READY FOR THE CHALLENGES OF THE FUTURE Annual Report 2019 4 | AR 2019 5 WE HAVE UNDERGONE A MAJOR TRANSFORMATION THAT ENABLES US TO BUILD TODAY THE FUTURE TO WHICH WE ASPIRE. 6 | AR 2019 7 A FUTURE THAT INCLUDES ODEBRECHT RECONNECTING WITH SOCIETY THROUGH DIALOGUE, TRANSPARENCY, ETHICS AND INTEGRITY. 8 | AR 2019 9 A FUTURE MARKED BY A CONSTANT DRIVE FOR INNOVATION AND THE DETERMINATION TO ADOPT SUSTAINABLE SOLUTIONS THAT MAKE A DIFFERENCE IN PEOPLE’S LIVES. 10 | AR 2019 11 A FUTURE GROUNDED IN THE ENGAGEMENT OF EACH OF OUR TEAM MEMBERS. THEY ARE THE DRIVING FORCE BEHIND OUR TRANSFORMATION TO BUILD A BETTER WORLD. AR 2019 OUR INTERNAL TRANSFORMATION JOURNEY AND THE RESTRUCTURING OF OUR BUSINESS THAT BEGAN THREE YEARS ARE THE FOUNDATION FOR NEW OPPORTUNITIES IN SUSTAINABLE GROWTH FOR THE ODEBRECHT GROUP. We are guided on this journey by our commitments and the first quarter of 2019, point to a new phase of to society, the first of which is always act ethically, growth, which would be even more robust if Brazil with integrity and transparency. and the other countries we serve were to surmount the structural limitations of their economies. We continue to enhance our governance and to strengthen the performance of our Businesses The immediate challenge facing Odebrecht S.A., the by disseminating and putting into practice the Group’s holding company, is stabilizing its financial new policies and directives that have renewed the situation, including approval by its creditors, corporate culture of a group with over 75 years of ratification by the Courts and execution of the experience, accumulated knowledge and expertise court-supervised reorganization plan, in accordance in the various fields in which we operate. with the petition filed on June 17, 2019. The force that drives us is our team members, with In parallel, we are working hard to rebuild the their capacity to overcome adversity and transform company’s reputation and to plan how Odebrecht challenges into solutions in the form of products and will be decades from now, for example, in 2044, on services that improve people’s lives and contribute its 100th anniversary. to sustainable development in the various regions in which we operate and serve. The dedication and That is how we are building the future: based on our energy of our team members are our greatest assets. experience and knowledge, always driven by the force of our spirit of service and attentive to the Our deliveries and accomplishments on this ever-accelerating transformations in the world. transformation journey, as shown by the performance highlights of our companies in 2018 *We reference the indicators of the reporting framework of the Global Reporting Initiative (GRI) in the footnotes and, when appropriate, relate them to the Sustainable Development Goals (SDGs) of the United Nations. The GRI is an independent international organization that establishes standards for the reporting of results and impacts by companies, governments and other organizations in areas such as the environment, human rights and combatting corruption. 14 | AR 2019 15 MESSAGE THE ODEBRECHT ABOUT THE HOW WE OPERATE FROM LEADERS GROUP IN ODEBRECHT GROUP 16 24 NUMBERS 26 44 Ethics, integrity Message from The Odebrecht Group and transparency the chairman of the board of Our Governance Proactive role of Odebrecht S.A. team members Board of Message from the Odebrecht S.A. Our commitment chief executive to sustainability officer of Executive team Odebrecht S.A. OUR RESULTS OUR HOW WE BUSINESSES PREPARED THE 74 Evolution of 90 108 ANNUAL REPORT the portfolio Financial performance Reputation journey Odebrecht Foundation Private social investment 16 | AR 2019 17 WE HAVE LEARNED FROM THE RECENT PAST AND CONTINUE TO LEARN SO THAT WE CAN BETTER MEET, IN THE COMING FUTURE, THE NEEDS OF OUR CLIENTS, THE EXPECTATIONS OF OUR SHAREHOLDERS AND THE DEMANDS OF SOCIETY. Ruy Sampaio CHAIRMAN OF THE BOARD OF ODEBRECHT S.A. 18 | AR 2019 19 MESSAGE FROM THE CHAIRMAN OF THE BOARD OF ODEBRECHT S.A. Yes, we have in fact learned and evolved from These fronts were the topics of our annual meeting To coexist interactively and productively in You can count on the support from my generation. the experiences of the recent past. We face the in 2018, which can be summed up in three words: the communities where we operate, we must Take the initiative in incorporating new ideas, challenge of returning onto a path of consistent exist, coexist, dream. demonstrate that we have learned and have proposing new ways of working and achieving. Be growth. We need to evolve much more. We need changed. We know the way. bold, innovate and dream with your eyes open. to evolve in our way of thinking and acting. We live To exist, first we must balance our financial in a world of constant and rapid transformations. A situation. We