In 2009, in an admittedly adverse economic context, Parque EXPO 98, S.A. continued to assert itself as a public provider of urban and environmental design services and a manager of projects of relevant size and impact from a domestic perspective and, in some instances, even of international scope (which serves to demonstrate that Portugal is capable of exporting such skills, in the latter case).

Thanks to its efforts to develop new business, in 2009 the Company managed to secure the commissioning of ten new project design contracts (namely Alcochete, Mafra, Vila Viçosa, and Cidade da Praia, in Cape Verde, among other projects) and to launch four new projects of relevant size under management by Parque EXPO, as follows: Polis Litoral Norte, Polis Litoral Ria de Aveiro, Fortaleza de Sagres, and Programa Escolas (Telheiras, Luis António Verney, and Parque das Nações Sul schools). Other projects, such as the South-western Alentejo and Vincentian Coast Polis Program, South Waterfront Arc Project and Palácio de Cristal/ Pavilhão Rosa Mota Project, have been somewhat delayed and their implementation is now only expected to commence in 2010. Net operating income rose to 45.2 million Euros (25.8 million Euros in 2008).
As concerns our management objectives for the three years 2008-2010, a number of favourable developments reporting to the Company’s financial rebalancing deserve particular highlight, namely the repayment of a balance of 24.6 million Euros of corporate bonds, the Lisbon City Council’s approval of a cession of interest arising under a Financial Agreement negotiated during the previous financial year and its further acknowledgement of debt for the provision of urban management services reported to the period January 2005 to October 2008; and, as far as the Company’s innovation and sustainability policies are concerned, the fact that its strategic commitment to implement an Environmental Management System (EMS System) has been fully achieved, as confirmed by the findings of an External Certification Audit to its compliance with the ISO 9001: 2008 and ISO 14001: 2004 Standards. In addition, Parque EXPO conforms to best corporate governance practices for public sector companies as set out in the provisions of Council of Ministers Resolution no. 49/2007 and has implemented a Code of Ethics and Conduct that sets standards of professional conduct and practices for all staff and to be followed in the Group’s relations with third parties.

As concerns subsidiary and associate companies, and further to the performance of subsidiaries Atlântico and Oceanário (which posted net income for the year in excess of 1 million Euros), I highlight that Marina do Parque das Nações resumed operations in August 2009 on schedule and that Parque Expo transferred a 1% interest in Gare Intermodal de Lisboa (G.I.L.) to Refer and a further 1% interest to Metropolitano de Lisboa and, consequently, no longer holds a majority interest in the share capital of that company.

As concerns its statement of financial income, the Group’s performance improved to the tune of 10 million Euros as its net financial loss decreased to -6.2 million Euros, from 2008 to 2009. As concerns the statement of extraordinary income, net extraordinary income was penalised to the extent of 9.9 million Euros owing to a resolution to write off a claim arising under an agreement with the Portuguese State to the effect of refunding that balance to Parque EXPO in lieu of compensation for early construction of the Alameda – Oriente subway line, as the balance in question was considered irrecoverable on account of the fact that the agreement in question dates back to 1994. As such, that debtors balance was written off and the corresponding adjustment was reversed with the consequence that those entries were neutral in terms of their impact on net income for the year.

In 2010, Parque EXPO will further strengthen its commitment to its guiding principles – namely consolidation of a professional approach to management, the adoption of best management practices, and the development of a corporate culture that is oriented towards the achievement of performance excellence – and to its strategic goals: to refocus the Group by undertaking public urban and environmental renewal projects in Portugal and abroad while managing official Portuguese participations in international events (as is the case of Shanghai’s World Exposition, in 2010) as well.