

POSITION

CUURRENT LIQUIDITY

EMPLOYEES ES N/D

YEARBOOK IEL 200 LARGEST COMPANIES 2016

CONSOLIDATION OF THE 100 LARGEST PRIVATE COMPANIES WITH CAPITAL CONTROL BY ES Ranking by Net Operating Revenue (NOR) in Espirito Santo - (in US$ thousand) SECTOR OF BUSINESS

NUMBER OF COMPANIES

GROSS OP. REVENUE (GOR)

EBITDA

NET PROFIT

TOTAL ASSETS

NET EQUITY

EMPLOYEES IN ES

TRADE

2.774.646

115.452

80.446

1.543.298

586.323

9.300

Wholesale Trade

1.445.349

45.698

71.925

1.054.818

437.279

3.071

Retail Trade

789.916

62.773

17.400

305.796

118.243

4.984

Car Dealership

539.381

6.981

-8.879

182.684

30.801

1.245

INDUSTRY

2.004.419

176.369

103.318

1.782.390

796.626

12.819

Food

1.250.131

53.363

28.467

793.046

186.030

7.285

Construction

209.593

40.329

10.471

305.208

143.020

918

Rubber and Plastic Manufacture

54.724

6.483

839

67.586

38.692

308

Metal Products Manufacture

74.499

3.702

5.663

65.255

49.425

568

Non-Metallic Products Manufacture

101.012

32.855

21.469

132.600

91.767

947

Furniture Manufacture

40.099

2.552

28.310

6.412

600

Chemical and Petrochemical

120.672

21.962

11.605

187.714

106.365

1.357

Steel and Metal

153.688

15.123

24.772

202.671

174.915

836

SERVICES

3.667.933

223.500

122.351

2.675.471

910.737

26.679

Management of Shopping Mall

16.896

15.489

11.689

29.219

17.784

340

Hospital Services

343.576

28.342

12.861

301.164

134.775

10.899

Coll. Proc. And Dist. Of Residues

32.057

6.193

3.428

54.046

34.233

581

Highway Concessionaire

81.487

21.138

1.241

141.140

37.748

419

Energy and Gas

74.805

N/D

7.732

67.714

44.838

Management of Ports and Terminals

83.939

7.406

9.467

95.385

47.369

128

Construction Machinery and Equipment Rental

15.969

481

242

13.171

6.283

598

Health Insurance

592.873

14.796

8.814

266.545

82.099

4.580

Cleaning and Conservation Services

21.225

2.444

1.789

5.021

2.835

2.428

Financial Services and Insurance

62.397

21.115

25.493

383.596

111.228

287

Importing and Exporting Services

1.826.110

15.048

15.741

696.012

92.103

Information Technology

58.054

5.795

2.727

21.442

5.863

946

Transport

458.546

85.254

21.128

601.016

293.579

5.392

100

8.446.998

515.320

306.116

6.001.158

2.293.686

48.798

TOTAL

YEARBOOK IEL 200 LARGEST COMPANIES 2016

157

RANKING RANKING OF 10 LARGEST GROUPS

n the 20th edition of the Yearbook IEL - 200 Largest Companies of Espírito Santo, the ranking of the 10 Largest Corporate Groups in Espírito Santo was defined according to the following methodology: 1 - Two or more independent companies, formally constituted under common share control, whose capital originated in Espírito Santo exceeds 50%; 2 - Having share control and private source of capital; 3 - The location of head office must be in the ES; 4 - The company must have been established in ES; 5 - The company must have an operating unit in ES; These data were obtained from the economic and financial information provided by the corpo-

158

PRODUCTIVITY X NET PROFIT YEAR

PRODUCTIVITY IN BRAZIL

PRODUCTIVITY IN ES

NET PROFIT

2013

232,3

336,0

640,8

2014

282,8

316,7

731,1

2015

461,0

682,2

628,0

Variation 15/14

63,0%

115,4%

-14,1%

rate groups. Among the information collected, it was determined the net equity as a defining criterion in the ranking, being the other data complementary to it, reflecting, thus, the importance of the group and its impact on the state economy. It is highlighted that the lack of consolidated information, not disclosed in a timely manner, or other reasons caused some major corporate groups in Espírito Santo to not feature in this ranking.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

LARGEST CORPORATE GROUPS – VARIATION OF GOR, NE AND EMPLOYEES YEAR

TOTAL GOR

ES GOR

TOTAL EMPLOYEES

EMPLOYEES IN ES

2013

7,2

4,7

5,6

28.288

14.261

2014

7,7

5,1

6,7

27.308

16.016

2015

13,4

9,2

7,4

28.986

13.417

This year, the 10 largest corporate groups totaled 79 companies, a number 19% lower than the one presented last year. Such groups registered in the year 2015 a net equity of US$ 2.21 billion. Compared to the ranking of the previous year, there was a significant increase of 10.5%. The average NE per company for the whole group was US$ 28.03 million per company. This figure in 2014 was US$ 20.63 million, a variation of 35.7%. It is worth noticing, however, that these variation occur in a context of groups and companies that differ from those that compounded the 2015 ranking. In this sense, the total gross operating revenue calculated was US$ 4.01 billion against US$ 2.3 billion recorded last year, a variation of 74%. Of the total GOR, the values generated in Espírito Santo represented the amount of US$ 2.76 billion, 68.5% of this total, considering that 4 groups revealed fall in the Total GOR relation of 2014/2015. Regarding the net equity, only one group registered fall. As for the number of employees, they totalized 28,986 workers (in all units, including those outside Espírito

Santo). A decrease of -7.8% in relation to the participating groups in the Yearbook of 2015. The number of employees in the state, when compared, shows a more significant percentage: -16.2%. The average personnel per company was 367 employees for the total of jobs generated. In 2014 this ratio was 322 per company. The ratio net equity per employee was US$ 76.38 thousand, and the total GOR per employee was US$ 138.08 thousand. In 2014 this ratio was US$ 74.04 thousand per employee. The GOR per employee in ES was US$ 204.27 thousand. A result 48% better than the one registered by the total data of the GOR per employee. The comparison between the largest group with the 10th position in the survey showed a net equity 1,612% higher. When in 2015 this ratio was 2,975%. The net profit of the year 2015 of the ten Largest Corporate Groups amounted to approximately US$ 188.1 million, a number lower to that ascertained in 2014 (US$ 218.98 million), with a variation of -14.1%.

THE 10 LARGEST CORPORATE GROUPS ACCORDING TO NET EQUITY (Figures in US$ thousands) RANKING 2015

GROUP

INCOSPAL

RDG AÇOS DO BRASIL

ÁGUIA BRANCA

4 5

NUMBER OF COMPANIES

CITY

NET EQUITY

VAR. NET EQUITY 15/14

GROSS OP. REVENUE (GOR) IN ES

TOTAL GROSS OP. REVENUE (GOR)

% GOR NO ES

NUMBER OF TOTAL VAR. GOR TOTAL EMPLOYEES NUMBER OF 15/14 IN ES EMPLOYEES

NET PROFIT

SERRA

628.375

22,32%

34.677

100,00%

115.775

-2,26%

N/D

2.824

94.210

SERRA

428.308

8,79%

68.891

98,21%

234.198

-13,08%

912

851

16.179

VITÓRIA

369.389

6,82%

157.669

45,45%

1.158.220

-0,74%

13.759

SICOOB ES

VITÓRIA

311.553

27,90%

80.472

100,00%

268.673

28,57%

1.214

1.198

GRUPO BUAIZ

VITÓRIA

182.828

4,02%

7.179

30,43%

78.765

-6,01%

971

7.363

FRISA

COLATINA

75.398

-13,03%

82.190

67,29%

407.798

26,56%

3.270

1.877

10.828

CISA TRADING

VITÓRIA

67.627

6,80%

371.610

100,00%

1.240.693

7,34%

286

14.668

PELICANO CONSTRUÇÕES

SERRA

67.291

22,40%

4.261

13,90%

102.353

0,78%

1.812

311

21.269

HORTIGIL HORTIFRUTI

CARIACICA

44.139

86,04%

1.790

1,71%

349.405

20,05%

6.452

308

6.228

GRUPO ANDRADE

SERRA

38.976

9,76%

12.334

90,00%

45.754

64,78%

310

241

8.271

2.213.884

821.073

4.001.634

28.986

TOTAL

YEARBOOK IEL 200 LARGEST COMPANIES 2016

4.818 -45.570 54.639

13.417 627.954

159

RANKING IDEIES ANALYSIS

EGIDIO MALANQUINI

is the director for Ideies’s Affairs

THE 200 LARGEST IN FOCUS T he edition of “200 Largest Companies of Espírito Santo” i ncludes , for t he four t h consecutive year, the analysis of the Educational and Industrial Development Institute of Espírito Santo – Ideies, related to the distribution of the number of companies and their gross operating revenues by the regional boards of Findes System, with the Great Vitória Metropolitan Region having the largest number of companies (144), corresponding to 86.1% of total revenue. Regarding the concentration in the Great Vitória Metropolitan Region, it is worth mentioning again that one of the priorities of the Findes System is the internalization of development, which is why 15 regional boards have been established in order to attract new industrial investments that permit a more balanced economic growth in Espírito Santo. It is also analyzed the relative weight of the 20 largest companies on the gross operating revenue (GOR) and the number of employees in all the 200 largest companies in the state and the 20 largest in the industrial, trade

162

and services sectors. The study also includes the share of total employees of the 200 largest companies in relation to total jobs of Espírito Santo ascertained in the Rais/MTE. The 2016 edition notes that the gross operating revenue of the 20 largest companies in 2015 represents 73.7% of the total revenue of the 200 largest companies and that the number of jobs corresponds to 34.2% of the total employment in the general ranking. The analysis also presents the results of the climate survey carried out with the 200 largest companies in this edition, obtaining responses from 158 companies. The objective of this consultation was to evaluate the potential of Espírito Santo and the climate of the state entrepreneurs in relation to different aspects, some of which compared to the results of the climate research done in the previous year. Finally, thank you to Doria Porto, Executive Director of Ideies, and the entire team of the Executive Management of Creative Economy of SESI/ SENAI/ES for conducting the study that made this edition of “200 Largest Companies of Espírito Santo” a reality.

YEARBOOK IEL 200 LARGEST COMPANIES 2016

200 Largest Companies from the point of view of the reginal boards of Findes

he Espírito Santo’s Industry Federation consists of 15 reginal boards and centers located, strategically, in the counties, from the industrial point of view, offering the necessary structure to meet the main demands of the production unions. Taking into consideration the territorial division of Espírito Santo, the metropolitan region is composed by the executive boards of Vitória, Serra, Vila Vilha, Cariacica and Viana. The south of the state is made up of the regional boards of Anchieta,

Cachoeiro de Itapemirim, Venda Nova do Imigrante and Guaçuí, while the northern part contains the regionals of Aracruz, Colatina, Linhares, São Mateus, Nova Venécia, Barra de São Francisco and Santa Maria de Jetibá. Of the 200 largest companies of Espírito Santo in 2015, 144 are located in the towns of Great Vitória Metropolitan Region (RMGV), a number a little smaller than registered in 2014 (145). The city of Vitória contains 54 companies who together account for 57.2% of the GOR generated by the

Executive boards and regional centers of Findes - Espírito Santos’ Industry Federation

| Figure 1

Board of Vitória Executive Board of Linhares and Surrounds Executive Board of Colatina and Surrounds Executive Board of Aracruz and Surrounds Executive Board of Anchieta and Surrounds Executive Board of Cachoeiro de Itapemirim and Surrounds Regional Center of Venda Nova do Imigrante and Surrounds Regional Center of São Mateus and Surrounds Regional Center of Nova Venécia and Surrounds Regional Center of Sta. M. de Jetibá and Surrounds Regional Center of Barra de São Francisco and Surrounds Regional Center of Guaçuí and Surrounds Executive Board of Cariacica and Viana Executive Board of Vila Velha Executive Board of Serra

Updated November 11, 2014 Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

YEARBOOK IEL 200 LARGEST COMPANIES 2016

163

RANKING Photo: Sagrilo

IDEIES ANĂ LISEANALYSIS IDEIES

Number and percentage (%) of the Largest Companies by economic sector Service

Trade

| Chart 1

Industry

Industry 67 33% Service 89 45%

200 largest. Following, Serra has 48 companies that produce a GOR of US$ 3,89 billion (12.9% of the total). Combined, the cities of RMGV contain more than 70% of the 200 largest companies, providing 86.1% of the GOR (table 1). Within the state, the prominent conglomerations of companies are in Linhares and surrounds (17 companies), Colatina and surrounds (13 companies), and Cachoeiro de Itapemirim and surrounds (12 companies). It is interesting to note that with 5 companies among the 200 largest, the Aracruz region provides 4.3% of the GOR - the major share among the companies of the interior of the state (table 1). In relation to economic activities, the sector of services kept the number of companies of the past year, 89, which corresponds to 45% of the total. Industry comprises 33% of the largest companies, and trade comprises 22%. When analyzed the share of each sector in the GOR, industry is responsible for more than half (55%) of the total; services, for 27%; and trade, for 18% (Charts 1 and 2). 164

Trade 44 22%

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Amount (in US$ Billion) and percentage (%) of the Gross Operating Revenue by economic sector Service

Trade

| Chart 2

Industry

Industry 16,71 55%

Service 8,09 27% Trade 5,30 18%

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Distribution of the 200 Largest Companies according to Executive Boards and Regional Centers of Findes and Towns EXECUTIVE BOARDS AND REGIONAL CENTERS OF FINDES

GENERAL

| Table 1

INDUSTRY

TRADE

SERVICE

Nº COMPANIES

GOR*

Nº COMPANIES

GOR*

Nº COMPANIES

GOR*

Nº COMPANIES

GOR*

Executive Board of Vitoria

17.220

8.255

2.509

6.456

Vitória

17.220

8.255

2.509

6.456

Executive Board of Linhares and Surrounds

1.195

905

195

Linhares

1.195

905

195

Rio Bananal

Sooretama

Executive Board of Colatina and Surrounds

920

408

240

271

Baixo Guandu

Colatina

751

408

111

231

Governador Lindenberg

Marilândia

Pancas

Sao Domingos do Norte

São Gabriel da Palha

169

129

São Roque do Canaã

Vila Valério

Executive Board of Aracruz and Surrounds Aracruz Fundão

5 5 -

1.307 1.307 -

1 1 -

1.202 1.202 -

4 4 -

105 105 -

Ibiraçu

João Neiva

Executive Board of Anchieta and Surrounds

Alfredo Chaves

Anchieta

Guarapari

Iconha

Piúma

Executive Board of Cachoeiro de Itapemirim and Surrounds

366

238

128

Atílio Vivácqua

Cachoeiro de Itapemirim

291

163

128

Castelo

Itapemirim

Jerônimo Monteiro

Marataízes

Mimoso do Sul

Muqui

Presidente Kennedy

Rio Novo do Sul

Vargem Alta

Regional Center of Venda Nova do Imigrante and Surrounds

Afonso Cláudio

Brejetuba

Conceição do Castelo

Domingos Martins

Ibatiba

Irupi

Iúna

Marechal Floriano

YEARBOOK IEL 200 LARGEST COMPANIES 2016

165

RANKING Distribution of the 200 Largest Companies according to Executive Boards and Regional Centers of Findes and Towns EXECUTIVE BOARDS AND REGIONAL CENTERS OF FINDES Muniz Freire

GENERAL

| Table 1

INDUSTRY

TRADE

SERVICE

Nº COMPANIES

GOR*

Nº COMPANIES

GOR*

Nº COMPANIES

GOR*

Nº COMPANIES

GOR*

Venda Nova do Imigrante

Regional Center of São Mateus and Surrounds

Conceição da Barra

Jaguaré

Pedro Canário

São Mateus

Regional Center of Nova Venecia and Surrounds

Boa Esperança

Montanha

Mucurici

Nova Venécia

Pinheiros

Ponto Belo

Vila Pavãoo

Regional Center of Santa Maria de Jetiba and Surrounds

141

105

Itaguaçu Itarana Laranja da Terra

1 -

4 -

1 -

4 -

Santa Leopoldina

Santa Maria de Jetibá

137

105

Santa Teresa

Regional Center of Barra de Sao Francisco and Surrounds

Água Doce do Norte

Águia Branca

Alto Rio Novo

Barra de São Francisco

Ecoporanga

Mantenopólis

Regional Center of Guaçui and Surrounds

Alegre

Apiacá

Bom Jesus do Norte

Divino de São Lourenço

Dores do Rio Preto

Guaçuí

Ibitirama

São José do Calçado

Executive Board of Cariacica and Viana

3.254

2.181

859

214

Cariacica

954

113

627

214

Viana

2.300

2.068

232

Executive Board of Vila Velha

1.547

821

460

265

Vila Velha

1.547

821

460

265

Executive Board of Serra

3.881

2.541

885

455

Serra

3.881

2.541

885

455

Espírito Santo

200

30.080

16.705

5.294

8.081

*Gross Operating Revenue in R$ Million Source: IEL - Research 200 Largest Companies of Espírito Santo. Text by: Ideies/Findes System

166

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Companies and Gross Operating Revenue (GOR) of the Industrial Sector by Boards of Findes

| Table 2

COMPANIES

Boards and Centers

QTD

GOI

US$ MILLION

Great Vitoria Metropolitan Area

Industry Of the 200 largest companies of Espírito Santo, 67 are industrial, with 52% of them located in the RMGV and the other 48% in the interior towns of the state. The GOR generated by industries totaled US$ 16,70 billion, and 82.6% of this total is concentrated in the cities of Great Vitória (Table 2). In number of industries, the boards of Serra, and Linhares with its surrounding region, are the ones that concentrate the largest quantity, 14 in Serra and 13 in Linhares. However, almost 50% of the total GOR generated by the industrial sector is come from the 10 industries located in Vitória (Table 2). In the executive boards of the countryside, it is to be noted, other than Linhares and region, Cachoeiro de Itapemirin and region, with 9 industries; and Colatina and region, with 5. In regards to the GOR, Aracruz, with a single industry, YEARBOOK IEL 200 LARGEST COMPANIES 2016

Board of Vitoria

14,9

8.255

49,4

Board of Cariacica and Viana

13,4

2.181

13,1

Board of Vila Velha

3,0

821

4,9

20,9

2.541

15,2

Board of Serra

Countryside Board of Linhares and Surrounds

19,4

905

5,4

Board of Colatina and Surrounds

7,5

408

2,4

Board of Aracruz and Surrounds

1,5

1.202

7,2

Board of Anchieta and Surrounds

Board of Cachoeiro do Itapemirim and Surrounds Center of Venda Nova do Imigrante and Surrounds Center of São Mateus and Surrounds

13,4

238

1,4

1,5

0,4

Center of Nova Venecia and Surrounds

3,0

0,5

Center of Santa Maria de Jetiba and Surrounds

1,5

0,0

Center of Barra de São Francisco and Surrounds

Center of Guaçui and Surrounds

Total

100,0

16.705

100,0

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

167

RANKING Companies and Gross Operating Revenue (GOR) of the Trade Sector by Boards of Findes

| Table 3

COMPANIES

Boards and Centers

QTD

GOI

US$ MILLION

Great Vitoria Metropolitan Area Board of Vitoria

25,0

2.509

47,4

Board of Cariacica and Viana

25,0

859

16,2

Board of Vila Velha

6,8

460

8,7

Board of Serra

29,5

885

16,7

Countryside Board of Linhares and Surrounds

2,3

195

3,7

Board of Colatina and Surrounds

6,8

240

4,5

Board of Aracruz and Surrounds

Board of Anchieta and Surrounds

2,3

0,8

Board of Cachoeiro do Itapemirim and Surrounds

Center of Venda Nova do Imigrante and Surrounds

Center of São Mateus and Surrounds

Center of Nova Venecia and Surrounds

Center of Santa Maria de Jetiba and Surrounds

2,3

105

2,0

Center of Barra de São Francisco and Surrounds

Center of Guaçui and Surrounds

100,0

5.294

100,0

Total

Companies and Gross Operating Revenue (GOR) of the Services Sector by Boards of Findes

| Table 4

COMPANIES

Boards and Centers

QTD

GOI

US$ MILLION

Great Vitoria Metropolitan Area Board of Vitoria

37,1

6.456

79,9

Board of Cariacica and Viana

7,9

214

2,7

Board of Vila Velha

11,2

265

3,3

Board of Serra

23,6

455

5,6

Countryside Board of Linhares and Surrounds

3,4

1,2

Board of Colatina and Surrounds

5,6

271

3,4

Board of Aracruz and Surrounds

4,5

105

1,3

Board of Anchieta and Surrounds

1,1

0,2

Board of Cachoeiro do Itapemirim and Surrounds

3,4

128

1,6

Center of Venda Nova do Imigrante and Surrounds

1,1

0,6

Center of São Mateus and Surrounds

Center of Nova Venecia and Surrounds

Center of Santa Maria de Jetiba and Surrounds

1,1

0,4

Center of Barra de São Francisco and Surrounds

Center of Guaçui and Surrounds

100,0

8.081

100,0

Total Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

168

generated US$ 1,20 billion, representing 7.2% of all industrial GOR (Table 2).

Trade Trade companies totaled 44 among the 200 largest, with most of the companies (38) locate in the RMGV. Altogether, the trade companies earned a US$ 5,29 billion GOR. The cities of Serra, Vitória, Cariacica and Viana have, respectively, 13, 11, and 11 companies in this sector, which generated the amounts of GOR, in the following order, US$ 886,5 million, US$ 2,51 billion and US$ 859,6 million (Table 3). In the interior of Espírito Santo, Colatina and surrounds have 3 companies; Linhares and surrounds, Anchieta and surrounds, and Santa Maria de Jetibá have, each, 1 trade company among the 200 largest. These 6 companies of the interior of the state contributed with a US$ 581 million GOR (Table 3).

Services In relation to the number of companies, the sector of services is the most representative: there are 89 companies, with 71 in the RMGV and 18 in the counties of the interior of the State. The GOR recorded by these companies totalized US$ 8,08 billion, and 80% of this revenue is located in Vitória. The concentration of services companies in Vitória is explained by the characteristic of the sector of being near to the consumer market (Table 4). Amongst the cities in the interior, the ones that are prominent are: Colatina and surrounds, with 5 companies; Aracruz and surrounds, with 4; Linhares and surrounds and Cachoeiro de Itapemirim and surrounds, with 3 companies each (Table 4). YEARBOOK IEL 200 LARGEST COMPANIES 2016

Jobs of the 200 largest companies of Espírito Santo in relation to jobs in the economy of the state

he 200 largest companies of Espírito Santo employ 9.8% (91,360) of all workers in the State (933,650), according to the data collected on the Rais/MTE 2014 and on the research “200 Largest Companies of ES in 2015 – edition 2016”. This share has not varied much in the last four editions of the Yearbook, as it was 10.5% in 2014, 11% in 2013, and 10% in 2012, according to the Rais 2014, 2013, and 2012 and the studies of the 200 largest companies in 2015 and these years, respectively (see chart 3). It is noteworthy that some companies did not provide this information, being 30 in 2015, 26 in 2014, 22 in 2013 and 31 in 2012. In the analyzes of the total jobs generated by the 200 largest companies in 2015 and the total of jobs in Espírito Santo (Rais/MTE 2014), by sector, was verified that the

Progress of the percentage of employees in the Ranking of the Respondent Largest Companies in relation to the total of employees in the economy of the State

| Chart 3

industrial companies of the ranking covered 19.9% of total jobs in the state industry. The posts offered by trade companies classified in this study represented 5.9% of the total of this sector in the state, while the companies in the services sector contributed with 7.5% of jobs in this sector in Espírito Santo. Looking at the last four years, it is clear that the share of industrial and services sectors, in their respective segments in the State, declined in 2015, while the share of the trade sector increased (see Chart 4).

Progress of the percentage of employees in the ranking of the Respondent Companies in relation to the total of employees in the economy of the State by Sectors (%) 169 companies in 2012

178 companies in 2013

174 companies in 2014

170 companies in 2015

22,5%

19,9%

22,3%

Employees in the economy of the State 169 Companies in 2012, 178 in 2013, 174 in 2014 and 170 in 2015

10%

| Chart 4

Industrial

17,7%

11% 5,9% 90%

2012

89% 6,7%

2013

4,9%

6,2%

Trade

9,8%

10,5%

7,5% 8,1% 8,4%

89,5% 2014

90,2%

8,3%

Services

2015

Source: IEL - Research 200 Largest Companies of ES e Rais/MTE 2012, 2013 e 2014 Text by: Ideies/Findes System

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Source: IEL - Research 200 Largest Companies of ES e Rais/MTE 2012, 2013 e 2014 Text by: Ideies/Findes System

169

RANKING

Sectoral share of the 20 largest compared to the 200 largest companies in Espírito Santo The analysis of the “Yearbook IEL 200 Largest Companies of Espírito Santo” aims at highlighting the share of the 20 largest companies of the ranking in the total of the 200 largest companies of Espírito Santo, and

the share of the 20 largest companies in the industrial, trade and services sectors, regarding gross operating revenue and employment of personnel, very important variables to assess the economic situation.

Number and Percentage of Companies by Sector in the Ranking 200 Largest Companies of ES and the 20 Largest Companies 200 LARGEST COMPANIES

| Table 5

20 LARGEST COMPANIES

2012 2013 2014 2015 2012 2013 2014 2015 SECTOR NUMB. SHARE NUMB. SHARE NUMB. SHARE NUMB. SHARE NUMB. SHARE SHARE IN NUMB. SHARE SHARE IN NUMB. SHARE SHARE IN NUMB. SHARE SHARE IN OF OF OF OF OF THE GOR OF THE GOR OF THE GOR OF THE GOR COMP. (%) COMP. (%) COMP. (%) COMP. (%) COMP. (%) (%) COMP. (%) (%) COMP. (%) (%) COMP. (%) (%) Industry 59 29,5 57 28,5 63 31,5 67 33,5 7 35,0 59,0 8 40,0 72,6 7 35,0 65,3 7 35,0 60,9 Trade

27,0

24,5

24,0

22,0

15,0

10,7

15,0

4,6

10,0

6,4

25,0

Services

43,5

47,0

44,5

50,0

30,3

45,0

22,8

55,0

28,3

40,0

26,0

Total

200

100,0

200

100,0

200

100,00

200

100,00

100,0

100,00

100,0

100,00

100,0

20 largest companies in the overall ranking Gross operating revenue The 20 largest companies in the ranking of the 200 largest companies of Espírito Santo encompassed a significant portion of the total gross operating revenue (GOR), corresponding to 73.7% in 2015, a percentage lower than 2014 (74.2%) and 2013 (75.9%), but higher than 2012 (69.5%). In 2015, the other 180 companies were left with the remaining 26.3%, against 25.8% in 2014, 24.1% in 2013 and 30.5% in 2012 (see chart 5). The largest part of the GOR of the 20 largest companies of Espírito Santo in 2015 were, again, in the industrial sector (60.9%), but with a lower share than 2014 (65.3%) and 2013 (72.6%) and slightly higher than 2012 (59%). The services sector had 26% of the total gross revenue in 2015 (lower than the 28.3% in 2014 and 30.3% in 2012, but higher than the 22.8% in 2013). The trade sector had 13.1% of the gross revenue of the 20 largest in 2015, well above the percentage of 2014 (6.4%), of 2013 (4.6%) and 2012 (10.7%). See table 5. The 20 largest companies in 2015 are spread over the sectors: industrial (7 companies or 35%), 170

Progress of the participation of the 20 Largest Companies’ GOR in the Total of the 200 Largest Companies of Espírito Santo (%)

13,2

| Chart 5

20 Largest Companies 180 Companies 69,5 30,5

2012

75,9

74,2

73,7

24,1

25,8

26,3

2013

2014

2015

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

trade (5 companies or 25%) and services (8 companies or 40%). Note that in relation to the previous year, the industrial sector remained with the same number of companies, and the services sector lost three companies among the 20 largest, which were absorbed by the trade sector. Personnel Employed The 20 companies with largest revenues in the ranking of the 200 largest companies 2015 YEARBOOK IEL 200 LARGEST COMPANIES 2016

were not the companies with most of the jobs. While the percentage of gross revenue was 73.7%, the total number of posts offered accounted for 34.2% of total employment in the overall ranking. However, this percentage is higher than the previous three years. As 170 companies provided data of employed personnel, this means that other companies classified (150) offered 65.8% of jobs ascertained in the 200 largest companies. In 2014 the share of the 20 largest companies (4 did not submit information) in the total of jobs in the ranking was 32.5%, considering that 174 companies of the ranking reported company staff. In 2013, the share of the 18 largest companies (2 did not provide data) in the sum of posts in the ranking was 30.9%, considering that 178 of the 200 largest companies informed work posts. And, in 2012, the share of the 18 largest companies (2 not giving data) was 28.9%, having in hand 169 respondent companies among the 200 largest (see graphic 6).