must ensure our healthy survival. In To dream, we must believe in our future. We Together we will continue a history of world that is substantially different from the one in 2019, we will continue the program to restructure must trust in our innovative actions. We must accomplishments of 75 years begun in Salvador, which most of us studied and in which we picked the Group’s assets and finances. draw on the competence and boldness of our Bahia by Norberto Odebrecht and passed on to up habits and behaviors that no longer fully apply. young professionals. Brazil and the world by successive generations of We need, all of us, to acquire habits and develop entrepreneurs formed in the Group. Together we behaviors consistent with the future that is It is you, young professionals, with innovative ideas will make our dreams a reality. knocking on our door and that will continue to and actions who will lead us into the future to constantly evolve. TO DREAM, WE which we aspire. I trust in you young professionals from our newer MUST BELIEVE IN generations to return us onto a path of growth and Yes, we must demonstrate our ethical conduct OUR FUTURE. WE I ask all young professionals at Odebrecht to think development. For that, I also am counting on the and act with integrity and transparency in how about how we can innovate, always. Provoke your support of my colleagues on the board of directors we do and attract business. We must be at once MUST TRUST IN OUR leaders and their leaders. and on the efforts and dedication of our chief courageous, dedicated and innovative. INNOVATIVE ACTIONS. executive officer, his team and the Business leaders. In late 2018, the board of directors of Odebrecht WE MUST DRAW ON S.A. approved the group’s strategic direction, which was proposed by the chief executive officer, after THE COMPETENCE successive and productive debates that involved AND BOLDNESS the directors, the global advisory council and our OF OUR YOUNG executives. Soon, we will formulate our 2030 Vision. PROFESSIONALS. The strategic direction of the Odebrecht Group is based on three key fronts: financial stabilization, RUY SAMPAIO rebuilding the image and reputation and Chairman of the Board building the future. of Odebrecht S.A. 20 | AR 2019 21 ODEBRECHT GROUP TEAM MEMBERS HAVE PROVEN THEIR STRENGTH BY OVERCOMING IMMENSE CHALLENGES IN RECENT YEARS. WE PRIZE THEIR EFFORTS THAT ALLOWED US TO STAY ON COURSE TO RESUMING GROWTH IN OUR BUSINESSES. Luciano Guidolin CHIEF EXECUTIVE OFFICER OF ODEBRECHT S.A. 22 | AR 2019 23 With its dynamic and diverse portfolio of delegation of our culture, we manage the portfolio we are fully prepared to serve and to create value Our operational companies, with the exception Businesses and Investments, how does of Businesses by respecting their self-sufficiency and for our clients and for society in general. Our of Atvos, which had resorted to the same Odebrecht S.A. create sustainable value for decision-making autonomy. A constant challenge collaboration with the authorities in countries protective measure, are not included in such society and all stakeholders? of some of the Businesses is to strike a balance where we have yet to sign leniency agreements reorganization. Therefore, now we are focused Luciano Guidolin - The Odebrecht Group has between creating value and keeping debt at a has advanced positively, as exemplified by the on moving forward in these processes. We are made considerable advances in recent years, as comfortable level to create adequate conditions for agreements and commitments we have signed confident that we will complete this phase shown by the transformation journey on which resuming investment and developing new projects. since 2016. successfully and will soon be embarking on a we embarked in 2016. Our Businesses continue The groundwork for this financial restructuring cycle of sustainable growth. to move forward, and our team members remain was a key focus of our work in 2018 and will remain What is the role and importance of team focused on excellence and efficiency in our as such in 2019. The advances in our systems and members on the transformation journey and for On the second front, all actions and initiatives operations, as well as attentive to opportunities for processes demonstrate how we continue to fulfill the renewed growth of the Odebrecht Group? are aimed at reconnecting the Odebrecht innovation, as you can see in examples throughout our commitments to society in an effort led by Luciano Guidolin - The Odebrecht Group is over Group with society. We acknowledged our this report. The results and achievements of 2018 Odebrecht S.A., in synergy with each Business. 47,000 team members dedicated every day to mistakes, undertook commitments and confirm our capacity to create value and to serve delivering innovative solutions.