The Danish-Brazilian Chamber of Commerce
Transcription
The Danish-Brazilian Chamber of Commerce
April / June 2013 Danish-Brazilian Chamber of Commerce Marina silva Environmentalist Leader April / June 2013 Danish-Brazilian Chamber of Commerce Marina silva Environmentalist Leader 20 april/june 2006 20 april/june 2006 EDITORIAL Brazilian Review 2013 will still be a big challenge for Brazil Marina Silva Environmental Leader 6 INTERVIEWS Marina Silva Morten Soudbak 6 80 PROFILE HRH Princess Marie Danica, Per Barke Nevermann Maersk Line Maersk Oil, Luis Costa Radiometer ISS, Washington Botelho Vestas, Paulo Fernando Soares AVK Hydro Lego Education, Christian Maxe Petersen Welltec Widex Copenhagen Zoo, Steffen Stræde 12 16 20 22 24 26 30 32 34 40 42 47 62 ECONOMICS Octavio de Barros, Bradesco Caio Megale, Banco Itaú Cristiano Souza, Santander Economical News 46 48 50 52 INFORMATION Dual Citizenship John Strand, Strand Consult Innovation Center Denmark Danish Tourism Global Leaders in Sustainable Fashion Cop18 in Doha TRAVEL Frederikshavn Holstebro 60 68 70 76 84 100 72 90 The Brazilian growth in 2012 was only 0,9% which was extremely disappointing with an inflation over 6%. 2013 will be another challenging year for Brazil with a growth between 2-3,5% and an inflation below 5% and many people predict that the interest rates might go up over the next few months (currently 7,25%). Unemployment is still at a very low level and more than 50-60.000 new engineers every year are still needed in the oil and gas industry and many other key industries. President Dilma is having a difficult time with the senate and congress and ‘royalties’ and many other important issues which must be solved in 2013. World Cup 2014 is still not totally in line, and we hope all the stadiums will be ready including Maracanã for the Confederations Cup. Many infrastructure investments like airports etc. must be ready for the World Cup. Many key issues in regard to the Rio Olympic games 2016 must be speeded up, and we hope that both the governor and the mayor of Rio will push these important projects all the way. Petrobras as the biggest Brazilian company, is going through an extremely difficult time, and their share price has been reduced more than 30% in the last six months. The situation in Europe is still complicated and extremely difficult; countries like Spain, Italy, Greece, Portugal, France, Ireland etc. are all countries under heavy depth burden and very high unemployment which is causing instability both politically and economically. Many experts are pointing to the ‘Nordic model’ for economic recovery which are the Nordic markets that are looked upon as being able to adapt to the new economical reality of their countries and is also planning for growth with political stability, still within the ‘welfare model’ of Scandinavia. In United States economical situation is still unresolved and the 2013 annual budget is still not approved by congress and senate. Hectic discussions are taking place with president Obama and the two chambers. We hope this situation will be resolved immediately. The Danish Brazilian Chamber of Commerce will be very active in 2013 Apr 8th – Luciano Coutinho (BNDES) Apr 8th – General Assembly May 7th – Business Council – MAN Diesel Jun 20th– Fernando Henrique Cardoso (Chamber Prize) Sep – President Lula Sep 26th– Business Council Oct 8th – Danish Investment Seminar Oct 29th– Grundfos Nov 19th– Octavio de Barros – Bradesco Dec 6th – Christmas Lunch In May 2013 we will have an important visit by Danish Minister for Trade and Investment Pia Olsen Dyhr, and a dinner is planned by the chamber. We wish all our members and friends a very successful 2013. 16 Per Barke Nevermann, Danica Jens Olesen President Marina Silva Marina, you’re a great representative of the Green Party which has gained importance here in Brazil. When can we expect to see you in the Senate again? I left the Green Party. I am not the one who actually started the Green Party. I was a founding member of the Worker’s Party, though. I left the Green Party in 2009 as there were too many inconsistencies within it. I simply could not stay on. I am studying the possibility of becoming active in the political scenario again. I am well aware of the fact today that the legacy that was raised in 2010 needs to be even further strengthened because I believe that the big challenge before Brazil is a change in the development model; we need to move from an unsustainable model to a sustainable one. I want to be certain about the nature of my contribution, i.e. if it should be in institutionalized politics or within civil society. I have always, both as a Senator and a Minister, had a strong presence in social movements. Now that I’ve not been affiliated to any political parties for more than two years, I am assessing whether I should affiliate myself to a party again and run for election or if I should just remain a member of civil society. Marina Silva World Environmental Leader 6 apr/jun 2013 The Norwegians have the utmost respect for your ethics in regard to your stance on environmental issues. I have strong ties of friendship with Norway that date back to when I was the Minister of Environmental Affairs. I dealt with Ambassador Turid Eusébio and Mr. Solheim, the Minister of Environmental Affairs and Foreign Affairs. They were paramount in the plan against deforestation and in the creation of the Amazonia Sustentavel Foundation. Norway was the first country to believe in voluntary reduction of deforestation rates. Their stance was that if we had a methodology capable of making a reality out of what was being discussed, then they were willing to help create a foundation to support undertakings and acts that help preserve the Amazon rain forest. The Norwegian government acknowledged the work that had been poured into this measure by the Brazilian Ministry of Environmental Affairs, and Minister Solheim was one of the big supporters. I was eventually even awarded the Sofia Award by the foundation in Oslo. Since then, we’ve had a fruitful friendship. I also have a lot of respect for the Norwegian people because they form a wealthy nation that is anything but ostentatious. You were a representative at the Olympic Games. How come? It was a huge event and very few were invited to take part in it, but there you were. That’s quite a feat! I believe that everybody who took part in the flag-carrying ceremony was there as a symbol of one of the great causes of humanity. It was a great pleasure and honour for me to be included in something that magnificent. I was there to represent the challenges of protecting Has the government been doing enough about the environment and climate changes? What would you like to see done? If we look at all the big challenges before us in terms of the environment and in terms of the crisis that has swept the world in recent years, then we’ll see that they are all “ We’re experiencing a value crisis of economic, social, environmental, “ the planet and promoting sustainable development. We were there to promote the important causes of peace, defense of diversity, the environment and justice. When you are symbolically representing a cause, you should not mistake the symbol for what is being symbolized. What was being symbolized is much bigger than the symbol I was representing by being present there. So, the presence of somebody from Brazil, i.e. Latin America, who has a background in defending the environment and advocating for sustainability served to symbolize the many hands and hearts around the world that fight for the same causes. It is as Victor Hugo said, ‘An idea whose time has come’. and political dimensions intertwined into a civilizing crisis. We’re experiencing a value crisis of economic, social, environmental, and political dimensions. When you stand before a crisis of this magnitude, it’s really hard to affirm that anybody is doing enough. I believe that not a single nation is doing enough or acting to the extent that they ought to; everybody is making some degree of an effort but it’s far from enough. The votes cast at the biodiversity climate conference were insufficient as were the votes cast at other summits such as the Convention to combat Desertification, the Agenda 21 from Rio92, and the implementation of the Earth Charter. Brazil has made valuable contributions throughout the past 20-30 years. We have solid legislation that is the result of work done by a vast number of people, including representatives from civil society. Brazil is a country that has managed to reduce deforestation by 80% thanks to the deforestation program that began being implemented in 2004. It’s a country that possesses more than 70 million hectares of conservation units; in size these units nearly equal the apr/jun 2013 7 “ There are also people in the business community who are committed to this agenda and actually pay a high price for investing Do you think that industries, political leaders and key people are actually taking steps to help the environment and address the climate changes? We cannot make a broad sweeping statement about them all. Some government agencies are making an effort to be proactive. There are also people in the business community who are committed to this agenda and actually pay a high price for investing into changing their production platforms, re-training their employees and putting into practice their concern and commitment to sustainability in their companies. These people are, unfortunately, still the exception rather than the rule, both in Brazil and in the world as a whole. But they exist and I believe that they are like David’s Star. Within this agenda there is yet another group of people who are very concerned with appearing to care 8 apr/jun 2013 “ areas of France and I think Italy put together. This vast area of conservation contains a large social and cultural diversity. Here in Brazil, we still have about 220 different indigenous tribes that speak 180 languages. That is an unimaginable wealth. However, I have to admit that the acts of the new government leave me very worried. Instead of expanding on the strides taken, they are retreating. A clear example of this is the new Brazilian Forestry Code. into changing their production platforms about the environment, but they are in fact mostly concerned about their image. Actually doing something is what makes the difference. What do you think of Fabio Barbosa? He’s a person who’s made a contribution as a businessman, and who today tries to integrate both aspects into his business. Brazil has business people such as Guilherme Leal, Ricardo Young, Fabio Barbosa and so many others that I cannot mention all here. They are the pioneers in terms of this agenda. It’s not possible to single out just one person; it’s an entire group of people who have become references. They were able to create a strong movement that brought the ISO 14 000 certification criteria to Brazil. They really made an effort to make this a reality. In terms of social and environmental responsibility, they founded the Ethos Institute to deal with encouraging companies to adhere to the agenda. Fortunately, Brazil has a business community in which a lot of members concern themselves with environmental issues, e.g. Roberto Klabin, Israel Klabin, etc. They are vital to the agenda as they work towards mobilizing the entire sector to adapt to the necessary changes in environmental and social sustainability standards. You are a former Senator, you’re the former leader of a political party, and you’re held in extremely high regard and known worldwide. What would you recommend that other countries, such as India, the US, China, etc., do to deal with the fact that they have the size to be leaders in terms of environmental action? You have the clout to be able to talk to these people first-hand, to reach their governments and confront these countries about their importance in this struggle. When I was the Minister for Environmental Affairs, I worked closely with a group of countries that were in favor of extending the second commitment round of the Kyoto protocol, i.e. the ratification of the biodiversity convention. Unfortunately, there are still countries such as the United States that politically refrain from adhering to these agreements. Then there are those such as Russia and China that do not outright state that they will not adhere to an agreement, but in practical terms do move in this direction. Other countries within the G 77 group have a very outdated view and do lobby work for the oil industry. So, I do my main advocate work right here in Brazil. We are an industrialized nation and also an agricultural one. We are an oil-producing nation as well. What we need to do is to use the resources that are produced; including the ones from the oil reserves, and invest heavily into creating medium and longterm means of freeing ourselves from our oil dependence. We cannot afford to keep on believing that this source of energy will last forever. It won’t last forever because it’s a limited-supply source, and it cannot be allowed to remain a main source as it leads to the heating of the planet. The developed nations that are emitting carbon levels never seen before need to make an effort to take common responsibility for these emissions. Countries in develop- ment, such as Brazil, India, China, Mexico and South Africa also need to make an effort to this extent. A principle of common, but differentiated responsibility was created with significant help from the Brazilian diplomatic corps. The responsibilities are common, and they are differentiated; that does not mean that we do not hold any responsibility. The great challenge for any nation, whether it is a developed one or one in development, is the change in the model of development. We need to go from a high-carbon to a low-carbon economy. The huge economies are carbon economies that urgently need to undergo profound change. What do you think has been your biggest accomplishment in terms of environmental work? What has been your biggest contribution throughout all the time that you’ve been involved with this issue, both nationally as well as internationally? I think that any contribution that I might have made would not have been possible without the support from the Brazilian so- ciety. It is a society that has broadened its views and its commitment to protecting the environment. Therefore, any undertaking that has been successful, whether it is fighting deforestation to such an extent that there has been an 80% reduction or the 4 billion tons reduction in CO2 emission during the past seven years, is really the result of the awakening of the Brazilian common awareness. Throughout the years, Brazil has managed to create a society that occupies itself with the environmental agenda. What is your opinion about the policies and regulations put forth by the European Union in terms of environment and climate changes? The European Union has made valuable contributions towards numerous environ- mental conventions throughout its history, but perhaps not to the needed extent though. This is especially true when it comes to financing the implementation of the measures on the agenda. The funds allocated have always been inferior to the needed amount. The European Union has always maintained its position that commitments should be made, though. Is it very difficult to promote and invest in programs that deal with climate change in the middle of a financial crisis? Is it going to be even harder to plan and invest into environmentally responsible measures in a scenario of crisis? The fact that I am acknowledging that this is what is happening does not mean that I agree with it. I believe that the environmental crisis is of a much graver dimension than the financial one. If we do not have resources and political priority allocated to solve the environmental problems mediumand long-term, then the efforts spent on solving the financial crisis will be lost, no matter what. We’ll increasingly have to live with catastrophes that will lead to huge Maria Osmarina Marina Silva Vaz de Lima from Acre apr/jun 2013 9 INTERVIEW economic losses and equally big social losses; the investments that are being made will come at a much higher price than if we had made them in anticipation of what will have to be done. I am in utter disagreement with the fact that IMF allocates USD 400 billion towards relieving the ill effects of the financial crisis, yet they cannot raise USD 100 billion for the environmental crisis. You’re Brazilian and you live in Brazil. What are you able to do to teach people about these issues? Brazil will certainly be a pioneer within this scenario which is a cause for great concern for the younger generations. A lot of people are worried about the future, not least because of the environmental problems. The challenge that lies before us requires a massive change. First of all, we need to be very careful not to convey the illusion that any one person or leader can be responsible for promoting this change. A fundamental change such as the one before us that has “ I will continue my fight to defend the environment. I have no longer the illusion that one or two individuals will be able to accomplish this on their own taken on the proportions of a civilizing crisis manifesting itself as profound economic problems, as profound problems in terms of values, and as profound problems within the political scenario where power for the sake of power has become a goal in itself will require the joint efforts of society as a whole. It’s a joint effort that will require the participation of the academic world as well as the business world. It’ll depend on the common citizens, above all the young generation whose members are presently at risk of not having a future at all. I agree 100% with you. You are a very brave person on a mission that you want to accomplish, but at the same time, you have a responsibility as you are an influential person. You cannot do it all by yourself, though, you need a lot of people in different positions around the world to be able to accomplish your work. I think that one of the most critical things in the world right now is discovering how you and other people like you might gain more focus. I think we need people like you, and not Bill Clinton and Al Gore, to grace the covers of Time “ Brazilian Review magazine, Le Monde or Der Spiegel. These media outlets do not seem to place a lot of importance on environmental issues at the present moment. You’re a courageous person that appears to be fearless. What’s in store for you next? I will continue my fight to defend the environment. How is this going to happen? I hope it’ll be in the best possible way. I no longer have the illusion that one or two individuals will be able to accomplish this on their own. I have always said that as long as people consider a problem to be Dilma’s problem or Obama’s problem, it’ll never be solved. This is a problem that belongs to us all. Every time that humanity has stepped up and faced a problem as being a common problem instead of a problem of the leaders circumstantially in power at the moment, real change has taken place as a result. In order to rebuild the countries that were destroyed by WWII, for instance, the governments did help, but what made the difference was that society as a whole was able to raise their heads and start rebuilding. We are, and I insist on repeating it, living through a civilizing crisis that needs 10 apr/jun 2013 Marina Silva and Jens Olesen in Brasília the efforts of everybody at the same time, namely the present moment. There’s no way to transfer or delegate this to corporations or governments. People have got to start acting. It’s like Gandhi said; “You’ve got to be the change that you want to see”. President Lula exercised a lot of influence on the Brazilian people. Now, we have a new president, namely President Dilma. Neither, in my opinion, can be called great environmentalists. They might believe in the cause, but it’s not on top of their list of priorities for Brazil at the moment. You’re probably one of the only people in Brazil capable of changing this attitude. The only way to make a movement successful is to have the support of the people. 