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Corporate Governance Report 2010 - portway.pt · Corporate Governance Report_2010 2 ... Department representatives, salary processing, training and oc ... System/WorldTracer)

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Corporate Governance Report_2010

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CONTENTS��

1. CORPORATE�GOVERNANCE�REPORT��

1.1. COMPLIANCE�WITH�REGULATION�No.�49/2007��

1.2. COMPLIANCE�WITH�THE�PORTUGUESE�STOCK�MARKET�REGULATORY�

CODE�

2. PUBLISHING�OF�INFORMATION�� �

3. COMPANY�BODIES�–�DUTIES,�TERMS�OF�OFFICE�AND�REMUNERATIONS�� �

4. SHAREHOLDER�VOTING�AND�REPRESENTATION�RIGHTS� �

5. CORPORATE�RULES� �

6. MANAGEMENT�AND�RISK�CONTROL�SYSTEMS� �

7. HUMAN�RESOURCES�� �

8. INFORMATION�SYSTEMS�� �

9. RESEARCH,�DEVELOPMENT�AND�INNOVATION�� �

10. INVESTOR�RELATIONSHIPS� �

11. FULFILMENT�OF�THE�ANNUAL�OBJECTIVES�ESTABLISHED�BY�THE�

SHAREHOLDER���

12. ANNEX�DETAILING�BOARD�OF�DIRECTOR�REMUNERATIONS� �

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Corporate Governance Report_2010

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1. DECLARATION OF COMPLIANCE

portway� –� Handling� de� Portugal,� S.A.,� whose� shares� are� held� 100%� by� ANA,�

S.A.,�follows�the�instructions�laid�out�in�the�Resolution�of�the�Council�of�Ministers�

No.� 49/2007,� of� 28�March,� in� particular� those� stated� in� Chapter� II,� relating� to�

principles�of�good�governance�directly�addressed�to�State-owned�companies.�

In�particular,�it�should�be�noted�that�it�has�not�yet�been�considered�appropriate�to�

appoint�a�client�ombudsman�under�the�terms�of�the�above-mentioned�Resolution�

because� of� the� specificity� of� the� handling� business,� operating� within� a� fully�

competitive� market,� in� accordance� with� the� Community� regulations� upon� this�

subject� (Directive� 66/97)� and� the� use� of� the� contractual� freedom� of� clients�

operating�within�it�(airline�companies).��

Thus,� all� the� rules� relating� to� the� respective� compliance� are� respected,� namely�

with�regard�to�the�principle�of�publishing�information�about�relevant�facts�relating�

to� the�economic,� financial�or�asset�position�of� the� company,�duly� confirmed�by�

the�shareholder.�

1.1 COMPLIANCE WITH RESOLUTION No. 49/2007

In�order�to�explicitly�detail�the�level�of�compliance�of�this�Annual�Report�with�the�

framework� set� out� by� Resolution� no.� 49/2007,� we� provide� the� following� table�

that,� in� accordance� with� the� various� stipulations,� details� the� Report’s� chapter�

detailing�compliance.�

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RESOLUTION 49/2007 Report Chapter

0. Declaration of Compliance 1

1. Corporate mission, objectives and policies Chapter 1.1 of the Sustainability Report

2. Internal and external regulations to which the company is subject

5.1 and 5.2

3. Information on relevant transactions with related entities

2.5

4a) Procedures adopted for the procurement of goods and services

n.a

4b) List of key suppliers 2.6

5a) Members of company bodies, functions and duties 3.1., 3.2.2 and 3.3

5b) External Auditor 2.4

6. Remunerations of company body members 3.1.3,3.2.2,3.3.2 and Annex I of this report

7. Analysis of sustainability across the economic, social and environmental facets

6 and the Sustainability Report

8. Compliance with principles of good governance 3.3.3

9. Code of ethics 2.1

10. Client purveyor n.a.

1. 2 COMPLIANCE WITH THE PORTUGUESE STOCK MARKET

REGULATORY CODE

Despite�not�being�a�publicly�listed�company,�and�hence�not�directly�covered�by�

the�recommendations�handed�down�by�the�CMVM�–�the�Portuguese�Stock�

Market�Regulatory�Authorities,�portway,�whose�shares�are�held�100%�by�ANA,�

has�broadly�been�in�observance�of�the�recommendations�applicable,�taking�into�

account�its�statute�as�a�State-owned�company.�

CMVM Regulation Management Report

Chapter

0. Declaration of compliance 1

I. Annual General Meeting

3.1

1 Composition, term of office and remuneration 3.1.2 and 3.1.3

2 Shareholder voting and representation rights 4

3 Information on general meeting intervention on remuneration policies involving the awarding of shares and the attribution of retirement benefits and the respective performance evaluation criteria

n.a.

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II. Company and Audit Bodies

Section I – General Themes

1

Organograms or functional charts detailing the respective division of competences between the various company bodies and department within the framework of corporate decision making, including information on the scope of competences delegated, in particular, as regards daily company management duties

2.1

2 Identification and composition of specialist commissions with competences for company management and auditing 2.1

3 Description of the risk control system in effect at the company 3.3.3 and 6

4 Indication as to the existence of company body operational regulations 5

Section II – Board of Directors 3.2

5 The characterisation of the Board of Directors, specifically the identities of the members sitting on the board, distinguishing executive from non-executive members, and independent from non-independent members

3.2.2

6 Identification of the main economic, financial and juridical facets that the company faces in its activities 6

7 Description of the operational procedures of the Board of Directors, specifically detailing: 3.2

a) Board of Director powers particularly as regards deliberations over raising

equity capital 3.2.1

b) Information on the Board of Director policy for rotating positions, especially in

terms of the director responsible for finance as well as the rules applicable to nominating and replacing members of boards of directors and auditors

n.a.

c) Number of meetings held by the boards of directors and auditors as well as

reference to the provision of their respective minutes

3.2.1

d) Differentiation between executive and non-executive members and, of these identifying those members in compliance should the rules of incompatibility be applied as stipulated by no. 1 of article 414-A of the Corporate Company Code, with the exception of that set down in line b), and the independence criteria under the auspices of no. 5 of article 414 of the Corporate Company Code

n.a.

8

Indication of the procedural rules in effect for the appointment of non-executive directors and the measures taken to ensure the non-interference in this process by executive directors as well as functions held by Board of Directors members in other companies, and set out separately to those held in companies belonging to the same group.

n.a.

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Section III – General and Supervisory Council, Commission for Financial Affairs and Fiscal Board n.a

9 Fiscal Board. n.a.

Section IV – Remuneration

10

Indication of the annual amount of remuneration provided to members of company boards of directors and auditors on an individualised basis, including fixed and variable remuneration and regarding the latter, details on its different source components, and the percentage deferred and the percentage already paid out.

3.2.3 and Annex I

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Information on how such remuneration is structured so as to enable alignment between the interests of board members with the long term company interests as well as on the grounds for such performance evaluation and the disincentives to the over-adoption of risk

n.a.

12 Information relating to the criteria and means of variable remuneration payment n.a.

III. Information and Auditing

1 Description of the trends in shares listed taking into account specifically:

a) The issuing of shares and other tradable assets that provide rights to the

subscription or acquisition of shares n.a.

b) The published results n.a.

c) The payment of dividends made by share category and detailing the net share

value. n.a.

2 Description of the main characteristics of share award schemes and share acquisition options adopted or in effect for the year.

n.a.

3

Description of the core features to businesses and operations carried out between, on the one hand, the company and, on the other, members of its management and audit boards, holders of qualified stakes or companies owned or group members whenever such are financially significant for either of the parties involved.

n.a.

4 Reference to the existence of an Investor Support Office or some similar service with mention of: n.a.n.a.n.a.n.a.

a) Office functions

b) Type of information available to the Office

c) Means of access to the Office

d) Online company website;

e) Identification of market relations representatives

5

Indication of the amount of annual remuneration paid to the auditor and other individual or collective entities belonging to the same network supported by the company and/or collective persons either owned or group members, in addition to discriminating the amounts attributable to:

a) Legal auditing services 3.3. and

b) Other reliability guarantee services 2.4

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c) Fiscal consultancy services

d) Services other than legal auditing services

Where the auditor renders services under the terms of lines c) and d), description needs providing as to the means undertaken to safeguard auditor independence.