Progress of the percentage of employees in the Ranking of the Respondent Largest companies in 2012, 2013, 2014 and 2015 (%) 18 largest companies in 2012, 18 in 2013, 16 in 2014 and 20 in 2015

| Chart 6

20 Largest Industrial Companies

94,1%

2015 2014

8,5%

95,5%

5,9% 4,5% 6,3%

32,5% 30,9%

| Chart 7

39 Industrial Companies in 2012, 37 in 2013, 43 in 2014 and 47 in 2015

93,7% 34,2%

28,9%

Progress of Gross Operatin Revenue (GOR) of the 20 largest industrial companies in the total GOR of the industrial companies: 59 in 2012, 57 in 2013, 63 in 2014 and 67 in 2015 (%)

91,5%

67,5% 69,1%

Gross operating revenue In 2015, the 20 largest industrial companies amounted 91.5% of the gross operating revenues (GOR) of the 67 industries comprising the 200 largest companies of Espírito Santo in 2015, which indicates that the other industrial companies of the study (47) accounted for only 8.5%. In 2014 the share of the GOR of the 20 largest industries in the total of industries in the ranking (63) was 94.1%. In 2013 the share was 95.5% (of 57 industries) and in 2012 it was 93.7% (59 industries), which shows that the share in 2015 was the lowest in the last four years (see chart 7).

151 largest companies in 2012, 160 in 2013, 158 in 2014 and 150 in 2015

65,8%

71,1%

INDUSTRY

2015

2014

2013

2012 Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

2013 2012

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

20 largest companies in Espírito Santo The total revenue of the 20 largest companies in each of the three sectors (industry, trade and services), i.e., 60 companies, represents 88.8% of the total revenues of the 200 largest companies of Espírito Santo, leaving the other 120 companies with 11.2%. The 20 largest of each sector will be analyzed below. YEARBOOK IEL 200 LARGEST COMPANIES 2016

In relation to the total GOR of the 200 largest companies of Espírito Santo in 2015, the percentage of the 20 largest companies was 50.8%, leaving the remaining 49.2% distributed over trade, services and other industries ranked among the 200 largest companies. In the two previous years, the 20 largest industrial companies made up a higher percentage of the revenue of the 200 largest (53.6% in 2014 and 60.3% in 2013). Yet in 2012, the percentage was lower (46.8%). See chart 8. 171

RANKING

50,8% Percentage of revenues of the 20 largest industrial companies in the total revenues of the 200 largest companies

Progress of the Gross Operatin Revenue (GOR) of the 20 largest industrial companies in the total GOR of the 200 Largest Companies of ES in 2012, 2013, 2014 and 2015 (%) 20 Largest Industrial Companies

180 Companies

50,8% 46,4% 53,6% 60,3% 53,2%

| Chart 8

49,2%

39,7% 2015

46,8% 2014

The share of these 17 largest industrial companies in total of jobs of the 170 companies in the ranking of the 200 largest companies that provided this information in 2015 was 31.0%. Most jobs, 69.0% were in the trade and services sectors and in other industrial companies raked among the 170 companies that answered the total number of employees (see chart 10).

Percentage of employees of the 17 largest industrial companies in the total of employees of the 170 respondent companies in the ranking 2015

2013

| Chart 10

17 Largest Industrial Companies 31,0%

2012 Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Personnel Employed Of the 20 largest industrial companies in 2015, according to the gross operating revenue, 17 provided data of employed staff, and of the 67 industries among the 200 largest, 59 provided this information. Thus, the share of the 17 largest industries in the total employees of the 59 industries comprised in the ranking of the 200 largest companies was 72.9%, which means that other industrial companies that provided the information (42) accounted for 27.1% of share (see graphic 9).

Percentage of employees of the 17 largest industrial companies in the total of employees of the 59 respondent industrial companies in the ranking 2015 17 Largest Industrial Companies

72,9%

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

172

| Chart 9

42 Industrial Companies

27,1%

153 Companies 69,0% Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

TRADE Gross operating revenue In 2015, the 20 largest companies of the trade sector accounted for 90.4% of the gross operating revenue of the 44 trade companies among the 200 largest companies, showing that the other companies (24) accounted for 9.6%. In 2014 the revenue of the 20 largest trade companies represented 86.8% of the revenue of the 48 trade companies in the ranking. In 2013 the percentage of the revenues of the 20 largest companies of this sector was 84%, taking into consideration the 49 trade companies in the ranking, and in 2012 it was 86% over the 54 trade companies listed. This shows that the share of the 20 largest trade companies in the total of the sector in 2015 was the highest in the last four years (see chart 11). Regarding the revenue of the 200 largest companies of EspĂrito Santo, the 20 largest YEARBOOK IEL 200 LARGEST COMPANIES 2016

Progress of the share of gross operating revenue (GOR) of the 20 largest trade companies in | Chart 11 the total GOR of the trade companies: 54 in 2012, 49 in 2013, 48 in 2014, 44 in 2015 (%) 20 largest trade companies

34 trade companies in 2012, 29 in 2013, 28 in 2014 and 24 in 2015

14,0

86,0

companies of the trade sector accounted for 15.9%, with the majority of the revenue (84.1%) distributed among industry, services and other companies of the trade sector classified among the 200 largest companies. This way, the share of the 20 largest trade companies in the total revenue of 2015 was higher than that of the 20 largest trade companies comprised in the ranking of 2014 (12.5%), and 2013 (10.4%), but lower than 2013 (17.1%). See chart 12.

Progress of the Gross Operating Revenue (GOR) of the 20 largest trade companies in the total GOR of the 200 Largest Companies of ES in 2012, 2013, 2014 and 2015 (%)

2012 16,0

84,0

20 Largest Trade Companies

| Chart 12

180 Companies

84,1

2013 87,5 89,6

13,2

15,9 2015

12,5

82,9

10,4 2013

17,1

2014

2012 86,8 Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

2014 9,6

90,4 2015 Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

YEARBOOK IEL 200 LARGEST COMPANIES 2016

Personnel Employed In the analysis of the 20 largest companies of the trade sector, it is observed that 18 offered information about jobs and, of the 44 trade companies included in the ranking of the 200 largest in 2015, this information was provided by 40 of them. Thus, the share of the 18 in total jobs of 40 companies was 70.5%, which means that the other companies that provided this information (22) totaled 29.5% of the sectorâ&#x20AC;&#x2122;s jobs (see graphic 13).

15,9% Percentage of revenues of the 20 largest trade companies in the total revenues of the 200 largest companies

173

RANKING Percentage of employees of the 18 largest trade companies in the total of employees of the 40 respondent trade companies in the ranking 2015 18 Largest Trade Companies

| Chart 13

22 Trade Companies

70,5

29,5

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

These 18 companies participated also with only 8.2% of the total of jobs of the 170 companies in the ranking of the 200 largest companies of EspĂrito Santo in 2015. These are the ones that provided the information. The majority of jobs, 91.8%, were in the industrial and services sectors, and in the other classified companies of the trade sector (see graphic 14),

Progress of the Gross Operating Revenue (GOR) of the 20 largest services companies in the total GOR of the services companies: 87 in 2012, 94 in 2013, and 89 in 2014 and 2015 (%) 20 Largest Services Companies

Percentage of employees of the 18 largest trade companies in the total of employees of the 170 respondent companies in the ranking 2015 18 Largest Trade Companies

revenue of the services sector among the top 200 companies in 2015 was 82.4%. As this sector had 89 companies in the study, the other 69 companies participated with only 17.6%. In 2014, this sector was also represented by 89 companies in the ranking, and the share of the 20 largest services companies in this total was 83.1%. Yet in 2013, the share of the 20 largest services companies in relation to the 94 services companies in the yearbook was 80.1%, and in 2012 the 20 largest participated with 81.7%, taking into consideration the 87 companies listed in the ranking. This analysis reveals that, though varying the number of companies comprised in the studies of these years, the share of the 20 largest of the sector shows little fluctuation (see chart 15).

67 Services Companies in 2012, 74 in 2013, and 69 in 2014 and 2015

82,4%

| Chart 14

83,1% 80,1% 81,7%

152 Companies

| Chart 15

17,6% 16,9%

19,9% 18,3%

2015

2014

2013

2012 8,2% Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

91,8%

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

SERVICES Gross operating revenue In 2015, the share of the 20 largest services companies in the total of the gross operating 174

In relation to the gross operating revenue of the 200 largest companies of EspĂrito Santo in 2015, the share of the 20 largest companies in the services sector was 22.1%, with 77.9% divided among companies in the industrial and trade sectors and the other services companies classified. The share of the 20 largest services companies in 2014 was 23.8% and, in 2013, the 20 largest of the services sector had a lowest share in the total revenues of the ranking of the 200 largest companies (19.6%). Yet in 2012 the share was higher (24.6%). See chart 16. YEARBOOK IEL 200 LARGEST COMPANIES 2016

Progress of the Gross Operating Revenue (GOR) of the 20 largest services companies in the total GOR of the 200 Largest Companies of ES in 2012, 2013, 2014 and 2015 (%) 20 Largest Services Companies

| Chart 16

180 Companies

77,9% 76,2% 22,1%

80,4% 23,8%

75,4%

2015 2014

19,6% 24,6%

2013 2012

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Personnel Employed Among the 20 largest companies in the services sector, 18 provided information about total work posts. Whereas 89 companies of the services sector were classified in the ranking of the 200 largest companies in 2015, only 71 provided this data. The share of jobs of these 18 largest companies was 42.1% of the total. Thus, all other services companies that provided information (53 companies) participated with 57.9% (see chart 17).

Percentage of employees of the 18 largest service companies in the total of employees of the 71 respondent services companies in the ranking 2015 53 Services Companies

| Chart 17

18 Largest Services Companies

42,1%

These 18 companies participated also with 19.3% of the total jobs of the 170 largest companies in the ranking that provided this information, while 80.7% was distributed among the industrial and trade sectors, and the rest of the services companies (see chart 18).

Percentage of employees of the 18 largest services companies in the total of employees of the 170 respondent companies in the ranking 2015 100%

152 Companies 80,7%

80% 60% 40%

57,9%

20%

18 Largest Services Companies 19,3%

0% Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

YEARBOOK IEL 200 LARGEST COMPANIES 2016

| Chart 18

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

22,1% Percentage of revenues of the 20 largest services companies in total revenues of the 200 largest companies

175

RANKING

Climate Survey of the 200 largest companies

ince 2013, IDEIES (Educational and Industrial Development Institute of Espírito Santo) has brought in the Yearbook 200 largest Companies of Espírito Santo the climate research realized with the state entrepreneurs. The analysis looks at, from the perspective of those interviewed, the potential for growth in the State and the business atmosphere in relation to the current and expected economic scenario. The study is divided in two parts. First is an evaluation of the State, and in the second, it is presented the expectations in relation to the economy and the companies. The questionnaire was applied in the 200 largest companies; with 158 responding.

EVALUATION OF ESPÍRITO SANTO’S POTENTIAL The potential of Espírito Santo was evaluated by companies through questions about infrastructure, workforce, tax incentives, among others. For each question, it was assigned a grade from 0 to 10. Were considered low grades those up to 4 points; medium, from 5 to 7 points; and high, from 8 to 10 points. Just as in previous years, the geographical location of the State was the characteristic with more high grades from the respondents. For 84.6% of them, Espírito Santo is worth to receive a high grade (8-10 points) in this matter, while less than 1% of entrepreneurs assessed this item with a low score (Chart 1).

The existing logistic infrastructure in the State was evaluated with low grades by 14.2% of entrepreneurs; with medium grades by 56.8%; and with high grades by 29.0% (chart 2). Among the modal analyzed, the quality of the airport has been rated as high by only 4.5% of interviewees and as low by 58.3% of them (chart 3). More than half of respondents scored the ports with medium grades, and 14.9%, with high grades (chart 4). Regarding highways, 46.2% of entrepreneurs pointed out low grades; 46.8%, medium grades; and 7.1%, high grades (chart 5). Interestingly, in 2015 only 2.9% of entrepreneurs ranked the highways with high grades. The existing tax incentive policies in Espírito Santo were evaluated with medium grades by more than half of entrepreneurs. 24.5% classified them

Evaluation (grade) of ES’s Logistic Infrastructure 2016 56,8%

| Chart 2

29,0%

High 14,2%

Medium Low

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Evaluation (grade) of ES’s Geographical Localization 2016 Low 0,6%

| Chart 1

Evaluation (grade) of the Airport’s Quality 2016

Medium 14,7%

58,3%

37,2%

| Chart 3

4,5% High Medium

High 84,6% Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

176 176

Low Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

ANUÁRIO IEL 200 MAIORES YEARBOOK IEL 200 LARGESTEMPRESAS COMPANIES2013 2016

Evaluation (grade) of Ports’ Quality 2016.

| Chart 4

Evaluation of ES’s Tax Incentives Policies

| Chart 6

Low 24,5%

55,2% 14,9%

High 23,2%

29,9%

High Medium Medium 52,3%

Low Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Evaluation (grade) of Highways’ Quality 2016 High 7,1%

| Chart 5

Progress of the % that gave High Grade to ES’s Tax Incentives Policies

| Chart 7

Low 46,2% 29,0% 25,0% 23,0%

Medium 46,8% Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

with low grades, and 23.2% with high (chart 6). The latter percentage is very close to that found in previous years, except for 2014 (chart 7). When asked about the political power of Espírito Santo on the national set, 41.6% of entrepreneurs classified it as of low influence; 44.8% as medium; and 13.6%, as high (chart 8). Interestingly, the comparison between 2013 and 2015, there was a drop of over 10 percentage points in the responses that ranked with low grade the ANUÁRIO 200LARGEST MAIORES EMPRESAS YEARBOOK IEL IEL 200 COMPANIES 20162013

2012

2013

2014

22,5%

23,2%

2015

2016

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

influence of the political power of the State on the national set (chart 9).

EVALUATION OF THE WORKFORCE For 67.7% of the entrepreneurs, the qualification of the existing workforce in the State is of medium quality. This percentage is lower than that found in 2015, in which 74% of respondents considered the state workforce as medium quality (chart 10). However, it is worth noticing the percentage of 177 177

RANKING

Evaluation of ES’s Political Power In The National Scene

| Chart 8

Evaluation of ES’s Workforce Qualification

| Chart 10

Low 9,7%

44,8% 13,6%

High 22,6%

41,6% High Medium

Medium 67,7%

Low Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Progress of the % that gave Low Grade to ES’s Political Power In The National Scene

| Chart 9

Progress of the % that gave High Grade to ES’s Workforce Qualification

| Chart 11

41,6%

54,0%

22,6%

53,0% 18,0%

51,0%

16,0%

2016

42,0%

14,0%

2015 2014 2013 2012

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

respondents that rated as high quality the workforce of Espírito Santo in 2016, 22.6%, well above the amount of previous years (chart 11).

EVALUATION AND EXPECTATIONS FOR THE ECONOMY AND IMPACTS ON THE COMPANIES 178 178

13,0% 2012

2013

2014

2015

2016

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

After assessing the potential of Espírito Santo, the research had the purpose to understand the expectations of respondents regarding the economy and their own companies. About the general conditions of the economy, for almost 80% of the entrepreneurs the economy worsened or worsened very much, while for 4.5% ANUÁRIO IEL 200 MAIORES YEARBOOK IEL 200 LARGESTEMPRESAS COMPANIES2013 2016

Expectation for 2017 about ES’s Economy, according to entrepreneurs there was an improvement and for 17.2% changes were not identified (chart 12). These proportions are very close to those of 2015.

47,1%

38,9% 8,9%

| Chart 13

1,3%

Pessimist

General Conditions of ES’s Economy in 2016 x 2015, according to entrepreneurs Improved 3,8% Improved Very Much 0,6% Worsened Very Much 17,2%

Will Remain the Same | Chart 12

3,8%

Optimistic Very Optimistic

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Did not Change 17,2%

Worsened 61,1% Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

Regarding the expectation for 2017, more than half of entrepreneurs are optimistic or very optimistic that the state economy will improve, and just over 10% are pessimistic or very pessimistic that the economic situation will not change (chart 13). In 2015, entrepreneurs were more pessimistic: 21% did not believe in an improvement of the economy in 2016. Interestingly, although a small part (4.5%) of entrepreneurs have considered that the situation of the economy improved in 2016 compared to 2015, for 26.8% of respondents the situation of their companies has improved (or improved very much) ANUÁRIO 200LARGEST MAIORES EMPRESAS YEARBOOK IEL IEL 200 COMPANIES 20162013

Very Pessimist

even without the improvement of the economy. On the other hand, for a third of the businesspersons the situation of their businesses worsened compared to last year, and for 40.1% it did not change (chart 14).

General Conditions of their companies in 2016 x 2015, according to entrepreneurs Improved Very Much Worsened 3,8% Very Much 1,9%

Worsened 31,2%

| Chart 14

Improved 22,9%

Did not Change 40,1%

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

179 179

RANKING

As a result of businesspersons’ confidence, 48.8% of respondents will maintain investments in the period of 2016 and 2017, 34% intend to increase, and 17.2% will reduce. On the number of employees, the percentages are: 52% intend to maintain, 30% intend to increase and 18% intend to reduce in the biennium 2016/2017 (chart 16).

Companies’ intentions of investments and number of employees in 2016 and 2017 Foreseen 2017, 80% of entrepreneurs are optimistic or very optimistic that the situation of their companies will improve; 17.2% believe it should remain; and 2.5% are pessimistic or very pessimistic (chart 15).

52,1%

34,0%

| Chart 15

29,7%

48,8% To Increase 18,2%

Expectation for 2017 about their companies, according to entrepreneurs

| Chart 16

To Maintain

17,2%

Investments To Reduce

Employees

Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

66,2% 0,6%

17,2% 14,0% Optimistic Very Optimistic Source: IEL - Research 200 Largest Companies of ES Text by: Ideies/Findes System

180 180

Very Pessimist Pessimist Will Remain the Same 1,9%

CONCLUSION As expected by state entrepreneurs, the end of 2015 and the first half of 2016 were difficult times for the economy. For 2017, entrepreneurs are optimistic about the direction of the country and the state. Hindrances in the existing logistic infrastructure in Espírito Santo still remains, which highlights the need to solve these issues that last for a long time in the state agenda. ANUÁRIO IEL 200 MAIORES YEARBOOK IEL 200 LARGESTEMPRESAS COMPANIES2013 2016

INSTITUTIONAL FINDES SYSTEM

182

YEARBOOK IEL 200 LARGEST COMPANIES 2016

FINDES SYSTEM: IN DEFENSE OF THE CAPIXABA INDUSTRY AND ESPÍRITO SANTO’S SUSTAINABLE DEVELOPMENT By means of integrated actuation, entities represent the industrial sector, boosting and strengthening Espírito Santo’s economy

epresenting and defending Espírito Santo’s industry interests, contributing decisively to the consolidation of a new industrial development cycle and, with supportive actions to capixaba industry’s sustainability, impulsing the state’s economy. That’s the reason for Findes System to exist. The institution is the capixaba productive sector’s main interlocutor and the largest entrepreneurial business entity of Espírito Santo. It’s composed by eight organizations that work in an integrated form to reach its objectives: Federation of Industries from the State of Espírito Santo (Findes), Industry Center of Espírito Santo (Cindes), Industry’s Social Service (Sesi-ES), National Service of Industrial Learning (Senai-ES), Industrial and Educational Development Institute of Espírito Santo (Ideies), Imperial Route Institute (IRI) and Condomínio do Edifício Findes (Conef).

YEARBOOK IEL 200 LARGEST COMPANIES 2016

183

INSTITUTIONAL

Together, they promote actions to guarantee a highlighting position to the state in political, social, and economical levels. Each entity is related to a strategic interest sector, offering differential services in the following business areas: education and qualification, technological diffusion, industrial development, health and leisure, in addition to the institutional representation through unities and regional nucleuses which cover all the state. Thus, the entrepreneurs have access to all the necessary structure to achieve a highlighted performance in their professional line. Composed by 40 syndicates, to which more than 19 thousand companies are affiliated, Findes represents businesses responsible for 40,5% of the state’s Gross Domestic Product (GDP) and by generating more than 220 thousand workstations. Its actions contribute to the productive centre’s growth and to the establishment of local industrial policies, also forming a bond between the affiliated unions and other segments within the society. Moreover the institutional articulation, politics and strategy of all the industrial segments together with the constituted powers and to the structured sectors of society, Findes System operates in a variety of initiatives which goal to bring to the countryside the development and the manpower’s qualification all over Espírito Santo. Through Superior Thematic Council, Sectorial Chambers, Support Centre for Directories and Unions and Regional Centres Centro de Apoio aos Sindicatos e das Diretorias e Núcleos Regionais, Findes follows both local and global economical progresses, identifying opportunities and potential breakthroughs, as well as working together with the entrepreneurs to overcome challenges which slow down Espírito Santo’s industry. Since 2011, the current mandate has been prioritizing the union’s integration and the business institutions focusing on the same objective: the sustainable development and the competitivity. In order to do so, it implements efforts to bring the industry to the countryside for the good of one diversified industry with a bigger added value, education, associativism, institutional relationship and investments. Grounded in values as the adoption of private initiative’s successful practices under the System’s entities management; compromised with results; strengthening of both the union base and the associativism; spread of innovation; rising of professional capacity level; industry’s satisfaction by the developed actions; integration of the 184

Anchieta’s Sesi/ Senai Integrated Centre has laboratories in the areas of mechanics, welding, computers, electronics and construction, among others

actions between the system’s entities; belief in partnerships and strategic alliances; professional appreciation of the staff; ethical, professional and transparent performance; as well as justice and coherence in decisions, Findes has been acting together with the public powers and investor groups in order to diversificate Espírito Santo’s industry and the state dependence related to commodities. In these 58 years in which it’s present in Espírito Santo, Findes System has been fighting in benefit of the interests of the activity, fulfilling, consequently, the task of propelling the social and economical development of the State. The fight for the collective interests reflects daily in the construction of a better future for the next capixaba generations.

REGIONALIZED ACTION One of Findes System priorities is to promote the effort of bringing the industry to the countryside of the State, creating economical development. YEARBOOK IEL 200 LARGEST COMPANIES 2016

segments and closely following the growing process of these areas, acting in strategic matters making possible solutions on demands and satisfying their specific development needs. Regionalization also aims to integrate with the other economic sectors, such as trade and services, bringing entrepreneurs to the discussion and to the local economy’s collective construction, helping boost the sustainable development throughout the State of Espírito Santo.

BOARD OF DIRECTORS FOR SPECIFIC ISSUES To map the main thematic area needs, which are the focus of the institution attention, Findes instituted the Board of Directors for Specific Issues. The 13 Boards act on questions related to essential areas to the Espírito Santo’s industry development. They are: Strengthening Trade Union and Business Representation; Tax Affairs; Training and Human Development; Marketing and Communication; Development of the Espírito Santo Industry; Industrial Public Policies; International Relations; IEL-ES Affairs; Ideies/CAS Affairs; Cindes Affairs; IRI Affairs; Sesi-ES Affairs; and Senai-ES Affairs. The management strategy, participative in decisions and segmented in actions, permits the advance in several fronts, with the objective of conceding a new profile to the capixaba industry, with a greater value affix to the products, more eficiente managements and more competitive companies, fit to search for new opportunities and to expand their investments. To ensure greater autonomy to companies and to consolidate institutional presence it was implemented Boards and Regional Centers as industrial footholds for the Espírito Santo’s northern and southern macroregions. In Grande Vitória are located four of them: Cariacica/ Viana, Serra, Vila Velha and Vitória. Another eleven are located in strategic municipalities (Anchieta, Aracruz, Barra de São Francisco, Cachoeiro de Itapemirim, Colatina, Guaçuí, Linhares, Nova Venécia, Santa Maria do Jetibá, São Mateus e Venda Nova do Imigrante), leading to a more actively institutional representation in the countryside of the State. Regional Centers offer structure and comfort in their facilities in order to meet the productive sector’s Unions needs and demands. They are spaces for holding meetings in order to promote industrial activity. Through the Boards and Regional Centers, Findes gives voice to the local businessmen by better knowing the needs of all YEARBOOK IEL 200 LARGEST COMPANIES 2016

THEMATIC COUNCIL The Thematic Council (Consats) are technical advisory bodies that study and monitor the evolution of different agendas in the Espírito Santo’s industrial sector, subsidizing Findes in its actions and decisions whenever it is necessary. Currently, Findes System keeps twelve Thematic Councils: Legislative Affairs (Coal); Foreign Trade (Concex); Regional Development (Conder); Infrastructure (Coinfra); Environment (Consuma); Micro and Small Enterprise (Compem-ES); Industrial and Technological Innovation Policy (Conptec); Labor Relations (Consurt); Social Responsability (Cores); Education (Conedu); Energy (Conerg); and Creative Economy (Conect).

SESI-ES Industry’s Social Service of Espírito Santo (Sesi-ES) is the Findes System institution which offers social solutions 185

INSTITUTIONAL

Sesi-ES offers targeted services for health and work safety to Espírito Santo’s industry

to Espírito Santo industries, their workers and dependents. It’s focused in four business areas: Education, Leisure and Culture, Safety and Health at Work and Entrepreneurial Social Responsibility. It acts through 14 business units distributed through seven Espírito Santo’s municipalities, located in the region of bigger industry concentration: Vitória, Vila Velha, Serra, Cariacica, Linhares, Colatina, Cachoeiro de Itapemirim and Anchieta. Celebrating 65 years of provided services to the State education in 2016, Sesi-ES, through its work, present all over the state, fulfills the responsibility of being the largest private tuition institution in Espírito Santo. Annually, it’s about almost 12 thousand students enrolled in Sesi’s Education Networks, in modalities which go from infant education to high school – attached to the technical education – in partnership with National Service of Industrial Learning (Senai), beyond intensive project for the High School National Exame (ENEM). More than offering a basic upbringing to the students, Sesi-ES has the goal of shaping entrepreneur citizens who are also creative, socially responsible and lined up to environmental issues. 186

In order to do so, the network applies its own innovative teaching methodology, with quality instruction to industrialists and the general community’s offsprings. Its schools use materials, technologies, programs and projects according to the pedagogical purpose through a justified approach within a formation and information space, in which the content learning favors the student’s insertion into the social context, prioritizing the concepts collective construction and the search for a integration between the diverse areas of knowledge. Sesi-ES also offers services related to occupational safety and health in Espírito Santo industries. The several advisory and consulting programs, alongside with Indústria Segura and Mais Saúde projects, help companies take health, safety and life quality to the factory’s floor. Together, both programs have already assisted more than 15 thousand workers and 371 companies.

SENAI-ES With the goal of qualifying Espírito Santo’s working force to act in enterprises that are being established in the state, Findes System has been investing in education, not in a timely manner, but permanently. The institution is YEARBOOK IEL 200 LARGEST COMPANIES 2016

responsible for training the professionals that the industrial sector needs is the National Service of Industrial Learning (Senai-ES). The attention to the new technologies, the improving and increasing the supply of technical and technological services and the vocational education made Senai-ES to be the reference it is in supporting the industrial development..In addition to training courses offered in classrooms or remotely (via web), the entity also operates solutions in technology and innovation by consulting companies. Senai-ES has nine operational units located in Vitória, Vila Velha, Serra, Cachoeiro de Itapemirim, Colatina, Linhares, São Mateus, Anchieta e Aracruz. In them Senai-ES promotes human resources qualification, services, productive sector consulting, technological information and laboratory services. Aiming to democratize the access to vocational education, it was also instituted actions that take knowledge to the most distant locations of the state. Among them are Municipal Training Agencies (ATMs), focused teaching model for small or medium-size towns in the country side of the state where the compulsory industrial collection is small, which would make the Integrated Center’s (SESI/SENAI/IEL) presence not viable. The ATM consists in a partnership between the City Hall – responsible for the space, its maintenance and administrative part – and Findes System – in charge of courses and faculty. Another effort on bringing Senai-ES’s courses to the state’s countryside is the Escola Móvel (Mobile School) offering vocational courses within the institute’s standards but more rapidly. In the embodiment there are many options for courses as city and region’s industrial demands. An unit is assembled with articulated educational modules forming classrooms and laboratories. The project foresees that the structure remains installed in the each city for up to six months. Senai’s excellence in vocational and technical education is based on the competence of its faculty alongside the quality of its facilities and equipment, always in line with what is most current in terms of technology which requires constant investments. In 2015, Senai-ES applied approximately R$ 28 millions in infrastructure, purchasing of machinery, equipment and laboratories reforms. In the last year alone, the institutiion took vocational courses to more than 128 thousand capixabas in its ninefixed units and in its mobile action unit.