21% voted for you in the latest election; next time it might increase to 35%. It’s necessary to make use of the support. I am particularly talking about your influence in Brazil, but the environmental issue is very much on the mind of people in Denmark and Norway. There is still not a single government that is prioritizing the agenda to the extent it should be. Nobody proposes making a change in the present course. In the case of Brazil, as I previously mentioned, we have strived throughout the past 30 years to achieve meaningful conquests, independently of the governments in office, thanks to strong pressure from the Brazilian society. The developing countries suffer from the illusion that they need to copy and repeat the models found in the developed countries. They really insist on it. I say that we do not have to repeat the same mistakes that the developed countries have made. When they were made, people weren’t necessarily aware of the damage they were inflicting on the planet. More than eight years ago, I tried to convince the Nobel Committee in Stockholm to institute a new Nobel Prize based on achievements within climate, environmental and solidarity projects. I wanted to make Copenhagen the global Green City. The Danes were extremely enthusiastic about the project, but the Nobel Committee didn’t even give me a reply. What do you think about this? The Nobel Prize has been awarded to environmentalists in recent times. Wangari Maathai received the Peace Prize as did Al Gore for their work for the environmental agenda. Obviously, the relevance of what you’re proposing in terms of creating higher visibility and credibility for environmental causes would be really great. I believe that when people such as Muhammad Yunus, Wangari Maathai – who unfortunately no longer is among us -, Al Gore and others receive this kind of acknowledgement for their work, the cause receives a lot of due attention. The agenda, however, needs to be present transversally in all sectors. This is an idea that underlies all our actions; it should be embodied in our undertakings. So, for me it makes perfect sense to pay tribute to the environment. When a Nobel Prize is awarded for economic achievements, it’s a prize given for merits within this specific field. It would definitely be a boost to our work if a Nobel Prize was instituted in our field; it would help us as it has helped us in the past when environmentalists have been the recipients of Nobel Prizes. What is your opinion about the new legislation on forests, agriculture and the hydroelectric complex at the Sao Francisco River? In the case of transposition of the Sao Francisco River, this was a decision made by the Lula government. There are those in Brazilian society who state that there is an alternative to this measure. However, the government saw fit to go ahead with the transposition plans. From a regulatory viewpoint, the plans were drawn up according to the existing laws. Curriculum Vitae Maria Osmarina Marina Silva Vaz de Lima February 8, 1958) is a Brazilian •(born environmentalist and politician. Ms. Silva was a colleague of Chico Mendes, who was assassinated for defending the Amazon environment. She was a member of the Worker’s Party (PT) until August 19, 2009 and served as a senator before becoming environmental minister in 2003. In 1996, Ms. Silva won the Goldman Environmental Prize for South & Central America. In 2007, the United Nations Environment Program named her one of the Champions of the Earth and the 2009 Sophie Prize. Running in the 2010 Brazilian elections for the Green Party (PV), she earned 19.4% of the popular votes. she, along with Cécile Du•Inflot,2010, Monica Frassoni, Elizabeth May and Renate Künast, were named by Foreign Policy magazine to its list of top global thinkers, for taking Green mainstream. In 2012 she was one of the eight people chosen to carry the flag into opening ceremony of the London Olympic Games Would you like to leave a message for your admirers in Brazil and around the world? There is an Edgar Morin phrase that I really like. It goes something like this: in the beginning, change is merely a detour; we need to pay attention to which detours we want to help grow. We already know that the detour of unsustainable use of natural resources cannot be allowed to persist and grow as it is a detour that has sacrificed the resources formed during thousands of years in just a few decades. We need to make the detour offering economic, social, and cultural sustainability prosper and understand that this is not merely a way of doing things, it’s a way of being, and it’s a new vision of the world. Marina Silva is in the progress of starting a new political party. JOL apr/jun 2013 11 HRH Princess Marie of Denmark HRH Princess Marie Agathe Odile of Denmark, Countess of Monpezat Early life Marie Cavallier was born in Paris, France. She is the only child of Alain Cavallier and Françoise Grassiot (née Moreau). She moved to Geneva, Switzerland, after her parents divorced. She has four half-brothers, Benjamin and Gregory Grandet, both born in Switzerland, and Charles and Edouard Cavallier, both born in Paris. Education After her parents divorced, Marie was sent to the prestigious Collège Alpin International Beau Soleil boarding school in Switzerland, where members of the Luxembourg ruling house have also studied. She attended Babson College in Wellesley, Massachusetts, for a brief time, to study international business and economics and then went on to study economics in Genève. Marie earned a Bachelor of Arts at Marymount Manhattan College. During her years in college, Marie worked for Estée Lauder, as assistant to the public relations manager in 1994, and as an assistant to the managing director of ING Numismatic Group SA in Genève. After graduating, she started working for DoubleClick Inc, an international advertising agency, in New York as international marketing coordinator. Back in France, she worked for advertising agency Media Marketing. She then worked for Reuters financial news agency Radianz in Switzerland, took a position with her stepfather’s company, REInvest in Geneva and worked as executive secretary in ING Numismatic Group SA until the engagement. Princess Marie’s mother tongue is French. In addition she speaks English, Spanish and Italian. In connection to her wedding with Prince Joachim she started taking lessons in Danish. Courtship Marie first came to public attention when she was photographed on a private holiday in Avignon, France, with Prince Joachim in August 2005. She celebrated the New Year 2006/2007 with HRH Prince Joachim, his former wife, the former Princess Alexandra of Denmark, who now holds the title of Alexandra, Countess of Frederiksborg, their two sons Princes Nikolai and Felix, as well as close friends. In January 2007, Marie accompanied HRH Prince Joachim and his children on a ski holiday in Switzerland. Later that year, Marie joined the royal family for Easter at Marselisborg Palace, where she met The Queen for the first time. Marie increasingly made weekend visits from Geneva to Denmark in 2007. 12 apr/jun 2013 Engagement li, and was sewn by a Danish woman working for the company. On 3 October 2007, it was officially announced that Marie Cavallier was engaged to Prince Joachim. On 21 November 2007, the Royal Court announced that the wedding would be held on 24 May 2008. Children Marriage The wedding took place on 24 May 2008 in Møgeltønder Church. Upon her marriage to Joachim, Marie’s title is Her Royal Highness Princess Marie of Denmark, Countess of Monpezat. Marie, who had been a French citizen and a member of the Roman Catholic Church, became, in connection with the marriage, a Danish citizen and a member of the Evangelical-Lutheran Church of Denmark. Marie’s wedding gown was designed by Spanish-Italian fashion house Arasa Morel- On 10 November 2008, the Danish Royal Court announced that HRH Princess Marie expected the couple’s first child, due in May 2009. Marie gave birth to a son at the Rigshospitalet on 4 May 2009 at 4.57am. The baby’s names, Prince Henrik Carl Joachim Alain, were revealed at his christening, which took place on 26 July 2009 at the Møgeltønder Church. On 24 August 2011, the Royal Court announced that HRH Princess Marie expected the couple’s second child, due in January 2012. On 24 January 2012, HRH Princess Marie gave birth to a daughter. The princess was named at the christening as Athena Marguerite Françoise Marie. HRH Princess Marie is also godmother to Crown Prince Frederik’s and Crown Princess Mary’s younger daughter, Princess Josephine. She is also a godmother to Magali Siesbye, the daughter of Oscar and Britt Davidsen Siesbye, Agathe Anna Steenstrup, daughter of Peter and Henriette Steenstrup, whose son was in turn page boy at HRH Prince Joachim and Marie’s wedding, and most recently, Nicholas Bendtner, son of Caroline Fleming and Danish footballer Nicklas Bendtner. Role as Princess of Denmark Marie started her role as princess of Denmark shortly after her wedding, while attending with her husband events and activities from his patronages. She gave an interview to Danish magazine Billed Bladet, in which she explained that she was apr/jun 2013 13 Titles •6 February 1976 – 24 May 2008: Miss Marie Agathe Odile Cavallier in the process of making a decision on her areas of interest in September 2008 and mentioned her desire to have children. The Princess’ first engagement and trip abroad was to Morocco on 28 October 2008, when she handed out Lego toys to orphanage children in Rabat. After this trip abroad, the Princess accompanied HRH Prince Joachim to Russia. Marie’s first patronage came shortly after her son Prince Henrik of Denmark’s birth, when her patronage of Tønder Festival was announced. Tønder Festival is an international folk music festival near her official residence Shackenborg Manor in Møgeltønder, where the Princess resides with her family. Shortly afterwards, Marie took over one of the Prince Consort’s duties as Patron of the Annual Literature Prize that awards an annual prize for Frenchlanguage literature in Copenhagen. Marie also took the patronage of ambassador to Syddansk Universitet in Odense in September 2009. HRH Princess Marie was presented on 17 November 2009 as patron of “The Danish National Commission for UNESCO. The Princess’ third official trip was to Hong Kong and China together with HRH Prince Joachim in November 2009. •24 May 2008 – present: Her Royal Highness Princess Marie of Denmark, Countess of Monpezat Honours and decorations National honours •Knight of the Order of the Elephant (R.E.) •Commemorative 75th Birthday • • Medal of His Royal Highness the Prince Consort (Em.11.jun.2009.) Commemorative 70th Birthday Medal of Her Majesty The Queen (Em.16.apr.2010.) Commemorative Ruby Jubilee Medal of Her Majesty the Queen (Em.14.jan.2012) Foreign honours •Greece: Grand Cross of the Order of Beneficence In January 2010, the Danish Ski Federation named HRH Princess Marie official patron. In March 2010, Marie undertook her fourth official visit abroad to Mexico City with HRH Prince Joachim. In April 2010, Marie paid a working visit to the UNESCO Headquarters in Paris as patron for the organisation. Leisure and personal life Marie is an avid sportswoman and love skiing with HRH Prince Joachin and the family. JOL 14 apr/jun 2013 apr/jun 2013 15 Interview in Børsen Jan. 3rd 2013 Danish king of refrigeration plays for high stakes in Brazil Per Barke Nevermann wants to give his Brazilian industrial empire the next decisive expansion boost. It will require outside capital though. The most successful Danish businessman in Brazil has an outrageous plan. Per Barke Nevermann has increased the activities of former Sabroe Refrigeration– nowadays known as Danica – on the Brazilian market nearly tenfold since he acquired it in 1998. In spite of innumerous pitfalls, the possibilities in Latin America’s largest economy are still plenty, and the 71-year old refrigeration king is ready to lead his life’s work, whose day-to-day management is carried out by his son Steffen, into the next phase. ‘I have financed everything by myself up until now. We are about to reach a turnover of a billion and want to make our largescaled expansion plans real, so it will soon be time to bring in an outside investor, e.g. a private equity fund,’ says Per Barke Nevermann from the large terrace at his 800 sqm lavish mansion in one of the most prominent neighborhoods in Sao Paulo. Danica Corporation Danica Corporation A/S A/S www. danicacorporation.com www. danicacorporation.com 16 apr/jun 2013 Panels for cold storage warehouses Danica manufactures thermal isolation panels and doors used in cold storage and freezer warehouses, supermarkets, production halls, and lately also in the booming civil construction sector. The common thread is that the panels are easy to assemble and, therefore, easy to install. ‘We were also hit hard by the crisis, but turnover quickly bounced back to above that of 2008. Prices are under pressure though, as there is an overcapacity within the field. A strong private equity fund could help us buy up competitors and harness synergy to ensure greater profitability,’ says Per Barke Nevermann. He operates with three possible scenarios for further developing Danica. The first one entails that Danica continues operating on its own with a lower growth rate than the projected one. The second foresees a merger with a small-scale competitor that would result in a turnover of about DKK 1.5 billion, whereas the third possibility is a merger with a company the size of Danica or, perhaps, even bigger. The third scenario could possibly lead to the company going public, thus becoming quoted on the stock exchange. Likely stock exchange candidate “If I hadn’t purchased this place, we wouldn’t have stayed on in Brazil. It’s paramount that the family feels safe,” says Per Barke Nevermann who’s here depicted in front of his Brazilian home in Sao Paulo. ‘It is not important for me or Steffen to maintain control. We both think as financial investors. If Danica undergoes a sudden expansion, we do not intend to stand in the way of its development,” says Per Barke Nevermann. Intense negotiations He has already proved this once, as he was in advanced negotiations about a partial sale with one of the world’s largest steel manufacturers, Arcelor Mittal, right before the 2008 financial crisis struck. The negotiations didn’t result in a concrete offer, but they gave a strong indication of the interest that the European-based rivals that sell all over the world except in Brazil, i.e. Thyssen, Kingspan and Corus, have in buying Danica. Per Barke Nevermann does not want to expand further upon the subject of bringing outside equity into the company beyond stating that a resolution will be forthcoming in 2013. The firm KPMG was hired in August of 2010 to assess the possibility of consolidating the thermal isolation line of business. The most obvious companies Danica has an interest in buying are the number two and number three on the market, i.e. the family-owned Isoeste and MBP. Number four and five on the market ran into trouble and are now controlled by an American licensor and the big Brazilian steel manufacturer Usiminas respectively. F A C T The prospect of Danica going public is seen as likely, but for that to happen the company has to increase and, more importantly, the