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2. PUBLISHING OF INFORMATION

portway�–�handling�de�portugal,�S.A.�forms�part�of�the�group�controlled�by�ANA,�

the�company�that�currently�holds�100%�of�its�equity�capital.�

Just� like�the�other�companies�in�this�group,�it�is� linked�to�the�airport�sector,�and�

endowed�with� the� objective� of� undertaking� the� activity� of� ground�handling� (its�

core� activity),� as� well� as� providing� internal� and� external� training� services� and�

rendering�services�to�third�parties�(a�secondary�activity).�

This�activity�is�governed�by�its�own�legal�system,�as�established�in�Decree-Law�No.�

275/99,� of� 23� July,�whereby� licensing� is� required� from� the�National� Institute� of�

Civil�Aviation�(INAC).�

portway� is� licensed� to� undertake� ground�handling� activities� at� four� Portuguese�

airports�–�Lisbon,�Porto,�Faro�and�Funchal�–�until�2011.�

The�composition�of�the�company�and�its�respective�organic�structure�–�see�point�

1.1� of� this� current� report� –� are� portrayed� through� recourse� to� functional�

organogram�descriptions� of�portway,�with� the� information� required�within� the�

framework� of� norms� of� good� corporate� practice,� specifically� as� regards� the�

shareholder,�management�and�audit�structures,�set�out�below.�

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2.1. Organisational and Functional Structure

�Following� decision� by� the� Board� on� 23/09/2009,� a� Central� Operations� Department�was� founded� and� launched� on� 1st�October�2009.�Following�decision�by� the�Board�on�03/03/2010,� its�director�was�exonerated� from�her�position�with� the�position�of� the�Central� Operations� Director� remaining� vacant� with� duties� in� the� meanwhile� undertaken� by� member� of� the� Board� of�Directors,�Dr.�Joana�Oliveira�Freitas,�

BUSINESS UNITS

Coordination�and�execution�of�Ground�Handling�at�Lisbon�Airport.�

DUH LIS

Handling� Management� –�

SLisboa�

DUH OPO

Handling� Management� –�

SHandling�Porto�

Coordination� and� execution� of� Ground� Handling� at� Francisco� Sá�

Carneiro�Airport.�

DUH FAO

Handling� Management� –�

SHandling�Faro�

DUH FNC

Handling� Management� –�

SHandling�Funchal�

Coordination�and�execution�of�Ground�Handling�at�Faro�Airport.�

Coordination� and� execution� of� Ground� Handling� at� Santa� Cruz,�

Funchal.�

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FUNCTIONAL AREAS

CORPORATE CENTRE

DCO

DCO

QUALITY &

ENVIRONMENT

TRAINING

SAFETY

DCS & WT�

Coordination,�monitoring� and� evaluation� of� quality� and� environment�

related�activities�and�their� respective�management�and�audit�systems,�

client�support�services,�and�complaint�management.�

Facilitating� safety� within� the� scope� of� the� FAL/SEC� National�

Commission,� accompanying� the� verification� of� the� effectiveness� of�

the�emergency�plans�in�effect.�

DFA

Financial Department

DRH Human Resources

Department

Preparation�of� the�accounts�and�financial� reporting,�coordinating�and�

consolidating� the�process�of�drafting�annual�budgets,�controlling�and�

reporting;�global�risk�management.

Definition� and� proposal� of� a� human� resource� strategy� and� policy�

fostering� employee� development� and� interacting� with� their�

representatives,� salary� processing,� training� and� occupational�

healthcare.

Responding� to� the� training� needs� of� internal� clients,� in� coordination�

with�the�HRD�and�external�entities�in�accordance�with�the�national�and�

international�regulatory�framework�for�compliance�management�of�the�

internal�and�external�handling�schedule�and�training�programs.�

Secretarial,� administrative� and� Board� support� services� in� addition� to�

company�management,�archives�and�daily�bureaucratic�tasks.�

SECRETARIAT�

Operational�support�programs�for�airplane�handling�by�portway�and�

operational� implementation� of� the� DCS/WT� (Departure� Control�

System/World�Tracer)�system,�employee�training�in�this�field.�

DCO

Central Operations

Department

Responsible�for�the�perfection�of�all�operational�type�business�processes�in�

terms�of�the�control�and�optimisation�of�resources�and�from�a�perspective�

of� raising�profitability.�The� transversal�management�of� the�Handling�Units�

and� the�Departments�of�Human�Resources,�Engineering�and�Maintenance�

and�the�Systems�and�Communication�areas.

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There�are�currently�two�specific�Committees:��

-�Ethics�Committee;�

-�Committee�for�Social�Responsibility�and�Sustainability.�

Ethics Committee

In�accordance�with�Section�5.3�of�this�Report,�portway�has�adopted�ANA’s�Code�

of�Ethics�and�Conduct.�

portway’s�Ethics�Committee�is�composed�of�a�president�and�four�members�(three�

of� which� are� company� employees),� specifically� the� member� of� the� Board� of�

Directors� responsible� for� Financial� and� Administrative� Management� serving� as�

president,� the� Director� of� Engineering� and� Maintenance,� the� Financial� and�

Administrative� Director,� the� Handling� Sales�Manager,� the� Faro� Director� of� Unit�

Handling�and�the�Official�Chartered�Accountant�as�members.�

The� deliberation� of� the� Board� of� Directors� to� expand� the� composition� of� this�

committee�was�also�due�to�the�respective�expansion�in�its�respective�competences�

as�well�as�due�to�the�commitments�assumed�within�the�scope�of�best�practices�in�

the�fields�of�Corruption�and�Associated�Risks�Management.�Within�the�scope�of�

DEM�

Engineering and

Maintenance Department

Procurement� of� equipment,� coordinating� and� monitoring� of�

maintenance�activities,�Planning�and� implementing� infrastructural�and�

other� projects,� Planning� and� implementing� information� and�

communication�systems,�software�and�hardware.�

M&S

Sales Department

Market� surveys� and�management� of� the� client� portfolio,� Prospecting,�

negotiation� and� sale� of� services;� Development� and� promotion� of� the�

company’s� public� relations;� Management� and� dissemination� of� the�

company’s�external�image.�

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these� commitments,� portway� has� drafted� a� Management� Prevention� Plan�

covering�the�risks�of�corruption�and�similar�infringements�and�proceeding�to�draft�

an�annual�report�dedicated�to�implementation.

Portway’s�Ethics�Committee�has�the�following�main�responsibilities:�

• To� collaborate� in� the� internal� and� external� dissemination� of� the�Code�of�

Ethics�and�Conduct�at�portway s.a.�

• To� act,� impartially� and� independently� of� the� company’s� management�

bodies,�in�such�a�way�as�to�ensure�compliance�with�the�Code�of�Ethics�and�

Conduct�at�portway s.a.�

• To� clarify� doubts� that� may� be� raised� regarding� the� interpretation� and�

application�of�the�Code�of�Ethics�and�Conduct.�

• To�express� its�opinion�on�any�questions�relating�to�the�application�of� the�

principles� of� the� Code� of� Ethics� and� Conduct,� raised� by� the� Board� of�

Directors�or�by�any�employee.�

• All� the� competences� for� the� management� of� corruption� and� associated�

risks,�especially�in�ensuring�regular�audits,�by�the�shareholder�and�by�third�

parties,� their� respective� accompaniment� and� identifying� improvement�

opportunities� and� presenting� measures� for� the� improvement� of� risk�

management�through�a�pro-active�prevention�policy.

Committee for Social Responsibility and Sustainability��

This� is�composed�of�three�managers�chosen�from�amongst�the�managers�

of�the�Corporate�Centre�(Head�Office)�and�the�Business�Units,�specifically,�

the� Financial� Director� as� its� president� and� the� Directors� of� Human�

Resources�and�the�Lisbon�Handling�Unit,�as�members.�

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Its�main�responsibilities�are:�

� To� recommend� priorities� and� identify� best� practices� in� terms� of� Social�

Responsibility�to�be�applied�at�portway;�

� To�influence�the�adoption�and�implementation�of�the�priorities�identified�in�

an�integrated�manner�in�Business�Processes.�

2.2 Shareholder Structure

As�of�31�December�2010,�the�equity�capital�of�portway,�S.A.�was�held�100%�by�

ANA,�S.A.�

2.3 Distribution of Dividends

In�2010,�portway�did�not�obtain�any�dividends.�

It�was�proposed�that�the� loss�recorded�should�be�transferred�to�the�carried�over�

earnings�account.�

2.4 Auditors

Since� it� is� a� subsidiary� of� ANA,� S.A.,� portway� is� subject� to� regular� auditing�

procedures� undertaken� by� the� shareholder’s� Auditing� Department,� and� its�

recommendations�are�implemented�whenever�proposed.��

Furthermore,�portway� is� subjected� to� an� annual� external� audit,�which� it� orders�

directly.�Currently,�it�uses�the�services�of�the�auditing�firm�Ernst�&�Young.�

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Where� possible� structural� deficiencies� are� identified� and� reported,� or� if�

shortcomings� or� irregularities� are� detected� and� deemed� serious,� that� company�

draws� up� recommendations� for� improvement� that� are� accepted� and�

implemented.��

The�services�contracted� from�Ernst�&�Young� resulted� in�costs�of�K�19,215.90� in�

2010�(2009�fees�and�50%�of�2010).�

2.5 Relevant Transactions with Related Organisations

The�transactions�taking�place�with�other�related�organisations�from�the�group�

are�as�follows:�

• ANA�–�Aeroportos�de�Portugal,�S.A.�

Credit�–�K�9,359,202.51�

• ANAM�–�Aeroportos�e�Navegação�Aérea�da�Madeira,�S.A.�

Credit�–�K�491,054.92�

• NAER�–�Novo�Aeroporto,�S.A.�

Credit�–�K�0��

2.6 Suppliers with invoices totalling more than 1 million euros

The�suppliers�whose�invoices�totalled�more�than�1�million�Euros�(including�VAT),�

in�2010,�were�as�follows:�

Tax Number Title Amount (€) % 500700834�503299006�507485882�

ANA�Aeroportos�de�Portugal�S.A.�Select�Slot,�Lda�

6,197,905.96 2,611,356.31 1,133,244.52

32.41% 13.66% 5.93%

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3. COMPANY BODIES – DUTIES, TERMS OF OFFICE AND