IEL-ES Euvaldo Institute Lodi (IEL-ES) is a Findes System arm which acts to promote solutions in knowledge, manYEARBOOK IEL 200 LARGEST COMPANIES 2016

Anchieta’s Sesi/Senai-ES Integrated Centre

In 2016, Findes System expanded its operations effectively to Anchieta’s municipality. With the inauguration of Anchieta’s Sesi/ Senai’s Integrated Centre, 12 thousand students will be met annually with quality vocational training. With R$ 16.8 million investment in buildings and equipment, the new Integrated Center, which honors the industrial Izoton Lucas Vieira, has more than 4.600 square meters of built area on a plot of approximately 20,000 square meters. The unit is the first to receive a differentiated model of construction that promotes sustainability and eco-efficiency. There are 13 classrooms and 14 laboratories equipped with the latest technology to meet the demand for qualified labor for metalworking, construction, electronics, information technology, environment and safety.

agement and innovation, contributing to the competitiveness improvement among capixabas enterprises. The permanent dialog with the sector makes the entity one of the most important in the support to the industry development, contributing to the bottlenecks overcoming and to the opportunities identification to the enterprises. IEL-ES’s actions have focus on executive education and management improvement. They promote the individual competences development, promoting open courses and short-term in company, mid-term management courses, seminaries, technical lectures and training needs diagnostic to the industrial companies. Founded under the objective of perfectioning the entrepreneurial management knowledge, IEL-ES’s Programa de Educação Executiva instructs the professional to the usage of tools and applicable techniques in the corporative day-by-day. Post graduation courses directed to the executive education are summed to the services offered by the Institute, done in partnership with the best business schools in the 187

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The expansion of Civit’s Integrated Centre has added new 2,4 thousand square meters of built area

With an R$ 2.5 millions investment, the mobile refrigerator unit has been inaugurated having a totally novel layout

world. Together, the entities take to the classroom the best worldwide management tendencies, featuring activities developed conjointly with international experts. Another operation bias is the recruiting area and bursar selection and professionals. IEL Internships program brings together college and technical courses students to the job market. From a wide register range and innovative assistance and selection criterias, young talents are identified and indicated to fill the internship vacancies opened by the companies. The choice system values the student’s competences, abilities and attitudes, lining them up to the each business’s specific needs. The ideal candidate’s indication to the post facilitates the talent discovery and the entrepreneurial leaders formation.

IDEIES The Industrial and Educational Development Institute of Espírito Santo (Ideies) is a Findes System Institute responsible for the positioning of strategic sectoral studies, focusing on competitive intelligence, aiming to the strengthening of Espírito Santo’s industrial sector and the effort Espírito Santo’s countryside’s growth. And yet for economic analyzes and research addressing the industrial sector’s performance, identifying the problems being faced by the Espírito Santo’s industry and pointing out solutions for them. Ideies consists of four areas: Creative Economy Unit (UEC), Information Management (UGI), Interests Defense Unit (UDI) and Knowledge Management Units (UGC). 188

It also supports the Thematic Councils (Consats) and FINDES’ Industrial Sectoral Chambers.

CINDES Industry Centre of Espírito Santo (Cindes) aims to stimulate the capixaba entrepreneur integration, congregating entrepreneurs and directors social and professionally. By means of its actions, the institute makes possible to exchange information and ideas, debates, leisure and culture, spreading the knowledge and promoting the bonds and relationships, therefore auxiliating the entrepreneurs and the positioning upon the several projects turned to the local industry. Cindes also operates through Cindes Jovem, who foments the entrepreneurship among the youth, aiming to form new leaders and managers to influence in the State’s sustainable growth.

INTERNATIONAL BUSINESS CENTER The International Business Center (CIN-ES) was created to help the expand the Espírito Santo’s business potential YEARBOOK IEL 200 LARGEST COMPANIES 2016

INOVAFINDES Findes System Innovation Center, InovaFindes, aims to provide and promote information, tools, and opportunities’ access so Espírito Santo’s industry can innovate in their products, processes and systems, thereby increasing their competitiveness. The initiative offers, among many other activities, vocational training and consulting to industries which intend to create innovation plans and develop projects aiming to attract funding sources; and disseminates fostering opportunities for innovation supporting entrepreneurs submitting their projects to edicts. internationally. The unit promotes actions directed to micro, small and medium-sized industrial companies that already act or want to insert themselves in international trading. Among the offered services are: business intelligence, customer service, sales promotion, foreign trade training and international business.

IMPERIAL ROUTE INSTITUTE - IRI The Imperial Route Institute (IRI) was created to foster the municipalities’ economic and touristic development located along the Imperial Route’s path. In Espírito Santo 14 cities are part of this path that connects Ouro Preto’s city, in Minas Gerais, to Vitória. The Capixaba Imperial Route starts at Anchieta’s palace – Ground Zero – and goes up to Iúna, in Caparaó region. The path is marked and signaled with 385 totems, which are called of landmarks. Findes System is responsible for IRI’ management alongside with Ministry of Tourism’s support and in an Espírito Santo and Minas Gerais’ state governments’ partnership. YEARBOOK IEL 200 LARGEST COMPANIES 2016

INVESTMENTS PLAN Findes System is investing a total of R$ 250 million in construction by 2017. The work gives priority to education and to the country side’s development effort, benefiting the residents of different regions by upgrading Senai’s laboratories, expanding the basic education service, vocational training, corporative education, health, and workers safety and life quality with renovations, extensions and buildings of new Sesi/Senai/IEL Integrated Centres. “Since the beginning of our administration we have sought to hear all leaderships from all State’s productive sector and representatives from within Grande Vitória. It is by listening and dialoguing that we will be able to design strategies that can increase our State’s industry competitiveness. We want to strengthen Espírito Santo’s economy and generate opportunities and income for the capixabas. It is necessary to think about the future, to face the challenges of the present and build ways that ut Espírito Santo’s industry in the path of development” argued Findes’ president, Marcos Guerra. 189

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IEL FORUM FOR CAREERS PRESENTS OPPORTUNITIES FOR THOSE WHO ARE ENTERING THE PROFESSIONAL LIFE A public success and full of precious advices for those about to enter the job market: so it it was IEL’s Forum for Career, held on October 6th in Vitória’s Grand Hall. There were more than 1,4 thousand students and trainees from levels such as high school, technical and higher, as well as professionals interested in learning more about this market’s new possibilities.

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Promoted in a partnership with Rede Gazeta, the event offered a full day of lectures on creativity and entrepreneurship and also an Opportunity Fair having learning institutions and partners presenting their chances on internships, employment learning, vocational training, courses and guidelines. YEARBOOK IEL 200 LARGEST COMPANIES 2016

5 tips from the IEL Forum for Careers’ experts for the professional future 1. Leave the comfort zone “Identify that which gives you chills, something that takes you out of the comfort: once uncovered this fear, give the first step. In the future, you won’t regret”, advises Du Migliano, one of the website 99Jobs’s founders. 2. More heart, less money (at least in the beginning!) “Where are you excelent at? What do you like to do? What awakens your passion? We’re so doctrinated to move ourselves just for the money that we don’t listen to our hearts. And right there, in your pleasures, there might be a way”, affirms Edgard Gouveia, Play the Call’s architect and founder. 3. Take the decisions by yourself, and just by yourself. “Choose your path and value your own ideals. Everyone takes decisions based on what others expect, but take decisions by yourself. You will get loads of beatings, but your growth is an outcome of your experience. Be curious, learn all the time”, orients Du Migliano. 4. Society’s problems can be a solution. “What drives you mad also has to do with your purpose, as well as mixing your abilities to resolve that problem will motivate you to know, to create”, says Edgard Gouveia. 5. Digitize yourself. “Almost everything you’ve learnt, everything you studied, is changing so radically that you will have to flexibilize yourself and give a new look. We’re dealing with robots, with the internet of things, with a lot of technology”, projects Gil Giardelli, web activist.

To IEL-ES superintendent, Fábio Dias, the Forum helps young people to think better about the future. “The experience in IEL’s Forum for Career has provided access to new professions and new profiles that will be demanded by the job market, giving a notion of what kind worker will meet the a demands of more modern industry. We want to insert this event into the Institute’s annual event calendar”, he said.

“To us, from Rede Gazeta, the meeting was an excellent opportunity for to get closer to the young people who is about to enter the job market, taking quality and relevant information to their lives. With initiatives like this, Rede Gazeta and the IEL have worked together on forming this new generation that will help build the path of a so, by us all, desired Espírito Santo and Brazil”, commented the Rede Gazeta’s Institutional Development director, Leticia Lindenberg.

Gabriel, O Pensador in a lecture

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Director of Assuntos do Sesi-ES José Carlos Bergamin; IEL National’s superintendent Paulo Mól; Rede Gazeta’s Institutional Development director Letícia Lindenberg; the teacher and lecturer Dado Schneider; and IELES’s superintendent Fábio Dias

Paulo Mól, IEL National’ superintendent, pointed out a Forum’s feature: that the speakers speak the language that young people like and understand. “It is an event in which the industry gets closer to the young people who, increasingly, wants to become a great professional”, he argues. Sesi-ES Affairs director, José Carlos Bergamin, represented Findes System president, Marcos Guerra, and it was delighted by the participants’ expressive content in the event. He also highlighted the features which the speakers pointed out as necessary to stand out in the job market”. He also mentioned the characteristics the speakers pointed out as necessary to stand out in the job market. “To find our way, we need to give more of ourselves. We need to be integrated, engaged and aware of our responsibility”. Marcos Guerra, Findes System president, also talked about the initiative. “IEL–ES plays an important role in the young people search for differents paths in the job market. With IEL Forum for Careers we try to stimulate them using creativity and we encourage them to constantly look for new technologies. Only by doing this we will innovate our industry and make it more attractive and competitive.”

INSPIRATION The audience has followed the the architects and urban planner’s lectures Edgar Gouveia – who has created Play the Call, an online global contest of social change. A man who has dedicated his career to mobilizing children, youths and adults with virtual games, scavenger hunts and collective actions that lead to small size community revolutions. “Playing is the only way to change the world and children and young people can be cornerstones for this. If you call friends to work, it will be difficult. Bit if you call them to play it is much easier and better. Each helping and learning.” From the digital culture’s scholar, Gil Giardelli, who spoke about the industry 4.0, the audience heard valuable tips about what to expect from the future. “We live in a 192

culture in which cars, biscuits and even human skin can already be created in 3D printers. Our current generation is called as ‘the generation of the distracted’, because mobile devices have taken over our attention.” Claro´s brand creator, communication consultant and university professor, Dado Schneider, cited some features that will help young people excel in front of employers. By contextualizing the job market in which new technologies emerge every time, he reminds the audience that some things, regardless of when, continue being essential for those who seek a good professional position. “To be is to have information. To be still is the biggest differentiator. Those who know what happened 50 years ago are not surprised by what is happening now.” To him, the professional has to read about everything so he can develop a training that enables him to deepen into a theme and learn about various subjects. To Du Migliano, one of the 99 Jobs’ founders, satisfaction must come before the concern for remuneration. “The day we no longer feel goosebumps is because there is no more pleasure in what we do, there is no more challenge”, he argued. Suzana Freitas, a Rede Globo’s Human Resources specialist, has said that the relation between a professional and an employer must go beyond the employment contract: “When we work in a company, it is as if we are married to it. It is only going to workout while both expectations are met”. The IEL Forum for Careers ended with the singer Gabriel O Pensador’s lecture “My unconventional career”, which detailed his journey to reach success after knocking on several doors that did not open. The rapper recalled that he did not begin his career seeking fame, that he wrote songs in an unpretentious way as a way to express himself. At the end he did a pocket show with his major successes. The event was also a stage for the IEL’s Internship award ceremony. YEARBOOK IEL 200 LARGEST COMPANIES 2016

ECONOMY FOOD AND DRINK

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CRISIS ON THE TABLE, SOLUTION IN SIGHT Drink and food sector tries to circumvent crisis using cutting costs and creativity

R$ 2.7 BILLION

This is the sector’s annual revenue in the State, which is yet responsible for 25 thousand direct employments and 50 indirect others

YEARBOOK IEL 200 LARGEST COMPANIES 2016

aking home a bagel, a juice, a beer or a soda, buying the kid’s favourite cookies or doing the family’s favourite pasta. These habits, so common among brazilian families, are also suffering from the brazilian political and economic setbacks. If on the one hand the food and drink sector’s entrepreneurs are trying to minimize the crisis’ impact on their sales – many have reduced their profit margins, sought more affordable inputs and raw material (keeping quality up) wiping away most of their business’ costs –, on the other hand, the high living cost and the increase on unemployment left their trace on purchases and sales. If the money is short, the only option the consumer has is to tighten the belt up and remove all extra spendings from the budget. The bakery industry, for example, has bittered on a first semester filled with consumer’s apprehension. Unemployment has gone up and consumers reduced their buyings. This reflection is visible on stores: sales have retracted from 5 to 10% during the first semester. “What left us more apprehensive was, without question, the simultaneous rise of our business’ fixed costs. Wages and raw material went up. Supplies, many of the imported, have soared because of the high dollar. And with the lower consumption, without being able to pass on these costs to the consumer, we had to reduce our profit margin”, explains Luiz Carlos Azevedo, Espírito Santo Bakery and Confectionery Union’s president (Sindipães). The solution in times of short money and high bills was to innovate, says the manager. The sector went on to new products, new services, and valued the delicacies offered to our clients. “We looked for recipes in which we could use better prices supplies without losing final quality. We did not stop innovating while we wait for a better second semester, or at least, a stabilized one”, Azevedo argues, betting that the financial and political crisis crisis will start to lose strength. “We believe we are going to get back 195

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the 5 to 10% of market we have lost and that we will start 2017 having growth expectation”, he said. For the Alcohol Industry an atypical year was overwhelming. Not only for the crisis, that has affected all economic branches, the summer itself was not the best when it comes to sales, lamented Espírito Santo’s Beverages Industry Union (Sindibebidas-ES) president, Sérgio Rodrigues da Costa. “Our summer was very bad with the decrease on sales. We had not yet identified a factor other than the crisis that had led to the low consumption. The winter is normal, we are reacting, but nothing out of the ordinary. Compared to last year, 2016’s june and July have shown improvement. If compared to 2013 and 2014, this year has been worst. The biggest problem is that 2016’s January a February had been terrible months. We do not understand the reason of it since it was a long and hot summer. Maybe (it has been) the crisis’ alarm; people were afraid. To get an idea of things, I sold, in such period, 50% less than in 2014 and 20% less than in 2015, which had already been an awful year”. The president of the Pasta and Biscuits’ Industry Union of Espírito Santos’ State (Sindimassas), Levi Tesch, tells his own personal experience, as an entrepreneur, to circumvent the crisis. “Our company has grown because we have invested in Rio de Janeiro’s market. We found this breach to go around the crisis; we opened a factory in 2015 and we are selling products to other markets outside of Espírito Santo. If our market was only the Espírito Santo’s one, we would surely be suffering from a violent recession”. The overall picture, however, is worrying. As company leader, Tesch estimates that some associates are living difficult a moment. “In Sindimassas we are talking about 10 to 30% in sales drop depending on the segment and type of product. But we have talked to others that estimate drops up to 40%. With the layoffs in other productive sectors, the households’ revenues fall and so does family’s consumption. And when it is time to shop families leave one or another product behind, products considered to to superfluous, meaning a different past, a different biscuit se na hora das compras é preciso deixar algum produto para trás, eles deixam os considerados supérfluos, ou seja, uma massa diferente, um biscoito. A serious consequence of this is the unemployment. Some companies have already closed 40% of their job positions”, he says.

JOBS In the food and drink sector, from January to June of this year, the employment balance has been positive. About 265 positions were opened in Espírito Santo. However, if we look to a 12 months period – from July of 2015 to June of 2016 – there is a decrease in the number of posts with 353 less employments in the market. All the data is collected by 196

Supermarkets suffer with the 3,4% decrease in the volume sales within this year’s first four months

Cadastro Geral de Empregados e Desempregados (Caged) of Ministry of Labor and Employment (MTE). In the bakery market, the decrease in workstations went to 5%, according to Luiz Carlos Almeida Azevedo. “This number shows that we don’t suffer from a grand reduction of vacancies, but we don’t grow either”, explains the manager, also claiming the sector is one powerful employment generator, offering 25 thousand direct vacancies and other 50 indirect thousand and circling, a year, 2.7 billion reais. In the drink area, despite the crisis has been strengthened, the staff list hasn’t allowed any further adjustments, according to Sérgio Rodrigues da Costa. “In this year there were few resignations, since the production line is compact. An example is that, if I need 12 employers to the water’s bottling process, I’ll need the same 12 employers independent of the production amount. What we realize is that there is a reallocation of people. If once there was a team just for the equipment cleaning and maintenance, today we stop the factory in one day of the week, and all the team helps”, he highlights.

EXPECTATIONS To the second this year’s semester there is a more positive feeling, says LEvi Tesch, from Sindimassas. “The financial sector is going to move right after the political crisis begins to wear off. Among entrepreneurs there is the belief of a better second semester derived from the country’s political situation. It is as a lith in the end of the tunnel. For now, the orientation we give to the sector’s entrepreneurs is for them to focus on good management, to try wipe away costs to the maximum and to wait for economic recovery that should be happening in the next months.” YEARBOOK IEL 200 LARGEST COMPANIES 2016

To Sindibebidas-ES’ president, this resumption is going to take a little longer. “In our sector we are expecting an improvement only for the next year’s second half. Until then, we have to keep our market share and our head together. There are many business owners who need liquidity and promote giveaways with prices below costs. This is very bad. No one wins with this unloyal competition. For that I think we have to keep calm”, argues Costa.

CONSUMPTION CHANGES If there’s anything positive to take out of the installed crisis in the brazilian economy, it can be the conscient consumption. If once the buyers took more products home than they would consume, today, with the life cost increasing beyond the salaries, the best way is to count your money even when buying a little french bread. “Once, the client would arrive and ask: ‘Gimme 10 or 12 breads’. Today, the count is more precise. He comes and asks

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

exactly what he will consume. The exceeding amount was taken away from the shopping list. The buyer’s eyes has got more attentive. This is perceivable e can be positive, since we want consumption, we want the client to buy, but we want this consumption to be equally interesting to him. There are other lines in which we also perceive there was a big reduction, like cheese and butter, specially due to the price increase”, Azevedo from Sindipaes observes. Another point that grabs the entrepreneurs attention is everyone’s engagement in the moment of crisis. “We noticed that the employer-employee confidence has returned. It seems the employees realized that the employers are doing everything to keep their staff, to not dismiss, and they are valuing it. The consequence is that all are wearing the company’s shirt. Who knows if this isn’t the crisis’s legacy, the positive learning we’ll take from all of it?”, questions Costa from Sindibebidas-ES.

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ECONOMY ON ITS WAY BACK TO THE SURFACE After the recession, the hole in the public accounts and the political turmoil have lead the country to the bottom, the expectation is that 2017 and brings the recovery of confidence and the economy’s growth return

-14,2% The drop of Espírito Santos’ GDP in the first quarter of 2016

YEARBOOK IEL 200 LARGEST COMPANIES 2016

fter the rain comes the sun. As old as it is, this popular saying can be applied to the current moment in Brazil. If 2014, 2015 and a good share of 2016 were lost years to the country’s economy, we expect that 2017 brings economical recovery and growth with the end of the political turmoil recently lived by the country. “I am optimistic to 2017. Even with bad number records in 2016, we can see the traditional industry repositioning itself and moving well. The business owners developed a very good plan and stopped the layoffs”, says the Espírito Santo’s Industry Federation, Macros Guerra. “The Industry’s Confidence Index has already gone up to 51 points. The fact that it went above 50 points itself signals the country’s recovery.” This optimism is also affecting the financial market. The projection is to have cuts on the basic interest rate that has reached 14,25% in the end of July of 2015 and remained at the level until October of 2016, with the estimation to close the year 199

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at 13,75%. To 2017, the financial institutions’ forecast is that the interest rate remanis at at 11,25% which souls stimulate consumption return, moving once again the economy. The same path should follow the dollar, which the price against the brazilian real has fallen 20% since this year’s January. The north american currency got to be worth more than R$ 4.00 until the beginning of 2016 and was operating in the house of R$ 3.27 in the beginning of September, But with the confidence regain after the political crisis in Brazil, the most optimistic analysts bet that the exchange rate may fall down to R$ 3.00 in short term because of the rise of capital flux into the country. According to analysts consulted by the Central Bank for the Boletim Focus (Focus’ Report) released on the last week of August, the performance estimates for the economy in 2017 have improved. The evaluation for the Gross Domestic Product (GDP) growth went to 1,23% for the next year, A very positive scenario if compared to the estimated drop of 3,2% in the country’s wealth for 2016. The index, however, is still seen with reservations by the financial market and the industry. “It is very hard to make projections. It is too early to talk about this positive index. It is good to point out that, even if it occurs, this number does not mean growing but a recovery. It is required, before all, to recover everything that has been lost just so we can grow back. We have not surfaced yet”, argues Marcos Guerra, Findes’ president. Resurfacing after reaching the bottom will be, indeed, hard work. To prove it there is the serie of negative numbers the brazilian economy has been recording since 2014. In this year’s first seven months, the Government numbers have shown a primary deficit (spendings bigger than the revenues without including the public debt’s interest rates) of R$ 51.07 billions - the worst result for the period in the entire historic series initiated in 1997. In July alone, the negative budget was of R$ 18.55 billions. With the brazilian economy in a recession, this fiscal hole in the public safes increases due to the retraction in revenues, caused by the drop of production and consumption and also by the Government difficulties to cut spendings. Facing these negative results, the Congress 200

Central Bank’s Headquarter in Brasília, responsible for the economy’s interest rate setting

approved an alteration to the Fiscal Goal, requested by Temer’s Government economic team that now allows a fiscal hole up to R$ 170.5 billion in 2016 - the biggest in history if confirmed. So, by the third year in a row, the country will close its accounts in the negative: in 2014 the deficit was of R$ 17.24 billion, in 2015 it got to R$ 114.98 billion, the record so far. By 2017, it is supposed to reach up to R$ 139 billion. These consecutive fiscal deficits lead to a higher inflation measured by the National Index for the Broad Consumer (IPCA) - which after almost at 11% in 2015, should get to 7,21% by the end of 2016, according to financial institutions. Distant numbers from the official which is of 4,5%. is is expected that the inflationary index stays at 5,2%. Economy’s low performance and the debt’s worsening have lead Brazil to lose the so-called “investment grade”, a kind of recommendation for the apply or resources to a country, which was withdrawn by the three top credit agencies in the world: Fitch, Moody’s and Standard&Poors. Among the industry sector, is is expected that the country leaves this paralysis with the ending of president Dilma Rousseff’s impeachment process, having already in sight a recovery in economic activities as Michel Temer effectively becomes president. “Past this impeachment issue the expectations is for a far better 2017 and 2018. The Government’s economic team is very good. The main YEARBOOK IEL 200 LARGEST COMPANIES 2016

ministries are very well integrated and this is essential to our country’s recovery”, argues Marcos Guerra. This paralysis and retraction revelam themselves in the results of all the industry: in the year to June of 2016 the industrial production shrank 9,1% and retail sales dropped 7% while services fell 4,9%. As a consequence of it the unemployment rate went up to 11,6% in July hitting a total of 11,8 million workers.

(MG), suspending Samarco’s activities, in Anchieta, and putting down the capixaba extractive industry’s results. This paralyzation effects were kept during 2016’s first semester. Until june, the extractive industry has fallen by 36,4%, pulling the State’s industrial production downwards (-22,6%). In the accumulated result of 2016’s second semester, the sectors’s economic indicators don’t reveal improvement: the sales volume in the commerce has fallen by 10,8% and, in the services, 7,1%. That way, the unemployment tax in the State has reached 11,5%. Due to those numbers, the capixaba GDP has suffered a 14,2% diminishment in the first trimester this year, according to Instituto Jones dos Santos Neves’s statistics – well above the national index – whose shrinkage should be of 3,2%, by the end of 2016, in a Central Bank projection. “The year of 2016 has been very hard to Espírito Santo, with a bigger decrease than the national scenario.The dependency on the extractive industry, in the middle of the current economic scenario, will affect the Espírito Santo’s GDP a lot”, evaluates Marcos Guerra.

IN ESPÍRITO SANTO

BANKS

The local scenario presented a detachment from the national reality, between 2014 and 2015, to the point of registering eight consecutive trimesters increase in the Gross Domestic Product, before a constant declination in the country’s wealth. By june of 2015, the capixaba’s GDP increased 4,1%. Within the same period, the industrial production in the state has elevated itself to 17,2%, due to the Tubarão VIII plant from Vale and the fourth Samarco’s plant ingress in operation, while the other sectors (trade and services) presented a reduction in activity. However, from the second semester in the last year, the trimestral GPD indicator in Espírito Santo suffered excessive decreases and ended the year with a 1,1% loss. Moreover the brazilian economic recession impacts, there was, in november, a disruption of an ore tailing barrage in Mariana

The income of the five major financial institutions in the country - Santander, Bradesco Itaú Unibanco, Banco do Brasil and Caixa - fell 13,5% in the second half of 2016 when compared to last year’s same period. Added up, the profitability has reached R$ 14.053 billion, lower than the R$ 17.288 billion from 2015. When compared to the semester the drop is even bigger: 29,6%. In the other hand, in relation to the first trimester of this year, the profit of these five banks, added up, jumped 13,9%, signaling that the financial institutions’ hardest moment may have been left behind. In the Espírito Santo’s scenario, Banestes has shown an income of R$ 84.7 million in the first half of 2016, a value 2,8% bigger than the one reached last year. There was also the growth of the Bank’s equity, which rose 8,6% and came to be worth R$ 1.2 billion.

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ECONOMY HEALTH

In Colatina, Sesi SaÃºde (medical center), opened a few months ago, will attend more than 50 thousand people a year

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GOVERNMENT INVESTS IN DECENTRALIZED ASSISTANCE The goal is to facilitate the citizen’s access to more humanized and specialized services

18,98%

Is the percentage of net current revenue directed to the health sector in Espírito Santo

YEARBOOK IEL 200 LARGEST COMPANIES 2016

he efficiency, meritocracy and transparency pillars keep basing Espíriito Santo’s Govern when it comes to health. Actually, the state network is supported by 19 hospitals, placed in the four capixaba regions. The north is assisted by the following hospitals: Dr. Rita de Cássia, in Barra de São Francisco, and Roberto Arnizaut Silvares, in São Mateus. In the central region, the population is assisted by João dos Santos Neves, in Baixo Guandu, and Silvio Avidos, in Colatina. In the south, the emergency and urgency assistances are performed in Hospital Estadual São José do Calçado, in Hospital Estadual de Jerônimo Monteiro and in Centro de Atendimento Psiquiátrico Dr. Aristides, in Cachoeiro de Itapemirim. In the metropolitan region, the state references in Vitória are the hospitals: São Lucas, Infantil, Central and Hospital Estadual de Urgência e Emergência, in Serra, Dório Silva and Jayme Santos Neves; in Vila Velha, Antônio Bezerra de Faria, Estadual Infantil e Maternidade, Hospital de Vila Velha and Centro de Reabilitação Física assist the population; and, in Cariacica, Hospital Estadual de Atenção Clínica and Hospital Dr. Pedro Fontes. Only in 2015 all these units performed 40.959.701 assistances for people checking into them along with specialized procedures. According to Estado de Saúde’s secretary, Ricardo Oliveira, the sector challenges are permanent. “The Government has the compromise and the obligation to use the public resources in a responsible way. Our great challenges are: expanding and facilitating the citizen’s access to specialized and more humanized health services; raising the citizen’s protagonism in their self-care; and improving Sistema de Saúde (Health System), by means of a management shock (choque de gestão). Let’s not forget that Espírito Santo is the fourth state in the country which mostly invests in healh care, with 18,98% liquid flowing revenue. This, certainly, gives a dimension 203

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of our compromise. We are working with ‘assistance inside your region’ logic, avoiding the moving to Grande Vitória. There is a planning, and it is being accomplished strictly”, he affirmed. In order to avoid this movement, the Health Department (Sesa) is enabling the Consultation Center and Special Examinations in Nova Venécia, Linhares, Santa Teresa, Domingos Martins and Guaçuí. With that, these counties’s population will have access to consults in specialized areas such as neurology, cardiology, gastroenterology, pediatrics, ophthalmology, proctology and urology, as well as various types of diagnostic tests, such as mammography, ultrasound and endoscopy. According to the secretary, the first of the five Centros de Consultas e Especialidades will be inaugurated still this year, in addition to the construction of Hospital Estadual Geral de Cariacica, which will dispose of 400 beds, including maternity and pediatric neonatal ICU (Intensive Care Unit). Also, it’s predicted that the conclusion of Hospital Estadual de Urgência e Emergência’s buildings and the Hospital Maternidade São Mateus’s adequacy agreement signing, in which will be invested R$ 6.9 million to provide 55 new beds. Another highlight was signing the decree which asserts, with prospects to expropriation, the terrain’s public utility, where is located Hospital Estadual de Vila Velha (the former Hospital dos Ferroviários). “The measure represents the first step so that the hospital becomes a public good, and therefore it can be integrated definitely to the state health network. By the end of this year, we hope to dispose in this hospital more 42 clinical beds and five surgery rooms. With this cirurgic center, we can offer approximately more 7.5 thousand elective surgical procedures per year to the population, said the secretary. Yet to encourage the population to change their lifestyle in their own health’s benefit, preventing occurrences such as diabetes, hypertension, obesity, cardiac problems and several other illnesses, Sesa has launched Programa Vida Saudável. “In order to help the population on facing this challenge, we’ve built Movimento 21 Dias por uma Vida Mais Saudável, Primeira Vida Saudável’s first strategy. We’re also investing in the partnership with the citizens to face, alongside with the municipalities, Aedes Aegypti, the mosquito which transmits a grave illnesses virus”, he emphasized.