Brazilian stockholding culture has to mature. ‘The company might be a candidate for the stock exchange in 2-5 years from now. For that to happen though, private investors need to gain importance on the Brazilian stock exchange so that the listings will decrease in size,’ says Fabio Nazari, director of Capital Equity Markets in BTG Pactual, Brazil’s most successful investment bank. No matter the outcome, Per Barke Nevermann’s achievements have been duly noted in Danish business circles in Brazil. ‘Per Nevermann has done tremendously well and is one of the few Danes who have created a career for himself as well as places of work for a lot of other people,” says Jens Olesen, Brazil-veteran and Chairman of the Danish-Brazilian Chamber of Commerce. •Per Barke Nevermann purchased the Latin American operations of Sabroe Refrigeration in 1998; henceforth known as Danica. •Manufactures more than 3 million SQM of thermal isolation panels and 25,000 doors annually. •Has four factories in Brazil, one in Chile and one in Mexico. •Is market leader in Brazil with a market S H E E T share of 20%. •While growth has traditionally been generated by sales for cold storage warehouses, supermarkets, and production halls, residential projects are expected to become a big segment in the future. •Owned by Per Barke Nevermann and family with a Danish holding group on top. apr/jun 2013 17 The Danica Corporation Advice from Per Barke Nevermann, owner of the cold storage company Danica Corporation Bigger is better •Think big to obtain success in Brazil. •“Small is beautiful” does not hold true here. Do not compare with Denmark •Accept the difficult work conditions in Brazil. Do not criticize Brazil, and find people who are able to deal with the conditions. Expertise comes at a price •Great Brazilian leaders come at a high cost. If the boss back home in Denmark becomes jealous, then ask him to swap places with his Brazilian counterpart. Leaders can often successfully be recruited from within the company. Be visible •Aim at increased productivity constantly. There are plenty of buzz words but in the end, it’s all about the results. Be present •Send the most senior leader to Brazil. The intuitive feeling of what needs to be done has to be rooted in the very top. 18 apr/jun 2013 Scan pix way Danica is going to deliver housing for 7,600 workers in connection with the construction of the world’s third-largest dam complex, Belo Monte, in Northern Brazil. The order has a value of DKK 165 million Brazilian government loans behind Danica’s expansion The Danish refrigeration success has come at a cost. The Danica Group carries a net debt load of DKK 300 million. That does perhaps not sound like a lot, but it is four or five times the operating profit (EBITDA). Moreover, the interest rates for the most creditworthy companies run at 1 or 2 percent a month and the entire earnings are therefore eaten up. If this scenario were playing out in Denmark, the warning bells would be sounding at highest volume. Owner Per Barke Nevermann shakes his head at the comparison though, and reveals the secret behind debt-financed expansion in Brazil: low-interest government loans. ‘If we hadn’t received low-cost government loans and tax subsidies to finance the transition to new technologies, then Danica would have looked very different today. It’s accurate to say that government loans are financing our growth. It couldn’t be different though; our competitors’ growth is also backed by government loans’, says Per Barke Nevermann. Changing to long-term loans He tells that Danica is undergoing a large-scaled refinancing process through which short-term loans will be replaced with long-term ones, particularly government loans which will reduce interest payment. Furthermore, one third of the operating profits, which amounts to approx. two or three percent of the total turnover, is generated by tax breaks such as VAT exemptions. ‘We believe that we are equipped to take advantage of the opportunities for growth that we encounter. If they didn’t exist, and we just had to trim, then we could pay off our debts in five years. It is our assessment though that we will generate more worth by expanding,’ says Nevermann. He is ready for the first phase of a generational shift which will bestow 10% of the company to each of his three children, Steffen, Tine and Nikolas. ‘Everything is done and ready. We cannot outright give them the stock so they have to obtain loans. We are waiting for the optimal moment; the currency risk is a factor in determining when that’ll be,’ says Per Barke Nevermann. Søren Linding, Sao Paulo Børsen - Jan 3rd 2013 apr/jun 2013 19 Upon its 100th anniversary in Brazil, Maersk invests USD 2 billion in the country The Danish company which came to Brazil in 1912 is having 16 vessels for local operations built and requests less bureaucracy. Interview in Exame.com 20 apr/jun 2013 Sao Paulo - The Danish Maersk Line company, the largest maritime transport company in the world, came to Brazil exactly 100 years ago when its ship Laura Maersk first anchored here. From then on, things have changed radically, both for the country and for the company. International commerce has increased manifold and Maersk has seen bulk freight of wood and charcoal substituted by containers loaded with minerals, grain and soy. “Small producers of commodities were for years forced to transport their goods aboard chartered vessels or ships belonging to the big global commodity producers. This completely curtailed their abilities to explore and open new markets because the goods were all sent to the main harbors, such as the Rotterdam one”, affirms Peter Gyde, CEO of Maersk Line in Brazil. According to Mr. Gyde, the current scenario is another altogether; the fact that containers are now used has led to the viability of new commercial contacts through door-to-door transport of goods. With weights of up to 30 tons, these containers can be loaded in less than five minutes. Today, Maersk is responsible for the import of a great deal of the Asian cars that arrive in the country, e.g. Hyundai and Kia vehicles. Among the company’s other clients are large-scale exporters of beef, chicken and soy. Electronics, fruit, cotton and coffee also cross the oceans aboard the company’s vessels. Although present in the country for one hundred years, Maersk still sees plenty of room for growth. Today, the company detains 15% of the Latin American container transport market. As part of its plan to expand operations, the company will launch two new SAMMAX (South American Maximum) vessels by March and will thereby have completed the delivery of 16 new vessels projected to be the biggest ones to enter Brazilian harbors safely. In an interview with EXAME.com, the commercial director of Maersk, Mario Veraldo, talks about what this will mean for the global operations of the company. EXAME – The company invested USD 2.2 billion in the construction of 16 vessels to be used here in Brazil, two of which are still to be delivered. When will they effectively be put into operation? Mario Veraldo – We will put them to work in the middle of the year. This investment is a clear indication of just how much Maersk believes in Brazil. One of the things the company has done is help the big beef and chicken producers increase the number of markets they operate in. Therefore, we needed vessels with a lot of outlets for refrigerated containers. They are not ordinary vessels; they are vessels custom-built for the Brazilian coast. EXAME - Is the infrastructure of Brazil still a bottleneck for business development? Veraldo - There has been a lot of talk about the terminal issue, but other investments also need to be made, both within the harbors and in terms of logistic infrastructure (in Brazil, Maersk has already destined USD 450 million for the Santos terminal). There is also the major issue of bureaucracy. The more containers you bring in, the more pressure you apply to land infrastructure. You need to be able to unload these containers rapidly; that is not what is happening today, though. Laura Maersk arrived in Brazil in 1913, wood and coal were transported in bulk EXAME –The biggest Maersk vessel in operation in Brazil has the capacity of 7,450 Teus (a unit of measure that equals a 20-foot container). The company has vessels with capacity of up to 18,000 Teus. Are there any plans to bring these huge vessels to Brazil? Veraldo – In spite of the vision of promoting growth in the country, bringing in a vessel of that size could very well prove counterproductive. The necessary investment into doing so would be enormous. Moving a vessel like this around requires meticulous planning during years. If we look at the present conditions in Brazil, then it becomes clear that the vessels in use today are the ideal sizes. What we actually need is less bureaucracy. Veraldo – Considering the size of the investment that was made, it is obvious that Brazil is very important. We operate 500,000 Teus a year in Brazil; this gives an idea of the magnitude of the business we do here. EXAME - What has the shift from bulk freight vessels to container vessels meant for you? Veraldo - It showcases Brazil’s evolution on the international market. It also showcases to what extent we want to increase our size within this market. What we see today is that the Brazilian exporters of soy, mineral, meat, etc. need to gain access to markets where they have never done business before. A practical example is that we today have containers with fertilizers arriving from Russia which are destined for the inland regions. These same containers later leave with soy for China. “ This investment is a clear indication of just how much Maersk believes in Brazil “ EXAME – How important is Brazil in terms of the company’s global operations? Marcela Ayres, Exame.com apr/jun 2013 21 Do it right, do it safely Maersk Oil adopted the Incident-Free Program to transform the company’s safety culture and performance in two ways: the first one focuses on the personal aspects of safety, to create a culture where it can be incident-free (Leading Safety) and another one which deals with the technical processes that need to get right in order to be incident-free (Process Safety). In such an environment, safety is valuebased, as well as priority-based. Maersk Oil believes that safety does not compete with personal or organizational priorities. Doing something safely is recognized as an inseparable element of “doing it right”, just as much as efficiency, quality, productivity, environmental and social responsibility, or any other criteria of excellence. Maersk Oil is an international oil and gas company and part of the Danish A.P. Moller – Maersk Group, a large international conglomerate, which operates in over 130 countries. The Group employs roughly 117,000 people in the world. Turning marginal and challenging fields into commercial successes has been a cornerstone of Maersk Oil’s business since the company was founded. This oil company was established in 1962 after the group was awarded a concession for exploration and production in Denmark. The company is independent and operates about 625,000 22 apr/jun 2013 barrels of oil equivalent per day (bopd) in Denmark, Qatar, UK, Kazakhstan, Brazil and Algeria. Exploration activities are ongoing in Angola, Norway, the US Gulf of Mexico, and Greenland and in the producing countries. Through innovative technologies that have made the company one of the global players in E & P, Maersk Oil can transform projects that few companies want to deal with into commercial successes. It has tradition in solving problems creatively, mainly as a consequence of the experience gained in the North Sea, and it is also very recognized for maximizing oil recovery in mature regions. Maersk Oil also offers a powerful proposition for professionals who wish to be at the forefront of global challenges, technologies and innovation in the oil and gas industry. The company has a culturally diverse, stimulating environment where its employees are empowered and supported to make valuable contributions. Technology is our competitive advantage Developing new technologies is a main Maersk Oil differential. The company develops groundbreaking technologies and uses these technologies abroad to become a truly global player in the upstream business. The company focuses on these pioneering technologies and on harnessing talent to continue to operate safely and successfully, creating value for partners and host governments. This tradition of creative problem solving and innovation is part of the company´s experience with the challenging conditions of the North Sea. Together with its technical focus, Maersk Oil has patented dozens of methods that have helped to improve the development of difficult and marginal reservoirs. It has also developed and mastered horizontal well drilling, giving unprecedented access to oil in thinly-spread tight reservoirs. From 1994 to 2010, the company broke old and set new world records for drilling the longest horizontal wells. The last Maersk Oil record stood at 12.3 kilometers in Qatar. It is researching biotechnological solutions to the challenges of mature field operations. And it has turned to nanotechnology to better explain our chalk reservoirs and find a way of increasing oil recovery. Brazil is core for Maersk Oil In Brazil since 2001, Maersk Oil brings to the country more than 40 years of experience and innovation in the exploration and production of the North Sea´s offshore oil, considered one of the world’s most difficult regions. The company has participated in four bid rounds and it acquired its first block in 2001 in the 3rd bid round . In December 2010 Maersk Oil enjoyed important growth in Brazil with the acquisition of SK do Brasil Ltda. for USD 2.4 billion. It comprised three blocks: BM-C-08 which includes the Polvo Field (40% share, BP operated), BM-C-030 which includes the Wahoo discovery (20% share, operated by Anadarko) and BM-C032 which includes the Itaipu discovery (27% share, operated by BP). The acquisition gave Maersk Oil access to sizeable pre-salt assets offshore Brazil, one of the most prolific regions in the world for oil exploration and production. It offered immediate production and significant growth potential. The acquisition transformed Brazil into a core country for Maersk Oil and it will strengthen its position in deepwater exploration and production, an area where it has acquired acreage and built strong competencies in recent years. For Maersk Oil, Brazil is one of the best regions in the world for exploration and production of oil and gas, with an attractive combination of government take and technical risk. The company is looking at further opportunities for growth, whether organic (bid rounds) or through acquisitions. The Maersk Oil competitive advantage is to be financially supported by a large group with a very strong balance sheet. Currently Maersk Oil’s assets in the country include: 40% in block BM-C-08 (Polvo field – 8,000 bopd share), 20% in block BM-C-030, 27% in block BM-C-032, 20% in block BM-C-34, 30% in block BM-C-37 and 30% in block BM-C-38. Projects in Brazil Maersk Oil Brasil has invested over half a million dollars in a research project on sandstone reservoirs in the Campos Basin. The project’s goal is the study of sandstone reservoirs, which are significant components of oil bearing rock intervals, similar to the reservoirs in Polvo, Peregrino, PapaTerra and Maromba fields, among others in the Campos Basin. Investment in research is fundamental to the technological advancement of the oil and gas industry. Training students and facilitating their contact with the industry is another key goal of the project. It will improve knowledge of one of the main reservoirs in the Southwest part of the Campos Basin, where Maersk Oil has two exploration blocks, BM-C-37 and BM-C-38, as well as the Polvo field. Maersk Oil Brasil also supports an initiative for disseminating geology knowledge at some schools of Rio de Janeiro which aims to attract new students to be geologists in the future. This project, called Tomorrow’s Geologists, is developed by the Brazilian Petroleum Geologists Association (ABGP) with The Geosciences Institute of Rio de Janeiro University (UFRJ) and to implement it the institution will buy and transform a bus into a “laboratory-on-wheels” to circulate among public schools. There is a Geology Museum that is the basis for the project within the university. Not less important Maersk Oil Brasil has Social Investments in Rio de Janeiro. The purpose is to contribute to social inclusion development initiatives, such as education and training, health and safety, economy development and environmental protection. Curriculum Vitae Luis Costa •2010 – Managing Director of Maersk Oil in Brazil. • 2009-2010 – Maersk Oil Houston • 2005-2009 – Worked El Paso E&P in Houston • 1997-2005 – Worked in Chevron • Luis has both Portuguese and US citizenship; he holds a degree in Physics (Portugal), a Master’s degree in Petroleum Engineering (HeriotWatt, UK), an MBA (INSEAD, France) and has completed the Program for Leadership Development at Harvard Business School. Maersk Oil Brasil Rua Humaitá, 275 – 7o andar 22261-005 – Rio de Janeiro – RJ – Brazil Telephone: +55 (21) 3032 2700 Fax: +55 (21) 2556 6172 www.maerskoil.com Maersk Oil apr/jun 2013 23 Profile for Brazil Radiometer is a leading provider of technologically advanced acute care solutions that simplify and automate all phases of acute care testing. Radiometer offers solutions for blood gas analysis, transcutaneous monitoring and immunoassay testing for cardiac, coagulation, and infection and pregnancy markers. By providing fast and accurate acute diagnostic results, healthcare professionals can make immediate and well-informed decisions that