REMUNERATIONS

The�company’s�bodies�are:�

a) The�General�Meeting�

b) The�Board�of�Directors��

c) The�Supervisory�Board

3.1 The General Meeting

3.1.1 – Duties

The�General�Meeting�decides�upon�all�matters�for�which�it� is�given�responsibility�

by� law� and� by� the� Articles� of� Association,� including� the� special� responsibilities�

established�in�article�6.�

The� board� of� the� General� Meeting� is� composed� of� a� president� and� a� vice-

president.�

The�members�of�the�General�Meeting�serve�for�a�term�of�three�years,�renewable�

for�one�or�more�periods,�with�the�year�in�which�they�were�elected�counting�as�a�

full�year.�At�the�end�of�their�term,�members�remain�in�office�until�new�elections�

are�held.�

The�General�Meeting�is�held�whenever�convened�for�this�purpose�under�the�terms�

of�the�law.�

The� remunerations� and� reimbursements� of� the� company’s� directors� are�

established�by�the�General�Meeting.�

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3.1.2 – Remunerations

The�members� of� the�General�Meeting� are� not� paid� for� their� services� since� they�

already�receive�their�respective�remunerations�for�the�work�that�they�perform�at�

ANA,�S.A.�

3.1.3 – Terms of Office and Curricula

The�table�below�provides� information�about�the�members�of�portway’s�General�

Meeting,�showing�their�respective�positions,�dates�of�election�and�the�duration�of�

their�terms�of�office.��

This� point� requires� an� additional� note� regarding� the� change� in� the� respective�

composition�on�the�previous�year�and�within�the�course�of�the�same�2008/2010�

term�of�office.�

Hence,� and� following� the� resignation� of� a� previous� member� of� this� board,�

presented� and� accepted�by� the�Annual�General�Meeting� on�18�March� 2009,� it�

was� decided� that� through� to� the� end�of� the� ongoing� 2008/2010� triennial� new�

members�would�be�appointed�with� the�portway�Board�of� the�General�Meeting�

becoming�the�following:

Positions Board of the General Meeting Election Term

President� Dr.�Alda�Maria�de�Araújo�Ribeiro�Borges�Coelho� 18-03-2009� 2008/2010�Vice-�President� Dr.�Francisco�José�Lourenço�Sebastian� 18-03-2009� 2008/2010�

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President of the Board of the General Meeting

Dra. Alda Maria de Araújo Ribeiro Borges Coelho

Age: 43�

Educational Background:

Degree�in�Economics,�Faculty�of�Economics,�Nova�University�of�Lisbon,�

1985/1989;�

Professional Activities:

Member� of� the� ANA�Aeroportos� de� Portugal,� S.A.� Board� of� Directors�with� the�

following� areas� of� responsibility:� Financial� Management.,� Corporate� Shared�

Services,� Juridical� Services� Department� and� the� Directorate� of� Auditing� and�

Organisation�(since�2008);�

General�Director�of�the�Portuguese�Rugby�Federation�(2007/2008);�

Director�of�Development�at�the�Jerónimo�Martins�Group�(2002/2006);�

Sourcing�Director�at�Gestiretalho�(2001/2002);�

Category�Manager�at�Gestiretalho�(2000/2001);�

Coordinator�of�the�Feira�Nova�Hypermarkets�project�(1998/2000).�

Also�holds�the�position�of:�

� Member� of� the� Board� of� Directors� of� ANAM,� Aeroportos� e� Navegação�

Aérea�da�Madeira,�S.A.�(since�2008).�

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Vice-president of the Board of the General Meeting

Dr. Francisco José Lourenço Sebastian

Age: 54�

Educational Background:

Degree�in�Law,�the�Faculty�of�Law,�the�University�of�Lisbon�-�1983;�

Specialist�post-graduate�course�in�Company�Management,�the�New�University�of�

Lisbon�-�2007;�

Attended�the�Senior�Company�Management�Program,�run�by�the�Association�of�

Higher�Company�Studies,�in�1997;�

Registered�with�the�Order�of�Lawyers�since�August�1984�with�Professional�Code�

number�5883.�

Professional Activities:

Director�of�Juridical�and�General�Litigation�Services,�ANA,�EP�and�ANA,�SA,�since�

May�1996;�

Responsible�for�the�Juridical�Department�of�Public�Market�Procurement,�ANA,�EP�

between�1995�and�May�1996;�

Held� functions� such� as� that� of� juridical� heritage� specialist� before� joining� the�

Directorate�of�Juridical�and�Litigation�Services,�ANA,�EP�between�1983�and�1995;�

Undertook�management� consultancy� at� ANA,� EP� (between� 1978� and� 1983),� a�

period� during� which� he� led� responsibility� for� negotiating� and� managing� the�

company�insurance�portfolio;�

Held,�under�a�freelance�regime,�functions�as�lawyer,�jurist�and�consultant�to�large�

transports� and� insurance� sector� companies,� including�Metropolitano� de� Lisboa,�

EP,�between�1983�and�1995;�

Participation� as� consultant� and� jurist� to� the� legislative� process� involved� in� the�

transposition�to�the�Portuguese�legislative�framework�of�various�European�Union�

directives� and� regulations� and� in� drafting� legislative� and� regulatory� projects�

approved�by�the�Republican�Government�(between�1997�and�2007);�

Participation�in�the�preparatory�work�and�drafting�the�various�diplomas,�including�

the�Code�of�Expropriations�and�the�Commercial�Company�Legislation;�

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Supervising� and� leading� negotiations,� drafting� and� signing� a� large� number� of�

international�subcontracting�contracts�for�major�public�construction�projects,�the�

supply�and�installation�of�goods�and�equipment;�

Supervising�various�services�rendering�public�and�private�procurement�procedures;�

Representing� the� private� sector� to� the� European�Commission� in� legal� processes�

launched�by�the�latter�entity;�

Sporadic�collaboration�as�a�specialist�legal�affairs�lecturer�at�the�New�University�of�

Lisbon�and�the�Higher�Economic�and�Management�Institute;�

Holds/held�the�following�roles:�

-� Member�of�the�Corruption�Inspection�Commission�of�ANA,�S.A.;��

-�� Representative� of� ANA,� S.A.� to� the� Committee� for� Legal� Affairs� of� ACI�

EUROPE�since�1996,�and�since�1997,�on�the�invitation�of�the�President�of�the�

respective�Board�and�nomination�by�the�ANA,�S.A.�Board�of�Directors�sitting�

on�its�Policies�Committee�along�with�various�other�similar�specialist�bodies�and�

task�forces�of�the�same�organisation�in�Europe�and�North�and�South�America�

(ACI-Europe,�ACI-NA�and�ACI-LAC);�

-�� Founding� member� of� the�World� Airport� Lawyers� Association� sitting� on� the�

Board�of�this�same�Association�since�2010;��

-� � �Member�of� the�Board�of� the� Institute�of�Corporate�Lawyers,�of� the�Order�of�

Lawyers�between�2005�and�2008;�

-�����Member�of�the�Iberian�Lawyer�In-house�Club�and�sitting�on�the�respective�jury�

that�decides�upon�the�most�prestigious�Iberian�law�awards�(since�2007);��

-����� Member� of� the� Company� Bodies� of� ANA,� S.A.� and� ANAM,� S.A.� between�

1996�and�2001;�

Corporate Governance Report_2010

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3.2 Board of Directors

3.2.1 – Duties

The� Board� of� Directors� is� responsible� for� the� company’s� management� and�

representation�in�accordance�with�the�powers�and�duties�attributed�to�it�by�law,�

the�Articles�of�Association�or�the�General�Meeting.�

The� Board� of� Directors� is� composed� of� three�members,� elected� by� the�General�

Meeting.�Of�these�three�members,�one�acts�as�President,�while�the�other�two�act�

as�directors.�

The�members�of�the�Board�of�Directors�serve�for�a�term�of�three�years,�renewable�

for�up�to�a�maximum�of�three�occasions,�with�the�year�in�which�they�were�elected�

counting�as�a�full�year.�At�the�end�of�their�term,�members�remain�in�office�until�

new�elections�are�held.�

The�General�Meeting�of�3�March�2010�approved�the�election�of�Dr.�Joana�Oliveira�

Freitas�as�a�new�member�of� the�Board�of�Directors� following� the�submission�of�

the� resignation� from� the� aforementioned� position� of� Dr.� José� Tomás� Enes�

Baganha.�

It� was� similarly� agreed� that� the� nomination� of� Dr.� Joana�Oliveira� Freitas� to� the�

post�of�Director�would�remain�in�effect�through�to�the�end�of�the�term�in�effect,�

that�is,�through�to�31�December�2010.�

According�to�the�Articles�of�Association,�the�Board�of�Directors�meets�whenever�

convened�by� its�president,�and�also�whenever�convened�by� the�president�at� the�

request�of�the�two�directors�or�the�Supervisory�Board.��

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In� 2010,� the� Board� of� Directors�met� on� 26� occasions,� with� its� most� important�

decisions�being�outlined�in�the�respective�Annual�Report.�

3.2.2 – Terms of Office, Curricula and Areas of Responsibility

The�table�below�provides�information�about�the�members�of�portway’s�Board�of�

Directors,�showing�their�respective�positions,�dates�of�election�and�the�duration�of�

their�terms�of�office:�

* Terminating�his�term�by�resignation�at�the�General�Meeting�of�3/3/2010�and�substituted�by�Dr.�Joana�Oliveira�Freitas