CACHOEIRO AND LINHARES NOW HAVE SESI’S MEDICAL CENTRE Major investments in Public Health have also been made in order to beneficiate industry workers in Espírito Santo. The Findes System initiative, through Sesi-ES, goes by the implementation of more medical centers in the countryside The counties’ covered are Cachoeiro de Itapemirim and Linhares. The foreseen value of this two units is R$ 6 million. 204

Only in 2015 all these units performed 40.959.701 assistances for people checking into them along with specialized procedures

Is is also now being developed the Mammography Mobile Unit project, whose total investment is R$ 1.5 million. According to Sesi-ES’ Health Manager, Marcos Alex, there is no shortage of actions focused on promoting safer working environment and life quality to the industry workers. According to him, the institution offers services in the areas of safety and health at work: good programs as Environmental Risk Prevention Program (PPRA) Medical Control and Occupational Health Program (PCMSO), technical reports,laudos técnicos, Hearing Conservation Program (PCA) Respiratory Protection Program (PPR), occupational medicine; complementary exams (audiometry, spirometry, clinical analysis, visual acuity, electrocardiogram, radiology, electroencephalogram, etc.); medical support in areas as cardiology, ophthalmology, otolaryngology, neurology, orthopedics and medical clinic; dentistry care, in Sesi’s health centers, and occupational with mobile units; ergonomics; Safe Industry; NR 12; Mais Saúde; Internal Commission for Accidents Prevention (Cipa); vaccination, and Sesi’s Health Space. “The industry worker as access to the services both as in in work way, ie by the demand of where he works and also as an individual and personalized way. It is worth to remember that the prices charged to industry workers are more accessible and lower than those charged by the local market. In addition, the service is structured to ensure its quality”, explained Alex. To the manager, adopting safety and health at work practices, mandatory by brazilian law, has significantly contributed to the company’s better performance. “The adoption of these practices are also important to promote improvement in the worker’s life quality. It is a key factor in the increase of the industry’s competitiveness. Safe and healthy environments offer suitable conditions for the carrying out of their daily tasks and thus promoting productivity”, he argued. Sesi expects to end the year expanding its services in safety and health, reaffirming once again its commitment to the capixaba worker’s life quality. YEARBOOK IEL 200 LARGEST COMPANIES 2016

ECONOMY RETAIL TRADE

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PROMOTIONS E EXPENSE CUTS NOT TO GO BANKRUPT With the decrease in sales volume above the national average, Espírito Santo’s shopkeepers seek strategies to resist the crisis

S -20,3%

That was the expanded retailing commerce loss in Espírito Santo, in may of 2016, the worst result in Brazil

YEARBOOK IEL 200 LARGEST COMPANIES 2016

elling has always been an art. However, under the current retailing conjuncture, attracting the client has been being na increasing challenge. The economic crisis’s reflection lived by the country can be seen in the empty stores, waiting for the customers, rarer as the days go by. To resist and not bankrupt, salespeople have resorted to a serie of strategies, from promotions to expenses cut, in search for better days. The 2015’s accumulated result numbers state this distressful panorama. Espírito’s retailing commerce sales volume – which englobes supermarkets, stationery stores, clothing and home appliances, among others – has fallen 7,6%, in comparison to a fall in 4,3% in the national scenario, according to the Monthly Survey for Trade Pesquisa Mensal do Comércio data, elaborated by the Brazilian Institute for Geography and Statistics (IBGE). Many stores have not resisted the crisis and were obligated to dismiss employers or even shut their activities. The consequence is 9.010 workstations being closed within the State commerce in 2015, according to Caged/MTE. 207

ECONOMY By may of 2016, in the interannual comparison (within the same period as 2015), the retailing commerce drop in Espírito Santo was 15,2%. The negative performance was influenced, mainly, by the movable activities retractions (-41,9%), office equipment and material, computing and communication (-38,6%). “The economic crisis has taken the country to the alarming number of 11 million of unemployed people. Without a guaranteed income, the people start to consume less, and, consequently, the commerce also sells less. That explains the sector’s negative result”, analyses Ana Carolina Giuberti, Instituto Jones dos Santos Neves (IJSN)’s Studies and Reseaches’s director. Moreover the conjunctural problems, Federation of Trade in Goods, Services and Tourism of Espírito Santo (Fecomércio)’s president, José Lino Sepulcri, highlights other factors to explain the negative numbers. “There is a study about the businesses cycles which shows the State’s cyclical fluctuations are more volatile than the fluctuations occurred in Brazil. That means saying that the State tends to grow above the national average during the periods of prosperity. On the other side, it tends to fall more than the average during the recession periods. This statement affects all of the sectors in the state economy”, affirms José Lino. In the expanded retailing, the sales decline in Espírito Santo’s commerce was of 20,3% until may of 2016, in comparison to the same period the year before – the worst result among all the brazilian states. The loss, in that case, was more influenced by the vehicles, motorcycles and auto parts, with a 31,9% fall. “The vehicles sales sector has been suffering several losses since IPI’s incentive ended, in january of 2015. Due to that, the commerce was affected, thus it had been coming from a series of great sales, with the cheapest credits heating it surprisingly”, observes the manager. The only areas that sum a positive balance in the first months of 2016 are the following articles: pharmaceutic, medical, orthopedic, perfumery and cosmetics, with a 3,3% growth in the first four months of the year, in opposition to the same period of the previous year. The supermarket owners, however, couldn’t escape from the crisis. By april of 2016, the sales amount has diminished in 3,4%, compared to the same period of 2015. Under this panorama, not even the 9,8% nominal raising in the sales value could help to cheer things up. “Since the elections of 2014, in october, the supermarkets have been losing results in sales. There was even a nominal raise of 9,6% in the revenues, but, if we discount the inflation (which ended up in 2015 by 9,8%), the balance becomes negative”, evaluates Hélio Schneider, Capixaba Supermarket Association (Acaps) superintendent. 208

Supermarkets suffer from a fall of 3,4% on sales volume in the first four months of this year

Dealing with the crisis demands a special care by the traders. In a high inflation scenario, the natural order would be passing the cost increase to the product prices. But not even this measure could be taken by the supermarket owners. “When a cost increase happens, provoked by the inflation, your obligation is to repass to the product price, because it is necessary to maintain the company sustainable. But, if we do so, the buyer will not accept and run away from the shops at once”, alerts Schneider. The solution, according to Sepulcri, from Fecomércio, is the reorganization by the shopkeepers and their enterprises, to guarantee a more effective functioning, reducing, thus, the loss margin. “This is an adjust moment. It is very probable, when the economy recovers itself, that it will be in a new level and new horizons. So, it is necessary for the entrepreneurs to look inside their companies and seek efficiency in their own businesses. Do more and better with less”, he points out. The commerce representatives keep hope in a new recovery by the end of 2016. It’s expected that the change occurred in the Federal Government returns the confidence that currently runs thin, both from the investors and from the population. “We’re glancing a light at the end of the tunnel. This is already a positive factor. Let’s wait for the end of the year to make a balance. If we keep in a nil-nil score, between revenue and expenses, or in sales volume in relation to 2015, there will have been a good business, because we are going to survive and comply with our obligations”, highlights Hélio Schneider. “It is a sacrifice we must pass through, so we can later start to take off our business until we recover all this wasted time. YEARBOOK IEL 200 LARGEST COMPANIES 2016

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

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ECONOMY CIVIL AND HEAVY CONSTRUCTION

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OPTIMISM IN THE CONSTRUCTION SECTOR GROWS AMID THE CRISIS Changes in the political scenario should influence the economic scenario, so does the construction sector’s entrepreneurs believe

27,8%

It’s the civil construction service’s participation in the more than 1.5 million formal employments which were extinct in 2015

YEARBOOK IEL 200 LARGEST COMPANIES 2016

he construction sector is one of the most affected sectors by the financial crisis the country is going through since the end of 2014. With the reduction in economic activity, the sector is among those who most eliminated work posts in Bazil – from more than 1,5 million of formal jobs extincted in 2015, 27,8% (almost 417 thousand jobs) occurred in the construction sector, according to General Employed and Unemployed Register (Caged). By the end of the first half of 2016, the sector completed its 21st consecutive month on a negative budget - since October of 2014 the number of admissions does not overcome the number of layoffs. Still, the changes in the political scenario and their influence on the economic picture have risen the industry’s optimism. In july of 2016, the Brasil’s Construction Confidence Index (ICST), in a monthly poll carried on by Getulio Vargas Foundation (FGV), reached up to 70,7 points, the biggest since August of 2015. In that month it was also the first time, since November of 2015, that there was an increase in both in the indicator that measures the current situation and the short-term expectations flag, reaching up to 79,3 points, the higher since April of 2015. The same survey has shown the usage level of the sector’s construction capacity also recorded improvement, reaching 64,4%, the highest level since March of 2016. Although the confidence level is still very low compared to the historical average, the results indicate that the perception of business owners is becoming more optimistic. “The indications on resumption on stopped works and of new hiring in Government programs, as well as more positives perspectives for 211

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the economy have reduced the sector’s pessimism”, said the FGV/Ibre’s Construction Projects coordinator, Ana Maria Castelo. In Espírito Santo, according to Construction Industry Union (Sinduscon-ES), the nearly two thousand companies from the construction sector (both civil and heavy) have greatly reduced the number of jobs - from 60 thousand by the end of 2014 to just over 39 thousand in June of 2016, according to Caged data. The president of Patronal Entity Evaluation, Paulo Baraona, is that the area is one of the first to suffer from the turmoil. “We are talking about a high cost equity and long-term financing. With the crisis, major industries stop their plants and reduce their investments. Namely in the public sector, the fall in revenues contracted the pace of hirings and construction or even fully stop contracts, specially when it comes to municipal resources”. he says. In relation to companies who undertake infrastructure constructions - there are 867 in Espírito Santo according to the Revenue Integrated Management System (Siga), which is operated by the Union’s Support Centre (CAS/Findes) -, the president of Heavy Construction Industry Union (Sindicopes), José Carlos Chamon, says that they are in a clear slowdown due to the lack of potential private investors as well as from the public sector. “The drop on contracts and the legal uncertainty related to measurements imposed by control agencies, both federal and state, have scared away the companies who are now looking for investment alternatives away from the public sector. From September of 2015 to July of 2016 a survey conducted by our associated companies indicates that 4,5 thousand people were layoff. This number can double itself if we account for all of the 867 companies from the sector”, he says.

RECOVERY AFTER POLITICAL STABILITY The civil construction industry had its summit in 2010 when, boosted by a 7,5% advance in brazilian GDP, has managed to grow 13,1% in the sectorial GDP. According to Baraona, the political crisis reflects strongly in the economic outlook, and the stabilization must allow a recovery. “The new president will have conditions to take measures 212

In Espírito Santo, there was a reduction in the sector’s employment numbers sector, from 60 thousand in the end of 2014 to slightly more than 39 thousand in june 2016

involving four big bottlenecks: the Social Security and the labor, tax and fiscal laws. This is urgent, for the good of the country’s development, because it will save and generate resources, also, for the accomplishment of infrastructure investments. It’s no use having big industries, agricultural products being provided with the highest technology, if we don’t find out how to dry this production. Water, sewers, harbors, airports and railroads are priority, and it is us who offer all those things”, he guarantees. The legal certainty, with respect to the contracts, to the States’s fiscal responsibility, to the tax reform and to the “labor law adequacy to reality”, is considered to be prime by Sindicopes’s president. “It’s about time for us to have a tax reform and a labor law revision. In the same way, the juridical insecurity, thus the short-term solutions, law interpretation under the criteria of judges and auditors who consider profit as a sin, are impoverishing the industrial sector”, evaluates José Carlos Chamon. YEARBOOK IEL 200 LARGEST COMPANIES 2016

The entrepreneur’s optimism regarding the new Government is partly explained by the creating of a permanent dialogue fórum between the Presidence of Republic and the civil construction representatives. The announcement was made during the Meeting with the Civil Construction taken place in Brasília, in August 11th, which counted with the Paulo Baraona’s participation. The event received the sector representatives coming from all brazilian states and the group must assemble in each 45 days in Palácio do Planalto to evaluate the course of the actions. “Crisis is one thing that everybody perceives, independent of social class and formation level, because you see inflation, the population feel the prices raising. The last two years were marked by measures that reduced the credit and interest increase and also by banking demands. The entrepreneurs have no party. We defend what is important to the country’s growth and the employment generation.

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

The Government needs initiatives that generates employments and to do so it is necessary to give conditions to the sector to invest, specially concerning one of the activities that mostly employ in any country: the construction. Minha Casa Minha Vida program must receive new resources, thus it’s very important for both the population and the productive sector”, reinforces the manager. Espírito Santo is a good example to be shown to Brazil, in Baraona’s evaluation, because the State Government has effectuated the tax adjustment in the public system. It brings lots of confidence to the population and it is necessary to make the economy flow. Although unpopular, we are aware that some measures need to be taken, such as the Consolidação das Leis Trabalhistas (CLT) updating and the outsourcing, which will certainly contribute to the employment generation. The current legislation disturbs, thus it’s completely outdated. We’re not speaking of taking anybody’s right, but it’s important to flexibilize it”, concluded.

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ECONOMY FURNITURE

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FURNITURE INDUSTRY: USING STRATEGY TO CIRCUMVENT THE CRISIS After two years in crisis, sector establishes growth goals for 2017

R$ 550 MILLIONS

It is the annual financial movement from Espírito Santo’s furniture industry

YEARBOOK IEL 200 LARGEST COMPANIES 2016

his year’s first half continued to be very difficult for the brazilian industry.And to the capixaba’s industry it was not any different. According to the president of Lumber and Furniture Industry Union from Linhares and northern Espírito Santo (Sindimol), Alvino Pessoti Sandis, the sector is still evaluating its sales and production during this year’s first half, but numbers, so far, are not so good. If there was some increase in sales over the same period of 2015, he says, it was minimal. To bet on better days remained for this year’s second half. “We are optimistic for the end of the year. Statistically, the end of the year is the period for the industry, all of them. We had had the ES Furniture Show in June, which is our trade fair in the State, and we are striving to fulfill all deals closed at the event. The scenario for 2017 still is a mystery to all areas in the economy, but we are investing on new strategies that should allow us to go through this moment”, he says. The furniture market is strong in Espírito Santo especially factory centers as Cariacica and Linhares. The financial flux gets up to R$ 550 millions a year. To understand its importance, 2015’s edition of ES Furniture Show generated R$ 150 millions in deals. For this year, the expectation is that number to get even higher. “The showroom always fulfill an important role in stimulating the market and the exchange of information and experiences among the companies and institutions from the sector”, says the Secretary of State for the Development, José Eduardo Azevedo. And the sector, for its weight on the Espírito Santos’s economy, needs a boosting. In Espírito Santo there are, approximately around 800 furniture factories, having 11 thousand workers, and the furniture centre of Linhares being recognized as one of the most important productive 215

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areas of the State consisting of, approximately, 149 factories and generating more than 4.000 direct jobs.

EMPLOYMENT The entrepreneurs and industrialists most optimistic look shows that it’s possible to cross through the turmoils strengthened. But it’s necessary to be aware, they say. Last year and, at least half of 2016, has let tragic scars in the economy. Few productive sectors in the country have left unhurt from the eye of the hurricane formed by the political and economic crisis. An efficient thermometer to measure the damage done to industry, the total number of unemployeds has increased all over the country, going beyond the 11 million. In Espírito Santo, the transformation industry only loses to the civil construction in terms of layoffs. In a more specific approach, the wood and furniture industry have left a closure balance, within the period of 12 months ending in may, of 1.154 workstations; a variation of -11,31%. This percentage takes as reference the last month’s supplies counterposed to the same month of the previous year. Nationally, the situation also concerns the furniture area: 43.796 jobs were extinct in 12 months. In May, the situation got even more critic. If 156 jobs were eliminated by the wood and furniture industry in the year, May answers for 133 of these lost jobs. Sandis explains that the adjustments which should be done, that is, the most necessary layoffs, were effectuated last year. He evaluates that in 2016 there weren’t meaningful impacts within the employment scenario in the state’s furniture industry, situation which should remain by the next months. “It’s important to highlight that, once the sales are retaken, the admissions will also be.”

CHINA If the domestic market is sluggish, a not so new competitor also causes some concern: Chinese Products have entered the fray for a share of the brazilian market. Through the internet it is possible to buy furniture - many lower on quality - with way below prices than the ones practiced in the national territory. Sandis does not consider these new products to be a threat to the sector. “We do not consider this to be the biggest threat to national products sales. Of course it affects the sector, mainly the areas of plastic furniture and office furniture, but Brazil is an immense market and if we had a serious tax and labor reform surely not only the furniture sector but the whole brazilian industry would be less vulnerable to this situation”. If on one hand furniture imports arose, on the other the exports also took a breath. The good geographical location 216

In a 12 months period, 1.154 jobs were lost in the furniture and timber industries

of the State, allied to an infrastructure favoring external sales, can be the key to boost transactions. “Our exports varies a lot according to the opportunities. In 2014, for example, there was no moving to the international market but in 2015 the exchange rate turned the operation attractive and so we initiated the process of exportation, mainly to the Latin America that has given good results so far.”

RECOVERY Observing the segment’s performance from a historic perspective, the years before 2014 show that it’s possible to retake the development and the sales once the economy gets balanced again. According to Instituto Brasileiro de Geografia e Estatística (IBGE), Espírito Santo was one of the few states in the country that showed positive variations in the furniture sales volume from 2008 (the international crisis year) to 2014. In 2008, it was the Federal Unit with the largest growth in furniture sales, with an increase of 25,4%. Since then, in the further exercises, the activity has just expanded, around 6,9% annually. And the evolution in capixaba’s retailing furniture’s has reached 55,1% in the last seven years. However, just like most part of the brazilian states, in 2015 Espírito Santo has accumulated a decrease in sales, in the order of 14,3%.

NEW PATHS Even with the full economic and political crisis happening in Brazil, the furniture industry from Espírito Santo yet has YEARBOOK IEL 200 LARGEST COMPANIES 2016

some favorable possibilities for the future. In this year’s July it was launched the foundation stone for the first MDF factory in Espírito Santo, the Placas do Brasil S/A, in Pinheiros. a city in the northern area of the State. It is expected to open with 600 jobs position. “It is surely a watershed for the sector. It was an old dream from our companies in our region, given that we now have a great incidence of shipping when buying MDF boards, which is our main raw material. So, the opening of a Brasil Placas’ factory in our State creates a scenario of opportunities highly important to the increase of competitiveness of Espírito Santo’s companies. The expected beginning of operations is in January of 2018”, says Sandis. The new plant should not only move the furniture industry but also the agricultural industry with the eucalyptus production used in for the manufacture of MDF boards. The design and creation of Placas do Brasil S/A came from the initiative from a group of 40 businessmen from northern State. The plant shall produce raw and coated MDF panels, which feed the furniture industry in the Southeast and Northeast.

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

The investments are of R$ 388 millions in industry and R$ 80 millions in forest base. It is expected to generate 150 jobs when the company starts its operations and 450 more jobs in planting, harvesting and transport activities. In this year’s May, it was also announced and industrial and logistical centre having 12 million square meters, which will be built in in Linhares and will be called Distrito Empresarial Norte Capixaba (Business District of Northern Espírito Santo). The initial project was signed by the State Government, the city of Linhares and a logistics company. The idea is to provide structure for the implementation of several businesses from diverse important sectors to Espírito Santo’s economy, such as mechanical metal, ornamental rocks, furniture, petroleum and petrochemical among others. The venture also includes logistics and port access project. The furniture industry, however, prefers to wait for the next steps before manifesting itself. “We have not done an assessment, whereas many other projects have not been consolidated. So let’s wait”, says Sandis.

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APPAREL SECTOR AWAITS A RECOVERY IN THE SECOND SEMESTER Companies have suffered losses for months, but hope to end 2016 with better results

2.186 It is the total number of jobs terminated between July of 2015 and June of 2016 in the clothing industry in Espírito Santo

YEARBOOK IEL 200 LARGEST COMPANIES 2016

ust like the other economy sectors, the apparel industry has also needed force and resilience to overcome the last months. In Espírito Santo, 2.186 job vacancies were extinct between July of 2015 and June of 2016, according to numbers from Cadastro Geral de Empregados e Desempregados (Caged) and Ministério do Trabalho e Emprego (MTE). The most affected cities were also those with stronger poles within the area: Colatina has closed 694 posts, and Linhares, 147. The sum of lost occupations in the first semester was lesser, but even so, worrying. The segment has cut 531 vacancies in the State, with Colatina (-64) and Linhares (-17) continuing to lead the unfortunate ranking. “During the year of 2015, the adjustments and layoffs were more intense. But, in 2016, the sector kept feeling roughly the adjustment measures that are being adopted by the Federal Executive, with high interest policies and investments loss. With some exceptions, the majority of companies registered a reduction in their business volume, suffering revenue loss and bad credit”, evaluates Sindicato da Indústria do Vestuário de Colatina (Sinvesco)’s president Fabio Tadeu Zanetti. If the inner scenario was a recession and a decline in consumption, the picture painted with the crisis’s ink became less dramatic due to the dollar elevation, which represented a competitive advantage to the wiring textile industry’s national products, analysis Mariluce Polido Dias, president of Sindicato da Indústria da Fiação e Tecelagem, Tinturaria, Estamparia e Beneficiamento de Fibras Artificiais e Sintéticas e do Vestuário do Estado do Espírito Santo (Sindutex). In practice, with the north219

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american currency flying high, it’s more viable buying national products than importing from foreign industries. “The recession in consumption was very large, but the high dollar helped in making our product more competitive in the inner market. If it weren’t for that, many companies would have bankrupted, certainly would have closed the doors. We survived these times due to the dollar price. Now, our prediction is that things get stabilized. The political change will help on that, we hope. And our expectation is also that the dollar keeps being in this level, or at least less close to it, which hampers the imports and generates more national product consumption”, emphasizes the director.

FUTURE The second semester, according to the president of the Clothing Industry Union of Linhares (Sinvel), Ricardo Zupello de Paulo, promises some market recovery. “We see a relative improvement for the next months. In the first semester, the biggest drop in production jobs was in May. It was a difficult period and we had to do a lot of cuts. Our revenue fell around 20%, we estimate. But, for the second semester, we already see some reaction and even anticipate hiring again. We looking forward to the next months with hope”, he said, explaining that the low revenue between January and May of 2016 in relation to the same period of 2015 was of 4,6%, having 2015 already been a terrible year. “We have experienced a really reduction in consumption. The garment industry ended up being severely penalized. In times of crisis, the consumer avoids shopping for clothes, there is, you can take old clothes, save money and not buy a dress or a blouse. It is very different from the food industry, for example. Food is a product that always needs to be replaced. That is why that a reduction in the households’ revenue always hits us very hard and always directly. But now we expect a reaction in consumption and, consequently, in sales and companies’ revenue”, he argues. If the clothing consumption drops, the industry sells less. And the math is hard to do since layoffs are business’ last resort because it takes time to form skilled workers and therefore the industry has to try at all costs to keep good people within its ranks. So, to overcome these financial turmoils keep the company running, the only way is to think smart and cut spendings in other areas, explains Sinvesco’s President. “We are reassessing production plans, business models and trade strategies, looking for new markets and strength220

The clothing industry that had a bitter losses in 2015 and 2016 foresees a calmer year ending

ening partnerships. The main goal is to adopt a more professional and strategic management, trying to cut spendings without losing quality and innovation. We believe that it is no use to only to be concerned about the macroeconomy. The external environment is complex with high interest rates, credit difficulties, and absence of an investment politic. The biggest certainty is that the entrepreneur is more alert to his business internal environment, looking to the long-term scenario and looking to get closer to his clients establishing goals and searching for alternatives within the market”, argues Fabio Tadeu Zanetti, from Sinvesco. The popular saying “if life gives lemons, do a lemonade” seems to make a lot of sense for the industrial managers. The bitter months that were left behind can be looked upon as learning periods, explains Ricardo Zupelli de Paulo, from Sinvel. “The industry’s profile has changed a lot in relation to optimization and spending and wates containment. We have worked hard and learned to save, and, as we start growing again, it will be a more sustainable walk since the cost reduction has been substantial. I mean, we had to adapt ourselves to get through the crisis, and this will have positive repercussions in the future. Our growth and profitability are grounded in this learning”, he says. YEARBOOK IEL 200 LARGEST COMPANIES 2016

If the worst is over, in the other hand there are still ghosts haunting brazilian businessmen that will stay for a while. “The taxes are extremely high. We have to work on that. There are also the labor laws which are too inflexible, there are no deals. There are still no financing lines with accessible credits to the industry”, argues Mariluce, from Sindutex. To give an idea of how 2015 was difficult and how the economy timidly reacting. Just think that in 2014 the clothing industry would make its delivery until December 10th or 12th. In 2015 these products were already set in November 15th. A a very large gap, which transformed into idleness. For this year it is possible to have more demand than production, she says. “We believe that the coming months will be of economic recovery, but not always companies are ready for this reheating. Maybe by the end of the year it starts to miss product in the market.” Fabio Tadeu Zanetti’s evaluation is optimistic. “What we noticed in the last months is a stabilization in the market, even

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in a lower level than the one desired. We believe that the economy should start to recover from the drop, but, nevertheless, in a slow pace. We expect to have a more sensible resumption of growth in this year’s last quarter.” This closer look from the Government towards the entrepreneurs is also in the agenda of the Union’s claims, explains the representative of Sinvesco. “We understand that it is necessary to exist a concern and a recognition, from the Government and partners, that the clothing industry, besides of its great economic importance, also plays an major important social role because it is the the biggest jobs generator. This way we can obtain serious support to the clothing industry recovery and growth. As a body, we seek, over time, to carry on the homework and obtain better conditions for the business environment making the clothing industry of Espírito Santo valued at a national level.”

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ECONOMY EDUCATION

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Photo:Sagrilo

FINANCIAL CRISIS GENERATES EFFECTS IN PRIVATE AND PUBLIC EDUCATION With the revenue fall in the public sector and in the number of students in private education, managers search for alternatives to keep the quality of the provided services

900 THOUSAND

That’s the number of students from basic education to the professionalizing high school in Espírito Santo

YEARBOOK IEL 200 LARGEST COMPANIES 2016

he year of 2016 should be marked by an appropriation expansions directed from the State Government to Secretaria da Educação (Sedu), overcoming in more than 4% the value of 2015 and reaching a passing of R$ 2.15 billion. However, with the national economic scenario’s aggravation, the budgetary execution to the office shouldn’t reach this sum, since until August Espírito Santo used to register revenue loss in the order of 3%, as informed by secretary of State of Education, Haroldo Rocha. At this decaying moment on the resources road, public and private administrators seek alternatives to keep providing services with the best quality as possible. “We had to work hard to improve the school activities and eliminate superfluous expenses. Any organization has a couple of items that can be revised without damages to the essential, which, in the school case, it’s the learning. We’ve done a great resources optimization exercise. The Education is the third largest office of Espírito Santo in terms of budgeting, what shows us that the Government has given too much weight on this Secretary, putting it at the top priority list”, affirms Rocha. In capixaba territory, according to Sedu, 900 thousand students are assisted in the basic education, which covers from day care center to professionalizing tuition, passing through kindergarten, early childhood education, elementary and high school. The state network, the biggest acting in Espírito Santo, is responsible for 30% in this contingent (261 enrolled), with 500 schools and 26 thousand professionals, among teachers and staff. 223

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Escola Viva is the local Executive’s main action in the area and, in 2016, were inaugurated four structures from the project, in Serra, Ecoporanga, Muniz Freire and Cachoeiro de Itapemirim. These units merge to the one which was opened in the previous year in São Pedro neighborhood, in Vitória, the pioneer in modality. The goal is to concretize 10 more schools with this profile in 2017 and other 15 in 2018, resulting 30 in Paulo Hartung governor’s last administration year. Among the State’s four great measures in education is also Sedu Digital, an accessible platform for studies, exercises and student’s pedagogical orientation and which has started being offered last February. There’s also Programa Jovens de Futuro, planning methodology and unity management, which in 2017 should reach all the 290 high school colleges. The measure list fills itself with activities involving teacher’s qualification, the increase of families’s engagement into the young scholar’s life and socioemotional competence development “The education in Brazil some decades ago had the challenge of offering schools for all, something it’s practically accomplished. The great challenge of the moment is improving the learning quality. Sedu’s actions focus is precisely this: what the public network’s teachers and managers can do so that the student learns more”, concludes Haroldo Rocha.

