STRATEGIC MANAGEMENT

Emphasizing business sustainability, the management model adopted by Santos Brasil focuses on offering services with speed quality and security – a position stated in the Company's Mission Statement. The Company also aims for clarity, simplicity and objectivity in processes that facilitate the implementation of activities and create conditions to achieve sound results.

To use the opportunities, synergies and best practices in each one of the segments in which it operates, Santos Brasil adopts an integrated management system, conceived from a unique structure that guarantees the regional particularities of each business and maintains a global corporate vision at the same time.

All procedures and functions are described and mapped within a management system, which enables the visualization of the processes that involve the day-to-day of operations as well as the existing relationship between them, contributing to the standardization of activities, continuous improvement and search for levels of excellence. Each process has specific expiry terms that are periodically reviewed by the managers responsible, ensuring their update and efficacy.

The Company also uses quality assurance tools such as the Spot Management model, which enables employees to analyze their indicators and conduct online monitoring, comparing the results with the goals established at the beginning of each year. The transparency of this information enables everyone to keep updated, in line with the strategy and with the business aims. Besides helping with the identification of improvements, minimizing costs and reworking, the management system adopted has helped in the conquest of expressive results such as operating records, cost reduction, greater operational agility, management transparency and uniformity in the implementation of routines.

GOALS & INDICATORS

At Santos Brasil, the concept of meritocracy, in which people are responsible for results, is applied to all levels. The Company reconciles traditional corporate and individual goals – EBITDA and EVA – with everyone's commitment to greater safety in the working environment and solid waste recycling in its target distribution program. This measure demonstrates the importance given to safety and to the environment, which are placed side-by-side with corporate and individual performance goals.

The principal macroeconomic indicators adopted by Santos Brasil are MPH (which determines productivity) and the cost per unit on the operations, or in other words, all Company indicators derive from one of these indicators.

Employees are assessed according to three types of goals: Corporate, Team and Individual Goals. Corporate goals distributed to all are: occupational accident (severity rate), rate of frequency and selective collection (that measures, for example, an employee's commitment not to contaminate garbage that could be recycled). Team goals are measured by each team's result in the overall terminal MPH. Individual goals assess those who contributed the most to the result achieved by the team.