enable them to improve patient care and optimize patient flow in all acute care settings – intensive care units (ICUs), emergency departments (EDs) and operating rooms (ORs). Founded in 1935 and headquartered in Copenhagen, Denmark, Radiometer was a pioneer in blood gas testing, introducing the world’s first commercially available blood gas analyzer in 1954. Radiometer’s products and services are available in more than 100 countries around the world through wholly-owned subsidiaries and approved distributors. Radiometer has been represented in Brazil by the company Biodina since the 1970’s and technical service and application support is available in all Brazilian states. Clients include some of the country’s best hospitals. The Latin American region is managed from the Radiometer representative office in Mexico and its regional sales director Michael Mortensen. Radiometer 24 apr/jun 2013 apr/jun 2013 25 Washington Botelho CEO of ISS Facility Services How old is the company? ISS was founded in Copenhagen, Denmark in 1901 as a small security company, so it’s been operating for 111 years. Today, it’s one of the leading global companies within outsourced services. ISS came to Brazil in 1973 when it bought up a company called Continental. At first, the Brazilian division only dealt with cleaning services. Throughout the years though, we have taken over companies from other segments and have thus expanded our range of services. Nowadays, we serve the entire Brazilian territory. ISS now offers services within the areas of industrial, building and road service maintenance, pest control and landscaping as well as logistics and administrative support. During its first 40 years operating on the Brazilian market, the number of employees in ISS has risen from 700 to 20,000. What makes your company stand apart within its segment? We work with integrated facility solutions. We have perfected the services rendered to our clients who save money and time by having us execute the tasks instead of trying to do them themselves. They are able to focus on their own business instead of having to deal with areas that are peripheral to their company activities. We adapt the solutions offered to match the needs of each client, we offer constant training to our employees, and we have a round-theclock emergency service available. Washington Botelho, CEO - ISS Facility Services 26 apr/jun 2013 We have a concentrated client portfolio, we hold our clients harmless during the initial stages of labor-related lawsuits, and we contribute to creating better synergy which in turn leads to increased production and reduced costs. What are your main products and services? ISS outsources services within general and specialized cleaning, landscaping and pest control, administrative support, reception, call center, help desk, catering, industrial maintenance, utility operations, route maintenance of no-breaks, air-conditioning, electric systems, hydraulic systems, civil construction, predictive area, carpentry, masonry, illumination, and logistics. What personnel management practices of have you adopted, and what incentive policies do you offer your employees? ISS is a company that focuses on people, internal leadership principles and ethical values. We thoroughly train our employees at all levels and strive to motivate our staff while making sure that this management style is in line with the objectives and commercial strategy of the group. We focus on five basic areas: employee commitment, promotion plans, talent management, performance management, and leadership development. What does ISS consider to be the most important aspect of its relationship with customers? Our relationship with customers is based on honesty, openness, responsibility, quality, and innovation. We aim at promoting partnerships which give our clients ease of mind and generate trust in the services rendered; our goal is to have every client satisfied by offering them the most efficient services at a reduced cost. How does ISS interact with HR professionals within customer companies? The HR staff is in fact our direct contacts in many customer companies, either because they are the ones in charge of hiring outsourced services or because they are the operational managers of the services we render. There is also a relationship that evolves from dealing with issues regarding staff management, labor matters, workplace safety, occupational health, incentive programs, productivity, quality management, integration with other departments within the customer companies, indicator management, satisfaction surveys, job profile definitions, etc; all of which require negotiation of transitional contracts or even outsourcing of in-house resources to the service-rendering company. The 2008-2009 financial crisis helped boost outsourced facility services. What actually happens at times like these is that companies reduce fixed costs by changing them into variable costs through the act of outsourcing services. By doing so there is also a reduction in labor-related liabilities and other indirect costs. Another factor that contributed a great deal to the increase “ Our relationship with customers is based on honesty, openness, responsibility, quality, and innovation “ Has there been an increase in demand for support services such as facility maintenance, cleaning, reception, landscaping, and industrial maintenance? If so, in which industries has this increase been seen, and what has caused it? apr/jun 2013 27 What improvements have occurred in your segment, and which advances have there been in this area? The segment of facility services in Brazil has matured considerably the past few years, thus following the international trend of subcontracting business procedures. Those hiring services have begun to recognize the relevance of our services and are making use of the strategy of outsourcing. Moreover, there is a tendency to outsource the management of a company’s facilities, not only the direct execution of support services. Companies have become aware of the importance of specialized management of support services, even the peripheral ones, due to the critical nature of operations such as building maintenance, utility maintenance, technical cleaning, urban pest control, logistics, etc. Which services and products in the segment of support services are more commonly hired by companies? Technical and conventional cleaning services are among the most utilized services, followed by services connected with the premises which entail industrial maintenance, utility-related operations, building maintenance, pest control and landscaping 28 apr/jun 2013 “ Facility services in Brazil has matured, thus following the international trend of subcontracting business procedures “ in business was the arrival of new international companies on the market, foreign investments, investments in industrial regions, and the increase in business capacity of the North, Northeastern and CentralWestern regions of Brazil. What area does ISS invest most in to improve the quality of its services? We are considered pioneers today in terms of innovation within the service industry; we bring incomparable expertise due to our international experience. We work with people, and therefore we need to invest in our most important element, i.e. our employees. We carry out constant training with emphasis on recycling technical knowledge and developing positive attitudes to ensure greater commitment to the job. We are implementing the Centers of Excellence in Services model which ISS already runs in more mature markets, such as Europe, North America, and Pacific Asia (Japan). In addition, ISS focuses on bringing management tools, redesigning procedures and incorporating technology with management software and innovating procedures in line with top-notch equipment and eco-efficient chemical products. What will the company invest into this year, and how large is this investment going to be? This year ISS Brazil is going to invest around BRL 10 million in software, process redesign, Centers of Excellence and top-notch equipment. This investment will revolutionize management and lead to an expressive increase of quality for the end consumer. What are the future challenges and the perspective of growth for ISS? The greatest challenge of all is to ensure the alignment of the entire organization. We are aware that due to our size and the complexity of the service segment in a volatile and ever-increasingly competitive macroeconomic scenario like the present one, the stability of working with a landmark company such as ISS represents the assurance of long-lasting partnerships and mutual gains throughout the chain of value established with our clients, shareholders, and staff. We will strive to deliver integrated facility services and facility management in a consistent way by aligning our back office structure with our frontline professionals, constantly training our team, being close to our customers and seeing to their demands in terms of partnership consolidation and expansion strategies all over Brazil. In addition, we are committed to ensuring that ISS always delivers the highest level solutions with the best possible economic benefits for our clients. We will increase our efforts in the company’s existing Centers of Excellence and share the most efficient practices as a global company. We will improve and enhance our systems and procedures to deliver consistent levels of services in the different locations where we are operate by improving in-house proce- dures, thus strengthening our trademark and corporative image. X-ray of the Company: Company’s foundation / Main activities / Number of employees / Segment / Location (headquarters and branches) / Number of clients Founded in Denmark in 1901, ISS is a service-rendering multinational company currently present in 60 countries. The company has over 540,000 employees all over the world, 22,000 of whom work in Brazil. According to the 2011 rank compiled by the International Association of Outsourced Professionals (IAOP), ISS is today the second-best outsourced service company in the world, and the fourth biggest employer in the world (Duns & Bradstreet). Present in Brazil since 1973, ISS offers fixed and mobile infrastructure maintenance services, industrial maintenance, logistics, cleaning, and support and technology services. In Brazil, ISS is present in Sao Paulo city, São José dos Campos, Valinhos, Rio de Janeiro, and Curitiba. Worldwide, ISS is found in Europe, North America, Latin America, Asia, and the South Pacific. ISS Facility Services apr/jun 2013 29 Vestas is expanding their activities in Brazil Vestas has been present in Brazil for more than a decade. Based on expected commercial activities in the Brazilian market, Vestas established its headquarters in Sao Paulo in 2008. The headquarters manages all sales, operations and maintenance activities. The headquarters in Sao Paulo, our manufacturing facilities and training center in Fortaleza, and the services operations center in Natal allow us to remain close to our customers and better understand their needs and provide adequate customer service at all stages of a wind farm project. 30 apr/jun 2013 Specialized in the planning, installation, operations and service of wind power plants, Vestas Brazil supports customers in the selection and design of new wind power producing plants, in the execution of electrical works, installation and commissioning, and- in providing assistance and maintenance once the plant is up and running. By offering complete solutions for wind power plants, we act as a strategic business partner covering the entire wind project life cycle, minimizing our customers’ risks and increasing their return on investment. Vestas has reached the mark of383 MW capacity delivered accumulated Brazilian Market, of which 222MW are in full operation and 161MW are being commissioned. This represents a total of 202 wind turbines. Throughout the Latin American region Brazil is the country where Vestas currently has the largest wind capacity delivered, followed by the Mexican market with 132 MW. Among Vestas’ biggest projects in Brazil are Ventos de Sao Miguel and Renascença I, II, III and IV located in Rio Grande do Norte, which total 150 MW. Energisa, Olho D’agua, Sao Bento do Norte and Farol and Boa Vista, total 80 MW with Galvão located in the same area. At the end of 2011, Vestas established an assembly facility dedicated to the assembly of hubs in Fortaleza in the State of Ceará and is currently in operations to satisfy the needs of the project pipeline in Brazil. Vestas has also established a new operations cluster in Natal dedicated to service and maintenance activities, training, spare parts management and supply chain activities. At the same time, the levels of commercial activities in the country have resulted in a significant contribution to the development of the local supply chain consisting of a specialized network of sub-suppliers delivering products and services in different stages of plant development wind. One of the main goals of Vestas in Brazil is helping to create the right conditions to develop wind energy in the country as an excellent complement to hydropower that can play an important role in the diversification of the Brazilian energy matrix. To enhance the benefits of wind energy and to guide integration of wind energy, Vestas has a regular dialogue with key players across the country. Vestas is committed to the Brazilian wind energy market and to supporting our customers in their business there. The country has very good wind resources, and the government has shown a commitment to diversifying the country’s current energy mix, while at the same time supporting the creation of full highly technological value chain in the country. Currently the world’s sixth largest economy, Brazil is undergoing a boom which leads to an increase in energy demand and relatively high dependence on a single energy source, hydro. The country’s economic long-term perspective, stable economy, natural resources and good business relations with other Latin American countries make Brazil a good place for investments attracting both local and foreign companies. This creates good opportunities to expand wind energy’s contribution to the diversification of the energy supply. Moreover, what has happened during the latest years in Brazil, just like in several other markets, is that wind energy has become a very interesting market segment for current energy players and newcomers with good perspectives and reasonable returns. Wind energy is no longer an “alternative”, but an energy source which is becoming on par with other more traditional energy sources, such as oil and gas. Vestas’ thirty years of experience as a pure player have provided us with solid technical expertise across the entire lifecycle of the power plant, extensive knowledge of emerging markets, an unmatched service track record and overall service performance that allow us to provide customers around the world with business case certainty and clear added value. Vestas do Brasil Curriculum Vitae Paulo Fernando Soares •Paulo Fernando Soares has joined Vestas Brazil in Nov 2012, as the General Manager of the Brazilian Operations. Vestas Brazil has its HQ in São Paulo, a Manufacturing Plant in Fortaleza and the Operation & Maintenance Center in Natal. With more than 900MW in installation and orders, Vestas is one of the market leaders in Brazil wind business. •From Apr 2010 to Oct 2012, Paulo was Group CEO of Kenersys Energy GmbH, a company dedicated to the manufacturing of Wind Turbines located in germany and with operations in Europe, USA and India. Paulo had global business responsibility •From Jul 2005 to Mar 2010, Paulo was CEO of Suzlon China in Beijing, where he has established and developed Suzlon business from the startup phase to a full fledged company, with a factory established in Tianjin with capacity to manufacture 600 MW/year, and with offices in Beijing. apr/jun 2013 31 AVK strengthens its position in Brazil AVK was founded in 1941 by Aage Valdemar Kjær - hence the name AVK - and began as a small machine shop in Galten in Denmark doing plumbing work and producing compressors for refrigeration. In 1970 the machine shop was taken over by his son and present owner Niels Aage Kjær who began by developing a resilient seated gate valve destined for the water supply sector. The first series of valves produced by AVK was an important invention that revolutionised the company and formed the basis of the AVK that we know today. Over time AVK expanded the production to also include hydrants, fittings and accessories. AVK of today Today AVK has grown into an international group of companies. More than 3000 dedicated employees worldwide - of which approximately 750 are located in Denmark - are doing their utmost to ensure that AVK remains one of the world’s leading manufacturers of valves, hydrants, fittings and accessories for water, gas, wastewater treatment and fire protection applications. AVK has also built up strong brands supplying valves and controls for water treatment, dams & reservoirs, HVAC, chemical processing, marine and other industrial sectors. As a result of AVK’s expansion into these business areas a new business unit, AVK Industrial Valves, was formed in 2012. The companies in AVK Industrial Valves offer comprehensive product ranges and advanced technologies under their own strong brand names such as Orbinox, InterApp, Flonidan, Wouter Witzel and Glenfield. AVK Headquarters in Galten, Denmark. 