PRIVATE EDUCATION In the private sector, basic education in Espírito Santo is provided by 364 institutions, which in 2016 held 130 thousand enrollments in 5.329 classes, employing 6,4 thousands teachers and 4,6 thousands administrative staff. While in higher education were 115 thousand enrollments in 454 courses in 78 institutions involving the professional performance of 4,8 thousand teachers and 5,8 administrative staff. The data is from the State’s Private Teaching Companies Union (Sinepe-ES). The assessment from the body’s president, Antônio Eugênio Cunha, is that the private education sector has too been suffering from the financial crisis’ effects as the example of what is occurring in other areas. “We have had a reduction in the number of students and we are also facing evasion. Default nas grown going back to 2008 levels where it was at 11,2% in basic education and 10,8% in higher education. These indicators have fell down during the course of time, they came to stay around 6% but a 90 days measurement of 2016 shown that we are having a default of 12% in basic education and 10,4% in higher education”, he reveals. Despite the crisis, the effort is to maintain commitments to providers without delaying worker’s payments, but there may be layoffs if there is not an improvement in the economic picture. “The crisis has meant that families had to revise their budgets. 224

With the fall of the wage purchasing power, due to high inflation and the loss of jobs, people are enrolling their children in cheaper schools and, in the case of families who have lost their ability to pay, opting for public school”, argues Cunha.

SESI-ES AND SENAI-ES Findes System has two great educationalist platforms, Sesi-ES and Senai-ES. Sesi-ES services consist in early childhood education, elementary school, high school and education for youngsters and adults. They are offered in 11 units, eight in Grande Vitória and three in the interior – in Cachoeiro de Itapemirim, Colatina and Linhares. In 2016, the entity has accomplished, until August, 10.639 registers, from a total of 11.444 offered vacancies this year. Its staff is composed by 444 people, among teachers and technical staff. In the professional formation area, there are 10 educational units in Espírito Santo, from which nine are fixed (Vitória, Vila Velha, Serra, Cachoeiro de Itapemirim, Colatina, Linhares, São Mateus, Anchieta and Aracruz) and one Integrated Centre for Mobile Actions, which allows the assistance to all the State on manpower offer in 18 industrial areas, like food and drink, civil construction, metal mechanics, electronics, information technology, oil and gas, among others. in 2016, until August, there were more than 55 thousand registers, 6 thousand in mid-level technical courses; the prediction is to end the year with more than 79 thousand. Ten scholar directors, 30 learning specialists, and 245 instructors integrate the technical team. According to the Thematic Council for Education (Conedu)’s president from the Federation of Industries from the State of Espírito Santo (Findes), Luciano Raizer Moura, Senai-ES’s performance in professional education contributed to the local development, guaranteeing the youngsters the conditions to insert themselves in society through work. “Whoever goes to Senai-ES’s high school learns to have a profession by his/her insertion in an ambient similar to the industrial’s. With its gratuity policies, devoted to the community, a low-income person who didn’t have opportunities to study in a good school has access to a high level formation offered by Senai-ES”, adds Luciano Raizer Moura. Finally, the manager estimates that both Sesi and Senai have modern equipments and laboratories, conquest he attributes to Marcos Guerra’s administration. “Senai’s course offers has grown a lot, in a planned and organized way. It contributes to the competitivity because, in addition to being a decisive factor to any company, it still helps in attracting new investments to the State, since the existence of qualified labor is an essential point including to the productivity”, he concludes. YEARBOOK IEL 200 LARGEST COMPANIES 2016

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ECONOMY PUBLIC POLICIES

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CRISIS DEMAND A DIFFERENT POSITION FROM ESPÍRITO SANTO Debureaucratization processes, legal certainty and less intervention are the gains expected by the productive sector

R$ 57 BILLION

Is the expected investment portfolio of Epírito Santo between 2015 and 2020. Of this total, 83% are for infrastructure

YEARBOOK IEL 200 LARGEST COMPANIES 2016

he ideal scenario for industrial policy meets low interest, controlled inflation, increasing investments in both private as public sphere, as well as good infrastructure and human capacity. But what has been observed in the country, as a rule, is the industry’s loss of competitiveness and productivity. And it is not difficult to list some of the key factors for these bumps. Exorbitant interest rates generate increased investment costs and inhibit the real economy growth expectations. The tax burden increases the cost in different production chains. Tax incentives, although on a significant scale, do not dependent on levels of operational efficiency. And there still is the fierce competition with Asian products. Not to mention with a heavy component in the “cost Brazil”: the poor infrastructure in roads, railways, ports and airports and the integration of this logistic network. To close the package of items unfavorable to the country, there is an overview of rising inflation, high cost of inputs, especially energy, low-skilled professionals and tariff barriers. How to change that? What to do to make our industry more competitive in order to expand their markets and market niches? In the assessment of the director for Federation’s Affairs for the Industrial Public Policies of Espírito Santo (Findes), Paulo Baraona, the bigger is the crisis, less the Government has to interview in the market. “We are trying to be optimistic but unfortunately we are living in a country with high degree of Government intervention in the productive sector. It is necessary that the Federal Government contributes to the entrepreneurship, dictate clear

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ECONOMY rules especially legal, so the investor has security to apply his money”, Baraona argued. Regarding the impact of the definitive departure of the former President Dilma Rousseff, the director claims that the change of government can not be seen as the end of the negative issues. “The fact that the impeachment have occurred does not mean that the problem has been resolved. The Brazilian economy is muffled by a giant State. You must create a production schedule with the urgent and necessary reforms - tax, labor and social security - but we need them to happen in fact”, he said. There are international resources and output to the resumption of investment in the country is in public-private partnerships (PPPs) and the concessions, points Baraona. “The money is there, the big North American and European pension funds have ample conditions to invest in Brazil, but for this we need to ensure that there will be compliance with contracts. And the current reality is of a law not always very clear. We hope that State maintains its oversight prerogative, but with less intervention in investment”, reiterates the director when referring to the actions of the Federal Government. In Espírito Santo, according to Baraona, the local Executive has taken several actions to attract investments and the level of conversation with the productive sector is good, but the scenery can and needs to be more proactive: “It is crucial to have greater involvement of the legislative and judicial branches in order to optimize the favorable measures to the necessary improvements”, he warns. The challenge of achieving an infrastructure capable of supporting the industry’s activities is still worrying. Therefore, PPPs and concessions are being sought by the state government, with defined priorities. “These are infrastructure works to improve logistics and increase our competitiveness. The state provides a portfolio of investments of about R$ 57 billion between 2015 and 2020. Of this total, 83% are for infrastructure, including public resources (Municipal, State and Federal Government) and Private in 259 projects in the areas of energy, terminal port, airport, storage and transport. It was also necessary to intensify the monitoring of federal works, to ensure resources for the progress of the projects”, says the Secretary of State for Development, José Eduardo Azevedo. There is also the need to ensure tax stability, balanced public accounts and strategic planning to provide security for investors and quality management in public services. “This homework, Espírito Santo is doing. We are working with focus on improving the business environment, performance that has guaranteed investments and important works. Just to cite an example, in this year of 2016 we have already released the Oxford plant, the Volare Cinco, Indústria Carvalho Cosméticos and Agrale. Also started the works on 228

In 2016, Espírito Santo announced the launch of the Oxford plant, the Volare Cinco (photo), Indústria Carvalho Cosméticos, and Agrale. Also started the works on the Placas do Brasil plant. Together, these projects totaled R$ 608 million

Placas do Brasil’s factory. Together, these projects totaled R$ 608 million in private investment, generating employment and income to Espírito Santo”, explains the secretary. The State Government invests in reducing bureaucracy, simplifying and shrinking deadlines for opening businesses and processes involved in import and export activities. “We participate in technical groups on improvements in these areas. We also created the State Management Committee of the National Network for the Registration Simplification and Business Legalization (Cogesin / Redesim), with the presence of various organs, departments and entities. The group raised the bottlenecks in the bureaucracy between the government and the private sector to adopt improvement measures. These include the reduction of deadline for registration for companies acts in the Commercial Registry of Espírito Santo to 3.5 days and the direct emission of records by digital media”, says Azevedo. To encourage the development, the state promotes the improvement of the business environment with initiatives to reduce costs and increase the competitiveness of companies that settle here. “These include incentive programs: Invest-ES aims to attract new businesses and investments; and Competitiveness Agreements (Compete-ES) aims to increase the competitiveness of productive sectors. There are even lines of credit offered by the Development Bank of Espírito Santo (Bandes)” he lists. Another important measure is the inclusion of 28 municipalities in the north of the State in the area covered by the Superintendency for Northeastern Development (Sudene), which provides federal tax incentives for the implementation of new investments and has strong performance of Banco do Nordeste do Brasil (BNB) for the provision of credit lines. At the federal level, the assessment of the Secretary is the same as the one from the director of Public Policy from Findes: the challenges involve political and economic stability, and the need of labor and social security reforms, control public spending and a national development agenda. YEARBOOK IEL 200 LARGEST COMPANIES 2016

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ECONOMY CHEMISTRY AND PACKING

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STRUGGLE FOR STABILITY IN THE CHEMISTRY AND PACKING MARKET According to managers, the secret to overcome the crisis is by perfectioning the management

13,5% It was the drop in sales of the plastics industry in the first half of 2016

YEARBOOK IEL 200 LARGEST COMPANIES 2016

he chemistry and packing market has been suffering a concussion with the current economic scenario in Brazil. However, even in one atypical national moment, these segments have kept tight, although without a growth. The plastic industry, for instance, ended the first 2016 semester with a retraction of 13,5% in the total revenues, in comparison to the same period of 2015. These data were provided by Associação Brasileira da Indústria do Plástico (Abiplast), which also registered a revenue of R$ 32.7 billion, a result which means an improvement compared to the first trimester of 2016, when the registered downfall was of 16%. According to Gilmar Guanandy Régio, Sindicato da Indústria de Material Plástico do Espírito Santo (Sindiplast-ES)’s president, to the State, this area’s importance is revealed in the generated employments quantitative. “Only the Espírito Santo’s plastic and packing sector is constituted by 51 companies, which employ 1.387 workers, and formed, in 2015, a total of 101 people through Escola Senai do Plástico, institution that works within Senai-Civit, in Serra, and qualifies professionals to work in the plastic sector”, he comments. Still according to Gilmar Régio, in numbers, the packing industry’s activity in the local economy represents 1,8% of the capixaba industry’s total liquid recipe and moved, in the year of 2013, a total amount of R$ 810 billion. Taking the national panorama as a basis, this second semester of 2016 shows the perspective of some heating, since in this period the important sector’s parcels grow up, like the automotive, and also the companies’s demand for christmas. Abiplast’s projection is to end the year with a 9,7% loss in revenues. 231

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Now, about Espírito Santo, Rocha evaluates that “the most probable perspective in 2016 is a decline of -2,8% in the package physical production, due to the country’s economic difficulties. In 2015, this indicator had already presented a retraction of -4,3%, he laments. And, to avoid this period, some initiatives have been taken: “In 2015, it was perceived a fall in the packing sector’s competitive capability, measured by Índice de Capacidade Competitiva da Indústria Capixaba (ICC). As a reaction to this fall, the sector invested in management improvement and in new product development, as reflected in the management and innovation efficiency indicators”, he comments.

CHEMISTRY: HOPE IN THE SECOND SEMESTER Also emerged in this unstable times, the national chemical sector closed 2015 with a fall in domestic sales volume and demand in the domestic market. Thus, sales in the Espírito Santo fell 5.37%, while the domestic demand for chemical products for industrial use suffered a 6.8% shrinkage, according to the team of Economics and Statistics of the Brazilian Chemical Industry Association (Abiquim). José Carlos Zanotelli, Union President for Chemicals Industry of Espírito Santo (Sindiquímicos), reveals that, for the local economy, “the industries that make up our base are quite representative in the Espírito Santo’s economy. Great players like Heringer and Elkem (union of Carbo derivatives and industrial Carbo), Alcon and Disa lead this ranking, not to mention the Sindiquimicos-ES that represents different macro sectors, such as sugarcane, fertilizer, carbon-chemical and chemical in general - which, in its turn, brings together paints, cosmetics and cleaning products”, he says. The official also noted that the companies associated with the union represent about 10% of the Capixaba industrial GDP. Also, according to Zanotelli, in periods of reduced economic activity, all sectors are affected, but specifically in this, there are companies that have reduced in sales and production from 5 to 25%. 232

The national chemical sector closed the year 2015 with a decline in domestic sales volume and demand in the domestic market

But even with this situation, some branch enterprises are taking steps to circumvent the crisis. “The industry, in general, has done the ‘homework’, wiping costs and fixed expenses to survive. On the other hand, bad debt also reduces profitability, which puts us on a crossroad. If we grow without profit, we can anticipate the closing of companies. The secret is a lot of management in all resources: human, financial, inventory and clients”, said the president of Sindiquímicos. He ends by saying: “We believe that the companies that can survive this period without compromising much capital have great chances to enter into in the recovery, which appears next.” YEARBOOK IEL 200 LARGEST COMPANIES 2016

ECONOMY INNOVATION

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INNOVATION R$ 39.3 GUARANTEES THE BILLION FUTURE COMPANIES

It is the capital available for risk investments in Brazil today

Available venture capital funds sum R$ 39.3 billion in Brazil, but the companies have to prepare themselves accordingly to collect these resources

he world has been going through big political and economic transformations. The market opening, the new economic blocs formation and the globalization have drawn a new competitive scenario to the companies. The market has changed; the buyer is each time more informed and demanding; and the products are having a lesser life cycle as the days go by. What should the companies do, then, strategically, to survive and compete under this new panorama? Innovate, according to Conselho Temático de Política Industrial e Inovação Tecnológica (Conptec)’s president Franco Machado, from Findes System. According to him, the organizations must adopt this procedure in their products, processes and services continuously if they wish to be kept alive in the market. “It is required to have the innovation culture lodged in the company. Therefore, in periods of crisis, it can change more easily and adapt itself to the new challenges imposed by the market. Normally, the companies try to innovate only in moments of crisis and, since they’re not prepared accordingly, the success is harder and the process, costlier. Sometimes, the innovation process can take years to reach the market”, explains Machado. But it’s not enough for a business to declare itself innovative to be it in fact. It is necessary to invest, develop new products and modernize the processes. All of it has a cost. And, naturally, risk, word so feared by the vast majority of companies. But it’s up to them to break the paradigmas and realize, that, besides innovation being na risky activity, not innovating is even more risky. And the new resources to invest, where to get them? An option are the risk capitals, like the venture capital (VC) and the private equity (PE), modalities offered by investment managers, who contribute to enable startup businesses – novice companies which generally need help to post themselves and consolidate – and small/mid-sized companies businesses, which demand contributions going from R$ 10 million to R$ 200 million. In 2015, the investments accomplished by the venture capital in Brazil totaled R$ 18.5 billion –a 39% raise and a new record since 2011, despite the national economic and political turmoil. This option’s offer, available for investments in the country, today totalizing R$ 39.3 billions.

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ECONOMY According to Franco Machado, Conptec has been working in support to events which search to spread the innovation culture in the companies. In order to assist them, Sindicato das Empresas de Informática do Espírito Santo (Sindinfo), in partnership with Federação das Indústrias do Espírito Santo (Findes) and Abvcap (Associação Brasileira de Private Equity e Venture Capital), has been operating the “Inova TI” course – which started in September and extends until November –, with the goal of qualifying the companies so they prepare themselves in the adequate way in a future investor’s presentation. “The presentation to the venture capital investors is different from the one made for the traditional investors, thus the venture capital funds analyze, overall, the business’s growth potential, associated to a competent management and which demonstrates ability to turn the business plan into reality”, he explains. And this initiative has been generating results, an example is the capixaba Geocontrol, which took an contribution from Fundo de Investimento em Participações (FIP) Aeroespacial of R$ 11 millions this year. Such support has the objective of fortifying the national productive chains in the aerospace, aeronautic, defense and system security sectors. It was released in 2014 with a R$ 131 million resources, having Embraer as an anchor company. The strategy, since the financial repass, is to expand the participation in the transport segment and start a new internationalization process.

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The company is willing to export military computers, security and control systems to public safety and systems for urban mobility. In the domestic market, the plan is to raise its participation in the urban bus control system area. Another example is Picpay startup, from Vitória, which released in 2012 an app to facilitate payments and product purchases with the smartphone’s aid. At the time, the project has received an investment of R$ 2.3 millions done by the partners and “angel-investors” (experient professionals who have available capital to invest in new enterprises). The product, which was born in TecVitória, incubator that support the technology enterprises growth, is present today in Vitória, Rio de Janeiro and São Paulo. Far from ideal While investments in technology have advanced in Brazil, innovation is still far from ideal. According to a survey of the Business Mobilization for Innovation (MEI), the country will take 34 years to reach the level maintained by economies such as China and the European Union. Today, Brazil applies about 1.2% of its GDP in research and development, while the Asian country and the European bloc disburse approximately 2%, according to the OECD (Organization for Economic Cooperation and Development). On average, the organization’s member countries spend 2.4% of everything they produce. In leadership, South Korea, its share is 4.4%.

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ECONOMY ENVIRONMENT

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MOBILIZED STATE AFTER ENVIRONMENTAL DISASTER Governmental agencies, entities and companies act together to reduce Mariana’s barrage disruption impacts in Minas Gerais. Hydraulic crisis is also a problem

11 TON

Was the amount of fish that died in Rio Doce because of the breaking of a dam in Mariana (MG)

YEARBOOK IEL 200 LARGEST COMPANIES 2016

ith large impacts not only to the environment, but also to Espírito Santo’s economy in general, Fundão’s barrage disruption, from the mining company Samarco, in Mariana (MG), keeps being a big challenge when it comes to natural resources preservation. Around 663 river and stream kilometers were hit, and 1.469 hectares of vegetation have ended up compromised with the structure rupture. In a few hours, the mud has got to Rio Doce, whose watershed is one of the most important of the Southeast Region. The water’s turbidity has caused death to thousands of fishes and other animals. The mortality has surpassed 11 tons of fishes, three of which in Espírito Santo. The residents of cities fed by the region rivers were also hit. In the State, at least 317 thousand people were impacted, be it with the temporarily interrupted water provision, or with the paralyzation of activities which generated income. According to Instituto Capixaba de Assistência Técnica e Extensão Rural (Incaper), there are 1.438 registered fishers in associations and colonies, which depend exclusively on Rio Doce in capixaba ground – a number that can be bigger, once there are many others not yet subscribed. In general, the food, agropecuary, lodging, touristic and textile sectors have registered damages due to the disaster, not to mention the meaningful loss in tax collection to the capixabas safes. Secretaria de Estado do Meio Ambiente e Recursos Hídricos (Seama) and Instituto Estadual de Meio Ambiente e Recursos Hídricos (Iema) have started to act as soon as the risk for the tailing mud to arrive in Espírito Santo was detected. Iema, which has been providing the water and sedi239

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ments collecting in Doce’s gutter even before the capixaba portion be impacted, also monitors the water collection done by Samarco for the counterproof. The monitoring keeps being executed, just like the overflights in the river mouth, with the objective of following the mud’s blot (plume) behavior over the coasting area north of the State. The fauna was also contemplated by the action plan, which was elaborated in partnership with Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (Ibama). According to Iema’s director-president, Andreia Carvalho, the group Governança pelo Doce was created, which has the finality of contributing to the impact management, besides observing the monitoring, mitigation, compensation and Rio Doce basin’s socio-environmental recovery actions. The team is composed of beings from the three government levels: federal, state and municipal. In Espírito Santo, the actions benefit Baixo Guandu, Colatina, Marilândia and Linhares cities. Among the measures, are the fish and crustacean rescues to the species preservation; the artesian well drilling in Rio Doce’s path; installation of barrages in the river mouth’s spring, in order to preserve the local fauna and flora; the removal of sand banks; the georeferenced aerial monitoring over the sea and beaches to follow the evolution of the plume conflict with the sea; and the fauna impact’s analysis. “We keep a constant dialog with the academic institutions like Ufes, which have been putting its expertise under the public agencies’ disposition, allowing the involved beings to the Doce’s river mouth monitoring to obtain information based in the results’ integrated analysis”, said Andreia. All the news about the group can be checked by the website www.governancapelodoce.com.br. Iema also participated in technical discussions to elaboration of a Conduct Adjustment and Transaction Term (extrajudicial agreement) signed by the federal government and the states of Minas Gerais and Espírito Santo with Samarco, BHP and Vale, which foresees recovery measures in the area hit by the barrage disruption in Fundão and the creation of a R$ 20 billions fund to recover Rio Doce’s watershed in 15 years. Until the closure of this subject, the deal was temporarily suspended by Superior Justice Court (STJ), which affirms the Federal Regional Court of the 1st Region couldn’t have homologated the document, 240

For three years the drought has been reaching the state, where human water supply in 20 municipalities is in critical condition. In Grande Vitória there was already rationing and the main river, the Jucu, is at a flow rate of only 5,100 liters per second

there already have being the Supreme Court decision so that urgent issues would be decided in 12th Federal Court of the Judiciary Section of Minas Gerais. Now, the lawsuit with Federal Public Department (MPF)’s questioning needs to be under new judgement in STJ. Besides the problems related to the barrage disruption, Espírito Santo is facing a long drought period, with rains below average by the third year consecutively. In order to diminish this hydric crisis’s impacts, the State Government has organized a task force whose goal is to intensify the fiscalization actions, seeking the water preservation. In Santa Teresa, for instance, 17 water pumps were sealed, its majority composed by farmers, installed to collect water irregularly. In Governador Lindenberg and São Gabriel da Palha the sealing was done respectively, in other four and to 21 pumps. The measure is necessary due to a resolution from Agência Estadual de Recursos Hídricos (Agerh), which establishes the collection must be limited to the human and animal consumption, due to the critical situation in which the State finds itself. State Government’s Hydric Committee integrant, Agerh also acts to guarantee the hydric security in Região Metropolitana da Grande Vitória. The Agency has negotiated with EDP Escelsa the use of Rio Bonito’s barrage for human supplying, when Rio Santa Maria’s water flow isn’t enough to YEARBOOK IEL 200 LARGEST COMPANIES 2016

answer the population’s demand. Then, the Government has elaborated the project and started the Sistema de Abastecimento de Água Reis Magos building, in Serra. The construction represents an R$ 54 millions investment and will directly benefit around 150 thousand people, in addition to more 700 thousands indirectly. Due to the capixaba water flows’s low availability, Agerth has declared an alert scenario upon the threat of a scarcity lengthening, suspended the granting emission temporarily and presented a series of orientations regarding the consumption. Actually, 20 cities present human supplying systems in critical conditions: Aracruz, Serra, Barra de São Francisco, Ecoporanga, Alto Rio Novo, Itaguaçu, Itarana, Mantenópolis, São Mateus, Sooretama, Governador Lindenberg, Pancas, Rio Bananal, Pinheiros, Ibiraçu, Linhares, Águia Branca, Fundão, São Gabriel da Palha and Vila Valério. The industry does its part Aware of these challenges, the industrial sector has been raising awareness on the issue. There is today, according to Andreia, a greater concern with investments in new technologies. Water scarcity has caused many companies to rethink the use of water in its processes. “One way is to reuse. Another possibility is the Rainwater storage”, she said. YEARBOOK IEL 200 LARGEST COMPANIES 2016

In Findes System, which represents the state industry, the Thematic Council for the Environment (Consuma) has developed an important role for the good management of water resources. “The role of Consuma is played directly with entrepreneurs and trade unions. Representatives from each category present us their information and requirements, and automatically we spread the most appropriate work method to each situation. Today, our greatest effort, both on the issues of drought as the mud impacts on Rio Doce, is the search for alternatives. Among them, water reuse and regulations. We want to build the right environment for industries to develop. The entrepreneur can make investments when there is a regulation to support the initiative. Anything other than this is to penalize this entrepreneur”, says the presidente of Consuma, Wilmar Barbosa. He points out that the State industries have done their part to reduce consumption during this critical time of supply. “We have a very controlled use of water, and some sectors even needed to adequate themselves regarding the time to make use of water resources. This is a major obstacle for the industry, especially at a time of economic crisis and low productivity. At the same time, we understand that we have come to a point which required a course of action”, he said. To Barbosa, initiatives to support new companies’ projects in the conscious usage of natural resources should always be celebrated. “This is the way to go. You have big projects in the industry, which must be submitted prior to showing society that companies are renewed. That they have adapted to maintain a standard of quality, while investing in innovations to attack less and less the environment. No one has worked as much to reduce the consumption as the industry. The renewal processes, both in mining and in the pulp or steel, has led the industry to a reality in which it invests in research for a considerable reduction in water use. We see large companies taking advantage several times from the same volume of water in their processes. “ The year of 2016, from the point of view of the organization’s president, will be marked by the debate and the involvement in measures focused on respect for water resources, which benefits not only companies, but also the entire Capixaba society. 241

ECONOMY CREATIVE INDUSTRY

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ES GATHERS 1.450 CREATIVE COMPANIES AND 10,7 THOUSAND PROFESSIONALS Creative economy’s GDP advances almost I 30% in two years in Espírito Santo, and the tendency is positive, say the specialists

R$ 2.7 BILLION

It’s the value the creative industry moved in ES in 2015

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n crisis times, just like the one we’ve been facing, many enterprises search for ways of cutting expenses and fight against the economic recession. Entrepreneurs and traders have been calling upon true jugglery not to let the revenue fall down. On the opposite direction to the turmoil, a sector is still managing to keep the Market flowing, looking for alternative procedural ways. It is the so-called creative economy, which englobes both the cultural industry and the fashion design, going trough games, advertising, new technology and development innovation. This is explained, basically, by the fact that, under the conjuncture which compromised the investor’s trust and annulled the economic activity, the creative modality offers a most effective answer to adversities, explain the specialists. If in 2015 the brazilian Gross Domestic Product (GDP) suffered a 3,7% loss, the creative economy numbers are more cheering. Federation of Industries from the State of Rio de Janeiro (Firjan)’s data show this industry’s evolution in the last decade, whose GDP has got to R$ 126 billions in 2013, or an equivalent to 2,6% of the total produced in the country in that period. It represents an advance of 69,8% in 10 years, above the 36,4% counted by the national GDP in the same period. There is no more recent statistic registry, but specialists affirm this tendency is kept. In Espírito Santo, the creative nucleus has injected R$ 2.7 billions in the economy in 2015, 243

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with a State GDP participation of 1,9% – a 28,6% growth in comparison to 2013, when it moved R$ 2.1 billions, according to Institute for the Industrial Education Development of Espírito Santo (Ideies). This year, Federation of Industries from the State of Espírito Santo (Findes) has made a study about the local creative industry and mapped its presence in the 78 capixaba cities. According to the study, the State assembles 1.450 creative companies, those which have a “potential to wealth and employment creation through intellectual propriety generation and exploration”, and 10.776 creative professionals. Vitória is a city which gathers the biggest activity concentration. 58,2% from the creative economy’s sallariall mass, 46,6% from the creative workers and 33,7% from the companies. In Antonio Dória Porto’s opinion (Ideies’s executive-director and consultant Thematic Council for the Creative Economy), it’s all about an area which can be aggregate value to the national capixaba industry and assist in this moment in which the brazilian production is going down. “The creative industry is of most importance to the national industry’s competitiveness. The companies which have the creative sectors in their productive basis are those that more develop themselves in the moments of crisis, becoming more competitive to face the market. Those which develop their creative potential and innovate face the crisis in a better way”, he says.

