Message

from the CEO

A period of elaborating new programs for infrastructure concessions in the country and of addressing pending issues in the sector began in 2019, allowing the highway industry to envision a promising growth path. Internally, it was a time of organizational realignment for Arteris, when we embarked on a major transformation for the purpose of streamlining the company and making it leaner, more efficient and more assertive. As a result, we recorded significant results in operational efficiency, cost reduction and safety at the end of year. Although the latter still requires constant monitoring and ongoing action, we have already perceived the reflection of a maturing safety culture and team commitment.

We were surprised by the Covid-19 pandemic in 2020 and are aware that the outlook for solving economic challenges following this crisis will depend on infrastructure investments. Many challenges lie ahead, but we are sure that the pillars built thus far will be key factors in remaining on track to generate shared value.

Andre Dorf, CEO of Arteris

Main
investments

The year 2019 was marked by an intense cultural transformation process, a major initiative to make Arteris an increasingly efficient and competitive company. A total of BRL 1.5 billion were allocated to improvement and maintenance interventions, of which 64.4% were conducted on federal toll road concessions.

2019
BRL1.5 Bi
2018
BRL 1.7 Bi
2017
BRL2.2 Bi

*The reduction in investments observed in recent years is a natural consequence of several factors: the finalization of the concession contracts for Vianorte and Autovias in 2018 and 2019, respectively; reaching the maturity of the federal concessions, considering that the main contractual investments have already been fulfilled, with emphasis on the completion of the duplication works for Serra do Cafezal, on Régis Bittencourt; and the re-planning of some stages of the ViaPaulista duplication works.

The main highlights include the acceleration of works on Contorno de Florianópolis (34.4 km stretch), the implementation of the Emergency Escape Area and the renovation of the Itajaí Mirim bridge on Litoral Sul, the implementation work for the Toll Plaza on SP 318 (P6-São Carlos) and start of works for nine User Service Center Bases on ViaPaulista; duplication works on SP 191 (2 stretches between km 49 and km 74) and duplication on SP 147 (km 88 to km 104) at Intervias; and to the works for the implantation of a green overpass and 15 wildlife crossing on Fluminense, among others.

Efficiency
in operations

Major initiatives in 2019

Excellence in the provision of services and identification of profitable projects

• Accountability for the result
• Agility in decisions
• Simplification of processes

User focus: Wi-Fi SOS ViaPaulista

• Investment of BRL 25 million
• Users can use their smartphones to request emergency services (mechanical and health) 24 hours a day

Highway safety

Arteris has three Emergency Escape Areas, one on Régis Bittencourt and two on Litoral Sul, where implementation of the most recent (km 667.3 of BR-376/PR) required investments of approximately BRL 20 million and involved 134 workers during 8 months of work

Quality and environmental commitment

• Management System supported by ISO 14001: 2015
• Standardized environmental management procedures at the toll road concessions
• Golden Rules for Protection of the Environment: guidelines for the performance of the company and its employees

Commitment
to life

Premises of Arteris’ operations

• Right to come and go safely
• Generation of jobs and income in the regions
• Educational actions: focus on greater humanity in traffic
• People management practices that promote safety, appreciate quality of life and diversity in the workplace
• Management of the impacts of operational activities on the environment

Escola Arteris and Viva Meio Ambiente Projects

• Alignment with the pillars of Education for the 21st Century by UNESCO: learning to know; learning to do; learning to live together and learning to be
• Practices focused on citizenship, traffic safety and mobility
664 schools, 315.395 students, 18.231 teachers in 156 citys in 18 years of operation

Programas Viva

• Includes companies, cyclists, motorcyclists, pedestrians, passengers, drivers of light and heavy vehicles and the community
• Initiatives tailored to the needs and vulnerabilities of each audience
• More than 347,000 people have participated since 2006

Fatalities reduced by 5% in 2019

Presence of camera monitoring in all toll road concessions

which allow real-time tracking of the highways

Integrity

Recognition

Among the 4 companies in the infrastructure sector best ranked for their practices in the Guia Exame de Compliance [Exame Compliance Guide]

Confidential Whistleblowing Channel

canalconfidencial.com.br/Arteris | 0800-7210741 (toll-free in Brazil) | arteris@canalconfidencial.com.br

Integrity

Working to preserve an ethical and trustworthy business environment when interacting with all stakeholders

  • Integrity Program: prevent, minimize or detect risks of violation of laws and guidelines

  • Focus on Compliance Risk Management and the Public Sector Interaction Standard

  • Anti-Corruption Policy and Code of Ethical Conduct: guiding all activities

  • Positive Environment Management Standard: guidelines for preserving a positive, open and inclusive work environment, free from discrimination, violence and harassment

  • Internal training on topics related to the Integrity Program, the Code of Ethical Conduct and the Anti-Corruption Policy

People
Management

Postivie Enviornment Management Standard

Introduced in 2019, it sets specific guidelines tot support proactive, collaborative and fair operations.

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Development
of skills

Promoting continuous learning

and knowledge management

Shared Learning and Knowledge

Key to human capital development and team engagement

Arteris Development University (UAD)

Initiative aimed at the development of employees to contribute to the achievement of results

Over 100,000 hours of training

were offered in 2019,
an average of
23 hours/employee

Partnerships
value

Partnerships Appreciated

2,770 supplier companies along almost 3,400 km (data from December 2019) • Of the purchases with strategic suppliers, 63% were made from local companies

Shared Services Center

operational efficiency
speed in decision making
excellence in internal customer service

Suppliers

• 2019: 2,770 companies, including manufacturers of inputs for operations, office material suppliers, service providers and advisory firms, most of which are in the civil construction sector.
• Contracts in line with Arteris Code of Ethics and the Environmental Policy