INDEX 06 CHAIRMAN’S MESSAGE 08 MANAGEMENT REPORT 08 Metro do Porto in Figures 09 2011 Events 12 Metro and the Environment 13 Metro and its Clients 13 Clients 20 Service 25 Metro do Porto’s Communication and Image 26 Metro and its Staff 26 Organisational Structure 27 Staff 28 Metro and its Shareholders 28 Shareholding Structure 28 Composition of Governing Bodies 32 Reporting Obligations as a Member of the State-owned Sector 44 Economic and Financial Performance 44 Investment 45 Funding 51 Balance Sheet 54 Operation 58 Results 62 Final Note 63 Proposal for the Allocation of Results 64 FINANCIAL STATEMENTS YEAR 2011 104 LEGAL CARTIFICATION OF ACCOUNTS 106 REPORT AND OPINION OF THE AUDIT COMMITEE 107 AUDIT REPORT 2011 CHAIRMAN’S MESSAGE 2011 marks the end of a cycle in the life of Metro do Porto. this year as “interest and similar expenses.” The “reductions The mandate of the current administration having ended in The opening to commercial operation on January 2nd, 2011 of In the year 2011 special mention is due to the fact that in fair value of derivatives” amount to 135.7 million euros and December 2010 and a change in the governance model of the the Estádio do Dragão to Fânzeres link, the Orange Line, and a growth rate of 4.1% in passenger numbers year on year “Provisions” to 54.8 million. Oporto Metropolitan Area collective passenger transport com- of the Yellow Line extension to Santo Ovídio, on October 15th, was recorded when, in the majority of companies in urban panies Porto being certain, I could not, at the end of this cycle, 2011 are the events to which with completion of Phase I of the passenger transport, there was a decrease in demand. In Thus, the effort of rationalization and cost containment effort fail to give a word of appreciation to all those who, in its initial Oporto metro will be associated. terms of passenger kms the growth rate amounted to 8.9% in the perimeter in which the Administration has the capacity phase, believed in and started the Metro do Porto project and as a result of the combined effect of increased demand with to intervene is completely diluted in much more expressive later were able to consolidate it making it the most emblem- In addition to the completion of Phase One and the financial increasing average distance travelled by each passenger, values totally beyond the Company’s management reach. atic of the Metropolitan Area. closure of the contract with the builder / operator consor- which amounted to 4.6%. tium, Normetro, ACE, the launch of subconcession tenders The situation in which Metro do Porto, S.A. was of non com- Again, this company has an accumulated knowledge that the for Operation / Light Maintenance and for the Construction It should be noted however that the rate of growth in the first pliance with the stipulations of Article 35. of the Companies deferral of construction of Phase II cannot be an excuse for and Maintenance of the Second Phase of the whole system half was 6.2% and that it fell to 1.9% in the second half, a phe- Code remains. As in previous years we must once again draw losing. Rather advantage must be taken of this added value. assumed particular importance in the object of the man- nomenon not unlinked with the tariff correction in August. the attention of the Shareholders to this situation. date of the current Board of Directors. We concluded with The second phase of expansion of the Metro do Porto has a recognized success the Operation / Light Maintenance Sub- The level of customer satisfaction continued at high levels, In December 2011, Metro do Porto, S.A. has obtained the cer- consolidated project. If the quantity and quality of the work concession process and, at the end of 2010, delivered to the and the poll by an independent body established a Global Sat- tification according to ISO 14004 - Environmental Manage- carried out is important, no less important is the fact that it Ministério dos Transportes, for approval, the tender docu- isfaction Index of 81.4%. ment Systems and ISO 9001 - Quality Management Systems deserves the agreement of the municipalities involved. It was ments for the construction of Phase Two sub-concession. His of its management system in the areas of Environment and not always easy to follow the path to achieve this consensus Excellency the Secretário de Estado dos Transportes Order His Excellency the Secretário de Estado do Tesouro e das Quality. More than a recognition of merit, the certification often hampered by factors exogenous to the Company. But No. 5.4.11 SET, of May 24th, 2011, suspended the launch of Finanças Dispatch No. 510/10 SETF of June 1st, 2010, has set given to Metro do Porto increases its responsibility to con- eventually