Apresenta

1
OECD Organisation for Economic Co-operation and
Development In co-operation with
the World Bank Group
The Third Meeting of the Latin American Corporate
Governance Roundtable 8-10 April, 2002 Bolsa
Mexicana de Valores, Mexico City, Mexico
SESSION 3 DEVELOPING BOARD PROFESSIONALISM
Sergio Foguel, Member of the Board Odebrecht S.A.
- Brazil
2
The Third Meeting of the Latin American Corporate
Governance Roundtable
Session 3 Developing Board Professionalism

• Odebrecht Milestones
• Business Scope 2002
• Figures
• Key Issues
• At The Board
• Governance Framework The Basic Board
• Agenda
• TEO Basic Tenets
• TEO - Communication
• Core Competence

CONCESSIONS
ODEBRECHT S.A.

• CONCESSIONS
• OIL GAS
• PULP PAPER

ENGINEERING CONSTRUCTION
PULP PAPER
3
Odebrecht Milestones
Local
International
Regional
National
Engineering Construction
Odebrecht
Africa
Asia/Europe
USA
00s
50s
50s
60s
60s
90s
90s
80s
80s
70s
70s
00s
20s
40s
20s
40s
Decision on Diversification
Internationalization
Acquisition
Acquisition
of the
of the
control of
Creation of
control of
Chemical Petrochemical and other Businesses
Odebrecht
COPENE
OPP
Holding
Company
BRASKEM Creation
Acquisition
of the
control of
Forestation and
TRIKEM
Pulp Project
4
Business Scope - 2002
ODEBRECHT S.A.
ODEBRECHT S.A.
(Holding Company)
(Holding Company)

• CONCESSIONS
• OIL GAS
• PULP PAPER

CHEMICAL PETROCHEMICAL
ENGINEERING CONSTRUCTION
Core Businesses
Minority Stakes
PULP PAPER
5
Figures
Engineering
Construction
Chemical
36
Petrochemical
Consolidated Gross Revenue (US 4.2 billion)
60

• People 36.843
• Brazil 27.028
• Others 9.815

Others
4
Note Based on 2000 figures
6
Keys Issues

• Boards Mission / Role / Responsibilities
• The Power Balance between Board
• and Management
• Setting the Overall Direction
• Composition of the Board
• Effectiveness - Evaluation

ODEBRECHT S.A.
Support Company OCS
OIL GAS
CHEMICAL PETROCHEMICAL
ENGINEERING CONSTRUCTION
7
At The Board

• Key Task Appointing, Evaluating
• and Releasing the CEO
• Key Role Trustee (not watchdog,
• not pilot)
• Focus Adding Value
• Process Investment in Alignment
• Pays Off !

8
Governance Framework The Basic Board Agenda
Strategic Direction

• Core Ideology
• Values
• Purposes

• Future
• (10 yrs)

Envisioned Goals and Architecture
()

• Overall
• Strategy

Odebrecht Entrepreneurial Technology (Core
Competence)
Planning, Follow-up, Evaluation Framework
Metrics (Tangible Intangible)
Policies
Structure (Legal Organizational)
Confederation of Entrepreneurs-Partners
Key People (Current, Potential, Succession)
() Collins and Porras, 1996 Neubauer, 2000
9
The Odebrecht Entrepreneurial Technology Basic
Tenets
10
The Odebrecht Entrepreneurial Technology
ENTREPRENEURS-PARTNERS
CLIENTS
SHAREHOLDERS
COMMITMENT TO SERVE
RESULTS
PULP PAPER
COMMUNICATION
11
Core Competence
MULTIPLE DELEGATED ENTREPRENEURIALSHIP.
THE PRACTICE OF THE T.E.O. ENHANCES THE
SIMULTANEOUS PRESENCE IN VARIOUS BUSINESSES,
MANAGEMENT SPHERES, GEOGRAPHIC AREAS AND CULTURES.