32 apr/jun 2013 AVK is dedicated to offer new innovative products and service of high quality. A total of approximately 70 manufacturing and sales companies supplies more than 85 countries with products and services. This global network permits close cooperation with our customers and end users. We act with individualized designs and system solutions enabling us to pay attention to local values, standards and regulations and thus ensuring a high level of service and customer satisfaction. We believe that staying close to our customers is crucial for the continued development of AVK; it is our customers who can provide us with valuable market and product feedback. Also, we believe it is a benefit for both our customers as well as for AVK that we are local but at the same time able to offer the support of a worldwide organisation. Quality, innovation and sustainability There is an ever increasing demand for even higher quality and innovation. At AVK we are very dedicated to be top of the line in both quality and innovation. AVK products are made in modern factories using high technology, computerized machining centres, and robots for precision and uniformity. Many years of experience and use of state-of-the-art technology for machining, coating, assembling, testing, and handling have resulted in top quality products that comply with the most common national and international standards and holds the major national approvals. Besides aiming to offer new innovative products as well as products and services of high quality we always keep the safety of our environment in mind. Our products are part of solutions used among other things for reducing water consumption and water pollution, minimising waste of potable water, cleaning and recycling wastewater for irrigation and for transportation of water from reservoirs and lakes to populations where water is scarce. AVK also keeps focus on the environment in our production. We have outlined a number of very strict objectives for the production companies within our group as far as electricity and water consumption are concerned. Also our efforts to preserve our planet for future generations can be seen in our choice of material, in our production processes as well as the way we approach the market with our mind-set and our technologies. It is not only within the AVK Group that we focus on the environment. When In the showlab at the AVK headquarters customers are invited to work with the products looking for partners we also seek ones with very high standards. We expect our partners to adhere to the same standards as we do. AVK in Brazil AVK began in Brazil about 20 years ago. The beginning of the Brazilian adventure started with agreements with local manufacturers who agreed to sell our products as supplement to their own, but in 2008 we decided to establish our own sales company and found a good location in Indaiatuba in the state of Sao Paulo. Today there are 10 dedicated employees at AVK Válvulas do Brasil Ltda. They form a team of professionals that among others work closely with leading public water and wastewater companies such as Sabesp, Sanepar, Embasa, Corsan etc. In order to further develop our business in Brazil and because of an understanding that Brazil puts more and more restrictions on imported goods we have decided to open our own factory. The year 2013 therefore holds an expansion for AVK in Brazil. We will find a good location in Indaiatuba and start building a factory of initially about 4-5000 m2 expected to be ready for production within the year. With our own factory located in Brazil we will be able to produce and stock the most common valves on the Brazilian market. This has great influence on our delivery performance, making us able to deliver requested valves within a short period of time. We believe this will be of direct benefit not only to our Brazilian customers but to all of our customers in the countries of South America. AVK apr/jun 2013 33 Hydro Alumínio Acro 15 years in Brazil Ivar Venås, Managing Director About Hydro’s Extrusion Operations in Brazil Tell us a little about Hydro’s Operation in Itu; Hydro started extrusion operations in Brazil in December 97 motivated by the need of Automotive customers for Specialty Tubing products as well as a desire to grow in emerging markets. Actually, on December 5th Hydro Alumínio Acro marked it’s 15 year anniversary. It started out with the acquisition of a local company operating two small extrusion presses. Today the plant today operate three extrusion lines whereof one is dedicated to automotive, (Precision Tubing), a fabrication unit, as well as well as a 17.000 ton/year aluminium recycling facility. The installation of a fourth extrusion line is the final stage. With this NOK 300 million investment, capacity will be significantly increased. The investment will also provide capabilities to enter market segments where Hydro is unable to supply today. 34 apr/jun 2013 Where do your products end up and who are your customers? Roughly 50% of the production ends up in the Building and Construction Segment, 25% in automotive applications and another 25% in other industrial applications. We count on the collaboration of approximately 500 employees. Most are based at our plant in Itu, but we also have a sales office in Rio de Janeiro. Hydro Aluminio Acro is a business to business company, meaning we sell no products directly to the end user. Since 2005 it has been a clear strategic objective to increase the number of customers to ensure a more robust business. As a result, Hydro Alumínio Acro today can count with more than 400 active customers spread over a large number of different business segments. How is Hydro organized in Brazil, and how does the extrusion company in Itu fit in? Hydro is organized into divisions according to position within Hydro’s value chain and not geographical location. The divisions are “Energy” based in Oslo, “Bauxite and Alumina” with head offices in Rio de Janeiro, “Primary Metal” with head office in Oslo, “Rolled Products” based in Germany, and “Extruded Products” based in Lausanne Switzerland. Bauxite and Alumina, Primary Metals and Extruded products all have industrial operations in Brazil. In addition Rolled Products has a sales office in Sao Paulo. There is no central organization for Hydro in Brazil. The extrusion operation in Itu – SP belongs to “Extruded Products” and report to Switzerland. I realize this sometime create confusion about who “in charge” of Hydro in Brazil, but for the operations this is very clear. What is the size of the operation in Itu in financial terms? In a global Hydro context it is evidently quite small. 2011 operating revenues and income was approximately R$ 360 million, (~NOK 1,1 billion). That compares to NOK 97,4 billion for the group as a whole. When you look back at some 15 years of operation in Brazil, what have been the major challenges? When it comes to Aluminium Extrusion, Hydro’s home turf clearly is Europe. It is therefore natural that we started building up the business more or less the same way we do in Europe. However, Brazil is not the same as Europe, and some of this we have learnt the hard way. The existence of some disloyal competition in Brazil was no surprise. Hydro had been operating extrusion operations serving building and construction markets all over Europe and in many other parts of the world for a number of years and has always managed to compete the “Hydro Way” despite local competition “not playing by the book”. Still the extent of disloyal competition, with well over 100 family owned extrusion companies, has been quite overwhelming. This has only emphasized the need for a clear differentiation strategy, and more so than for most of our European sister companies. Tax legislation has been and still is a challenge. The extreme complexity, coupled with constant changes and conflicting rules and interpretations at municipal, state and federal level not only represent a significant work load, but also risk and unnecessary legal expenses. Adding to this a legal system that take ages to reach final conclusions, any international company starting business in Brazil to likely to face some unpleasant surprises. You mention differentiation strategies, what do you differentiate on? Hydro’s typical extrusion companies in Europe extrude custom shapes for their customers. They rarely have proprietary rights to products, but often provide design services and other added value activities. They differentiate on quality, lead time, and on time delivery. Customers in general stay loyal for years. In Brazil, we have found that his does not hold true. Customer loyalty takes long to develop, and customers in general are quicker to change supplier motivated by even small price differences. Good personal relationships seem to play a more important role in Brazil. Frequent face to face meetings with key customers is therefore important. In addition, Hydro’s extrusion plant in Brazil has over the years developed an extensive catalogue of product solutions in particular for the Building and Construction industry. These are documented solutions tested and certified by independent laboratories. Today Hydro is a leading supplier of systems for aluminium doors, windows and building facades in Brazil. This has been a key factor to differentiate the company form the local competitors. Further we have taken steps to be the best in short lead times. In a country where most building projects are delayed, this has also been a factor of significant importance to our customers. What about people, are you able to fine qualified people to run the business? When I first came to Brazil, I had been working for several years within Engineering and Maintenance at our operations in USA just some kilometers from the Kennedy Space Center. The first thing that surprised me when I arrived to Brazil was that our technical personnel were mostly better qualified that the technicians I was used to working with in the USA. I believe the saying that Brazil has the best and the worst of everything for the most is holding true. There are good people available in Brazil, but also the opposite. Since the demand for qualified labor is high, the price to get the best is really high. As a result, pay roll cost for top engineers and key management positions is in Brazil now are significantly above levels we see in USA and Central Europe. Unfortunately we are not able to compensate this high cost in productivity due mainly to the administrative inefficiencies imposed by local legislation. On an international level, we are therefore not able to compete on cost. Thanks to import tariffs and a relative high transport cost for our products, it is still possible to run a profitable extrusion business in Brazil. However, it is far from comfortable to know you rely on tariffs to stay competitive. “ Tax legislation has been and still is a challenge. The extreme complexity, coupled with constant changes “ Learning to operate in a different country apr/jun 2013 35 A leading supplier What do you consider Hydro’s major achievements in the extrusion industry? •Obra TREND CITY CENTER/Porto Alegre/RS (under construciton) Construtora : MAIOJAMA Linha Hydro : ecofaçade = 240t. Serralheiro ; Aluita Obra Costão da Barra/Santa Catarina/SC Construtora : Procave Linha Hydro ; Elegance Serralheiro: Alumonta Obra Serrador/Rio de Janeiro/RJ Construtora : Becran Engenharia Serralheiro: Metalúrgica Alumiquel Fachada Hydro (retrofit) • • • • • • • • • • • You are installing a new press line, this must mean you believe in growth going forward. Yes, we do believe in continued growth in our main markets. One reason is the very low per capita consumption on extruded aluminium products in Brazil. This is far behind the developed countries and also very far behind a country like China. As the middle class continue to grow in Brazil, more apartment buildings are likely to be built, more office towers are likely to be erected. More urban transport will be needed and more goods will need to be transported. All of this will increase the demand for aluminium. In addition Hydro is working with several partners to develop new aluminium applications in Brazil. We have had a strong focus on the solar industry for a number of years, and it is only now that we start seeing some projects get off the ground. 36 apr/jun 2013 Within transport, we have for a long time been asking ourselves why we still see truck beds made in wood or steel in Brazil, while aluminium has nearly 100% penetration for this application in Europe. Hydro has developed solutions for the local market and is working with several Brazilian manufacturers to test out and prove this application also in Brazil. In addition we are working with some universities to increase the knowledge about aluminium and to stimulate development of new applications. Personally I am convinced we will continue to see significant growth in demand for aluminium for several years to come. Our company will be prepared to take part in this growth. Hydro and Orkla forming a Giant World Leading Extrusion Company Just to round off, let me mention the latest news within the global aluminium extrusion industry. Hydro and Orkla made a press release on October 15. Here is an extract; “Norsk Hydro ASA and Orkla ASA have agreed to combine their respective profiles, building systems and tubing business, creating the world’s leading aluminium solutions provider. The new combined company, to be named Sapa, will be a 50/50 joint venture owned by Hydro and Orkla. The agreement covers Profiles and Building System, as well as Extruded and Welded tubes, of Orkla’s fully-owned Sapa and all of Hydro’s Extruded Products business area. Based on 2011 figures, the combined company will have around NOK 47 billion in annual revenues, underlying EBITDA of around 1.9 billion and approximately 25,000 employees.* The new company will have leading positions in Europe and North America, and strong footholds in emerging markets, including Brazil, Argentina, China, India and Vietnam. Completion of the transaction is expected to take place in the first half of 2013, following approvals from relevant competition authorities. Svein Tore Holsether, currently President and CEO of Sapa, will be President and CEO, and Arnstein Sletmoe, currently Senior Vice President and Head of Mergers & Acquisitions in Hydro, will be appointed CFO of the merged company. President and CEO of Hydro, Svein Richard Brandtzæg, will be the chairman of the company. Sapa will have its headquarter in Oslo, Norway” “ Ivar Venås Hydro Alumínio Acro As the middle class continue to grow in Brazil, more apartment buildings are likely to be built “ Hydro Alumínio Acro is today recognized as one of the top 3 system suppliers for aluminium doors, windows and facades in the country. According to our customer satisfaction surveys, Hydro is probably also the best in customer service. Hydro has also established itself as the reference supplier of aluminium tubing to the Brazilian automotive industry. Here are some reference projects within civil construction; apr/jun 2013 37 Marine Technology for Brazil LMG Marin started its activity in 1943 and was founded by the three naval architects Mr. Lund, Mr. Mohr and Mr. GiæverEnger, who also created the name of the company: LMG Marin. These gentlemen headed the company through its first decades, founding the legacy of reliability, experience and innovation. As a leading naval architect and maritime engineering company in Norway, LMG Marin has contributed to the development of the modern maritime and offshore industries in Norway. With references from more than 1000 ships built at ship yards worldwide, LMG Marin has throughout these years developed strong ties to the maritime and offshore industries all over the world. Drill ships for Brazil LMG Marin is one of Europe’s leading independent naval architect and maritime engineering companies, with a highly advanced engineering organization and an experienced staff of well educated engineers and naval architects. The company has up-to-date tools and experience for most tasks in offshore engineering, and for the building and operation of reliable and economically attractive ships and floaters. When the Brazilian state oil company Petrobras launched a gigantic building program for a total of 28 drill ships, LMG immediately notified their interest. In 2009 the Bergeners were prequalified by Petrobras, after knocking out major international competitors. Last year, they landed the first contracts, and gradually won even more, and when it all ended, LMG had won the contract for 14 of the 28 ships. LMG Marin made a contract with two Brazilian shipyards to provide the complete design of 14 drill ships to be delivered be- tween 2015 and 2019. This is by far the largest contracts in companies 70 year history. Norwegian equipment suppliers also benefit from the LMG has been contracted to design the Brazilian drillships. So far, contracts for drilling packages for all 14 vessels passed to Norwegian companies. Seven of the vessels will be built at the shipyard Jurong Aracruz, which is 50 percent owned by offshore Jurong Shipyard in Singapore. The other seven will be built at the Brazilian Estalleiro Atlantico Sul. Gas Powered Ships LMG Marin was also among the first to design gas-powered ferries. With increasingly stringent emission requirements gas powered ships are now relevant. LMG Marin has already delivered 16 gas-powered ferries. That is more than any other company in the world. From ships to bridges KBA Dental Care Dr. Karen Bygdal Andreasen English, Danish and Portuguese spoken!! General Practice – Adults and Children: Functional Jaw Orthopedics Specialist R. Vieira de Moraes, 420 - cj. 32 - Campo Belo - São Paulo Tel (11)5531-4698 • Emergencies: (11) 9.9811-6172 [email protected] 38 apr/jun 2013 LMG Marin are increasingly focusing more on other structures than ships, and operations have therefore moved from ship design to maritime engineering of floating structures. For example, LMG Marin has