LOCAL INITIATIVES To strengthen the creative economy in the state, several strategies have been developed by Findes System in the recent years. In 2015 Findes System created the Thematic Council for Creative Economy (Conect) with representatives of IEL-ES, Ideies, Sebrae-ES, Ufes and many other organizations, and, after promoting the opening of new Unions, it were created the Union for the Cinematic Industry of Espírito Santo (Sinaes) and the Union for the Jewelry, Gem Extraction and Gem Lapidary Industries (Sindijóias-ES). 244

A branch which tends to gain force in the next years is the audiovisual, specially due to the corporative interest on being present in the digital medias

Audiovisual, a branch that tends to gain momentum in the coming years, was awarded with the 1st Seminar for Investments in Audiovisual Certificates of Espírito Santo, in order to create legal frameworks and clarify the Audiovisual Law, which provides for reduction of income tax for companies that invest in Audiovisual Certificates. A Conect initiative, together with other institutions. “The industrial entrepreneur can make use of these certificates for audiovisual productions that add value to their brands. It is a law that creates endless possibilities. We are going through a difficult time in our economy, and investment in certificates meets the proposal to aggregate more value to our products”, said the president of Conect, José Carlos Bergamin. Another action to boost the audiovisual activity is the Project for the Development of Audiovisual Activity, which will last until 2017. Sebrae is responsible for the drafting of the material and has partnerships with public and private organizations. Findes System is part of the project’s Steering Committee, which is defining measures YEARBOOK IEL 200 LARGEST COMPANIES 2016

aimed at the areas of management, marketing, innovation, consulting, training, diagnostics and business roundtables.

Growth Strategies An special attention had been given to innovate in an important sector. After ending pilot project “Methodological Platform for development of the creative industry”, which assisted 10 industries in the confection, marble and granite and ornamental stones areas, the program is now being implemented in 30 enterprises from the clothing industry, with one year duration. The study, a partnership with Sesi-ES, Senai-ES and Sebrae-ES, has taken the design concepts and the audiovisual platforms use to the production process, resulting in significant gains on these companies’ market reaching. “I always hear that Brazil is a creative country. But there’s the idea that this creativity cannot be applied in the companies to increase its productivity. That’s a mistake we’re correcting now, with the use of this methodology, which approximates the engineer to the designer, the photographer YEARBOOK IEL 200 LARGEST COMPANIES 2016

to the operator, and generates a lighter work environment and, consequently, more productive”, affirmed Benjamin. There also started Training Circuit for the Clothing Industry, in which a few from the most renowned specialists in the country approach subjects like marketing, social networks, electronic commerce, strategy and business new models, in the lectures to be taking place until December. The initiative is Findes’s, with the support of Câmara Setorial da Indústria do Vestuário and implemented by Euvaldo Lodi Institute (IEL-ES). According to José Carlos Bergamin, the changes need to be put in practice beforehand. “The apparel sector lives a singular moment. At the same time the country passes through a political and economic crisis affecting the sector strongly, we also have a panorama which favors a larger competitiveness among the brazilian companies due to the dollar raise, since the apparel for a long time suffers with the asian products’s low prices. Therefore, now is the moment of promoting significant changes in the area industries’s business model”, says the director. In this field, it’s important to highlight Vitória Fashion event, which celebrated nine years of history and had, in 2016, a 26 trademarks participation on the catwalk and an estimated public of 5 thousand people. According to Bergamin, it’s possible for this edition sales to overcome last year’s – R$ 14 million – as soon as the trademarks release their collections in the market. “If the country’s economic scenario allows, we can reach a R$ 19 million in businesses”, he assures. Vitória Moda is a Findes System initiative, in partnership with Sesi/ Senai and Sebrae-ES. Moreover these projects, the Committee has started to align with other Espírito Santo agencies which develop measures related to creative economy, like Strategic and Creative Plan ES, one of the Espírito Santo Government’s bid for the Espírito Santo’s economy strengthening between 2016 and 2019, coordinated by State Department of Culture (Secult-ES). Findes is participating in the guideline formulation to the plan elaboration. 245

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ESPÍRITO SANTO LEADS THE RANKING OF BRAZILIAN ORNAMENTAL STONES EXPORTS First half is marked by the drop in prices. Sector bets on qualification and searches for new markets to improve results

1.141 MILLION TONS The volume of ornamental stones exported by Espírito Santo from January to May of 2016

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espite the unfavorable scenario for the economy and successive declines in sales to the foreign market, the Capixaba stone sector recorded an increase in the volume exported in the first seven months of 2016 compared to the last year’s same period. Data from the Brazilian Centre of Ornamental Stones Exporters (Centrorochas) indicates a growth of 15.9% in trades abroad from January to July of 2016 compared to the same months in 2015 - going from 984,900 tons to 1,141,000 tons. With the result, the Espírito Santo continues to lead the ranking of Federal Units that sell ornamental stones to other countries. From this year’s January to July, 75.7% of product shipments made by Brazil left the Capixaba soil. Despite the good performance, the high does not mean more Money for the sector. In the analyzed interval, there was a low of 6.37% in value: exports rose from US $ 598.7 million from January to July of 2015 to $ 560.6 million this year. The average price of the materials in the international market fell 19.21%, as Centrorochas. 247

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In the domestic market, the economic crisis also influences the sector. “We operate at the tail end of construction, producing blocks, providing plates intended coatings, facades, floors, sills and countertops, etc. In this context, the recovery is slower because it depends on investment in the construction segment. The rocks sector’ main buoy tender is undoubtedly the export, which, in addition to companies that have historically maintained this focus, has also attracted companies that had domestic market as their strong”, explains the president of the Union for the Ornamental Stones and Limestones of Espírito Santo (Sindirochas), Thales Machado. At the same time, in Tales’ assessment, the technology investments made in previous years by entrepreneurs from Espírito Santo, seem to have turned against the sector. “Capixaba companies are working with high plate production resulting from investments made in multiwire looms. More than 200 equipment were installed in the local stone industries, accelerating the production and allowing to produce more in less time. It is typical of any market that the increase in any product’s supply ends up generating reduction in its price. In this case, considering the platemaking lifting of the Capixaba industry, if we compare it to the first half of 2016 with the same period last year, we’ll see that it was exported greater quantities in tons of plates (7.61%), but with reduced billing (7.35%) in US dollars. This is a phenomenon that has been occurring since last year. Therefore, we need to rethink as to increase production may not mean profitability and return on invested capital”, he said.

STRATEGIES The innovation and the management investments are the sought ways to reverse this scenario. “Despite everything, the stone entrepreneurs, by activity characteristic, keep, in a planned way, making investments in new mining areas, in new technologies and processes, always searching for a innovation to raise their competitive and product quality level, in order to attend to more and more demanding markets”, highlights the director. The qualification is also another adopted strategy. “Our activity, be it in mining, be it in block-to-plate transformation, be it in processing and in our product’s application, depending on the qualified labor, what puts the sector as one of the most investor in labor capacity and qualification. It is also fundamental that the companies be prepared to the accomplishment of applicable legislations in their business area, avoiding liabilities formation 248

Espírito Santo is responsible for about 45% of the ornamental stones’ Brazilian production

which can compromise the business’s future”, explains the manager.

PROFILE Espírito Santo is responsible for about 45% of the Brazilian’s ornamental stones production, with a predominance of marble and granite. The capixaba industry has a great geological diversity of rocks, consisting of more than 200 varieties of types commercially classified as marble, exclusive from the southern region, and granite - the latter lying spread throughout the state, but with an extraction polo in the north. “The beauty of colors, textures presented and the quality of processing given to these rocks by the Espírito Santo’s industries provide a differential that excites the specifier and consumer. Espírito Santo has the largest industrial park for the processing of marble and granite in Brazil - the reason why here blocks from many states are processed, mainly from Minas Gerais, Bahia, Ceará and Goiás, among others”, lists the president of Sindirochas. About 1.600 active companies are operating in the Capixaba production of stones, generating about 22 thousand direct jobs and 110 thousand indirect jobs. Espírito Santo stands out in the distribution of the product plates, supplying all other states and exporting to countries around the world. YEARBOOK IEL 200 LARGEST COMPANIES 2016

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ECONOMY AGROINDUSTRY

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DROUGHT HITS ESPÍRITO SANTO’S AGRICULTURE EFFECTIVELY Producers foresee historical losses due to the drought which punishes the State

40%

It’s the loss percentage in Conilon coffee’s capixaba crops this year

YEARBOOK IEL 200 LARGEST COMPANIES 2016

he drought damaging Espírito Santo has caused impacts and put Espírito Santo’s agriculture in danger. A clear example for that is the conilon coffee’s crops, one of the flagships in the State’s agribusiness, which already counts losses of 40% in production due to the rain shortage, in comparison to 2015, according to Instituto Capixaba de Pesquisa, Assistência Técnica e Extensão Rural. Sindicato da Indústria do Café do Estado do Espírito Santo (Sincafé)’s president, Egídio Malanquini, explains that the drought was very intense in the last two years and has caused a big difficulty to the agricultural sector, in special, to coffee production. Coffee is responsible for 25% of Espírito Santo’s Gross Domestic Product and for more than 40% of the State agricultural GDP which allows us to glimpse the damage dimension which this tillage production break can cause to Espírito Santo. “There are cities whose economy spins around the coffee. In Sooretama, Jaguaré and Vila Valério, to name a few, around 90% of the local economy spins around this culture”, highlights Malanquini. The director yet reports that today the State’s provided conilon can barely supply the local industry demand. And that’s taking into account that the State is the largest grain producer in the country. “We will have to search coffee in other states, like Minas Gerais, to attend the local demand. Naturally, it’s not just this year’s crop which is compromised, but also the 2017’s. The trees are badly affected, and it takes from two to three years for the production to normalize itself, if there is rain. Many tillages in the north of the State have been abandoned, and others are being cut”, he reports. If conilon faces its biggest challenge in years, arábica grows in abundance, according to Malanquini. The cultural regions had rains and, in some cases, the great water quantity has even compromised the grain quality. “The coffee with selective crop, that is, 251

ECONOMY the quantity coffee, had no commitment. However, it answers for just 20% of consumption. And there is another aggravant. The industries use arábica mixed with conilon, that is, the blend. The consumer is already accustomed to this flavor and will feel the difference with the conilon crop break”, explains. This is the moment, according to the director, to review the processes. “The Government invested, since last year, in barrages. They are positive measures, which seek to attend a critical situation. But we need to go further. We have to work on the chain as a whole, starting by recovering areas, as it’s being done, improve the plantation development, that is, producing more in a smaller area, and bid on the reforestation. Once, the land was valued for its area, by its size. Now, are valued the properties which have water. And if we don’t put ourselves together to minimize the drought impacts, we will have problems not only with coffee, but also with agropecuary, orcharding, that is, all the agro business area. This hydric crisis happening today can be permanent if we don’t work on it. The prediction is not cheering”, he laments.

Papaya producers deal with losses which can mean a loss of up to 70% in the fruit’s harvest

OTHER CULTURES Other cultures also face the financial turmoil combined with the water crisis. The papaya producers, for example, deal with losses that can be translated into falling to 70% in the fruit harvest in Espírito Santo. The estimate is from the Brazilian Association of Papaya Producers and Exporters (BRAPEX). Even agritourism, which includes two economic modes (tourism and agribusiness), is losing to the drought. The Pedra Azul Park, which attracts visitors from various cities and states to the mountainous region, moving the localities’ economy, is now closed indefinitely. The risk of fires in the environmental preservation area called up the warning sign and the alternative of blocking the routes to visitors was the most feasible option to the park maintainers.

DEBT RENEGOTIATION Even though the activity gets inviable, it’s necessary to pay the bills. In the end of August, the State Government has managed, along with Blairo Maggi and Dyogo Oliveira, Agriculture and Planning ministers respectively, to move forward a purpose to Conselho Monetário Nacional (CMN) which allows the renegotiation of the capixaba rural producers’s debts. The measure extends the installment up to five years. In Espírito Santo, there are R$ 8 billions applied in agricultural credit portfolio, stating that R$ 1.7 billions expire this year. If approved, the measure will benefit the country man with contracted financing with public banks and the remaining financial institutions. The renegotiation opens resources for both defrayal and investment, which can be postponed in case of CMN approval. “Without questions the purpose attends 252

to Espírito Santo and contemplates all the state farmers, who suffer from the drought that has been harming the crops”, he affirmed, on the occasion, the Agriculture secretary, Otaciano Neto.

EMERGENCY SITUATION At the beginning of this year’s May, the state government declared emergency throughout the territory of Espírito Santo, due to the severe drought, which is extending itself for the third consecutive year. To minimize the drought effects, the Executive has been carrying out various actions of short, medium and long-term. One of the most important actions is the State Program for Construction of Dams, that by the end of 2018 will invest R$ 90 million in multi-purpose buildings, that is, for human and industrial supplying, animal consumption and crop irrigation. For all built dams, the government will also invest in environmental restoration through the Reforestation Program. The goal is to recover 80,000 hectares of vegetation by the end of 2018.

IMPORTED CORN, A WAY OUT Corn is a predominant component in bird and porcine feed, corresponding to 70% of the needed input to the meat and egg production. It also composes the suplementar bovine feed, due to the reduction of pasture areas caused by the drought. A driving force to these productive chains, the grain is also among the capixaba producers worries: its price in the intern market has increased more than 60% in the last year – 31% YEARBOOK IEL 200 LARGEST COMPANIES 2016

only in the last six months. The State provides only 10% of the corn used by the aviculture and pig farming. The rest comes from Centre-West region, with low taxation imports in 12% of ICMS. In order to minimize this brutal price increase’s impact, in the end of August the first ship with corn transporting coming from Argentina has arrived in Espírito Santo. Overall, were bought by the aviculturists and local pig farming associations (Aves/Ases) 27.35 thousand tons, after the Executive sanction to subside ICMS’s charging over the imported merchandise. Acquiring the external market’s corn is na alternative due to the difficulty found by the capixaba producers in order to guarantee the supply, in addition to trying to minimize the pressure over the product’s price into a national scope, where it has been presenting scarcity. In ship’s arrival occasion, the secretary reiterated that, even in a financial crisis moment lived by the country, Espírito Santo is responsibly managing to foment the various Espírito Santo’s economy’s sectors development, as those related to animal production. “This measure fulfills one more step in the sense of expanding these sector’s competitivity, so important to our economy. We will have the possibility to buy our main input with a better price and put away the pressure over the prices in the internal market”, highlighted Otaciano Neto.

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TOURISM IN ESPÍRITO SANTO: POTENTIAL SIDE BY SIDE WITH MAJOR CHALLENGES Industry faces deflation scenario and seek strategies to attract more tourists to the state

It’s the number of economic activities impacted by tourism

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n the year when all eyes in the world turned to Brazil during the Olympic Games, Espírito Santo tourism follows a contrary path of growth provided by the biggest sporting event in the world: 2016, to the local reality, has been a deflation period. According to the Espírito Santo’s Convention & Visitors Bureau (ESC & VB), only in Event industry which has excelled in Capixaba agenda in the recent years – the expectation is that the State receives about 67.000 visitors, approximately 26 thousand less than the public attracted by the programs last year. If taken into account the revenue estimate, it is expected that the event tourism will bill around 30% less than in 2015. Another decline clue is the decrease of about 18% in air traffic. “The year 2016 has not been favorable. The sector is affected by the drop in demand from tourists, which has predominated in capixaba activity as a whole. In addition, tourism is going through a time of stagnation and investment disabilities, both in the private and public sectors”, says the president of the ESC & VB, Alfonso Silva. The economic crisis faced by Brazil contributes to the decrease in the amount of traveling people, which stands as another important factor to influence the setback suffered in the segment, according to the official. Despite the currently unfavorable scenario, Espírito Santo has already consolidated in its traditional annual calendar events that are worth mentioning. In the technical and scientific area, they had notoriety in the first half the 41st International Fair of Marble and Granite - Vitória Stone Fair / Marmomacc Latin 255

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America 2016; in the 12th Tourism Fair of Espírito Santo - Expotur 2016; and the 2nd Construction Fair of Espírito Santo - Buildings Expo 2016. And also in events of religious and cultural character such as the Festa da Penha and Vitória’s Carnival, were also part of the program. For the second half of the year, the expectations for the sector’s performance, according to Alfonso, is to continue decelerating. “The pace is the result of a little investment scenario inherited from the previous semester, plus the absence of perspective change and the instability of the Brazilian economy”, he argues. To adapt to this scenario, the event tourism in Espírito Santo has responded with the development of smaller and leaner formats aimed at reducing costs. “The industry has a range of event promoters who are professionals, qualified and from diverse branches, which ensures that the labor used is Capixaba, thus moving the local economy,” he said. Until the moment, estimates from the Convention are that 17,000 tourists come to Espírito Santo attracted by the calendar of technical and scientific meetings. To work around the emptying picture, tourism entities have invested in new events captation and new public attraction. As a way to show the potential of Espírito Santo, for example, the Tourism State Department, in partnership with the Department of Development, launched in April the #amores campaign. The objective is to promote the beauty, passion and pride for Espírito Santo and thus also attract investment. With a strong presence on social networks, the initiative promoted the use of hashtag #amores, plus photos, videos and quizzes, encouraging Capixabas – residents from birth or heart – to declare all their love for the state. “Our intention with the campaign focused on social networks was so that the capixabas would share their love for the state. 1.4 million people were affected in three months, and the video had two million views. First, we prepare the Capixaba to have a fresh look at the state, because we realized that tourists, when they come to Espírito Santo, have a much more positive view than those who live here. Over 90% of tourists would recommend friends to visit the state and plan to return in the next two years. However, in their daily lives, Capixabas do not usually see the beauty of our sights”, explained the Secretary of State for Tourism, José Salles. According to him, in its second phase, scheduled to be launched still in 2016, the campaign should focus on people outside of Espírito Santo, inviting tourists to visit the state.

The afforestation and the crystallized waters make Praia das Castanheiras the postcard of Guarapari city

Setur has also invested in the disclosure of potential sites along with travel agencies and journalists specialized in tourism, among other interest publics. “Tourism impacts 53 other economic activities, ranging from coconut seller to the hotel owner, for example. So, we work a lot with professional training along with the Brazilian Support Service for Micro and Small Enterprises (Sebrae) in order to increasingly qualify the attendant. In addition to improving the service offered to tourists, qualification helps to create jobs”, says Salles.

CAPIXABA TOURISM The varieties in offered destinations is one of Espírito Santo’s main characteristics, what makes the State be rated as being versatile and capable of centralizing touristic regions for those who look for leisure, adventure, religion or businesses, among other aspects. Capixaba’s territory is culturally quite wealthy, besides having an extensive coast, of around 400 kilometers, very close to the mountainous region. That allows the visitor to enjoy a handful of different destination possibilities in a relatively short space. The diversity doesn’t restricts to leisure; it’s also applied to agritourism, religious and business tourism areas. The State is still a great option for the event tour, since it’s strategically found near the main national metropolises. *Capixaba - Someone or something originally from the State of Espírito Santo YEARBOOK IEL 200 LARGEST COMPANIES 2016

ARTICLE INNOVATION

A bridge to innovation PAULO MÓL is national superintendent of the Euvaldo Lodi Institute (IEL)

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eptember 2016 celebrates the third anniversary of Inova Talentos. A program, developed in partnership by the Euvaldo Lodi Insitute (IEL) and the National Board of Scientific and Technological Development (CNPq), to meet two big demands of Brazilian economy: companies that need capable and qualified professionals to develop innovation and research, and young professionals in pursuit of opportunities. Since the beginning, this program showed to be effective and assertive in its goals. It is, definitely, a victorious initiative. The Inova Talentos organized four nationwide calls for projects. This is the moment when companies set challenges of innovation, seeking the right people to solve them. Out of the 1.3 thousand proposals, 632 were approved and executed, in the entire country. To do it, IEL recruited, selected and accompanied the work of 855 scholarship holders. Among the participants, 9% were graduating; 66% were graduated; and 25% were masters. IEL undertook more than 150 thousand hours in training and development of technical, management and behavior skills. The precision of the recruitment and the monitoring of the challenges’ development reflects proportionally in the number of professionals that start integrating the companies’ staffs. For each five participants of Inova Talentos, two get employed. These opportunities come either from small organizations that are seeking for innovative professionals, or

big industries, the names of the Brazilian innovation fronts, such as Bosch, 3M, Avon, Natura, Embraer, Fiat, and others of the 561 companies that invested on Inova Talentos. The recognition to the program’s merit, as well as the needs it seeks to supply, are perceived in the search of the opportunities given. The IEL’s Resume Bank counts on more than 30 thousand candidates, inscribed to compete for the posts offered. There are 35 candidates per job vacancy. The Inova Talentos became a milestone for IEL’s regional YEARBOOK IEL 200 LARGEST COMPANIES 2016

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For each five participants of Inova Talentos, two get employed” bureaus, which have expanded their structure and enhanced the integrated assistance of diverse areas to give flow to the program. The benefits of the initiative are shared among all people involved. To the young students and graduated, the corporate experience contributes to their performance in the market, besides the development of skills and their integration in a national innovation network. To universities, the Inova Talentos is an opportunity to strengthen and expand the students’ qualification, besides representing a qualified link between the academic field and the productive sector. To companies, the projects have a positive impact – many YEARBOOK IEL 200 LARGEST COMPANIES 2016

of them, decisive – in the business performance. This program has become a way to attract and retain talents, which are the most important factors to raise the competitiveness of Brazil. To be ahead of such a victorious project is a joyful responsibility to IEL. This is the newest role of the Industry System: to be a reference in formation of people, from the student to the manager, to foment the research and the development in innovation, and to contribute to improve Brazilian industry. It is both a mission and a vocation. 259

ARTICLE ECONOMIC AND SOCIAL DEVELOPMENT

The public accounts’ disorder RICARDO FERRAÇO

is Republic Senator, from PSDB party, Espírito Santo State

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ne statement by the NorthAmerican Former President Ronald Reagan summarizes well the current situation of Brazil. “When people and companies spend more than what is gained, they go bankrupt. When a Government spends more than what is collected, it sends you the bill”. This is due to the retrocession that Dilma’s Government forced on the institutional mark in favor of the public accounts’ sustainability. Brazilian economy faces a strong retraction and high inflation, with severe social consequences. The number of unemployed exceeds 11 million people. These are clear impacts of the fiscal deterioration, when the primary surplus, the savings’ account that the Government makes to pay the interest rates of its debts, moved from the positive balance of 3.1% of the GDP in 2011 to the deficit of 0.6% in 2014. This difference corresponds to a loss of R$ 160 billion in the public accounts during this period. The expenditure made the federal liability to increase from 54% of the GDP in 2011 to 69% nowadays. The average rate of the emerging countries is 34%. Such high debt cause two immediate collateral effects. The first is the worsening of the country’s evaluation by the international agencies of risk rating that now attribute to Brazil the speculative grade. This means the reduction of the external long-term investment’s flow. The second reflects on the higher interest rates. In 2011, the federal expen-

diture with the payment of interest rates was R$ 237 billion. An amount that rose to R$ 503 billion last year. More than doubled. This figure represents the annual payment of 13 entire Bolsa Familia Assistance Programmes. We cannot continue to administrate our accounts like this. The mismatch in the public accounts derived from a sad combination of increasing governmental costs and drop in the income, due to the reduction in businesses and the disordered process of sectoral fiscal exonerations, besides the irresponsible “make up” of figures. Instead of facing the fiscal problems, the former President chose to sweep them under the carpet. It will be necessary many years of tough measures to recover the fiscal balance. As always, the irresponsibility with the public finances will be charged on the taxpayer. This is not fair! Impressively, all of us conceived that with the Fiscal Responsibility Law (LRF), it would be impossible a Government to dismantle the public finances. The Legislation established several criteria for a responsible management, but it could not avoid the rigging, as the “creative accounting”. For instance, the LRF requires that any costs’ raise in a continuous manner or the adoption of tax exoneration demand demonstrating the sources that will fund them. However, the Government released two reports with unrealistic targets. Consequently, the costs raised, the YEARBOOK IEL 200 LARGEST COMPANIES 2016

income dropped and the Government resorted to the “overdraft protection”. As the people, now the Government pays high interest rates, backed by the hard-earned cash of the citizens. Aiming at concealing the public accounts, it adopted a number of “unusual” procedures, starting from the political intervention in defining the value of dividends payed by the stateowned companies to their holder. The excessive payment of dividends de-capitalized companies and stopped them from investing in the proportion demanded by the market. By contrast, it was permitted that they put themselves in excessive debt, letting many in serious financial problems. The Government also did the operation popularly called “fiscal pedaling”. This is postponing the payment of certain costs so that they are not computed in that period, with the objective to accomplish the fiscal target. These payments, especially the ones related to the social benefits, were paid by the public banks, without the Government’s financial backing. These operations are masked loans to the holder, which is barred by the LRF. This crime was the basis for the President’s impeachment. Another way to realize the expenditure without affecting the Federal treasure is YEARBOOK IEL 200 LARGEST COMPANIES 2016

by issuing the so-called “payable residues” – contracted expenses whose payment was adjourned to the next year. The amount of this item grew up from R$ 130 billion in 2011 to R$ 227 billion in 2015. Unfortunately, the Government did not mess up only with the federal public finances, but also with the other branches’ administration. Over the last six years, a number of tax exonerations represented an additional loss of public revenues. To compensate, the Federal Executive authorized the other Federal entities to put themselves in debt. Naturally, the majority of the States now undergo hardships in their finances. Many of them do not have the means to pay the clerks’ salaries. People were thinking that the disorder of public finances was page turned in History. However, the use of illegal arrangements in the fiscal management happened at daylight, causing a severe loss of credibility to the economic policy. The consequences were a misfortune on the people’s reliance in the Government, and on the country’s finances. We will remain on the people’s side, without measuring efforts to present proposals to the National Parliament to retake the institutional development of public accounts that Brazil needs so much.

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It will be necessary many years of tough measures to recover the fiscal balance”

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ARTICLE INNOVATION

Economy and innovation JOSÉ ANTONIO BOF BUFFON Buffon is CEO of Fapes, professor of the Department of Economics of Ufes (Espírito Santo Federal University) since 1985 and master by the Unicamp’s Institute of Economy. Member of Bandes’ Administrative Board, where he was also director of Credit and Fomentation and CEO. He was commercial director of Banestes, assessor of the Director of Regional and Social Development Area of BNDES and the special assessor at the Ministry of Science and Technology

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he decision of innovating, particularly, is done in a complex environment, in which the uncertainties inherent to the diverse (and possible) future technological paths outweighs. The characteristics of this complex environment strongly condition the companies’ “tendency to innovate”, in a way that this behavior, the technical progress and consequently the evolution of competitiveness of companies, regions and countries should be always analyzed by the point of view of the environment in which they are. It is clear, then, that among the three fundamental decisions that give dynamism to the economy, such as “produce”, “invest” and “innovate”, this last reveals itself as the most problematical, for, in the act of innovating, weighs on the decision-maker all the charge that emerge from the “complex environment” in which the company is. Each decision becomes effective as a dramatic synthesis of elements given by the environments, internal (proven technological track and organizational culture) and external (alternative technological tracks and competition pattern), of the company, in the present and in the expected future, always under conditions of limited information and uncertainties, where there is, so, evident risk. All the aspects evidenced above are dramatically exacerbated in the world of today, where the uncertainties and the risks are huge. There has never been so necessary to innovate and never so risky

to take a decision. The choice of a mistaken technological track will assuredly impose on the company considerable, when not definitive, damage. It is clear that the asymmetries of production, marketing and information were always present in all times and places. Asymmetries and flaws of market strengthen each other and enable companies to satisfactorily manage their prices, costs and mark-ups, in the scope of their “little monopolies”. However, in the contemporary world, the asymmetries have to be deliberately (and continuously) produced by the differentiation of processes and products (innovation), as a way to create “monopolies” that can enable the enlargement of mark-ups. Right. Until the moment that the competitors start adapting again and can prevail at last. And it is this double nature (disruptive and adapting) of competitors, and the urgent need to generate and maintain proportional mark-ups to the capital invested, that causes the innovative, progressive, destructive and creative nature of capitalism. The strategical cooperation among competitors, the development of suppliers, the better use of the clients’ feedback and the cooperation with the universities and research centers, among others, are strategies produced by the contemporary patterns of competition. The legislation that covers the intellectual property, trademarks and copyrights contribute to reduce the YEARBOOK IEL 200 LARGEST COMPANIES 2016

uncertainties and prevailing risks in the scope of innovation. It encourages the expenditure of resources with research and development, and strengthens the companies’ tendency to innovate. With this in mind, the Governments are due to endeavor in the formation of specialized human resources, in basic research and in creation of partnerships and international cooperation. Efforts inherent to the execution of a strategic policy of STI, of long-term, consonant with the country’s biggest potentials and needs and that manifest the prior areas and future carrier subjects. Even in the case of researches fully orientated to the company’s prompt work of innovation, the Government can contribute in many ways. However, the most urgent and permanent tasks, in face of the setting of long-term prior lines, are to facilitate the communication among the different entities; coordinate actions, encourage the cooperation and the shared research; YEARBOOK IEL 200 LARGEST COMPANIES 2016

suggest and encourage the formation of research groups, as well as the international cooperation; foment the formation of public-private research joint ventures; implement a bold policy of business incubation, encouraging the certification, the licensing and the accreditation of testing and calibration labs. Anyway, innovation is a systemic and complex issue, which derives from a wide range of factors. It is responsibility of all and flourish in environments in which prevail planning, articulation, cooperation and a high tendency to invest. Even under severe conditions of uncertainties and high risks. Therefore, it is necessary to enable a new generation of institutions to do the mediation and establish an adequate communication among the companies and the science and technology research institutes, once they are organizations with different objectives, have their own language and work in a completely different decision-taking timing.