the consensus was possible. This cycle over, it is the tender frustrating the expectations of those who were limits for the maximum indebtedness to State owned compa- tinue to meet the increasing demands of customers in terms gratifying to be able to say today that over four years, all deci- deeply involved in the project. However, the quality of work nies. Compliance with these limits forced the suspension of of comfort, punctuality and reliability of the system. I have sions of the Executive Committee were unanimous and that produced and the difficult to tread path that was necessary to all investments not yet awarded. In essence only the exten- no doubt that Metro do Porto is up to the task and will meet the fingers of one hand are sufficient to count the ones that find design solutions simultaneously recognized as good by sions to Fânzeres and St.º Ovídio continued. this challenge. And now when I say Metro do Porto I natu- the Board took only by a majority. This fact shows the excellent Metro do Porto, S.A. and the Local Authorities involved endow rally include the Operation sub-concessionnaire - the Via- collective functioning making the Chairman’s task easy. To all this company with an invaluable capital which is the now to The effort to contain operating costs was significant. Com- Porto (Prometro, S.A.) Consortium. When sub-conceding the a word of gratitude and appreciation, as well as to the mem- start with the development of Phase II as soon as financial pared to 2009 the relevant costs (excluding depreciation and operation of the System to a private consortium through an bers of the other Governing Bodies, with a special emphasis to conditions permit. financial costs) decreased 28.2%, more than 23 million. international tender, Metro do Porto was the first passenger my peers in the Executive Committee. transport company in Portugal to adopt this management The experience of steering the construction of Phase I and Tariff revenue rose 14.1% over the previous year. model. The term of the current contract, signed on Febru- António Ricardo Fonseca preparing the Phase II tender gives the Metro do Porto’s team ary 26th, 2010 being five years, it is time to start working on a “know-how” now widely already recognized and requested The indicator that compares tariff revenues with the main the next tender, this now supported on the experience of the by foreign entities involved in light rail systems, some still direct costs of operation (operation subconcessionnaire ser- current contract. We consider the overall experience very in the design stage and even some already in construction. vices, operation inspection services and commissions paid positive, as the results show; it will allow us to more easily To harness and leverage this accumulated knowledge is now to TIP, ACE) continues to show significant progress. From a overcome in the next tender some problems encountered in Metro do Porto’s challenge. ratio of 53.7% in 2007, it improved over the following years, the management of this precursor, first contract. Certainly, reaching 88.7% in 2011, that is, improving 35 percentage a good relationship between concedent and concessionnaire The joint management of Metro do Porto, S.A. and of STCP, points during this period. is, under any circumstances, essential to ensure compliance S.A., as foreseen in the Strategic Plan for Transport, and the with the contract and the success of the sub-concession. start of Oporto’s Metropolitan Transport Authority’s opera- Nevertheless, the net results for the year are significantly tion will mark the beginning of a new cycle in the history of negative. The inadequate funding model for the Metro do urban passenger transport in the Oporto Metropolitan Area. Porto project originated the 136.6 million euros incurred in p. 6 p. 7 2011 MANAGEMENT REPORT 2. 2011 EVENTS 1. METRO DO PORTO IN FIGURES LIGHT RAIL SYSTEM DEVELOPMENT PROGRAM The tender documents for the Construction and Mainte- On May 24th, 2011 Metro do Porto was notified of Dispatch nance Subconcession (referred to in paragraph 2 of the No. 05/04/11 of the Secretário de Estado dos Transportes Network (31/12) 2003 2004 2005 2006 2007 2008 2009 2010 2011 11/10 Base XXI of the Oporto Metropolitan Area Light Rail System which states “The expansion of the Metro do Porto project Extension (metres) 11,826 15,649 34,505 58,877 58,877 59,593 59,593 66,195 66,659 0.7% (SMLAMP) Concession Bases, published by Decree-Law no. can only be launched Stations 18 23 45 69 69 70 70 80 81 1.3% 192/2008 of October 1st), adopted at a meeting of the Board a. after the Company consolidates its liabilities; of Metro do Porto, SA, were sent on December 29th, 2010 b.