invested heavily in developing floating bridges, and has patented a solution for floating bridges with the possibility of passage of up to 70 feet tall cruise ship. LMG uses much of the same technology on floating platforms as they use in the Northern Sea. apr/jun 2013 39 Development of children`s creativity through play and learning Learning is at very core of the LEGO® Group’s values. The company has been engaged in the development of children’s creativity through play and learning since its founding in 1932. In 1980, following numerous requests from educators to provide resources for use in schools, the LEGO Group founded the Education Division. Since then LEGO Education has spent more than 30 years working with educational experts and trusted partners in the education industry to develop hands-on curriculum resources for teachers and students across the globe. For people that are not directly connected with the educational industry it can sometimes be difficult to understand the difference between the LEGO Education brand and the well-known LEGO toy which most people have at some point in time come to know. 40 apr/jun 2013 Christian Maxe Petersen, Regional Manager What we in LEGO Education would like to do is transform learning by increasing success in the classroom. While test performance will also in the future be important, we would like to try and help students to be able to see the purpose of what they are learning – and get away from the traditional ways of learning where it was mostly about memorizing a number of facts rather than actually establishing a connection to real life and society. Students learn by doing – they feel, think, touch, see and move as they employ their creative problem solving skills. LEGO Education helps bring the practical things students are learning to life. We have developed a wide range of resources that are based on a set of pedagogical principles for hands-on, creative learning experiences. To ensure that the learning experience is as successful as possible, and that teachers really understand the versatility and applicability of LEGO resources in covering the curriculum, we also provide extensive training to teachers, administrators and students around the globe and of course here in Brazil. LEGO resources span the continuum from preschool through university and provide valuable lessons in all curriculum subjects. Although our products have traditionally been focused on early learning and the STEM curriculum (science, technology, engineering and mathematics), new resources have been developed so that we also address humanities, language and literacy. In addition to the LEGO bricks that I think most people are familiar with, our solutions include digital tools and a wide range of comprehensive teacher guides and activity packs, designed to equip teachers with the most innovative and engaging teaching tools available – our product is as much a philosophy as it is physical products. LEGO Education works extensively with child development and educational experts around the globe to design our resources and solutions. Key advisors include professors from the Massachusetts Institute of Technology (MIT), Carnegie Mellon University, Cambridge University and Edinburgh University. Additionally, we have partnered with companies such as National Instruments to ensure that the solutions are educationally sound and are also based on world-class technologies. In Brazil LEGO Education has been present since 1996 through partnership with our exclusive distributor ZOOM. Initially the business of selling our products were met with a lot of challenges and in the first number of years we were limited to a few public projects in different areas of this huge country. The main challenge is that the Brazilian curriculum does not include technol- ogy as part of it and hence we have had to come up with a way of linking our products to the themes that are today included in the national curriculum. For this reason our partner, ZOOM, started looking into the best ways of approaching the Brazilian market, and after investing a lot of resources the idea was brought forward to come up with a whole new business model where written material is developed for each and every school grade linking technology, 21st century skills as well as our products with the traditional themes in the national curriculum. This material was first developed in 2003 and today covers the entire range from Pre-school to University and when this is combined with teacher training and the LEGO Education products you have the business model used in Brazil today. Since the launch of this model we have been successful in penetrating both the public and private school market in Brazil. We strive towards our goal of being able to give a LEGO Education learning experience to as many students as at all possible and when we look back on the past 10 years, we can say that we have reached more than one million students in Brazil with our products. This number is a milestone and something to be proud of, but looking at the overall size of the market in Brazil with more than 52 million students we also have to say that we have a long way to go in reaching the rest of the students, and this is a task we very much look forward to taking upon us in the coming years. Christian Maxe Petersen Lego education apr/jun 2013 41 Welltec’s Brazilian activities Welltec® in brief Welltec is a leading developer and provider of well intervention services to the oil and gas industry worldwide. Our robotic technologies are tailored to enhance recovery rates and enable operators to conduct interventions safer, faster and with higher accuracy. Established in 1994 we have grown into a global operation with more than 1,000 employees working in 24 countries. We provide a wide range of solutions, from conveyance of well logging and surveillance equipment to complex clean-out, milling and maintenance operations. Our services and solutions address the entire life cycle of a well, from drilling and evaluation, to completion, production and plug and abandonment. We opened our first Brazilian office and service facility in 2005 in Macaé and expanded with an office in Rio de Janeiro in 2007. Due to our unique, innovative technology we have experienced significant growth since the beginning and continue to expand our services and explore new ways to help national and international operators optimize production and increase recovery rates. Welltec works in partnership with all the electric line providers and hence provides services to the operating companies either through direct contract or as third party contractor. Conveyance solutions Welltec technology represents a breakthrough in deploying and operating oil and gas well intervention tools without the use of coiled tubing or similar heavyduty equipment. The technology is applicable for standard well completions, as well as specialized cases requiring tailored approaches. The technology is designed to be light, agile and tough. As a result the tools can be deployed by helicopter or truck and only require small teams to handle and operate. The foundation of our conveyance solutions is the Well Tractor®, which was conceived by Jørgen Hallundbæk, our founder, during his studies and later developed and field tested in cooperation with a major North Sea operator. Well Tractor® conveyance revolutionized the business, as it enables tools to be conveyed irrespective of the inclination of the well. This facilitated a step change in the technique of deploying logging tools into horizontal and highly deviated wells without the use of drill pipe or coiled tubing. The conveyance solutions are designed to deliver well intervention tools 42 apr/jun 2013 The Power of Innovation New technology transforms the way things are done by removing costly and environmentally-damaging inefficiencies in oil and gas production, and the Well Tractor® has proven to be a key change agent in the quest toward zero emissions and discharges due to the lightweight solution it offers. It can extend the life of the well and reservoir, because it is a more precise and safer method than the conventional alternatives. By providing operators with a fast, light, reliable solution, this technology facilitates optimized production and increased recoverables, and enables continued production during the intervention or very quickly thereafter. The economical aspect of this is tremendous. Using precisioncontrolled robotic technology we can do things that previously required heavy and sizable equipment and dozens of people with just a few highly skilled professionals. This in turn means reducing the risks of environmental impacts and work environment issues. “ Welltec technology represents a breakthrough in deploying and operating oil and gas well intervention tools “ exactly where needed with robotic precision and has established Welltec as a world leader in the development of cost-effective and value creating conveyance solutions. We continue to develop, test, manufacture and use proprietary technology and equipment, and constantly work to push the boundaries for what we can do to increase recovery and enable our clients to cut costs and save time. Welltec has set a number of world records and received numerous industry awards by simply doing what couldn’t be done before. Tractor based conveyance on electric line is a quick, safe and reliable way of performing the various well intervention operations. It offers several advantages to the operators in Brazil, such as a wide variety of sizes, reliability, ruggedness and high speed. The most frequent conveyance jobs in Brazil include cement evaluations and pipe recovery, and the conveyance solutions provide the operator with a set of equipment he can rely on to efficiently deliver the cement bond logs in any size of casing, as well as pipe recovery operations in almost any size of pipe. apr/jun 2013 43 Well Solutions Welltec Brazil offers the entire portfolio of Welltec Solutions and is supported by decades of experience. Our primary services in Brazil to date include operating our Well Tractor® to convey tools for cement bond logging, perforating and pipe recovery operations. Welltec also performs a wide range of intervention services in Brazil. Our mechanical solutions, designed for safe and efficient well management and maintenance, range from clean-outs and setting and retrieval of plugs to complex milling jobs. Interventions are carried out by positioning the tools where required and then exercising the necessary force to manipulate the device being addressed. All operations are controlled and monitored from the surface; and because the tractor based technology conveyed on electric line makes interventions quicker and safer, it is becoming a preferred solution in many Brazilian operations. 44 apr/jun 2013 “ Welltec Brazil offers the entire portfolio of Welltec Solutions and is supported Mechanical intervention solutions include tools such as the Well Stroker®, Well Key®, Well Cutter® and Welltec Setting Tool®. The first of which proved its usefulness when an operator in the Guara Norte field was looking for a safer and more efficient method of installing a telemetry system in a vertical production well. The operator had previously been using the coiled tubing method, which requires two runs; one to set the telemetry system and another to retrieve the data. Not only was the system installed in just one run, the Welltec operation was also performed four times faster, which meant the client saved valuable rig time and optimized the operational efficiency. Shifting from traditional intervention methods to Welltec’s electric line mechanical solutions provides multiple advantages for the Brazilian operators, such as real time feedback, surgical precision and improved accuracy. Increased safety means utilizing fewer people, requiring a reduced number of lifts and eliminating the need for explosives when performing operations. “ Welltec embraces this concept in everything we do and continually strive for simpler, safer means to accomplish the goal. Very often, this results in an innovative, more cost effective method as well. The latest innovation is being launched this year: the Welltec Annular Barrier® for zonal isolation. It has been developed in conjunction with a number of global operators to solve the challenge of creating a reliable, life of well, annular barrier. As drilling technology continues to enable deeper and more complex well designs, cement no longer does the job. The Welltec Annular Barrier® for zonal isolation provides the next generation open or cased hole solution, truly enabling a reliable, life of well, cementless completion. by decades of experience Welltec® Coming up In the coming years, Welltec plans to increase activities in the Brazilian market through the addition of assets to accommodate the growth. Conveyance Solutions will continue to be quite active and will be supplemented by the addition of more Milling and Clean-out Solutions. As well, our Welltec® Annular Barrier is receiving a lot of interest for its unique capabilities in well completions. We are bringing this and our other solutions to the two big Brazilian conferences this year, Brasil Offshore and the Offshore Technology Conference Brasil, where the industry meets to exchange new knowledge and technology. Brazil is an exciting place with an exciting future, one in which Welltec plans to be an active participant! Weltec apr/jun 2013 45 A Risk-free World The global winds are changing directions 46 apr/jun 2013 After the past five years’ turbulence, the mere thought of 2013 not presenting any significant risks in the international scenario may seem like heresy to some people. However, this forecast may not be so outrageous after all, considering we are already at the point of cyclical recovery after a long and painful period of adjustments. That’s why the title of this article is quite risky in itself; some ‘Black Swan’* may appear before the end of the year that has only just begun. As a matter of fact, we are probably still going to see moderate market volatility due to the remaining uncertainties in Europe, China, the US, and the emerging countries. Nonetheless, we have gathered information that suggests that neither the well-known European problems as seen from a systemic market contamination viewpoint, nor the uncertainties related to the drastic deceleration of China, which many foresaw for this year, are on the 2013 risk radar. As far as the American economy goes, after the approval of measures to prevent the worst of the fiscal cliff on New Year’s, a stronger recovery of confidence is expected. There are indicators that point to an industrial revival and an energy renewal along with an extensive deleverage of families and companies, and revival of the labor market and real estate prices. A hypothesis to be considered is that the obvious improvement of confidence in the American economy may become the key to restoring trust, globally speaking. Not that the American economy at this point will be able to play its past role of locomotive, nor that it will be able to take on a role similar to that of China after the Lehman Brothers crisis. After all, there is still an important fiscal adjustment to be undertaken in the US in the coming years. However, negotiations in the Congress show that the Republicans have taken a more flexible position, that the Federal Reserve’s position indicates that the American economy needs fewer and fewer stimuli, and that the beginning of the opening of the American 10-Year Treasury Rate (which is the main thermometer of expectations) suggests that the economy in the United States might be going through the last phase of the present crisis. That is to say; the post-fiscal cliff promises good news and that will doubtless have an expressive impact globally. Octavio de Barros The American revival also contributes to an atmosphere of restoration of trust in Europe. The previous beliefs that the Euro-zone economies might implode and that adjustments would be politically unsustainable are quietly being discarded. Besides these forecasts not becoming reality, it is also becoming quite plausible that some growth will be seen in Europe in 2014, while 2013 will be marked by a final dose of adjustments, but with fewer financing difficulties, even for countries like Greece. This change is the result of Germany’s notable shift towards a more constructive direction and the advancement in regard to the feasibility of bank supervision which will be the basis of a greater fiscal integration. The masterly role of the European Central Bank (ECB), led by its president who bended the stance of more hard-line ECB directors, has changed the game of expectations. Nothing will be simple from this point in time on, but if we take a look at the balance already achieved in the current account through payments by countries in the Eurozone, it appears to be possible that we will see a rather renewed region in terms of competitiveness within five years or maybe even earlier. This change of winds in the global sphere reverberates in the world stock markets, which together have surpassed the historical peak of points. As everyone familiar with my thesis knows, more than two-thirds of the Brazilian deceleration is rooted in essentially external factors, so a global improvement should favor a recovery of the Brazilian economy within the coming two years. The exact impact is hard to pinpoint but it should be considerable. We are well aware of the difficulties we have in Brazil, but I believe that the reasons attributed to the bad performance of the Brazilian GDP are greatly exaggerated. What Brazil actually experienced was a strong industrial crisis brought about by global conditions. The industrial sector in Brazil was