President�

Eng. Carlos Odécio Nunes Madeira

Age:�50��

�Areas of responsibility:�Shareholder�relations�and�company�representation��

�Training:

- Degree� in� Civil� Engineering� from� the� Higher� Technical� Institute� of� the�

Technical�University�of�Lisbon�

- Master’s�Degree� in�Business�Management� from� the� Faculty�of� Economics�of�

the�New�University�of�Lisbon.��

- Postgraduate�course�at�the�University�of�Stanford�in�Palo�Alto,�California.��

Professional activities:

- Vice-President�of�ANA�–�Aeroportos�de�Portugal,�S.A.�

- Member�of�the�Board�of�Directors�and�President�of�the�Executive�Committee�

of�NAER,�Novo�Aeroporto,�S.A.�

Position Board of Directors Election Term of office

President� Eng.�Carlos�Odécio�Nunes�Madeira� 20-03-2008� 2008/2010�

Director�� Dr.�José�Manuel�Dias�dos�Santos� 20-03-2008� 2008/2010�Director�Director��

Dr.�José�Tomas�Gouveia�Enes�Baganha�Dr.�Joana�Oliveira�Freitas����������������������������������������������������

20-03-2008�03-03-2010�

2008/Mar.�10*��Dec.�2010�

Corporate Governance Report_2010

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- President� of� the� Board� of� Auditors� of� ELO� –� Associação� Portuguesa� para� o�

Desenvolvimento�Económico�

- Secretary�to�the�Board�of�the�General�Meeting�of�Proforum�–�Associação�para�

o�Desenvolvimento�da�Engenharia.�

He�has�also�held�the�following�positions:�

- Visiting� lecturer,� from� 1993� to� 1995� on� the� MBA� Course� at� the� Catholic�

University�of�Lisbon,�and�more�recently�from�2003�to�2005�in�the�Training�of�

Executives�at�the�New�University�of�Lisbon.�

- Managerial� and� directorial� positions,� at� the� Nutrinveste� Group,� Águas� de�

Portugal�Group,�EDP�-�Electricidade�de�Portugal,�and�currently�at�ANA;�

- Management� consultant� (MAC� GROUP),� managing� projects� in� the� areas� of�

strategy� and� organisation� at� financial� services,� utilities� and� transport�

companies�in�Lisbon,�Chicago,�Madrid�and�Barcelona;�

- Project� Director� at� the� construction� company� Teixeira� Duarte,� where� he�

supervised�public�construction�works�on�dams�and�special�foundations;�

- Grant�holder�engineer,� specialising� in� roads�and�aerodromes�at� the�National�

Laboratory�of�Civil�Engineering;�

��

Corporate Governance Report_2010

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Director (held office through to March 2010)�

Dr. José Tomás Gouveia Enes Baganha

Age:�65��

Areas of responsibility: No�specific�areas�of�responsibility �

Educational Background: Graduate� in� Law� from� the� Faculty� of� Law� of� the�

University�of�Coimbra,�1967;�

Special�degree� in�European�Law�from�the�“Institut�d´Étude�Européennes”�of�the�

Free�University�of�Brussels,�1990.

Professional Activities:�

Director�of�ANA�Consulting,�November�2008;�

Director�of�portway,�since�2005;�

Consultant�to�the�Board�of�Directors�of�ANA,�from�July�2004�to�2009;�

Member�of�the�Board�of�Directors�of�the�National�Institute�of�Civil�Aviation,�2001-

2004;�

Manager�of� the�Coordination�of�ANA’s� International� Policies� and�Affairs,� 1999-

2001;�

Vice-president�of�the�Macau�Civil�Aviation�Authority,�1994-1997;�

Government�Delegate�at�Air�Macau,�1995-1997;�

Human�Resources�Manager�at�ANA,�EP�1978-1988;�

Member�of�the�Steering�Committee�of�ANA,�EP�1977;�

Lawyer�at�the�Directorate-General�of�Land�Transport,�1972-1974;�

Occasional�collaboration� in�postgraduate�courses� in�Aviation�Law,�Air�Transport,�

Ground�Handling�and�the�Public�Regulation�of�Transport�between�2005�and�2008�

at�FDUC/UNL�and�ISEC;�

Legal�work�on�subjects�relating�to�air�transport,�civil�responsibility�in�aviation�and�

the� regulation� of� civil� aviation� in� specialist� publications� in�Macau,� Hong� Kong,�

Brazil�and�the�Netherlands.�

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Director

Dr. José Manuel Dias dos Santos

Age: 42�

Areas of responsibility: Finance� and� Administration,� Sales,� Quality,� Training,�

Safety/Security�and�Secretariat.

Educational Background: Degree� in� Law� (economic/legal)� from� the� Faculty� of�

Law�of�the�University�of�Lisbon,�1991;�Course�in�Company�Law,�1998;�

Attended�the�specialist�post-graduate�Airport�management�course�(2009/2010).�

Professional Activities:�

Director�at�portway,�since�2004;�

Human�Resources�Manager�of�portway,�S.A.,�from�2000�to�2004;�

Partner�in�the�MSM�Law�Firm,�March�2003.�

Consultant� to�the�Human�Resources�Department�of�ANA,�S.A.,� from�April�1997�

to�2000;�

Legal�assistance�to�companies�and�private� individuals�as�a� lawyer�enrolled� in�the�

Lisbon�District�Council�of�the�Portuguese�Bar�Association,�since�February�1994;�

Director� of� Sociedade� Geomáquina� –� Empreendimentos� e� Máquinas� s.a.� until�

February�2008.�

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Director (has held office since March 2010)�

Dr. Joana Oliveira Freitas

Age:�32��

Areas of responsibility:�Management�of�the�Handling�Units�(Lisbon,�Porto,�Faro�

and�Funchal),�Engineering�and�Maintenance,�Human�Resources�and�WT/DCS.�

Educational Background:� Degree� in� Economics,� the� Faculty� of� Economics,�

University�of�Porto,�2000;�

MBA�from�the�European�Institute�of�Business�Administration�-�INSEAD�(campuses�

in�France�and�Singapore),�2003.�

Professional Activities:�

Director�of�portway,�since�March�2010;�

Central�Director�of�portway�Operations�between�October�2009�and�March�2010;�

Consultant� to� the� Secretary�of� State�of� the� Treasury� and� Finance�of� the�17th�

Constitutional� Government,�Ministry� of� Finances,� between� January� 2008� and�

September�2009;�

Volunteer�business�consultant�for�TechnoServe,�Mozambique�(NGO�dedicated�

to�supporting�the�private�sector),�between�August�2006�and�January�2007;�

Management�consultant�at�McKinsey&Company,�participating�in�various�

telecommunications,�banking�and�insurance�sector�projects�in�terms�of�strategy,�

operations�and�marketing�and�undertaken�across�Portugal,�in�London�and�Rio�

de�Janeiro,�between�2000�and�2007.�

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3.2.3 Board of Directors Remunerations

The�deliberation�of�the�General�Meeting�of�3�March�2010�stipulated�that�through�

to�the�end�of�their�terms�of�office:�

• Total�and�global�gross�remuneration�of�the�directors�Dr.�José�Manuel�Dias�

dos� Santos� and� Dr.� Joana�Oliveira� Freitas� to� an� amount� of� K� 7,800.00�

(seven�thousand�and�eight�hundred�euros),�with�this�same�sum�including�

both� core� payment� as� well� as� any� other� type� of� certain� and� fixed�

remuneration�with� the� aforementioned� sum�only� not� incorporating� the�

family�and�meal�allowances�paid�out� in�accordance�with�the�framework�

in�effect�at�ANA,�S.A.;��

• �The� other� members� of� the� Board� of� Directors� are� not� paid� for� their�

services� as� they� already� receive� their� respective� remunerations� for� the�

work�that�they�perform�at�ANA,�S.A.�

Prior� to� the� aforementioned�meeting� deliberation,� and� in� accordance� with� the�

shareholder�decision�taken�in�2007,�the�remunerated�model�in�effect�through�to�

March�2010�for�the�exclusively�dedicated�member�of�the�board�of�directors�was:�

Dr.�José�Manuel�Santos�

Annual�Core�Remuneration�–�98,000.00�euros�

Monthly�meal�allowance�–�131.20�euros��

Seniority�payments�–�75.58�euros��

Family�Subsidy�Supplement�–�25.74�euros��

-� The� holding� of� non-remunerated� functions� is� stipulated� for� the� remaining�

members� of� the� Board� of� Directors� given� they� receive� their� respective�

remunerations�in�accordance�with�functions�held�at�ANA,�S.A.�

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Subsequently,�the�General�Meeting�of�3�March�2010�approved�the�attribution�of�

director�remuneration�in�accordance�with�the�following�terms:�

-�Dr.�José�Manuel�Dias�Santos�

Monthly�Core�Remuneration�–�7.800.00�euros�*�

Monthly�meal�allowance�–�145.80�euros��

Monthly�Family�Subsidy�Supplement�–�25.74�euros��

-�Dr.�Joana�Oliveira�Freitas�

Monthly�Core�Remuneration�–�7.800.00�euros�*�

Monthly�meal�allowance�–�145.80�euros��

*�As�from�October�2010,�these�amounts�were�subject�to�a�reduction�of�5%�in�their�gross�value�

subsequent�to�the�framework�established�by�the�Program�of�Stability�and�Growth�(PECII�approved�

by�Law�No.�12-A/2010,�of�30�June)�and�by�the�voluntary�decision�of�the�remunerated�members�of�

the�portway�Board�of�Directors�who�now�receive�a�monthly�sum�of�K�7,410.�

-�The�stipulation�that�the�services�of�the�other�members�of�the�Board�of�Directors�

would�be�unpaid,�as� they�already� receive� their� respective� remunerations� for� the�

work�they�perform�at�ANA,�S.A.�

In�appendix�I�of�this�report,�we�show�the�remunerations�and�other�costs�relating�

to� the�Board�of�Directors,� in� accordance�with� the� format� recommended�by� the�

Directorate-General�for�the�Treasury.�

3.2.4 Positions held in other Companies

President� Carlos� Madeira� performs� the� functions� of� Vice-President� of� ANA� –�

Aeroportos�de�Portugal,�S.A.,�and�President�of�the�Executive�Committee�of�NAER�

–�Novo�Aeroporto,�S.A.�He�also�holds�the�positions�of�President�of�the�Board�of�

Auditors�of�ELO�–�Associação�Portuguesa�para�o�Desenvolvimento�Económico�and�

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Secretary�to�the�Board�of�the�General�Meeting�of�Proforum�–�Associação�para�o�

Desenvolvimento�da�Engenharia.�

As�regards�the�remaining�members�of�the�Board�of�Directors,�Dr.�José�Manuel�Dias�dos�

Santos�also�holds�the�unpaid�position�of�President�of�the�Board�of�Auditors�of�ACAR�

(Aeroclube� de� Alverca� do� Ribatejo),� as� well� as� that� of� President� of� the� Board� of�

Management� of� the� Quinta� do� Carmo� Property� Owners’� Association.� He� holds� no�

other�executive�and�paid�positions�in�other�companies,�including�those�of�the�group,�

performing� his� functions� at� portway� on� the� basis� of� exclusive� dedication� to� the�

company.�

3.3 Supervisory Board

3.3.1 – Duties and Curricular

The� auditing� of� the� Company’s� business� is� the� responsibility� of� a� Supervisory�

Board,� a� role� that� is� currently� performed� by� the� company� “Pedro� Roque� &�

Crisóstomo� Real� –� SROC”� (No.� 125),� represented� by� Dr.� Pedro� Nuno� Ramos�

Roque,�with�the�company�“Jaime�Matos,�Castanheira�&�Martins�da�Silva,�SROC”�

(No.�167),�represented�by�Dr.�Jaime�Abrantes�Silva�Matos,�acting�as�its�substitute,�

in�accordance�with�the�legal�responsibilities�established�for�this�company�body.�

The� term� of� office� of� the� Supervisory� Board� is� for� a� period� of� three� years,�

renewable� up� to� a� maximum� of� three� times,� with� the� year� in� which� elected�

counting�as�a�full�year.�At�the�end�of�their�terms,�supervisors�will�remain�in�office�

until�such�time�as�a�new�decision�is�taken.�

Before� the� decision� taken� by� the� General� Meeting� of� 3� March� 2010,� the�

Company’s� business� was� already� audited� by� the� same� firm� of� auditors� “Pedro�

Roque� &� Crisóstomo� Real,� SROC”� (No.� 125),� represented� by� Dr.� Pedro� Nuno�

Ramos�Roque.�

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Sole Supervisor

Dr. Pedro Nuno Ramos Roque

Age: 45�

Educational Background: Graduate�in�Business�Organisation�and�Management�

from� ISEG� (UTL)� and�Master’s�Degree� in�Business�Management/MBA� from� ISEG�

(UTL),�1991;�

Professional Activities:�

State-registered� Auditor� (registered� on� the� List� of� State-registered� Auditors�

with�the�number�828,�since�15�March�1993);�

Managing�Director�of�“Pedro�Roque�SROC�Unipessoal�(registered�on�the�list�of�

Companies�of�State-registered�Auditors�with�the�number�125),�since�2009;�

Founding� Partner� and� Director� of� Pedro� Roque� &� Crisóstomo� Real,� SROC�

(registered� on� the� list� of� Companies� of� State-registered� Auditors� with� the�

number�125),�since�July�1994;�

Chartered�accountant;�

Expert�in�court�processes;�

A�lecturer�in�Accounting�and�Auditing�since�1990,�on�both�Undergraduate�(at�

ISCAL-IPL,�ISMAG,�ISEG-UTL�and�Universidade�Lusíada)�and�on�Master’s�Degree�

and� Postgraduate� Courses� (IST-UTL,� ISEG-UTL,� Universidade� Lusíada,�

OVERGEST�and�INDEG-ISCTE);�

Trainer� on� the� Preparatory� Course� for� State-registered� Auditors� ROC� (1995)�

and�a�speaker/trainer�in�training�activities�promoted�by�CTOC;�

President�of� the�Examination�Jury�of� the�Chamber�of�Chartered�Accountants,�

since�2004;�

Coordinator�of�the�Chamber�of�Chartered�Accountants�for�the�area�of�Training�

in�Accountancy�and�Consultancy�in�Accountancy�(external�consultants);�

Member� of� the� Registration� Board� (1998-2000),� the� Registration� Committee�

(2000-2005),� the� Technical� Training� Committee� (1998-2000)� and� the� SME�

Working�Party�(2006-…)�of�the�Association�of�State-registered�Auditors;�

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Member� of� the� Association� of� State-registered� Auditors,� the� Chamber� of�

Chartered�Accountants�and�the�Association�of�Economists.�

3.3.2 – Supervisory Board Remuneration

The�Decision�of� the�General�Meeting�of�20�March�2008�entrusted�the�Board�of�

Directors�with�the�responsibility�for�agreeing�the�remuneration�of�the�Supervisory�

Board�for�the�triennial�2008/2010.�In�accordance�with�the�rules�of�the�Chamber�

of�State-registered�Auditors,�a�contract�was�agreed�for�the�remuneration�for�the�

State-Registered� Auditor� of� 900� euros� per� month,� with� the� Company’s� Sole�

Supervisor�receiving�an�annual�salary�of�10,800�euros�in�2010.�

3.3.3 – General Governance and Internal Control Practices

In� the� course� of� its� ground� handling� activities,� and� fully� integrated� into� the�

operations� run� by� the� airport� management� company� ANA,� portway� has�

undertaken�its�actions�in�accordance�with�the�recommendations�set�out�under�the�

framework�of�good�corporate�governance,�maintaining�transparent� relationships�

with� the�market,� and�adopting� sustainable�development�practices.� Furthermore,�

the�low�levels�of�both�litigation�and�the�minimal�impact�of�court�action�should�be�

highlighted.�

In� particular,� portway� has� ensured� compliance� with� the� principles� of� good�

governance�as�stipulated�by�Resolution�No.�49/2007,�of�28�March�and�Resolution�

No.�70/2008,�of�22�April.�

In�terms�of�the� internal�normative�framework,�various�different�regulations�have�

been�reviewed�and�approved�covering�the�different�company�functional�areas.�In�

2010,� we� would� especially� highlight� the� revisions� of� the� manuals� for� Business�

Travel� and� Accommodation,� Limits� and� Rules� for� the� attribution� of� vehicles,�

Cashflow�and�Banking,�Invoicing,�Issuing�and�Controlling�Credit.�

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Corporate Governance Report_2010

35

4. SHAREHOLDER VOTING AND REPRESENTATION RIGHTS

The� equity� capital� of� portway� is� represented� by� 17� million� shares� with� the�

nominal�value�of�K1.00�each,�registered�under�the�form�of�nominative�shares.�

The�company� is�not� listed�on�any�capital�market�and�has�only�one�shareholder,�

ANA.,�S.A.,�which�holds�100%�of�its�equity�capital�and�exercises�its�rights�at�the�

General� Meeting� through� its� designated� representatives� or,� in� legal� terms,�

through�unanimous�decisions�made�in�writing.�

Since�November�2009,�portway�equity�has�been�fully�subscribed.�

Corporate Governance Report_2010

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Corporate Governance Report_2010

37

5. CORPORATE RULES �

5.1 Applicable Legal Regime

portway�was�created�under�the�form�of�a�public�limited�company�by�public�deed,�

dated�2�May�2000.��

It�belongs�to�the�State�Enterprise�Sector�as�defined�by�Decree-Law�No.�558/99,�of�

17�December,�with�the�wording�attributed�on�its�republication�as�a�result�of�the�

implementation�of�Decree-Law�No.�300/2007,�of�23�August,�with�the�rules�of�the�

Statutes� of� the� Public� Manager� being� applied,� through� the� decision� of� the�

Shareholder.��

As� a�public� limited� company,� it� is� governed�by� the�Company�Code�and� related�

legislation,�and�is�bound�by�national�and�Community�legislation�regarding�ground�

handling�activity.�

In�its�ground�handling�activity,�it�is�also�subject�to�the�Community�regulations�on�

airport� activity,� safety/security,� competition,� environment,� ICAO� (International�

Civil�Aviation�Organization)�and�others.�

The�company’s�articles�of�association�establish�rules�relating�to�the�activities�of�the�

Board�of�Directors,�stipulating�that�this�body�should�meet�whenever�convened�by�

its�president�or�at�the�request�of�two�directors�or�of�the�auditors.�

The� Board� may� not� take� decisions� without� the� majority� of� its� members� being�

present� at� the�meeting.� These�members�may� not� decline� to� vote� and� no�more�

than�one�director�may�be�represented�by�another�person�at�each�meeting.�

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portway�has�its�own�regulations�and�internal�rules�that�must�be�implemented,�as�

well� as� its� own� appropriate� procedures.� The� most� important� of� these� are:�

provisions� relating� to� acquisitions,� levels� of� responsibility,� separation� of� the�

functions� of� ordering,� implementation,� control� and� payment,� supplementary�

work,�absenteeism,�training,�recruitment�and�selection,�travel�expenses,�expenses�

with�mobile� telephones� and� communications,� fuel,� company� vehicles,� uniforms,�

presentation,�individual�safety�equipment�and�a�code�of�ethics�(cf.�Section�4.3.�of�

this�report).�

5.2 Code of Ethics and Conduct

As� fully�owned�by�ANA,�S.A.,�portway�opted� to�adopt� the�company’s�Code�of�

Ethics�and�Conduct.�

The�Code’s� content� is� fully� available� on� the�ANA�website� –�www.ana.pt� –� and�

covers� the� following� fields:� purposes� of� the� Code� and� the� framework� for�

application�through�an�Ethics�Commission,�publication�of�the�Mission,�Vision�and�

Values� of� the� company,� general� principles� for� behaviour,� relationships� with�

stakeholders� and� other� interested� parties� in� company� performance� and�

exemplifying�the�explicitly�forbidden�practices�and�behaviours.��

The�aims�of�the�Code�may�be�summarised�as�follows:�

• To�inform�all�employees�of�the�company’s�guiding�values�and�principles�

and�the�rules�of�conduct�that�must�be�adopted�in�the�performance�of�their�

day-to-day�business;�

• To�strengthen�the�feeling�of�a�shared�culture;�

• To�encourage�employees�to�question�if�their�normal�behaviours�and�

procedures�are�in�keeping�with�the�company’s�values�and�principles;�

• To�establish�criteria�for�the�hierarchical�organisation�of�the�values�and�rules�

of�conduct�in�order�to�reduce�the�risk�of�a�conflict�of�interests�in�decision-

making�processes.�

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6. MANAGEMENT SYSTEM AND RISK CONTROL

�Given�the�nature�of� its�activity,�portway�does�not�benefit� from�the�existence�of�

instruments�that�can�protect�it�against�all�the�risks�inherent�in�its�business.��

These�risks�for�the�company’s�activity�have�been�clearly�identified�and�are�part�of�

its�policy.�They�are�essentially�related�with�the�following�areas:�market,�economy,�

finance,�social�and�political�situation,�regulations�and�operations.�

It�should�be�added�that�the�airport�sector�has�undergone�major�transformations�in�

recent� years� and� decisively� contributing� towards� aggravating� the� level� of� risk�

exposure�especially� taking� into�account� the� rising� importance�of� low�cost�airline�

companies,�the�recent�traffic�flow�shocks,�in�addition�to�the�trend�to�move�away�

from�the�exclusively�state-owned�sphere,�especially�in�Europe.�

Thus,� in� view� of� the� company’s� size� and� complexity,� portway� has� created� a�

system� for�monitoring� the�main� risks,�which�enables� it� to�monitor� and�manage�

the�above-mentioned�risk�categories:�

1. Market Risks

Risks� arising� from� the� evolution� in� the� volume� of� air� traffic� are� analysed� every�

fortnight� by� the� Board� of� Directors� as� part� of� its� review� of� the� company’s�

commercial� performance�and�managed� through�adjustments�made� to� the�main�

controllable� costs� (for� example,� labour� costs�within� the� limits� permitted� by� the�

legislation�governing� labour� relations),� in� accordance�with� the� expected� level� of�

activity.� In� the� longer� term,� these� risks� are�managed�within� the� context� of� the�

company’s� strategic� decisions� regarding� investment� (for� example,� in� handling�

equipment)�and�installed�capacity�(for�example,�in�the�areas�rented�as�premises).�

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2. Economic and Financial Risks

The� impacts� arising� from�macroeconomic� variables� on� the� company’s� potential�

growth�(evolution�of�GDP�–�both�in�Portugal�and�in�the�countries�from�which�the�

air� traffic�originates,�population,� tourist�potential,�exchange� rates,� interest� rates,�

etc.)� are� examined� by� the� Board� of� Directors� and� the� Financial� Department� at�

monthly� meetings� held� to� assess� the� company’s� performance� and� to� exercise�

control� over� the� budget.�When� considered� appropriate,� these�potential� impacts�

are� incorporated� into� the�decision-making�process� for� the�next� relevant�periods,�

through� interventions� in� the� financial� area� (guarantees�provided�by�clients,�cash�

collection�and�cash�flow)�or�in�the�operations�area�(enforcement�of�the�payment�

clauses�of�contracts,�amongst�others).��

3. Socio-political Risks

This� type�of� risk� is�continually�managed�by� the�Managers�of� the�Handling�Units�

and� by� the� safety/security�manager� operating� in� the� context� of� the� Safety� and�

Security�activities�for�which�they�are�responsible,�in�conjunction�with�the�National�

Institute�of�Civil�Aviation�(INAC),�the�security�authorities�and�airline�companies.�

4. Environmental Risks

Direct�environmental�risks�are�permanently�identified�and�managed�by�portway’s�

Quality�and�Environment�area�as�part�of�its�certification�procedure�in�accordance�

with�the�standard�ISO�14001.�Environmental�risks�occurring�outside�the�company�

(for� example,� the� risks� of� losing� traffic� or� other� risks� arising� from� new�

environmental� regulations,� alterations� to� the� schedules�of� time� slots�because�of�

impositions�made�regarding�noise�or�pollution)�are�managed�through�attempts�to�

lessen�their�impacts�on�the�demand�for�the�company’s�services,�with�the�adoption�

of�appropriate�commercial�and�operational�measures.�

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5. Regulatory Risks

This� type� of� risk� is� of� lesser� importance� for� the� company� since,� in� the� current�

legislative�framework,�portway�is�licensed�to�engage�in�its�activity�until�2011.�This�

licence� will� be� extended� by� the� Regulator� as� long� as� its� majority� shareholder�

continues�to�be�the�airport�operator�(ANA).�Indirect�regulatory�risks�are�examined�

and� incorporated� into�the�general�budgetary�procedures�and�managed�every�six�

months�as�part�of� the�company’s�medium-term�budgetary�control�and�planning�

operations.�

6. Operational Risk

This� type�of� risk� is�considered�to�be�of� the�utmost� importance�for�portway.�For�

this� reason,� its� analysis� and� management� is� undertaken� on� a� monthly� basis�

through� cooperation� between� the� Board� of� Directors,� the� Managers� of� the�

Business� Units� and� the�Managers� of� the�Human� Resources,� Financial� and� Sales�

Departments,�as�well�as�by� those� responsible� for� the�area�of�Quality,� through�a�

study�of�the�operations�area�and�the�company’s�cost�position�(controllable�costs�

and�non-controllable� costs).� The�already�mentioned�meetings�held� to�assess� the�

company’s� performance� result� in� measures� to� reduce� risk� that� are� then�

implemented�by�the�Handling�units�with�the�support�of�central�services.��

In� compliance� with� the� Recommendation� from� the� Council� of� Prevention� and�

Corruption,� in� 2009,� portway� set� out� its� Management� Risk� Prevention� Plan,�

including�Corruption�and�Associated�Infringements,�and�publishing�the�respective�

annual�implementation�plan�in�2010.�

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7. HUMAN RESOURCES�

In�2010,�human�resource�management�at�portway�was�particularly� impacted�by�

the�quantity�and�the�complexity�of�the�various�challenges�faced�by�the�company�

and�airport�sector�in�general�and�Ground�Handling�in�particular.�

In�reality,�as�already�mentioned,�the�influence�of�Social Economic Factors (sector�

crisis�with�the�collective�dismissal�of�over�three�hundred�employees�in�the�sector�

in� Faro,�with� turbulent� relationships�with� social�partners,� especially�worsened�at�

the�end�of� the�year�due� to�decisions�of�a�political�nature�but� impacting�on� the�

state-owned� business� sector�with� a� general� strike,� the� announcement� of�wage�

cuts�and�the�freezing�of�career�promotion�rises�in�2011�and�as�stipulated�by�the�

terms� of� the� state� budget),�Operational Factors (the� volcanic� ash� cloud,� poor�

weather�conditions�closing�a�series�of�airports�with�the�consequent�cancellation�of�

flights,� strikes� by� air-traffic� controllers,� floods� in� February� on� the� island� of�

Madeira,� etc.),� Market Factors (the� opening� of� the� Ryanair� base� in� Faro),�

Organisational Factors (projects� in� terms� of� internal/quality� organisation,�

reviewing� manuals/regulations� for� Recruitment,� Records� and� the� Processing� of�

Wages,� information� technology� and� the� public� procurement� regime),� not� only�

maintained�but�strengthened�the�need�for�portway�to�stand�out�for�the�level�of�

technical� aptitude� of� its� resources� and� the� consequent� quality� of� services�

provided.�

This�management,�defined�from�the�outset�by�its�strong�commitment�to�Human�

Capital,�continued�in�accordance�with�the�following�guidelines:�

a) Continuous� training:� the� company� continued� to� invest� in� the�

continuous� upgrading� of� its� human� resources,� endowing� them� with�

know-how�and�the�necessary�tools�so�that,�from�a�commercial�point�of�

view,� the� company�was� able� to� cope�with� the�market� crises� and� the�

strong� competition� in� the� sector,� thereby� guaranteeing� employment,�

with� 2010� seeing� a� total� of� 24,506�hours� of� training� held� for� 2,023�

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employees�across�a�diversified�range�of�programs�and�contents�where�

the� main� innovation� came� with� the� launch� of� the� Handling�

Management� training� course� dedicated� to� senior� company�

management.�

b) Promotion� of� a� relationship� of� employee� dialogue� and� involvement:�

introduction� of� quarterly� operational� meetings� with� employees� from�

across� the� four� sites� and� all� areas� with� the� objective� of� sharing�

information�on�company�performance,� reflect�on� future�priorities�and�

celebrate�the�successes�attained.�

c) Promotion�of�multi-tasking�and�flexibility:�the�growing�quantity�and�the�

specific�nature�of�the�demands�made�by�the�airline�companies�handled�

implies� significant� investment� in� the� task� versatility� requirements� of�

each� employee� that� are� associated� with� the� aforementioned� major�

commitment�to�training�able�to�implement�the�multi-tasking�associated�

with� the� set� of� functional� needs� in� effect.� These� factors� furthermore�

come�in�addition�to�the�factor�of�flexibility�provided�by�the�workforce�

itself� (for� example:� part-time� working� regimes)� and� a� founding�

company�objective.�

d) Initiatives� aimed� at� improving� operational� performance:� in� 2010,� in�

close� articulation� with� its� teams,� a� series� of� internal� programs� were�

held�and�dedicated�for�example�to�combating�workplace�accidents�and�

absenteeism� as� well� as� the� steady� increase� in� operation� productivity.�

These�programs�counted�on�the�involvement�of�employees�whether�in�

terms� of� their� participation� or� their� involvement� in� design� and�

implementation� (Internal� Program� of� Operational� Performance�

Improvement,� the� “Don’t� Get� Hurt”� Program� against� Workplace�

Accidents� and� resulting� Absenteeism,� Operational� Performance�

Awards);�

e) Capitalising�on�the�know-how�of�internal�resources:�strengthening�the�

focus�on�commercially�developing�specialist�market�know-how�in�new�

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“formats”,� specifically� technical� consultancy� and� in-person�

Management�and�Handling�Management�training;�

Correspondingly,� and� demonstrating� the� practical� implementation� of� the�

guidelines�above,�we�would�highlight:�

-�The�growth�in� labour�competitiveness:�to�the�factors�of�Training,�Flexibility,�

Motivation� and� Quality,� combined� with� a� balanced� human� resource� cost�

contention�policy,�may�be�associated�as�a�natural�consequence�and�an�effect�

but� also� a� result� of� the� growth� in� the� competitiveness� of� the� labour� under�

employment;�

-� The� increase� in�Operational� Productivity: from� the� operational� perspective,�

there�were�once�again�notable�levels�of�Operational�Productivity�performance�

with�a�percentage�increase�of�around�9%�on�2009,�a�still�greater�achievement�

when�taking� into�account�a�24%�reduction� in�the�amount�of�supplementary�

work�contracted�by�operational�areas;�

-� Employment� stability� and� the� effective� average:� in� terms� of� the� Effective�

Average,� and� particularly� when� compared� with� the� growth� seen� in� recent�

years,�this�continued�to�demonstrate�a�trend�towards�stabilisation.�

Considering�the�Effective�Average,�and�always�taking�as�our�reference�the�Full�

Time� Equivalent� (FTE),� the� company� saw� this� indicator� rise� from� 1,047� to�

1,154,�up�by�107�on�comparison�with�the�same�period�of�the�previous�year�

and�representing�a�rise�of�10%�(employees�contracted�by�portway)�without�

making� any� significant� impact� on� the� respective� distribution/functional�

allocation�by�business�area�over�the�course�of�the�last�twelve�months.��

Human� resource� related� issued� are� covered� in� greater� detail� in� the� 2010�

Annual�Report�and�Accounts,�which�makes�up�part�of�annual�reporting.�

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8. INFORMATION SYSTEMS

portway�currently�runs�a�set�of�information�and�communication�systems�and�

technologies�that�cover�the�broad�majority�of�business�processes,�fundamental�

aiming� to� guarantee� two� core� objectives:� guaranteeing� the� operational�

reliability�of�the�different�sectors�(core�handling�functions)�and�responding�to�

the�requirements�of�an�internal�control�system�and�shareholder�reporting.�

Within�this�scope,� the�following�key� initiatives� took�place� in�2010�across� the�

field�of�information�technology�support�and�means�of�communication:�

• Continuation� of� the� new� information� technology� procurement� policy�

targeting� ergonomic� and� environment� friendly� equipment� and� boosting�

the� storage� capacity� (secondary� disks)� and� providing� the� user� with� the�

maximum�amount�of�memory� that� the� respective�operational� system�can�

run.� In� addition� to� computers,� investment� also� went� into� 19”� monitors�

with� the� larger� size� due� to� the� better� definitions� resulting� from� running�

new�graphical�applications;�

• Acquisition� of� portable� computers� and� an� interactive� board� for� the� new�

training�room.�Thus,�it�is�now�possible�to�utilise�new�applied�technologies�

in� training� programs� and�guaranteeing� a� high� level� of� flexibility� in� room�

layout;�

• Replacement� of� the� photocopiers� in� usage� in� the� headquarters,� the�

training� department,� Faro� HU� and� the� passenger� department� in� Lisbon�

with�multifunctional�devices�with�high�capacities�and�equipped�to�work�in�

network.� Hence,� it� was� possible� to� raise� the� installed� technological�

capacity,� rendering� more� functions� available� to� more� users� and� reduce�

costs�both�in�terms�of�printing�and�the�maintenance�associated;��

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• Acquisition�of�a�high�capacity�server�able�to�deal�with�the� IT�applications�

now�being�run�for�maintenance�management�and�the�electronic�control�of�

employee�timekeeping�and�punctuality.��

• S�Gateway�communication� replacement�of� the�message�system�“Sitatex”�

in� Lisbon� and� Porto� by� new� equipment� and� with� greater� capacity� and�

boosting�the�reliability�of�this�“critical�system”;�

• Migration� of� SITA� communications,� eliminating� X.25� communications� in�

Lisbon�and�Porto.�This�migration,� in�addition�to� improving�the�robustness�

of� communications� and� reducing� the� number� of� lines� and� devices�

necessary,� enabled� an� expansion� in� broadband,� raising� the� backup�

mechanisms� available� as� well� as� generating� a� sharp� reduction� in�

communication� costs� as� the� traffic� was� no� longer� paid� for� with�

communication� becoming� integrally� carried� out� under� the� IP�protocol.� In�

Faro,� the� backup� communications� mechanism� was� also� subject� to�

improvement;�

• Migration� of� the� “Sitatex”� message� system� in� operation� in� Lisbon� and�

Porto,�moving�to�version�7�that�runs�under�the�IP�protocol.�This�version,�in�

addition�to�being�technologically�more�developed,�ensures�integration�into�

the� “Clever� Ops”� system,� thereby� enabling� the� automatic� exchange� of�

messages;�

• Introduction�of�a�new�site�address�for�imported�cargo�in�Porto;�

• Migration� of� the� “Siccarga”� system� to� a� new� technological� platform�

enabling,� in� addition� to� reformulating� data� modelling� and� correcting�

existing�problems,�the�system�to�be�operationally�more�agile�and�easier�to�

maintain� and� overcoming� the� risks� and� limitations� inherent� to� obsolete�

technological�platforms;�

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• Implementation� and� launch� of� the� shift�management� system� “Scheduler�

Expert”�(ramp�and�passenger�departments�in�Faro�and�ramp�department�in�

Porto);��

• Resolution� of� the� technical� questions� necessary� for� the� ERP”Primavera”�

application� to�be�decentralised,�distributed�and�accessed�by� the�different�

handling�units;�

• Beginning�the�operational�launch�of�the�uniform�control�system�under�the�

auspices�of�the�ERP“Primavera”�system;�

• Beginning� the� development,� within� the� ERP“Primavera”� system�

framework,� of� a� module� for� supervising� and� controlling� temporary�

employees;�

• Technical�and�functional�specification,�launch�of�tender�and�selection�of�an�

information� technology� system� for�maintenance�workshop�management.�

Hence,� this� makes� it� possible� to� bring� together� all� the� different�

maintenance�workshops�in�a�unique�and�centralised�platform;��

• Technical�and�functional�specification,�launch�of�tender�and�selection�of�an�

information�technology�system�for�electronic�control�over�staff�arrival�and�

departure�times�and�punctuality.�The�utilisation�of�a�digital�print�system�as�

a� biometric� control� associated� with� cross� referencing� with� the� shifts�

published� enables� the� effective� control� of� attendance� and�punctuality� to�

be�expanded�to�all�members�of�staff;��

• Adjudication�of�development�of�the�“Siccargo”�system�in�compliance�with�

European� Union� regulatory� measures� to� enable� the� introduction� of� “e-

paper”�mechanisms.� This� development�will� provide� for� e-communication�

with�the�customs�authorities�through�the�exchange�of�emails;�

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• Restructuring� the� analytical� accountancy� structure,� based� upon� the�

constant� flow� of� information� generated� by� the� IT� systems� in� effect.� The�

final� objective� involves� the� implementation� of� a� cost� and� profitability�

analytical�model;�

• Technical� and� functional� evaluation� of� the� criteria� and� requirements�

necessary�to�the�specification,�tender�and�implementation�of�an�integrated�

information� technology� system.�This� tool�will� enable�a� single�platform� to�

integrate� the� operational� information� that� supports� the� core� company�

activity;�

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9. RESEARCH, DEVELOPMENT AND INNOVATION

The�handling�activities�undertaken�by�portway�do�not�provide�many�windows�of�

opportunity� for� the� implementation� of� policies� involving� scientific� and�

technological�innovation.�

For� this� reason,� and� in� view� of� this� context� of� a� clearly� limited� room� for�

manoeuvre,� the� company� has� been� developing� its� respective� policies� for�

economic,� financial,� social� and� environmental� sustainability� in� accordance� with�

the� undertakings� arising� from� the� Quality� and� Environment� Certifications�

obtained�in�conformity�with�the�standards�ISO�9001�and�14001.�

The� company� is� participating� in� the� following� innovation� projects,� amongst�

others:�

•�AAS�–�Integrated�Airport�Apron�Safety�Fleet�Management�(ASC);�

•� LOCON� –� Platform� for� an� inter-working� of� embedded� Localization� and�

Communications�systems�(AFR);�

•� Carrying� out� the� first� tests� of� the� “CUTE”� terminals� installed� in� vehicles�

circulating�on�the�ramp.�This�project�deploys�wireless�communication�and�enables�

recourse� to� all� the� functions� available� on� “CUTE”� terminals� to� be� provided�

alongside�planes�and�including�the�printing�of�documents;���

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10. INVESTOR RELATIONS �

portway s.a.�belongs�to�the�State�Enterprise�Sector�and�has�ANA,�S.A.�as�its�sole�

shareholder.�

The�shareholder�is�provided�with�periodical�information�based�on�a�specific�model�

of� reporting,� which�makes� it� possible� to�monitor� and� supervise� the� company’s�

performance�in�an�efficient�and�effective�manner.��

portway s.a.� regularly� updates� its� website� at� www.portway.pt,� on� which� it�

publishes� its� Annual� Report� and� Accounts,� as� well� as� all� other� information�

considered�relevant�for�the�performance�of�its�activity.��

The�disclosure�of�this� information,�amongst�other�data,�clearly�demonstrates�the�

company’s�commitment�to�providing�transparent�and�precise�information.��

The� company’s� relations� with� financial� markets� are� guaranteed� by� the� director�

encharged�with�financial�and�administration�management�in�association�with�the�

Financial�Department.��

� �

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11. FULFILMENT OF THE ANNUAL OBJECTIVES ESTABLISHED BY

THE SHAREHOLDER �

The�company’s�shareholder�established�specific�strategic�guidelines�for�the�Board�

of�Directors� for�2010.�These�represented�the�essential�coordinates�of� its�activity,�

as�well�as�demonstrating�its�commitment�to�management�of�the�highest�quality.�

In�order�to�assess�this�commitment,�a�set�of�specific�indicators�was�selected.�These�

are�established�by�the�Shareholder�annually.�

The� 3rd� March� 2010� General� Meeting� also� ruled� that� the� respective� level� of�

compliance� should� be� determined� by� a� third� party� entity,� nominated� for� this�

purpose.�

For� 2010,� the� following� Strategic� Objectives� were� set� within� a� perspective� of�

bringing�about�the�sustainable�development�of�portway:�

1. Client�satisfaction:��

a) Percentage� of� delays� attributable� to� portway� less� than� or� equal� to� 14�

minutes:�3%;�

b) Percentage�of�delays�attributable�to�portway�greater�than�14�minutes:>�=�

1%�

c) Percentage�of�baggage�process�irregularities�attributable�to�portway�lower�

than�or�equal�to�1%;�

2. Security�and�Safety�Prevention:��

a) Percentage�of�N�(NO)�responses� in�the� internal�Security�and�Safety�audits�

of�below�3%;�

b) Number�of�operational�audits�to�be�carried�out:�10;�

3. Business�success:�

a) Level�of�EBITDA�budgetary�compliance:�100%;�

b) Growth�in�core�activity�productivity�–�Handling:�3%;�

c) Growth�in�core�activity�productivity�–�Cargo:�3%;�

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4. Performance�Evaluation:�average�equal�to�or�greater�than�3.5%;�

5. Environmental�Policy:�Control�of�greenhouse�gas�emissions�(GGE)�of�GSE�and�

Diesel:�100%.�

Correspondingly,�the�level�of�compliance�with�these�objectives�shall�be�put�before�

the� shareholder� general� meeting� in� 2011,� following� evaluation,� audit� and� the�

issuing�of�an�opinion�by�a�third�party�entity�nominated�for�such�purpose.�

� �

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Unit €

�• *�Initial�bonus�of�K�12.250,00�divided�between�10�Directors�with�the�amount�of�K�1,000.00��• **�Includes�Seniority�Payments�and�Family�Subsidy�Complement�• ***�Vehicle�returned/sold�to�Mercedes�in�December�2009�for�the�amount�of�K�51,665.81�• ****�ANA,�S.A.�pension�fund

BOARD�OF�DIRECTORS��

Remunerations 2009 President Director

(serving exclusively as director) José M. Santos

Director

���1.�Remuneration�

Basic�salary� - 98,000.00� -

Accumulation�of�managerial�functions� - -� -

Complementary�Remuneration� - -� -

Representation�Expenses� - -� -

Management�Bonuses� - 2,250.00�*� -

Other� -� 1,369.30�**� -

���2.��Other�benefits�and�compensations�

Expenditure�on�the�use�of�telephones� - 4,722.08� -

Acquisition�cost�of�company�car - 56,223.54***� -

� - � -

Value�of�company�car�fuel�consumption - 4,736.75� -

� - � -

Travel�subsidy� - -� -

Meal�subsidy� � - 1,564.60� -

Other� � - - -

-

3.��Cost�of�social�benefits� - - -

Social�Security�–�Pension�(21.25%)� - 14,966.15� -

Complementary�pension�plans� - 3,466.38****� -

Health�Insurance� - 270.00� -

Life�Insurance� - -� -

Other� - - -

4.�Additional�Information��

Option�for�payment�of�original�salary�(y/n)� yes� No� Yes�Social�security�regime�� -� ��Company�Bodies� -�Compliance�with�paragraph�7�of�RCM�155/2005� - -� -

Year�of�purchase�of�company�car� - 2009� -

Use�of�house�with�the�position� - -� -

Performance�of�paid�work�outside�the�group� - -� -

Others� - - -

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60

BOARD�OF�DIRECTORS� � � �

Remunerations 2010 President Director

José M. Santos Director

Joana Freitas

� � � � � � ����1.�Remuneration�

Basic�salary� - 106,040.00� 106,440.00

Accumulation�of�managerial�functions� - -� -

Complementary�Remuneration� - -� -

Representation�Expenses� - -� -

Management�Bonuses� - -� -

Other� - 460.04�*� -

���2.�Other�benefits�and�compensations�

Expenditure�on�the�use�of�telephones� - 3,612.91� 1,036.94�Acquisition�cost�of�company�car� - 46,089.90� 51,880.85**�Value�of�company�car�fuel�consumption� - 2,717.24� 2,232.86�Travel�subsidy� �� �� �� - - -�

Meal�subsidy� - -�3.��Cost�of�social�benefits� - -�Social�Security�–�Pension�(21.25%)� � - 14,966.15� 25,318.77�Complementary�pension�plans� - 3,502.31***� -�Health�Insurance� � � - 270.00� 270.00

Life�Insurance� � � - - -

Other� �� �� �� - - -

4.�Additional�Information��

Option�for�payment�of�original�salary�(y/n)� Yes� No�� No� Social�security�regime� - Company�Bodies� General�Regime� Compliance�with�paragraph�7�of�RCM�155/2005� - -� -

Year�of�purchase�of�company�car� - 2009�� 2009�Use�of�house�with�the�position� - - -

Performance�of�paid�work�outside�the�group� - - -

Others� �� �� - - -

Unit�K�• *�Includes�Seniority�Payments�up�to�February�and�Family�Subsidy�Supplement�• **�Vehicle�acquired�under�a�Renting�regime�with�the�respective�monthly�payment�of�K�961.30��• ***�ANA,�S.A.�pension�fund��

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