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Even in the case of researches fully orientated to the company’s prompt work of innovation, the Government can contribute in many ways”

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ARTICLE JUSTICE AND CITIZENSHIP

The bright side of crisis SÉRGIO ABOUDIB FERREIRA PINTO is counselor and chairman of the Court of Auditors of Espírito Santo State

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t is an honor to give my opinion in the Yearbook IEL 200 Largest Companies of Espírito Santo 2016. I would like to talk about the present moment of Brazil, when both economic and political crises are happening at the same time. It is an opportunity to think, suggest and dare with ideas to change the way we see and do things, whether in the private or in the public scopes. In our daily activities, nothing is so perfect that cannot be improved; in which there is no place for new elements that enable us to clarify the horizon and construct the desired ideal day-by-day. In my work, there is nothing perfect. If I was going to do something better, now, instigated by this time of uncertainties and hardships, I know that it is the appropriate time to think and rethink the State’s attributions and do a diagnosis of bad things, as well as the State’s obligations with the society. The public finances, now generally dwindled, not only compromise the implementation of good investments and the adequate execution of social policies, but they also expose, unmistakably, that the State, like a morbid fat patient, overweighs and is inconsistent administratively. But, it is not enough to know it, it is urgent to cultivate a critical mind regarding the exercise of public policies and consider unwise to avoid the people’s patience. Sometimes, reluctant to critics and self-criticism, the State needs to rethink

concepts and values in order to find new ways to perform its work, in the light of the best practices, either in the public or in the private universes. The established Powers and their administrators, if effectively committed to the social needs and with the future, would look to the inside of themselves and to the values of the organization they represent and seek self-improvement. Aware of this obligation, the Court of Auditors started doing its part. It made an advanced strategic plan, which is being strictly fulfilled. Through it, the Court seeks to improve its action systems and change its way of acting. Now, it does not only consider the legality or the formality of the accountings presented, but also, through a topic auditing, evaluates the entities’ performance and the quality of goods and services that they are offering to the society. For this reason, we are expanding our engagement to go further than our formal obligations demand. We are confident that, more than auditing to guarantee that the scarce public resources are well applied, denouncing or punishing who goes wrong, we can and must contribute to enhance the quality of public policies (set of actions, targets and plans that the Governments make to promote welfare to the society and meet the common interest). Therefore, we work as partners of the public managers, sure that we have a lot of information and suitable knowledge, useful to improve the YEARBOOK IEL 200 LARGEST COMPANIES 2016

administration and pursuit excellence in the public policies. This is the bright side of the crisis. While calcining and distressing, it foments and challenges our capacity to learn, react and get through. As soon as the turbulence is ceased, whether those of public or of private sectors will have learned a lot about duties, values, efficiency, and cost-benefit. In fact, as a member of a public institution, I would like to express my sorrow, which is certainly not just mine, about the incredible and dangerous promiscuity set by some that, taking advantage of public construction works and services, institutionalized the willful misconduct and the illegality as normal practices among public and private agents. As catalysts of the economic process, citizens that sell goods and services to the Government must fulfill all legal duties and moral values, as well. The corruption, which destroys the common good, is a table game that is played together. Soon the Parliament will decide about the establishment of the Performance Bond, adopted by the United States for YEARBOOK IEL 200 LARGEST COMPANIES 2016

more than 100 years. By this instrument, an insurance company inspects the constructor company, ensuring the construction within the time and quality. The “wheel” was already invented and works perfectly. In a recent past, colluding with bad politicians, big national constructors avoided it to work here. As a public man I do not resort to leniency and, without any purist ingenuity, I can summon the national officers to boldly foresee a future when there will be no illegalities nor distresses. President Franklin Roosevelt, in “Looking to the Future”, warns, “New conditions impose new requirements”. And, by the learning got from the greatest economic crisis experienced by the North-American, he stated: “The country needs and, unless I mistake its temper, the country demands bold, persistent experimentation. It is common sense to take a method and try it: If it fails, admit it frankly and try another. (…) We need enthusiasm, imagination and the ability to face facts, even unpleasant ones, bravely. We need to correct, by drastic means if necessary, the faults (…) from which we now suffer”.

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As catalysts of the economic process, citizens that sell goods and services to the Government must fulfill all legal duties and moral values, as well”

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ARTICLE PEOPLE MANAGEMENT

The spirit of capitalism SIDEMBERG RODRIGUES is general manager of Institutional Relations and Sustainability of ArcelorMittal Brazil, honorary member of the Brazilian Academy of Human Rights – ABDH, master of Social Sciences and writer of four books, among which the “Miséria Móvel – Crítica Social” (Mobile Misery: a Social Critique)

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n November 2008, the Forbes Magazine showed a picture of its own Chief Editor, Steve Forbes, with a curious headline in the front cover: “How Capitalism Will Save Us”. Two months before, the great worldwide economic crisis had begun, by the recklessness and illegalities of financial and commercial practices, having as epicenter the bursting of the American housing bubble. This question, in the front cover of a neoliberalism bastion, was as picturesque as the promise of efficiency of such social system. How could it save someone? Besides never having a hero vocation, Capitalism has always been cruel and excluding by nature. And, sensibility has never characterized its spirit, for, for so long it has ignored the consequences of greed, illustrated in the many forms of suffering spread around the world. The celebrated declaration: “in Capitalism there is freedom without equality, while in Socialism there is the opposite” cannot be underpinned by any of the systems. In Socialism the “equality” is for the sake of appearances, for the elite always had many privileges. And in Capitalism, the “freedom” is for few, for the poor cannot even walk by certain urban areas without crossing the invisible borders of the geographical inequality, or without the humiliating approach of public order officers, even being in a “public” area. Thus, also fades any chance for compassion in Capitalism.

Maybe the journal should make this question: “Why are not capitalists more conscious, compassionate, ethical and distributive, so that the system would not be so cumulative and inhumane?” Another wrong conception is the myth that development can only be fostered by the Estate and produced by the market; as if the civil society did not exist and all social reality was circumscribed to the interaction between those two. Augusto de Franco reminds us that “people do or do not do anything because of the society (or community), and not only in obedience to the State’s rules or guided by market logics”. People cooperate freely by the will of cooperating and not aiming, necessarily, at advantages, votes or meeting any selfish interests. They delight living in community with other people, because of the factor “soul” within them. The civil society and individuals have an unreplaceable role because of the capacity to feel, create, produce and innovate, besides the ability to articulate, optimize resources and claim their rights, as seen in such times as Arab Spring, Occupy Wall Street and other movements, which are still pulsing silently, at the climate changes of the popular watch. A few people are aware that the power migrated from the institutional to the capillary scope, as proved by the corporate media’s battle to survive and the current inefficiency of institutional initiatives fragmented in the “reputation YEARBOOK IEL 200 LARGEST COMPANIES 2016

economy”. The individual, served with all today’s technological facilities, has communication on hand, and the power of his opinion with it. This changes everything! As if technology helped enforce the first Article of the Constitution: “All power emanates from the people”. When the economic power is caught corrupting the political one and there is a proven incapacity of states before the world’s social complexity, they cannot be ignored the waves of blaming and outrage that rise on the virtual space. There the concentrated power is, because there it is the main asset of any alleged institutional group: the human being! Despite the educational system is tearing apart in Brazil, whether because of corruption, bad public management or interest in people’s political illiteracy, the youngsters are more critical, connected and highly politicized. Whether because of the planification of certain ideas spread on the net, or because of the clear indifference, corruption and injustice against them and all humankind. Underestimate all this is the admission of inconsequence. There is no more place YEARBOOK IEL 200 LARGEST COMPANIES 2016

for political deceit nor hegemony interested in self-support of parties and people. The world claims for a political leader that points the direction. There is an ostensible fragmentation and watchful eyes on the democracy of electronic windows. And thinking minds are very unhappy with the indifference with the public thing and the general ethics. On the other hand, the companies that see it will find the true soul of business and may be spared from the imminent ruin in their balance sheets. The transforming power, which is able to overcome crises and realign the paradigms of civilization through more rational, worthy and sustainable backbones is in the one – that can quickly agglutinate in a vast and inflamed multiple. The individual is the new paragon, for in him abides a soul that is able to revolutionize. For the sake of all, or the distress of some. Ideal equality through a more fair distribution of wealth, real freedom, dignity and willingness to find the conscious and heroic spirit of Capitalism, which is able to inspire, indeed, the elaboration of better titles for the cover story.

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The individual is the new paragon, for in him abides a soul that is able to revolutionize”

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ARTICLE ECONOMIC AND SOCIAL DEVELOPMENT

The relevance of associativity in moments of crisis SERGIO ROGERIO DE CASTRO is Director of the School of Associativity

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hich crisis? Choose anyone. Political, economic or moral. Associativity is very important in any of them. A political party is an association; unions of workers or employers are associations; the holder of a philanthropic hospital is also an association; the Order of Attorneys of Brazil is an association; and some of the most active ones are the community or neighborhood’s associations. The organized society is made of different associations, of all kinds. What distinguishes it from other organizations are the volunteer work, without any remuneration, and the non-profit nature of its work. If there are any extra revenues, these will be applied in the goals of the group. Moments of crisis demand a greater effort to breakthrough. Most times this effort is more efficient when done by many people, because their strength is greater than a single person and greater than a single company. To overcome crises more quickly and more efficiently, it is necessary to mobilize the society through its associations. In the associations people can share experiences, realities and different perceptions. People engage together to fight for or against something. In an association, the individual action is enhanced by the strength of the group. “Together we can do more” is the motto used in certain moments, especially in times of crises and challenges. Truly, associations stand up very clearly for their interests, which are

shaped by a greater purpose: the common thing. To overcome the national crisis it will be necessary to make a pact among different groups of the society. And, for this pact to be more productive, more practical, more direct, there is no other alternative than to mobilize important associations to interact with Authorities, especially the ones of the Executive Power: political parties and representative associations of employers, workers, self-employed workers, students and even the religious ones. Associations should be encouraged to make proposals, help in their approval and later, work in their execution. The range of associations of a country is a kind of summary of the society. The more organized the society, the better associations exist. It is natural for a wise ruler to seek interlocution with associations to learn about their organized demands and implement public policies to meet them. For this reason, working to make the work of these organizations better, which is the main goal of the School of Associativity, is a goal that needs to be supported. This project began to be conceived in November 2013, but only started its operational works in May 2015, thanks to the support by the current Board of Directors of Findes, chaired by Marcos Guerra. The School of Associativity has a website, fan pages on Facebook and Linkedin and several videos on YouTube. The project Pills of Associativity take the school subjects directly to associations’ meetings, with no loss of their YEARBOOK IEL 200 LARGEST COMPANIES 2016

specific agendas. The project already produced four didactic modules about relevant topics to the improvement and strengthening of these groups, and an associativity event was realized in the Health field, showing the successful experience of the Sírio-Libanês Hospital, in São Paulo. The topics on the modules were: the benefits of a headquarter; the importance of renovation; the innovation in the associativity; and, increasing the number of affiliated. At this moment, we are producing the module “Developing Markets Through the Corporate Associations”. The content is constituted from the available literature and, especially, from the testimonies of associativists with great experience in the topics. The results are encouraging. We invite all readers to visit the School’s website (www. escoladeassociativismo.com). To take a look on the modules in the space of courses. Texts and suggestions of books are on the menu “Inspiração” (Inspiration). News about the School and about the associativity in Brazil and worldwide. Videos on the menu “TV”. And the School’s monthly calendar. Anywhere in the democratic world, in situations similar to this crisis in Brazil, YEARBOOK IEL 200 LARGEST COMPANIES 2016

it is very common to hear: “The country needs pacification. It needs a pact”. Who makes the pact? The society, represented by the Powers and by the sectors organized in associations. Alexis Tocqueville, a young and talented French student, immortalized in the work “Democracy in America”, in the beginning of the Nineteenth century, denounced the individualism and praised the associativity. In this book, he explained how the portentous North-American nation arose and which were the relevant values in its constitution. For him, the associativity is essential for the democracy, to make a virtuous organization of the civil society. I now transcribe two small pieces of his work: “In democratic countries, the Science of association is the mother-Science…” and “So that men remain civilized or thereby become, it is needed that among them the attitude of association develops and improves…” The conclusion is this: the associativity is the indispensable tool for a virtuous democracy, especially to help it defuse and overcome times of crisis.

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To overcome crisis more quickly and more efficiently, it is necessary to mobilize the society through its associations”

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ARTICLE INFRASTRUCTURE

Return to the right direction of growth WALDEMAR ROCHA is chairman of the National of Shipping Agencies Federation (Fenamar)

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t is not easy to give any optimistic prognosis for Brazilian economy in this second semester or even try to predict anything positive for 2017. All Brazilian maritime agents wish that the scenario were different from this one, which is a result from a number of mistakes in the economic planning and execution of projects done through the last years. In two years, Brazil fell from the sixth position to the ninth in the worldwide economic ranking, overtaken by India and Italy, and recording a drop of 24.6% in the GDP between 2014 and 2016, when exchanged by dollar, according to data from the Brazilian Institute of Geography and Statistics (IBGE) and the International Monetary Fund (IMF). In 2014, according to the IMF, the Brazilian GDP was the seventh highest in the world, behind the United States, China, Japan, Germany, the United Kingdom and France, respectively, totalizing US$ 2.34 trillion. In one year, the Brazilian economy shortened more than US$ 500 billion, to US$ 1.77 trillion in 2015. Besides this adversity, the country faces the greatest political and moral crisis of all times, compromising its economic performance as a whole. Successive financial scandals are happening. Important state-owned and private companies have been caught in a hurricane of corruption and violations, which have already caused a number of corporate insolvency and more than 12 million unemployed

people, adding to millions of people that cannot even get their first job in a tighter work market. The investiture of President Michel Temer, with the impeachment of former President Dilma Roussef, brings new perspectives for the economy. Despite with no visible short-term solutions, the perception of changes will benefit the productive sectors, even with political instability that still remains in the national set. In this scenario, all Brazilian maritime agents are working to make the present-day’s picture better and more favorable to the country’s development. To prove the enterprising of the sector, in the last ten years the amount of cargo transported by the cabotage shipping doubled the volume, though it still represents less than 10% of the national matrix of cargo transport, and despite reducing up to 20% the cost of the transport in the longest routes. The shipping transport is less polluting than the road and railway modals, and Brazil has 8 kilometers of coastline, with 80% of the population living within 200 kilometers of the coastal areas. However, the Brazilian cabotage faces obstacles such as: the standby time to berth ships in the ports, the bureaucracy of proceedings, the port infrastructure’s hindrances, the low integration with the road and railway modals, and the high cost of the vessel catering. Even though, from 2004 to 2012 the amount of cargo moved increased from 96 million to YEARBOOK IEL 200 LARGEST COMPANIES 2016

139 million tons, hitting 210.9 million tons moved and 149.18 million tons transported in 2015. With the severe crisis this year, according to the Yearbook of Antaq, from January to May, the national cabotage moved 84.657 million tons – almost 3% less than the first five months of 2015 – and transported 58.163 million tons – almost 6% less than the same period of last year. Researches made by the National Industry Federation (CNI) reveal that the bad quality infrastructure and the problems of transport and logistics are among the three main obstacles for Brazil to expand exportations to nearby countries. Currently, the South-American countries are the destination of 16% of Brazilian exportations, overtaken only by the tariff and non-tariff barriers to importations in destination countries. Of the 11 South-American commercial partners, our exportations only exceed the potential of Bolivia and Ecuador. Once again, the study clarifies the relevance of navigation, highlighting that YEARBOOK IEL 200 LARGEST COMPANIES 2016

53% of Brazilian exportations (in US$) to South-America in 2014 was transported by ships. Besides that, the maritime transportation get stuck in the lack of multilateral agreements and in the excess of protecting barriers, which avoids, for instance, a Chilean vessel in route Valparaiso (Chile) – Montevideo (Uruguay) – Santos (Brazil) – Fortaleza (Brazil) to transport cargo from the Uruguayan capital to Ceará. The bureaucracy and the State’s inefficiency are also responsible for a big part of the ill-fated “Brazil Cost”. Based on data from the Federal Revenue, the CNI points that there are 17 Areas of Integrated Control (ACIs) in the borders between Brazil and Mercosul countries and Bolivia. However, less than half of them work in total integration. In 2009, Brazilian Government signed an agreement with Peru for the establishment of integrated control systems in the borders. Seven years later, no ACI has been created by the two countries. Another aggravating thing for the Brazilian maritime agencies is related to the

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From January to May, the national cabotage transported 58,163 million tons – almost 6% less than the same period of last year”

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serious situation of Petrobras, undermining severely its subsidiaries and several suppliers. In July 2016, for instance, Transpetro announced the cancellation of contracts that had been signed to construct seven ships, which would cost US$ 1.223 billion and would be used to outlay oil from the rigs in open sea. The Program of Modernization and Expansion of the Fleet (Promef) predicted the construction of 47 ships, a number that was reduced to 27, of which only 14 were already delivered. Only in 2015, 90 vessels of support (ships that provide services to the production rigs) left the country, causing financial problems to many Brazilian maritime agencies, which were preparing to meet the rising demand and now are facing a collapse. For many analysts, the year 2016 is being considered a lost year in Brazil. It is predicted that the GDP will close negative in at least

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3.3%. In 2017, it may occur a slight recuperation, with the possibility that the national GDP hits 0.5%. Some studies point that the level of employment will only recover in 2021. Unfortunately, the Brazilian economy has to grow 62% in dollar to hit the same level of the world’s fifth economy. A position that in 2011, when the country achieved the sixth position and left the United Kingdom behind, patriots imagined to reach in 2020. As seen, all was a daydream and a bad strategic planning. The National Shipping Agencies Federation (Fenamar), our highest institution, which represents 13 unions and 14 Brazilian states, has always been contributing to the Authorities, offering the maritime agents’ experience gathered in more than one century of work in Brazilian ground. Brazil needs to go back to the right path of growth.

ANUÁRIO IEL 200 MAIORES EMPRESAS 2016

ARTICLE PEOPLE MANAGEMENT

Leadership recipes WILLIAM DOUGLAS is Federal Judge awarded for productivity. professor and writer

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ccording to Jorge Gerdau Johannpeter, one of the greatest Brazilian businessmen, one big contribution an entrepreneur can give to society is his time and knowledge teaching people how to undertake, work, have success, or, as it is popularly said: “teach to fish”. I usually start my speeches telling the failures and defeats I have suffered over lifetime. As competitor for a public post, I failed several times; as judge, I faced the institution’s resistance to implement ideas of marketing and management in my Federal District Court, besides having some juridical projects discredited for a long time. As an undertaker, I went bankrupt some occasions and had to abandon my plans. What all these failures have in common is that none of them defined me as person. They were moments, mere pictures in this big film of life and that, mainly, taught me important lessons for my future enterprises. Today, I am considered a successful professional in all areas I work, but it has not always been like this. This is an important lesson that most people still do not understand. Even the most successful personalities have had failures in their lifetime. But, if they have not, suspect such a success. Among all factors that helped me achieve higher levels in my activities, the productivity, the motivation and the faith were the ones that guided all my paths. People are like cars driving

in life’s road, and motivation is the fuel. If this element lacks, the vehicle stops and cannot go anywhere. The motivation tank has to be filled frequently so that the machine works appropriately. So, it is important to find out what makes someone to walk. What makes you willing to achieve your goals. For many, the motivation is to have financial stability, help the family. For others, it is to have their own business, generate jobs, opportunities and wealth. Whatever the motivation is, identifying it and feeding it frequently is a good way to success. Therefore, find it out today. Many people postpone the beginning of new projects. Starting a qualification course, making changes in the familiar relationships, establishing a new point of sale or, simply, getting off the business. They are waiting the “perfect moment” to start, waiting the ideal inspiration to come up or the motivation to rise. However, the more they postpone initiating, whatever the reasons, more difficulties will appear in their path. Therefore, let there be fight against procrastination, for the habit of adjourning tasks is the shortest way to stagnation, unproductivity and failure. Another saying can be applied here: “The road called ‘Tomorrow’ takes to the city called ‘Never’”. So, future results depend not only on choices and decisions, but also on the actions taken today. One of the ways I know and recommend that enhances motivation is to YEARBOOK IEL 200 LARGEST COMPANIES 2016

reward yourself for every little achievement, at the end of each task. This reward can be simple, but it will be very significant and have a great impact in your general goal. Something like hanging out with your family, taking some time for yourself, spending some time outdoors, buying a good book or going to have dinner in a good restaurant. All these things will certainly help you execute your activities with more determination. Realizing tasks with stimulus results in another characteristic of successful people, which I have spoken before: productivity. The more stimulated you are to do something, the more productive you will be. I am a federal judge awarded for productivity. The Federal District Court where I work is always leading the productivity ranking of the General Court of Justice. This is possible because of several factors. Among them, and one of the most important is this: the team that follows my baton. As in an orchestra, the manager, the chief, the administrator, or maestro, must lead the team to success. This is possible through motivation and by the use of productivity tools. A good leader accompanies, help, take responsibilities and relies on his team. However, the greater the commander’s success, the greater the possibility he loses humbleness, and start believing that he YEARBOOK IEL 200 LARGEST COMPANIES 2016

alone can do the work, and that he is the only one that can do all phases of the process successfully. This is the fastest way to lose productivity. The team will start questioning the leader’s decisions and opinions and, inevitably, the morale of all will fall off. Without motivation or inspiration, the staff will work less, and there will hardly be a productivity tool able to recover this dysfunctional team. A leader must hear his team. He must take time to learn what they think about the business’ direction. Their ideas might be essential for the next steps. And, a leader must recognize and reward those that are contributing to the success of the enterprise. There is a number of other rules that can lead to professional achievements. I had the privilege to elicit them, with the support of Rubens Teixeira, another successful entrepreneur, in my book “The 25 Biblical Laws of Success”. The path to success is not a straight line, free of obstacles. But it is a rewarding trip, especially if you decide to enjoy all the journey. As it is expressed in the classic “The Wizard of Oz”, knowledge abides in the road travelled and with the companions we have the privilege to share the adventure.

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Even the most successful personalities have had failures in their lifetime. But, if they have not, suspect such a success”

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ARTICLE ECONOMY

Turn to grow ANTONIO DELFIM NETTO

is professor emeritus of FEAUSP, former Minister of Treasury, Agriculture and Planning

razil is in the middle of the hardest riddles of History. First, a fall of 6% in the GDP, between the first quarter of 2015 and the same period of 2016; Second, an alarming increase of unemployment, which has already affected 11 million workers; Third, a fiscal disorder that caused a deficit of 6% in the GDP in 2014, 10% in 2015 and threatens to be repeated in 2016; Fourth, a worrisome relation between the Gross Debt and the GDP, which leaped from 52% in the end of 2013 to 67% in the end of 2015 and promises, if nothing is done, to hit 80% in 2017. What to do to escape this calamity? The Government is striving to fix the fiscal problems and make the structural reformations. How to escape the swamp of mistakes that disturb the recovery of the economic growth? The only way is to continue building the society described

in the Constitution: a strong State, lean and efficient, constitutionally controlled, which guarantees the full freedom of enterprising; that seeks an increasing equality of opportunities for all citizens, and in which the coordination of the business is done through well-regulated markets. To facilitate the understanding of the problem, let us analyze the skeleton of the material process of economic development. It applies to any kind of society, under any political regime. As seen in the Chart 1, it is a thermodynamic process: one group occupies a physical space (its environment), concentrates the disperse energy and dissipates it in the production of goods and services, using a capital stock (frozen finished work), which increases its productivity. All that is produced in a time unit constitutes the Gross Domestic Product (GDP), which can be used for exportation,

The Thermodynamics of Growth Environment Importation = M

Exportation=X

Workforce=L K/L

Energy

GDP = Y/L

Consumption=C

Capital Stock = K

Investment=I Technology

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Current Accounts

Politics

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The production of the GDP is a technical problem, but its distribution is a political issue, solved by who has authority in the society. The process closes itself off and there is no place for ideological excursions”

to exchange for importation, which is essential for the production; for consumption, which feeds the worker; or for investment, which should cover the capital used in the production. The production of the GDP is a technical problem, but its distribution is a political issue, solved by who has authority in the society. The process closes itself off and there is no place for ideological excursions. The second chart shows the fact empirically. Labeling the GDP as Y, the workforce employed as L, and the capital stock as K, it is expressed the empirical value of K/L: the average amount of GDP produced per worker. Raising the GDP’s material growth rate, it means, the productivity of the workforce, is a necessary condition, yet not sufficient, to solve all problems. It depends on raising the relation K/L, it means, increasing the capital stock, through investments, more than the workforce employed. Within the system of individual freedom, it is necessary to increase the social cohesion. It is necessary harmonizing the raise of the material capital (investment) with the benefits of an equal distribution of the product (consumption). YEARBOOK IEL 200 LARGEST COMPANIES 2016

Countries’ Workforce Productivity 15

Ln (GDP per worker) = Y/L = y

14 13 12 11 10 Brazil

9 8

Ln (Capital Stock per worker) = K/L =k

7 6 5

Fonte: Penn World Table 8.1, último dado disponível (2011)

The problem is to combine the short-term fiscal adjustments with the reformations that will bring perspectives of future. Without them, it is unlikely to have success in the fiscal framework. It is necessary to persuade the society that, in spite of the desperate cry out of the cunning state corporatism, the reformations are not “badness”. They are “goodness”! 279

ARTICLE ECONOMY

A new necessary agenda ARLINDO VILLASCHI is professor of Economics of UFES (Espírito Santo’s Federal University) and coordinator of the Innovation and Development’s Research Group of Espírito Santo State – GPIDECA

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he History of Espírito Santo State is a rich illustration about the economic cycles. Regarded in the second half of the Nineteenth Century as a manner of occupation into the State’s ground, the coffee plantation contributed to put the State into the Brazilian growth dynamics and to arise the family farm, not so common in the country to that date. Until its decline and crisis, between the years 1950 to 1960, the coffee plantation had generated jobs, income and political initiatives that enhanced the road infrastructure, which opened new manners of articulation in the State’s ground. The industrialization project, delayed until the years 1960s, only got the necessary political adhesion when it was clear that, more than unable to sustain the State’s growth, the coffee branches were dry on the tree. Even reinvented, the coffee plantation, as factor of economic dynamism, was replaced for two new vectors: industrialization based on small and medium-sized enterprises, and those pulled by great projects of steel, pulp and paper and, more recently, oil and gas. Relying the economy’s growth on the performance of these big projects, at any time inspired an open and plural debate about alternative and complementary projects of development. Even the end of Fundap, an instrument created in the years 1960s to finance industrialization, which built “comfort

zones” for the rulers of the State and municipalities, could signalize with a yellow light. The enchantment with the rise of the State’s GDP at rates higher than the national average rate paralyzed the governmental and corporate elites that did not make anything to take the state’s economy through new tracks. One of these new tracks could be expanding Espírito Santo’s role as sea door to become a vast hinterland, exceeding the outlay of low added value commodities. It is mandatory to start doing better use of the coastal railway network and take advantage of the favorable conditions to establishment of a deep waters port terminal in Praia Mole, suitable to the needs of the container transport. One new terminal was announced, when people were thrilled about the raise of exportations to China. However, it was a new port facility for the same product as always: ore. The disaster caused by Vale/BHP/ Samarco and its impact over the Doce River’s valley and the State’s shore are sufficiently overwhelming to reveal the seriousness of the environmental risks of terminals like those proposed for Linhares, Ponta da Fruta and others in the coast of Espírito Santo. Risks that would hardly be mitigated whereas causing tough social and economic impacts. The State’s coastline has to be recalled on the State’s political agenda for what it represents as natural patYEARBOOK IEL 200 LARGEST COMPANIES 2016

rimony. The Abrolhos Complex, which extends to large part of the North littoral, and the Vitória-Trindade seamount chain, are recognized by international institutes that work for the valorization of the oceans. They could become an important mean for Espírito Santo’s social and economic valorization in fields like scientific tourism and observation of nature. The segments of the state economy that are proven competitive, such as the family farm, manufacture of beverages and food, furniture, clothing, logistics and others, should be articulated with public policies of development, and not necessarily or exclusively governmental policies. In all these sectors, small and medium-sized local enterprises indicate the potential to generate jobs and do a better income distribution. It means, generation of jobs and better income distribution in big part of the state’s ground, instead of concentrating in big projects. To streamline these and other segments of economy it is needed to recall and appreciate the challenges that companies undergo, especially the small and mediumsized enterprises, in face of the accelerated technological process of development. The corporate competitiveness and the social capacitation are under more and more innovation. Whether those enterYEARBOOK IEL 200 LARGEST COMPANIES 2016

prises with technological content incorporated to machinery and equipment, or those based on intensive services in knowledge. Innovations of technology and of process, products and services, may be benefited by systematical interactions between companies and institutions of education and research. The bridge to these interactions is of complex building. There are companies interested in concentrate their competitiveness on innovations, and institutions of education and research with the potential to support the development of knowledge so that these innovations occur under the necessary conditions. However, it is far from enough to make the interaction between the two segments happen. Once again, it is imperative to implement development policies that will enable the State to overcome the hindrances. The design and operation of these policies need authentic articulations among the economic and social agents, of the government, the companies and the organizations of the civil society. And, the articulations have to be genuine in order to exceed the discourse of documents that do not go beyond launching festivities.