caught completely unprepared due to competitiveness and cost issues that worsened with delays in infrastructure investments in a scenario of high salaries due to essentially demographic reasons. Moreover, 2012 was a year in which everything that could go wrong, did go wrong. Other difficulties that affect growth are a result of short and long-term procedures and cumulative mistakes which can only be overcome with pragmatism and through important reforms geared towards the private sector in a new cycle of investments. *The Black Swan theory by Nassim Taleb published in 2007 shows that it is impossible to foresee the future since what we know is much less than what we do not know. Octavio de Barros Chief Economist Bradesco Widex invest in own distribution in Brazil The family owned Hearing aid manufacturer Widex A/S has for several years bought up its international distribution network in order to strengthen its marketcontrol and pursue growth. Widex has been present on the Brazilian market since 1963 through a distributor. Since 1984 the distribution taken over by Kjeld Roslyng Jensen, a Danish citizen with several years of Brazilian experience as well as his Brazilian family. During their administration the Widex Kjeld Roslyng Jensen and Marcelo A. Smith de Vasconcellos, new CEO hearing aids as well as other hearing related products expanded into a complete national distribution network with shops in all major states. Following the other Danish hearing aid manufacturers as well as the general trend of the global hearing aid industry, Widex bought the majority of the shares of Centro Auditivo Widex Brasitom in December 2012. The many years partner with minority partnership, Marcelo A. Smith de Vascon- cellos continues as CEO of Widex Brazil. The health sector in general and the audiology sector in particular has expanded a lot in the last 20 years which gives all the opportunity to guarantee continuous growth. Kjeld Roslyng Jensen is happy to provide for a solid continuation of Widex Brasil. Illustration shows former and new CEO of Widex Brazil on its head-office at Rua 24 de maio in the center of São Paulo. Widex apr/jun 2013 47 Brazilian Review ECONOMY Brazil in 2013 Recovery fraught with Risks The past year was marked by surprisingly weak growth and unexpected levels of low interest and exchange rates. We expect the current moderate rebound in activity to continue (GDP growth of 3.0% in 2013), yet the path to recovery has downside risks. We also forecast more economic stimulus from the government, through further tax breaks. The Year that Passed: Disappointing Growth Brazil’s GDP probably grew less than 1% in 2012. By any measure, that was a negative surprise, since at the beginning of the year expectations were for 3% or more. In particular, frustration was biggest with investment. Up until the third quarter of the year, gross capital formation had contracted a cumulative 6% in five quarters. Industrial production also had a dismal performance, falling 3% in 2012. What caused this is still a source of heated debate, with arguments ranging from a painful inventory adjustment from overly optimistic expectations built up in previous years, to the effects on business confidence of government policy uncertainty. Strangely enough, employment held up well. The jobless rate fell to its lowest level in history, around 5%. Apparently, firms thought it better to avoid layoffs even as they cut production, hoping for better times ahead. Probably this behavior was motivated by the previous cycle. When firms cut the payroll in the 2008-09 downturn, they had to re-hire only a few months later, since demand recovered more swiftly than expected. But they were only able to do so by offering to pay higher wages. In 2012, a tight labor market enabled workers to receive pay increases and so keep on spending. Tax cuts on durable goods also helped as they made consumption more affordable, especially in terms of cars. Consumers thus managed to weather the headwinds from a tightening credit supply. Economist Caio Megale 48 apr/jun 2013 By the same token, a heated labor market kept the pressure on inflation, in particular services, which went up 8% in 2012. The shock in food prices further compounded the problem. What kept the headline index from drifting above 6% was the low inflation of regulated services (helped by the government) and of industrial goods (contained by tax exemptions). Another surprise was economic policies. The central bank cut rates by 525 bps, to a record-low 7.25%, and said it plans to keep it at this level for a “sufficiently prolonged period of time”. The exchange rate regime lost much of its flexibility. In the whole second half of the year, the exchange rate deviated very little from the range of 2.002.10 reals per dollar. 2013: What Kind of Recovery? Although disappointing, the rebound in economic activity started in 3Q12, with a 0.6% seasonally-adjusted growth of GDP. We expect 0.7% in 4Q12 and acceleration to an average 0.8% per quarter throughout 2013, reaching a total of 3.0% over 2012. One of the tailwinds will be a better global environment than that of 2012, due to smaller tail risks. That should have a positive effect on domestic investment. Although it is a relatively closed economy, Brazil’s investment cycle is influenced by growth and volatility in the global economy. Private investment will also benefit from the fact that firms have already completed a full inventory cycle in 2012. They don’t need to make further production cuts just to adjust their inventories to a lower, more desired level. And new investment becomes more attractive with lower interest rates. Consumption spending will remain a driver of demand growth. If employment holds to the current trend of moderate but positive expansion, wages will keep rising, maintaining a solid base for consumption. Another minimum wage increase above inflation at the beginning of the year and continued tax exemptions for consumer goods will also help. To sustain the recovery, however, we expect the government to go for more economic stimulus through further tax breaks and public bank credit. Fiscal stimulus will remain an essential part of the policy toolkit. Since the neutral interest rate has fallen and has in turn reduced the interest payments due by the public sector, the government has more room in the budget than in previous years. It can, within certain boundaries, reduce taxes to stimulate the economy without sending the public debt/GDP ratio on an upward trend. We believe the Central Bank intends to maintain interest and exchange rates at the same levels they were at the end of last year to accommodate both a weak economy and inflation threats. A too-intense depreciation of the exchange rate would create pressure on tradable goods, which have been a major anchor of inflation in recent years. Non-tradable goods such as services will probably continue to be burdened by the tight labor market. On the other hand, inflation dynamics will benefit from the dissipation of the food price shock and by another year of low increases in regulated prices, in particular, the fall of energy tariffs through tax reductions and anticipation of concession renewals. Still, the outlook is fraught with risks, some cyclical, some structural. Companies are still very cautious. After having invested substantially in previous years, many suffered losses in 2012 as sales growth fell short of expectations. Several opted to scale back their operations and postpone investment decisions, even for conservative projects. Doubts about the sustainability of consumer demand are also blurring the scenario, due to uncertainty regarding consumer leverage. Policy uncer- tainty, with high-frequency changes in tax rates and new subsidies, makes it harder for firms to plan ahead. It could take longer to generate a positive and self-reinforcing mood of optimism again, which is fundamental for investment. Structurally, the near exhaustion of the labor factor of production will demand more from the other factor, capital. Yet creating the conditions necessary for investment, especially those transformative large-scale projects, is easier said than done. Making the resources available is just the beginning. The public sector should foster an effective regulatory environment, with clear rules and less bureaucracy. It should also resort to public-private partnerships or outright concessions when it is not able to pursue the projects all by itself. Finally, it should offer adequate rates of return as a way to bring in the most capable private operators. Moving ahead with this agenda will be both Brazil’s biggest risk and greatest opportunity in 2013. Caio Megale Banco Itaú apr/jun 2013 49 Resilient inflation When it comes to inflation, 2012 ended on a relatively bad note. IPCA, the consumer price index used by the Central Bank to pursue the inflation target, rose 5.8% that year, above market consensus (hovering around 5.3%-5.4% for most of the year) and even higher than what the Central Bank had predicted (5.2% in its latest Quarterly Inflation Report). Despite one or two factors having contributed to contain the rise in prices, the basic dynamics of prices remains unchanged and is currently a risk for keeping inflation high throughout 2013. A quick comparison between the behavior of inflation in 2011 and 2012 should present a favorable development last year, as IPCA fell 0.7 percentage point from 6.5% and could be said to be converging towards the target as constantly noted by the Central Bank, albeit at a very slow pace. However, two specific factors not linked to decisions by policymakers helped inflation being slightly lower in 2012. First, the rise in regulated prices - those that have variations 50 apr/jun 2013 IPCA and market and regulated prices (% YoY) IPCA 8 Regulated prices Market prices Target Chart 1 – IPCA and market and regulated prices (% YoY) 7 Sources: IBGE and Central Bank of Brazil. 6 5 4 3 2 1 0 Jan -10 Jun -10 Nov -10 Apr -11 Sep -11 Feb -12 Jul -12 Dec -12 Sources: IBGE, Central Bank of Brazil. determined by the government and which answer for about 24% of IPCA - remained rather contained at 3.7%, below the 4.5% inflation target (chart 1 below). Second, IBGE, the Brazilian official statistical agency, changed the weights used to calculate the IPCA, which led to lower inflation. The first factor is rather straightforward. In a year of mayoral elections, as in 2012, it is normal for urban transportation not to have its tariffs increased. Moreover, the government has postponed the adjustment in gasoline prices. Hence, transportation was vital to keep regulated prices more or less in check. As for the IPCA weights, it is normal for IBGE to change the importance given to goods and services in the calculation of inflation every five years to account for changes in tastes or even include new ones as they become available based on a wide survey of population expenditure. By chance, that change happened to be scheduled for the beginning of 2012; it assigned lower weights to items that ended Cristiano Souza the year with high inflation and vice-versa. Were it not for that methodological change (just to reinforce it, a perfectly valid one), IPCA would have been 0.5 percentage point above year-end level, hence barely changing at all in comparison to 2011. Despite those factors helping bringing inflation down, the 5.8% increase in 2012 was achieved with the relatively strong pressure of market prices, which rose 6.5% in the year. That result came as a bit of a surprise, as economic activity was weak (the GDP may have barely grown by 1%). In fact, it used to be normal to see a positive correlation between economic activity and market prices in Brazil (stronger growth tied to high inflation, weak growth and low inflation), a trend only broken only in 2005 in the period between 1999 (the first year of inflation targeting) and 2009. Since then, that relation has weakened with inflation expectations deviating further from the target and the labor market remaining tight. IPCA core measures (% YoY) Ex-food at home and regulated prices Target 7.5 6.8 6.0 5.3 4.5 3.8 3.0 Jan -10 Jun -10 Nov -10 Apr -11 Sep -11 Feb -12 Jul -12 Dec -12 Sources: IBGE, Central Bank of Brazil, Banco Santander. IPCA (% YoY, dots represent year-end inflation) 9.0 Target 8.0 Forecast 7.0 6.0 5.0 4.0 3.0 2.0 Jul -13 Sep -12 Nov -11 Jan -11 Mar -10 Jul -08 Sep -07 Nov -06 Jan -06 0.0 May -09 IPCA 1.0 Sources: IBGE, Banco Santander. Median inflation expectations (%) 5.7 2013 2014 5.5 5.3 5.1 4.9 4.7 4.5 21- Jan - 13 22- Dec -12 22- Nov -12 23- Oct -12 23- Sep -12 24- Aug -12 25- Jul -12 25- Jun -12 26- May -12 26- Apr -12 27- Mar -12 26- Feb -12 27- Jan -12 28- Dec -11 28- Nov -11 29- Oct -11 29- Sep -11 30- Aug -11 31- Jul -11 4.3 1- Jul -11 Hence it was not disparate to see high inflation regardless of low economic growth. In that sense, core measures of inflation, which should eliminate short-term fluctuation to present the underlying trend of prices (the long-term more stable trend) are also above the target, with the trimmed means (that shave off extreme variations) even heading north (chart 2 below). That is where the outlook for inflation in 2013 takes off from. This year already starts with some known pressures. First of all, should our scenario of a pickup in economic activity that would increase GDP growth to 3% be correct, that would mean a still tight labor market with low unemployment and rising wages that, alongside more credit, should exert pressures on demand. As investments still struggle to grow quicker, some mismatch between supply and demand should keep adding to inflation. Second, commodity prices have gone up, especially food prices following the dry weather that affected crops in the second half of 2012 and thus pushed up the cost of food. That is made worse by the third effect i.e. that of a more depreciated exchange rate and its influence on inflation. The dearer US dollar should make food even more expensive, as well as lead to a rise in the cost of some durable goods. The looser fiscal stance (i.e. the measures taken by the government to boost the economy) will amount to a fifth source of pressure to prices. That comes in two forms, both through tax cuts, which raise disposable income, and government expenditures, which increase total consumption, hence also aggregate demand. Finally, there’s the issue of regulated prices. As usual, bus tariffs should go up, even though that is scheduled to happen by the end of the first half of the year rather than in January. Gasoline prices may also be increased. Both changes should be more than compensated by the government’s move of cutting electricity prices by 20%. However, two problems stand in the way of cheaper electricity. One is the revision of electricity tariffs scheduled to occur in some metropolitan areas; this would offset part of the cut. Second is the possible effect of the low rain fall in the wet season, which has not filled the reservoirs enough and is forcing the electric grid to rely on the more expensive thermoelectric generation. In all, the outlook for inflation is not benign. We hardly expect prices to lose steam Smoothed trimmed means Non-smoothed trimmed means Source: Central Bank of Brazil. throughout the year and IPCA should hover around 6% in the year, sometimes higher, sometimes lower, but not too far from it. In the absence of any external shocks, inflation should not breach the 6.5% ceiling of the inflation target (chart 3 below), but we see no stern measures being taken to bring it closer to 4.5% either. The market’s expectation which is based on a survey with more than 100 financial institutions also reflects that (chart 4). We forecast the IPCA will go up to 6% this year whereas the market median forecast currently stands at 5.5%. Should inflation remain somewhere close to those figures, we will see it in the upper region of the target for the fourth year in a row. Cristiano Souza Senior economist Grupo Banco Santander apr/jun 2013 51 Brazilian Review ECONOMY 20 Richest People in the World Competitive Edge Ranking 1 2 3 4 5 6 7 8 9 10 11 12 Canada South Korea Australia China Spain India Chile South Africa Poland Russia Colombia Mexico 13 Brasil Rank Name Net Worth 1 Carlos Slim US$ 77,9B 2 Bill Gates US$ 65,6B 3 Amancio Ortega US$ 37.5B 4 Warren Buffett US$57,2B 5 Larry Ellison US$40,6B 6 Ingvar Kamprad US$48,9B 7 Charles Koch US$44,3B 7 David Koch US$44,3B 9 Christy Walton US$ 34,2B 10 Jim Walton US$ 32,7B Source: CNI/Ibope Best countries to be born in 2013 Rank Country 1 2 3 4 Switzerland Australia Norway Sweden 11 Rob Walton US$ 32,2B 12 Alice Walton US$ 31,8B 5 37 Denmark Brasil 13 Li Ka-Shing US$ 29,3B 14 Alwaleed Al Sau US$28,3B 15 Bernard Arnault US$28,2B 16 Liliane Bettencourt US$28,0B 17 Karl Albrecht US$27,7B 18 Sheldon Andelson US$25,9B 19 Mukesh Ambani US$25,7B 20 Stefan Persson US$25,6B Source: Economist Intelligence Unit International Transparency Corruption Level Rank Less Corrupts 1 Denmark 2 3 4 5 Finland New Zealand Sweden Singapore 69 Brasil Source: NGO International Transparency Source: Bloomberg 52 jul/sep jul/sep 2009 2012 jul/sep apr/jun 2009 2013 53 Ranking of Entry for Anti-Dumping Investigations (from May to September of 2012) Rank Countries with the Highest GDP Growth, % 1Mongolia 18,1 2Macao 13,5 3Libya 12,2 4China 8,6 5Bhutan 8,5 6East-Timor 8,3 7Iraq 8,2 8Mozambique8,2 9Rwanda 7,8 10Ghana 7,6 Source: América Economia Country Nª of Actions 1Brasil 27 2Australia 3Canada 4China 5Indonesia 6Argentina 7 European Union 8India 9Turkey 10USA 17 9 7 7 5 4 4 2 2 Source: Estado de S.Paulo Transport Matrix USA Canada Russia Germany Brazil Waterway 25 35 13 29 13 Railway 50 52 83 53 27 60 Source: Estado de S. Paulo 20 most powerful people in the world 1 Barack Obama President, USA 2 Angela Merkel Chancellor, Germany 3 Vladimir Putin President, Russia. 