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The corporate competitiveness and the social capacitation are under more and more innovation. Whether those enterprises with technological content incorporated to machinery and equipment, or those based on intensive services in knowledge”

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ARTICLE EDUCATION

Education is the differential HAROLDO CORRÊA ROCHA is economista, professor of Economics of UFES (Espírito Santo’s Federal University), former Secretary of Planning of Vitória City Hall, former CEO of the Development Bank of Espírito Santo and State Secretary of Education of Espírito Santo between 2007 and 2010, having returned in 2014

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he fourth industrial revolution was the theme selected in 2016 for the World Economic Forum, which took to Switzerland delegates from 83 nations. Based on the strong presence of digital technologies, on the mobility and connectivity among people, this revolution is transforming the production systems, as well as the Governance of public and private institutions, in such an exponential speed, without precedents. For Klaus Schwab, Founder and Executive Chairman of the Forum, “talent, more than capital, represents the production critical factor in this phase of world development”. The talent highlighted by Schwab, which is not innate, is a differential built by individuals for accessing education, and reinforces the importance of public policies in the fields that involve: First, the development of cognitive competences and abilities that will result in real knowledge in areas such as reading, mathematics and science. And second, the development of socio-emotional competences and abilities that comprise, for instance, the capacity to deal with ones’ own emotions, to relate with other people and to act collaboratively. In Espírito Santo, the basic education was adopted as the number one priority of the State’s Government, which is working in this perspective to build talents as a local differential to boost the development. In this pitch, six prior programs guide the actions of the Department of Edu-

cation (SEDU), aiming at preparing the students to life and to a more and more requiring work market in the context of this new revolution. The first of them, the Escola Viva (Live School), is a new model of public school that works full time. Besides the special physical structure and the innovative school curriculum, in these schools the professionals are dedicated exclusively, and the students stay in the school for nine hours and a half, every day. During this period, besides accomplishing the essential subjects, they are encouraged and are monitored

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to elaborate their “life projects”, participate in activities to develop socio-emotional competences and abilities and can get experiences to enhance their curriculum such as music, entrepreneurship, photography, and others. Another prior program is the Development of Socio-Emotional Competences and Abilities, which, besides integrating the Live School, also counts on two other support actions to assist state schools: the Education in Values, Human Development and Culture of Peace, done with the support of the Miglioli Institute; and the Amigos do Zippy, of the Children’s Emotional Health Association (Zippy’s Friends – Asec). As the school alone cannot meet all the educational needs of children and teenagers, there is the project Families Engagement in the Children’s School Life Programme. The activities involve using technologies to strengthen the communication between the school and the families, leading families to a commitment with education, media campaigns, and partnerships with institutions that have proven results in the use of technologies to develop socio-emotional competences and abilities. The Digital Sedu is another important innovation that reflects the new global times and the need to incorporate the digital technologies

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in the school routines. Among the actions are: school tutoring by the use of content on digital platform adapted to the needs of each student; offering online pre-Enem support (“Enem” is the National Exam of the High School); foreign languages; Libras (Brazilian signs language), and others. The Program of Classroom Education Restructuring to Young and Adult Students and the State Educational Centers of Young and Adult Students are realized with the inclusion of digital platforms. Thus, the facilities provided online by the digital tools will be used to facilitate the access and make education more attractive and contextualized to the citizens at 18 that did not conclude all the years of the basic education. The Youth of Future, a school planning and management methodology developed by the Unibanco Institute, aims at preparing school managers to perform in this new scenario of big challenges. Its principles, focused in the pursuit of enhancing learning results, guide the elaboration of action plans to each state high school. The school community defines what has to be done, based on diagnosis, to achieve the planned results. In a way never seen before in the world, Education comes up as the differential among rich and poor nations. In times of artificial intelligence, robotics, 3D print and so many other innovations invading and changing our lifestyle and the way we relate to each other, we are challenged to think education from a new point of view, wider and more complex. To build talents must be the focus of the country that longs to achieve better indicators of productivity and of economic and social development. We are playing our role to respond the Espírito Santo’s citizens.

“

To build talents must be the focus of the country that longs to achieve better indicators of productivity and of economic and social development”

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ARTICLE JUSTICE AND CITIZENSHIP

Citzenship made with transparency ELDA MÁRCIA MORAES SPEDO is Attorney General of Justice of Espírito Santo’s Public Prosecutor’s Office (MPES)

284

n the last years, it has been formed the discussion about the transparency in the public service as a whole. Governmental expenditures in all levels have made the headlines of newspapers and began to be spotted and questioned. Generally, the society started to demonstrate a specific interest on how the public budgets are executed and on the destination of the taxes collected. In order to respond to these claims, the Union General Controller and Unesco established a partnership, in 2010, which resulted in the “Brazilian Policy of Access to Public Information: a democratic warranty to the right of information, transparency and citizen participation”. In 2011, Brazil approved the General Law of Access to Public Information (Law 12,527), which came into effect 180 days later, in August 2012 Researches show that countries that have a specific legislation of governmental data publication in all branches tend to be more open and democratic, using the law to show respect to the human rights and reveal a good manner to rule. What justifies the existence of such a law is mainly the fight against corruption and misuse of the public revenues, so many times exposed in the media. However, in spite of the legislator’s determination to follow the law since 2012, many public institutions are still struggling to implement it promptly, making, frequently, huge mistakes in the form of releasing the data and information.

The Espírito Santo’s Public Prosecutor’s Office (MPES) is working directly with the municipalities, with a critical view, aiming at serving the society with the necessary transparency on institutional data and information, evidencing a widening of the citizenship. The MPES agreed with the municipal Executives and Legislatives how should be the correct publication of costs and current expenditures, in order to answer any question and respond to the needs of the citizens. The basis of this ministerial acting is on the constitutional principles of publicity and transparency in the public administration, reflecting on the direct relation between democracy and human rights. Generally, the bidding procedures to contract goods and services by the public administration follow the scope of selecting the most convenient proposal, according to pre-established conditions in the call notice, whether of financial or qualitative nature. This process contributes so much to the moralization of the administration, as far as it binds the public agent’s acts to proceedings well defined that he has to accomplish. It must be highlighted the relevance of bidding for the public administration, for it is a guarantee for society about the State, as well as the administrator, which will work with transparency, demonstrating to the society that he is managing the resources in an adequate manner, based on high constitutional and infra-constitutional YEARBOOK IEL 200 LARGEST COMPANIES 2016

principles that orientate the administration, such as legality, morality, impersonality, publicity, economy, among others. This is the main goal of the ministerial work. The MPES has been working to enforce the transparency through a direct cooperation with the public administration, based on pedagogy and monitoring. The first opportunity was provided, in which all could clarify their doubts, and we have stepped further making the transparency web portal to mirror what is determined in law. It is a hard work to make transparency become common sense and key part in fighting corruption. Therefore, we do not measure efforts to invest in partnerships with the surveillance bodies in pursuit of this benefit to the society. It is possible to have a better YEARBOOK IEL 200 LARGEST COMPANIES 2016

country, because these institutions are completely committed to defend the Democratic Rule of Law. The key word is synergy. This is vital to extinguish corruption that, in the words of Pope Francis, is the gangrene of the people. A utopia? Why not? It is what moves us toward what we want to achieve, a phenomenon that Eduardo Galeano rightly described this way: “Utopia is there in the horizon. I move two steps, it moves off two steps. I walk ten steps and the horizon rushes ten steps. No matter how much I walk, I can never reach it out. What does utopia count for? For this: that I never stop walking”.

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The key word is synergy. This is vital to extinguish corruption that, in the words of Pope Francis, is the gangrene of the people”

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ARTICLE ECONOMY

Productive chains: important bonds between large and small companies B BENILDO DENADAI

is Technical Director of Sebrae ES

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razil stands out worldwide with the highest rate of entrepreneurship: 34.5% in 2015, against 26.7% of China, the second one. According to a research (GEM) done in Brazil by the Brazilian Institute of Support to Micro and Small Businesses (Sebrae) and by the Brazilian Institute of Quality and Productivity (IBQP), published in 2015, in 10 years it has increased more than 10% the national rate of entrepreneurship. This means that three out of ten adult people from 18 to 64 own a business or are involved in the creation of one. Despite these numbers, the companies need to improve in management and competitiveness, to get a move on economy. The reason is, though micro and small businesses in the country represent 99.1% of the formal enterprises, they represent only 27% of the GDP, while in European countries this parcel hits 55%. The arise of new companies and the quick development of technologies and information systems, which accelerate and facilitate communication, has instigated the competition for all kinds of markets. Competitiveness is not restrained to the companyâ&#x20AC;&#x2122;s single businesses; it is the result of efficiency in the value chain or local cluster, in which a certain productive sector is structured. This way, the companies that are in a certain value chain must be competitive. There should not be a separation, a barrier, between large and small com-

panies. The average productivity is what will define competitiveness in the value chain in face of the international competition. To contribute to increase the indicators of productivity and competitiveness, Sebrae works on behalf of the productive chain, promoting the inclusion of small businesses in the value chain of large companies. Productive chains are collaborative relations, of long-term duration and mutually attractive, established among large and

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small businesses in order to adequate the small ones to the requirements of the large companies and facilitate the business among them. We consider that the basis and perspective to improve the relations among small and large companies abide in the enhancement of the commercial business among them, but it is much more related to the exchange of knowledge and experience and to the creation of innovative solutions together. The Sebrae’s projects of productive chain are structured on the following basis: learning network; access to the market by medium and small businesses; competitive intelligence; large companies’ corporate policies; and corporate development and innovation. These projects are realized in two ways in the value chains of the large companies, which seek to promote the development of suppliers as much as the networks of distribution, retail sales and row material processing. The productive chain, through Sebrae, begins with the definition of the partnership model between the institution and the large

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company. Next, it is done a mapping of the demands for goods and services and the requirements of the large companies. Then, small companies are diagnosed and receive an action plan with opportunities to improve their business. Aiming at preparing them for this process, Sebrae offers support to identify opportunities and develop their improvement in areas such as management, innovation and planning, by giving courses, orientation and consultancies, among others. This way, each supplier can enhance their own services and products, fulfill requirements, conditions and criteria demanded by the large buyer. Sebrae promotes the productive chain between large and small companies, acknowledging the significance of this relation. Large companies, for instance, benefit from better prices, flexibility and agility, besides reducing costs of transport and logistics, optimizing investments for the development of the supplier and enhancing the innovation potential. Yet the small businesses become able to enhance their internal processes, increasing the productivity, besides reducing the facilities’ idleness and raise sales for the anchor company and for the market. After all, by meeting the national and international management set of patterns, these entrepreneurs learn a lot with the processes and enhance significantly their attendance, management and quality of their products and services. This way, small businesses become more competitive and more prepared to serve the other companies, no matter their size, generating a process of collaborative growth and development of the economy in full synergy. This makes small business more innovative, more competitive and more professional.

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There should not be a separation, a barrier, between large and small companies. The average productivity is what will define competitiveness in the value chain in face of the international competition”

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ARTICLE ENVIRONMENT

Environmental preservation as a priority to help overcome the crisis LUIZ FERNANDO SCHETTINO is forestry engineer, master and doctor in Forestry by Viçosa Federal University (UFV-MG). Professor of Espírito Santo’s Federal University (UFES). Former State Secretary of Environment and Water Resources of Espírito Santo State. Former general director of Public Power Services of Espírito Santo State (Aspe)

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risis is not a desirable thing, but it can be educative, mainly in economic and socioenvironmental aspects, once it is not possible to think development out of a competitive, sustainable and ethical productive system. This is proved by the countries and economic segments that remained in better conditions even in the middle of the current turmoil, exactly because they work in a competitive, sustainable and ethical manner, which is the right way to offer innovative products and services. As long as they proceed this way, there will be the assurance that their production will occur based on scientific knowledge, with true respect to laws, people and the environment. Thus, it is also ensured to the consumers the offer of products and services with quality, functionality and good costbenefit relation. Moreover, they can attend with safety, convenience and efficiency, meeting all the immediate needs of consumers, not letting the production affect the quality of life of the present-day and future generations. Considered as priority, the environmental preservation can help recover the economic growth, if the country decides to employ a sustainable model of development and include environmental issues in this agenda, such as: water preservation, recuperation of degraded areas, protection to the biodiversity and replacement of fossil fuel for renewable energy. Consequently,

there will be the reduction of greenhouse gases emissions, helping to counteract the harmful effects of climate changes. Therefore, it must be prioritized the innovation and the environmental education, so that there will be more competitiveness and environmental consciousness in the society and, thus, sustainability in the productive processes, especially concerning the generation and use of energy, as well as other environmental resources. For these reasons, to fly sustainability as a flag of progress, it is nec-

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essary to expand investments and stimulus to the business that can leverage the development and keep the economic growth of the country. The socio-environmental impacts will be measured and mitigated, once the laws are respected and the existing knowledge and technologies are applied, such as the agrotourism and the ecotourism, the farming, the generation of renewable energy, the development of the aquaculture and fish farming and the appropriation of knowledge about biodiversity. Especially because these are good generators of workforce and income. It means, public policies that target the environmental preservation and the enhancement of life quality can help encourage important businesses to generate more jobs, income and taxes, in several sectors, with the minimum socio-environmental impacts. This strategy can take the country to a level of development that possibly no other emerging nation has the conditions to reach. Regarding biodiversity, the Brazilian society is not aware yet that protecting it is protecting the future. All is going

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to be patented. A plant, or an insect, or an animal, might be the basis for many advanced revolutions for humankind; in health and nutrition, for instance. More than that, to preserve the biodiversity means to protect the quality of life, genetic resources, jobs and the national sovereignty itself. If the necessary care is not taken, Brazil will end paying to have products like medication and seeds discovered in its own ground. Due to this, it should be the goal of rulers, entrepreneurs and all society that public and private actions express rationality in the pursuit of development. Always through the best technologies, respecting laws and people and taking into account the safety in the use of environmental resources and the limits of nature. The current crisis shall not end even in the next year, and probably, it will only begin to cool down and be left behind in the years after. However, it has to be considered that overcoming the turmoil and recovering the economic growth will happen, especially, through the learned lessons, and that the operation of economy on competitive, sustainable, safe and ethical basis must precede the pursuit of profit. This is the reason for a commitment from all in prioritizing the environmental preservation much more than what is described in law or is required by environmental certifications. This is the reason for improving the control of pollution sources; for entrepreneurs to take the responsibility for the environmental safety and the life cycle of the products they make, so that producing causes less harm to the environment and to people; and for making the processes and the products more acceptable by consumers. From this perspective, the discourse about environmental preservation has to turn into effective routine actions, and the ordinary economic behavior has to turn into more respectful conduct toward nature and people. Thus, the country will have a longer economic growth and will make the necessary leap in quality and competitiveness, with sustainability and quality of life.

â&#x20AC;&#x153;

Considered as priority, the environmental preservation can help recover the economic growth, if the country decides to employ a sustainable model of developmentâ&#x20AC;?

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ARTICLE ECONOMIC AND SOCIAL DEVELOPMENT

Brazil that works well – Espírito Santo reveals itself JOSÉ CARLOS DA FONSECA JÚNIOR

is diplomat and secretary of the Chief of Staff of Brazil

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would like to thank to Marcos Guerra, chairman of Findes, for the honoring invitation to participate in the Yearbook IEL 200 Largest Companies 2016; a relevant two-decade tradition organized by the Euvaldo Lodi Institute. It is a singular opportunity to present some of my personal perceptions about Espírito Santo State, after being for almost one decade in Asia, as Counselor Minister of the Embassy in New Delhi, India, and as ambassador of Brazil in Myanmar. And, to describe the mission given by Governor Paulo Hartung, who invited me to integrate his team, with the duty to coordinate, within the State Executive Power and in the interlocution between the public and private sectors, an active diplomatic strategy with the dimension of the international vocation of the State. Representing Governor Paulo Hartung in a recent business meeting organized by Findes in Pedra Azul, with the Minister of Industry, Foreign Trade and Services, Marcos Pereira, I tried to illustrate with an example of globalization I testified when I was in the Asian Southeast. Nearby Yangon, capital city of Myanmar then, the beautiful Thailand, whose capital city is Bangkok, was our regular refuge. Thailand, which is still a Buddhist monarchy of parliamentary system, is the ancient Kingdom of Siam, that has been recalled in certain idyllic and romantic filmography, as well as in cinematographic work about the Pacific Theater of Operations, in the Second

World War, or about the Vietnam War, when Bangkok glowed as prime destination of the soldiers during their breaks in that country full of amusements and neutral in the conflicts. For this reason, Thailand has always evoked exotic images of beaches, good cuisine, pretty women, strong religiosity, among other stereotypes that make it a touristic potential until today. In 2012, with monsoon of extraordinary strength, Bangkok entered into a total collapse, flooded, with no power and with the people needing to evacuate the city. Beyond the humanitarian calamity, it was observed that, few weeks after that natural disaster, it was triggered a number of disorders in several economic structures of global scope: the production of cars in Japan and Korea, of iPhones, tablets and computers in China, of cellphones in Taiwan, and electronic components in the Silicon Valley, California. All those global chains were affected, direct or indirectly, by the sudden idleness of the Thai industry. Then I started reasoning, what would a momentary circumstance of isolation in Brazil affect significant global chains? It is with this kind of reflection that for years I have sought to study the economic perspectives of Espírito Santo, in order to understand for which ways it would be possible to optimize our clear international vocation. While in the Federal Senate and during his first time in Anchieta Palace, as Governor, Paulo Hartung was already concerned with this issue, which has a strategic YEARBOOK IEL 200 LARGEST COMPANIES 2016

nature for our State. However, he understood that, in face of the crisis, it was not so simple to turn these questions into a prior public policy. Since the beginning, returning to the State Government, in the last year, though facing the task of reorganizing the public accounts – incredibly recurrent -, Hartung has prioritized the articulation of a diplomatic strategy for our State. As it is an eminently multidisciplinary and transversal topic, he decided to create an International Counsel in the scope of the Department of Development, also supported by the Development Bank of Espírito Santo (Bandes), but with sufficient flexibility to articulate with the other areas of the Government, with the private sector, in Brazil and abroad, with the entities of the Federal Executive that are occupied with the foreign policy and with contacts in the diplomatic and consular body accredited in Brazil. Even before realizing this initiative, with my appointment in the middle of 2015, in the first semester of that year, Bandes hosted a number of very representative meetings with stakeholders, who we could call partners or members, with interest, participation and involvement, direct or indirect, in the range of businesses that comprise, widely, the institutional and economic arrangement, oriented to the foreign sector. It would not be an exaggeration to YEARBOOK IEL 200 LARGEST COMPANIES 2016

affirm that this community impresses by its range and coverage, with ramifications through the sectors of services, trade and industry, through the Findes’ System, the agribusiness, the transport, education, innovation, science and technology, tourism and culture, among others. At the end of that work of reflection and mapping by the players of that wide and heterogeneous community, it was clear the need to create a more active diplomatic strategy of commercial promotion and internationalization of the state’s economy. It is not new that several subnational states, in Brazil and in many other countries, invest in their own diplomatic strategies, some with great energy and success. Several states in the USA maintain real embassies in strategic points of the globe; some Chinese provinces, similarly. In Brazil, though, there is a sad tendency to inconstancy, with a low level of institutionalization and high dependence of personalisms. The fact is that some states progressed a lot in the international area, with a proactive and visible performance. The Government of São Paulo, in the last mandates, has been accumulating an important institutional patrimony in the international area, and even the capital city of that state also has a structure in the sector. Rio de Janeiro, State and Capital city, also show off a reasonable perfor-

“

Espírito Santo can be a Brazilian Singapore, it means, able to optimize the combination of territory and population, in such unparalleled conditions that no other Brazilian states may have”

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ARTICLE

mance in foreign policies. Bahia, until some years ago, Goiás, Ceará and Santa Catarina, nowadays, are other states that also have an important action in this area, which includes fomenting exportations and general foreign trade businesses, such as the attraction of foreign investments and structuration of international funds. In Espírito Santo, fair enough, in several moments there have been international articulation efforts worth highlighting, however, most times, they are subject of the personal style of the successive rulers and of the ongoing situation that seems more or less favorable. In Governor Paulo Hartung’s point of view, which is now being in process of consolidation and institutionalization, the important thing is to have a platform or mechanism working on permanent basis; not a department or a counter. They should be understood as a stage of facilitation, of interlocution and articulation, a gear to enhance the business atmosphere and the competitiveness of our State. Even before this gear being fully up and running, it is due to use it to enhance the Espírito Santo State’s popularity over other Brazilian states; especially in those that are in the East-Center Transport Corridor and are part of our hinterland, and over selected target countries. Similarly, it will be relevant that this gear may be accessed by future mayors and municipal secretaries of development, in order to, as a joint effort for the growth of the State, we may have the vocation and attractiveness maps permanently updated to base future dialogues about the localization of companies and businesses in our State. A little more than a year after and some results are already coming up. But there is still a lot to do until Espírito Santo is equipped with more efficient mechanisms of internationalization of the economy and promotion of its foreign trade. In the first days of September of this year, Governor Paulo Hartung accomplished his first mission abroad in the current mandate. We went to Singapore, Malaysia and the Netherlands. In the City-state of Singapore – 40 times smaller than Espírito Santo, with a foreign trade flow twice larger than the Brazilian one, the State’s road show presented the portfolio of projects and opportunities to large investors, including two Sovereign Funds, the GIC and the Temasek. We visited the new terminal of 292

Port of Singapore (PSA), a global company that has partnerships with the Port of Rotterdam and, so, is interested in the Central Port project. We also visited the new operation of Sembcorp Marine, mother-company of Jurong shipyard in Aracruz (EJA), with nine dry docks – there the governor had lunch with 18 EJA’s trainees, all recruited from the Ifes’s system (Espírito Santo’s Federal Institute), who are upgrading their learning at the prestigious institute of technological education Ngee Ann Polythecnic. Still in Singapore, in what was an innovative emphasis of the governor’s trip, we had meetings with the National Education Institute (NEI), acknowledged as the heart of the Singaporean educational system, where teachers are formed and qualified. There, we presented the project Live School and started negotiations to establish a Memorandum of Understanding envisaging a mechanism of cooperation and interchange of experiences. We also visited the Nanyang University, one of the most important of Asia, in order to find means of direct cooperation. In Malaysia, the Governor visited the Teluk Rubiah maritime terminal, built by Vale to improve its iron ore supply logistics, a good part of which proceeds from Tubarão to the large Asian markets. There, again, we were proud to testify the competent work of several Espírito Santo YEARBOOK IEL 200 LARGEST COMPANIES 2016

State’s citizens that are leading in that sophisticated global logistic operation, in Malaysia coast. Two days in the Netherlands, the Governor was welcomed by the high command of the Port of Rotterdam, partner of the State’s Central Port, and visited the new terminal, which impresses by the dimensions and for its total automatization. He also met the mayor of Rotterdam and representatives of Vopak, the world giant of liquid bulk and tanking, which operates in the Port of Rotterdam and plans to settle in the Central Port. Still in the Dutch city, the Governor visited the Shipping and Transportation College (STC), institution that for almost two centuries has trained and qualified shipped professionals and other experts in Logistics – from pilots and captains to oil rigs operators. Finally, on September 7, with the Flag of Brazil flying at the entrance, the high command of worldwide Shell welcomed the Governor, who presented Espírito Santo as an alternative to the centenary Angle-Dutch oil company to concentrate its operations in the Brazilian pre-salt, possibly in the Central Port. The mission to Singapore was a rehearsal to the others that are going to be realized in the next months, such as Angola, China, Great Britain, the United States, the Arab Emirates, India, Japan, Peru, and several others. YEARBOOK IEL 200 LARGEST COMPANIES 2016

With diplomatic delegates of each one of these countries, it has already been initiated the conversations to identify potential synergies in different areas of a possible bilateral cooperation. Some of these have already sent missions to Espírito Santo, in the last months. Now it is time to elaborate a cronogram of the next steps in the constitution of specific agendas to strengthen the bilateral relationship with these nations, maximizing opportunities for initiatives that will benefit our strategy of sustainable development, social advance and economic progress. Espírito Santo has also sent missions abroad, to the USA (West Coast), China, Netherlands, Panama and Dubai, and others. It is worth highlighting, especially because of the multidisciplinarity mentioned above, the missions to Buenos Aires and Montevideo, in June 2016, in which the Secretary of Agriculture, Otaciano Neto, led a corporate delegation of twenty reps of the state’s agribusiness. The main goal – indeed, successful – was to structure operations to the importation of the Uruguayan corn in order to foment the growth of the poultry and the pig farming, considering the logistics that can be articulated in the scope of Mercosul. For a State with small territorial dimensions, that evens out with the population basis, the challenge, from now on, is to advance in a sustainable manner, building a harmonic society, with good education, which is more and more bilingual and more prepared to generate employability in this competitive and global world. Espírito Santo can be a Brazilian Singapore, it means, able to optimize the combination of territory and population, in such unparalleled conditions that no other Brazilian states may have. For this purpose, it is urgent to invest in the qualification of the future generations, giving them the tools that will enable them to compete for opportunities and optimize the possibilities of development. For a State with the vocation to the foreign sector, with dynamic exportations and importations, with diversified and truly global international partnerships. It is time to reveal to all the people this Brazilian secret that is Espírito Santo State. The international arena offers an exceptional set for this revelation. Let it be seized. Let it be showed off that Espírito Santo is the Brazil that works well; the secret that is now revealed. 293

INDEX OF PUBLISHING

PUBLISHING

Acrimetal

229

PUBLISHING

PAGE

IRI

205

Águia Branca

Kimaflor

274

ArcelorMittal

Leonel Albuquerque

197

Bandes

Línea Publicações

237

Banestes

Medsênior

257

Buaiz Alimentos

217

Móveis Rimo

Cesan

113

Politintas

213

Cindes

122 e 123

Prossegur

Cisa

124

Proteinorte

253

Cofril

236

RDG

Consentino

275

Coopeavi

107

Samp

Corpus

Santa Rita / Afecc

Cotia

Sebrae

225

Eletromil

Sedu

209

Épura Construtora

Senai

264 e 265

Espiral Engenharia

221

Sescoop

Fertilizantes Heringer

294

PAGE

Sesi

8e9

89 18 e 19

Findes

139

Shopping Vitória

Fortlev

233

Sicoob

Garoto

193

Sincades

249

Hospital Metropolitano

295

Soluções Áudio Visuais

181

Ideies

109

Unimed

103

IEL

160

Vale

Imobiliária Universal

YEARBOOK IEL 200 LARGEST COMPANIES 2016

“This year, the Yearbook hits its 20th edition, celebrating its importance and tradition. As new hopes arise in the horizon, this material proves to be essential to the sectors’ planning and to attract new ventures […] May this Yearbook be an instrument of reflection, and a compass for the future of the State. Nice reading to all!” Marcos Guerra is the Chairman of Findes’ System and Cindes