4 Bill Gate Cochair, Bill & Melinda Gates Foundation. 5 Pope Benedict XVI Pope, Roman Catholic Church. 6 Ben Bernanke Chairman, U.S. Federal Reserve. 7 Abdullah bin Abdulaziz al Saud King, Saudi Arabia 8 Mario Draghi President, European Central Bank. 9 Xi Jinping General Secretary, Communist Party of China. 10 David Cameron Prime Minister, United Kingdom. A 11 Carlos Slim Helu Chairman, Carlos Slim Foundation. 12 Sonia Ghandi President, Indian National Congress. 13 i Keqiang Vice Premier, People`s Republic of China. 14 François Hollande President, France. 15 Warren Buffet CEO, Berkshire Hathawy. 16 Michael Bloomberg Mayor, New York City. 17 Michael T. Duke CEO, Wal-Mart. 18 Dilma Roussef President, Brasil. 19 Manmohan Singh Prime Minister, India. 20 Sergey Brin & Larry Page Cofounders, Google. Source: Forbes 54 jul/sep jul/sep 2009 2012 Highway 25 13 4 18 Age 51 58 60 57 85 59 88 65 59 46 72 66 57 58 82 70 63 65 80 39 jul/sep apr/jun 2009 2013 55 Brazilian Review ECONOMY Biggest Retailers of Brasil by Revenue CompanyIncome (R$ billions) Pão de Açúcar 46,59 Carrefour28,83 Walmart Brasil 23,46 Lojas Americanas 10,20 Máquina de Vendas 7,20 Vehicles Production in Brasil Year Number in millions 2003 1,68 20042,12 20052,35 20062,40 20072,82 20083,05 20093,07 20103,38 20113,41 20123,36 Magazine Luiza 5,27 Raia Drogasil 4,67 Drogarias Pacheco e SP 4,45 C&A3,84 Casas Pernambucanas 3,17 McDonald’s3,11 Záffari & Bourbon 2,99 Lojas Renner 2,89 Farmácia Pague Menos 2,78 Brazil Pharma 2,55 Lojas Marisa 2,45 Lojas Riachuelo 2,44 BMW General Motors Hyundai Toyota FIAT JAC Motors Nissan Chery Ford PSA Peugeot Citroën Renault Volkswagen Mitsubishi Suzuki Companies with biggest growth Source: Economática 56 jul/sep jul/sep 2009 2012 Source: Times Higher Education World University Rankings 2012-2013 e Ministério da Educação US$ 2,5 billions, Araquari (SC) US$ 1,7 billions, 4 cities US$ 600 millions, Piracicaba (SP) US$ 600 millions, Sorocaba (SP) US$ 5,9 billions, Betim (MG) and Goiania (PE) US$ 530 millions, Camaçari (BA) US$ 1,5 billion, Resende (RJ) US$ 400 million, Jacareí (SP) US$ 2,6 billions, in 3 cities US$ 2,2 billions, Porto Real (RJ) US$ 880 millions, São José dos Pinhais (PR) US$ 5,2 billions, 4 cities US$ 560 millions, Catalão (GO) US$ 60 millions, Itumbiara (GO) Source: O Estado de S. Paulo Source: Estado de S. Paulo CompanyGrowth (in RS$ billions) 1 Ambev 2 Bradesco 3 Vale 4 CCR 5 Souza Cruz 6 Cielo 7 Natura 8 Itaú Unibanco 9 BM&Fbovespa 10 Sabesp 4.684 2.853 2.575 2.356 2.057 1.804 1.653 Car Companies Investments in Brasil Makro5,65 5,50 1 – USA 2 – Portugal 3 – France 4 – Spain 5 – Canada 6 – UK 7 – Germany Source: Anfavea Cencosud6,23 O Boticário Major Destinations for Brazilian Exchange Students 76,7 24,9 17,2 12,8 12,1 11,0 9,6 8,4 8,1 7,9 Companies with biggest decrease Company 1 Petrobrás 2 OGX 3 Eletrobrás 4 CSN 5 CPFL Energia 6 Cesp 7 Santander 8 Eletropaulo 9 Telefônica 10 Ampla Energia Variation (in R$billions) -36,7 -29,9 -16,9 -4,5 -4,4 -4,2 -4,0 -3,8 -3,1 -2,9 Source: Economática jul/sep apr/jun 2009 2013 57 10 Companies with most complaints in Procon Complaints by thousand 1 Oi 120,4 2 Claro/Embratel 102,7 3 Itaú 97,6 4 Bradesco 61,3 5 Vivo/Telefônica 44,0 6 Sky 33,5 7 TIM/Intelig 32,3 8 Santander 31,9 9 Ponto Frio/Casas Bahia 28,5 10 Máquina de Vendas 26,8 Source: SINDEC Current Power Division PartyMinisters 1 Firefighter Corps PT17 2o Media PMDB5 3o Supreme Federal Court PSB2 4o Voter System PR1 5o Judiciary Power PP1 6o Police PC do B 7o Congress o PRB1 Source: IBOPE Source: América Economia 20022012 Ministers21 Servers Wage Expense 38 810,0 mil 984,3 mil R$116 bilhões R$155 bilhões Source: América Economia 58 jul/sep jul/sep 2009 2012 Chamber of Commerce Rio de Janeiro 2013 March 7th – 20:00 March 26th – Morning Maritime and Offshore presentations from OSX and Petrobras June 4th – Morning Presentation from the Municipality of Rio de Janeiro – What can our city do better for our businesses? September 10th – Morning Growth of the Esplanada in Ten years The Danish The Danish Parliament – Committee for Growth and Business, Rio visit Social Trust Ratings 1 Agenda Company presentation of new arrivals in Rio November 26th – Morning Wrap up of 2013 and an economical/market outlook for 2014. jul/sep apr/jun 2009 2013 59 Dual Citizenship Today the Danish law is constructed in such a way that foreigners who immigrate to Denmark can obtain Danish Citizenship, but Danes who immigrate to other countries have to renounce their Danish citizenship if they obtain citizenship in their another country. 40% of all ‘new Danes’ keep the citizenship of their native country and thereby in affect become double citizens with two passports. Danes who move abroad has no such options. It depends on the nationality laws in your current home if you lose your citizenship automatically when you receive Danish citizenship, or whether you should apply to be released from your previous citizenship in your home country authorities. Children born abroad by Danish parents however are usually exempt from these rules and can keep their Danish citizenship. It has long been a wish for Danes living abroad to be able to obtain double citizenship, since they feel that it is unfair as they do not feel any less Danish because they have chosen to live in a foreign country. It is a fundamental principle of the Danish legislation that dual citizenship should be limited, as much as possible. There are of course a number of situations where dual citizenship is accepted. This applies for example to persons who are born with dual citizenship. For example child who is born of Danish parents in the United States where the child also obtains U.S. citizenship at birth. Denmark is one of just seven EU countries not permitting their citizens to take citizenship in another country if they qualify. The rest of the 20 EU states allow and recognize dual citizenship among their nationals. But some have more relaxed rules than others. For example Ireland and Portugal, whose populations have been through episodes of mass emigration, are equally tolerant of dual citizenship both for their citizens and newcomers. In France the numbers of dual citizens are close to five million, out of a population of 65 million. However, the principle has often been criticized and, in 2012 right leader and presidential candidate, Marine Le Pen, asked for it to be revoked. But now things seem to be change. A majority in parliament say they are prepared to support a bill allowing dual citizenship, due to be presented by the Justice Ministry later this year. Margrethe Vestager, leader of the Radikale party, which has been one of parliament’s strongest voices in favour of dual citizenship, called it “a gift” that foreigners would be allowed to retain their original citizenship and be afforded “full access to the country they will contribute to and where their children would grow up”. Sweden and Finland both used to have similar laws prohibiting dual citizenship, before overturning them in 2001 and 2003, respectively. At the same time all EU countries except Holland and Austria allow dual citizenship. On the 17th of December 2012 the ministry of Justice made the following declaration that the government has decided to establish a ministerial working group to come forward with proposals for a possible models to accept double citizenship. The ministerial working group will finish its work in the spring of 2013, and we hope that during 2013 this will lead to a new law allowing dual citizenship in Denmark. We will keep all our members updated all the time. Danes Worldwide 60 apr/jun 2013 Alfa Laval Aalborg Rua Divino Espírito Santo 1100 Carangola, Petrópolis - RJ CEP 25715-410 - Brasil Ph: 55 24 2233-9963 Fax: 55 24 2237-6603 [email protected] Market leader to Brazilian Industry in oil & gas fired boilers www.aalborg-industries.com.br www.alfalaval.com apr/jun 2013 61 Copenhagen Zoo a modern Zoo in the city Copenhagen Zoo is situated within the city limits of Copenhagen and covers an area of 11 ha. Today it is home to more than 3,500 animals of 240 different species. 62 apr/jun 2013 Since its opening in September 1859, Copenhagen Zoo has experienced significant changes. Older, outdated exhibits have been gradually renovated or replaced with modern, spacious enclosures that meet the higest standards of animal husbandry and welfare. The latest successfully completed exhibits include the Elephant House designed by the reknowned British architect Lord Foster, a walkthrough Aviary with free-flying flamingos, ibis and spoonbills and the Arctic Ring with underwater view of the polar bears, Arctic bird species and seals, which opened to the public on 5 February 2013. In accordance with today’s mission of a modern zoo, it is an institution dedicated to conserving our global wildlife heritage by keeping a large number of endangered animal species and participating in many conservation programmes. Today the Zoo is an active nature conservation organisation with a global perspective and network. One of Copenhagen Zoo’s main conservation programmes is the Lion Tamarin programmes of Brazil. In 1996 Copenhagen Zoo’s Director for Research and Conservation was invited to join the International Committee for Conservation and Management of Lion Tamarins (ICCM), which is an advisory body to the Brazilian government on conservation management for the four species of lion tamarins (golden, golden-headed, black and blackfaced). The same year Copenhagen Zoo entered an agreement with Poço das Antas Biological Reserve north of Rio de Janeiro to finance part of the expenses for rangers who monitor the lion tamarins year round – the monitoring provides important information which is essential when making decisions about the management of the reserve. At the time two of the four rangers were to be dismissed due to lack of funds. Copenhagen Zoo’s commitment meant that the monitoring could continue and as time went on a close collaboration between the group of rangers, the ecology team, researchers and the Zoo deleveloped. Based on the Zoo’s support a whole new concept for raising funds for conservation programmes was developed – a concept that has subsequently been taken on by other programmes and zoos. The ”adopt a group” concept means that a zoo pays a yearly amount (e.g. Copenhagen: US$ 5,000) and in return receives field reports regularly. The reports are not long and scientific – it is more like a daily journal which can be used in the zoos’ education activities. A window to nature is open and the zoo visitors can get an insight directly from the field and thereby increase awareness of the conservation project. In return the project receives a regular income enabling the field activities to continue in the future. On basis of Copenhagen Zoo’s support a long series of important monitoring activities have been carried out and several articles have been published. As a result of this long-lasting collaboration Copenhagen Zoo is considered the main contact for the tamarin programmes in Europe. In 2008 Copenhagen Zoo’s support was extended to include rangers in the União Biological Reserve 30 km from the Poço das Antas reserve. Funding had been discontinued so the project was about to close down. It would have been the end of a project that had already collected valuable apr/jun 2013 63 data and carried out unique monitoring of the lion tamarin population since the first translocations in 1994. Copenhagen Zoo now pays for the whole monitoring programme in União and receives field reports regularly. Last but not least, Copenhagen Zoo’s Director for Research and Conservation is the custodian of the Lion Tamarins of Brazil Fund, which was established in 1990, to raise funds for the many research activities taking place in the lion tamarins’ distribution area. The fund raises money from zoos throughout the world and awards grants of US$ 20,000-50,000 yearly to selected projects in Brazil. In addition to the lion tamarin conservation programme Copenhagen Zoo is actively involved in in situ conservation and research on southern white rhinoceros in South Africa, and in ecology research on the Malayan tapir (Tapirus indicus), flatheaded cat and Asian elephant in Malaysia and Indonesia. The Zoo also participates in the EU-Life project on reintroduction of the locally endangered European fire-bellied toad. Furthermore, the Zoo contributes to the research studies of the okapi in DR Congo. The Zoo also grants financial support to field projects for the conservation of the rare Amur leopard, for diet selection and population performance of the black rhinoceros and for scientific projects at Chengdu Research Base for Giant Panda Breeding in China. In addition to participating in conservation programmes internationally, the Zoo and its scientific staff are constantly increasing its activities and involvement in a wide range of scientific research projects at MSc and PhD level. And as another part of the scientific work, which forms an integral part of a modern zoo‘s mission, Copenhagen Zoo holds the international studbook for muskox and the European Studbook for chimpanzee. Last but not least, the Zoo focuses on innovative interpretation through display and education. The Zoo Education Service offers teaching with live animals for all age groups from preschool to adults. Furthermore, a wide range of instruction materials have been created for use before, during and after a visit to the Zoo. Every year, more than 65,000 school children visit the Zoo as part of their schooling. The Zoo also supports education and public awareness by offering a wide range of interactive displays, speaks, competitions and events to the public. Copenhagen Zoo puts great emphasis on its environmental policy and is certified according to ISO 14,001 and EMAS III. The most recent initiative is a climate Steffen Stræde 64 apr/jun 2013 partnership with the Danish company DONG Energy with the aim of becoming more „green“, by purchasing sustainable energy such as power from wind mill parks. Copenhagen Zoo is a member of the following international organisations: The European Association of Zoos and Aquaria (EAZA), the World Association of Zoos and Aquariums (WAZA), the International Union for Conservation of Nature (IUCN) and the IUCN/SSC Conservation Breeding Specialist Group (CBSG). In 2002 Copenhagen Zoo established CBSG Europe – the European branch of the global CBSG. Curriculum Vitae Steffen Stræde •CEO of Copenhagen Zoo •Steffen Stræde is coming from a position as CEO of the packaging company A.C. Schmidt A/S where he had worked since 2008.Steffen Stræde holds a Master of Science in Forestry and has a PhD. in national parks. •Steffen Stræde’s professional background as project manager in respectively WWF and DANIDA, chief of department in Rambøll, CEO of Knuthenborg Safari Park and, most recently CEO of A.C. Schmidt A/S means that Copenhagen Zoo is getting itself a CEO who unites specific know-how within the field with strong and relevant managing experiences that will ensure that the positive development that the Zoo is well-known for will be continued. apr/jun 2013 65 Danish Design in World Class www.bodum.com 66 apr/jun 2013 BODUM’s history dates back to 1944, when Peter Bodum launched the company in Copenhagen, Denmark. Renowned for its iconic French Press coffeemaker and signature Scandinavian design aesthetic, BODUM has grown into a global housewares brand, with distribution in more than 55 countries. Bodum is still 100% family owned and today it has its headquarters in Triengen, Switzerland. The Scandinavian head quarters lie in Humlebæk. The products are made in Portugal. Bodum employs 600 people on a world scale. Headquartered in Switzerland, the company continues to develop all products in-house under its core principle that good design should be both functional and affordable. The range of products extends from coffee, tea and glassware to kitchen electrics and gadgets. A familyowned company, the brand is directed today by the founder’s son, Jørgen Bodum. Besides being known for the aesthetic quality of their products, Bodum is recognized. As a leading maker of French presses, vacuum coffee brewers (the “Santos”), and doublewalled beverage glasses made of borosilicate glass. It has registered “FrenchPress” as a trademark in many territories. Bodum is known for using borosilicate glass which is very durable when exposed to thermal shock or high heat conditions such as encountered in kitchen ovens and microwaves. It will not shatter or explode as occurs with lime soda glass. Borosilicate glass is also used in research and manufacturing laboratory environments where strength and durability are often critical. Although Bodum has become somewhat synonymous with the French press, the company is much more than just the French press. The company has an annual turnover of more than 130 million USD. Since the late 70s, the Bodum continuously opened stores including Paris, Tokyo, Sydney, New York, London and is currently sold in about 55 countries. Bodum plans to open 700 new shop across the united states in the department store J.C. Penney. Bodum apr/jun 2013 67 John Strand the IT guru More than 3 million Brazilians are paying to learn Spanish and English via their mobile phone. The problem is that the Brazilian government is charging over 40% tax on that education. There is no doubt that mobile phones can be used for a great number of applications - including education. The Brazilian mobile operator Vivo has been very successful in marketing and selling language services, enabling their customers to learn Spanish or English on their mobile phones via SMS. Critics may claim that you cannot edu- cate people properly in that way. But there is no doubt that these types of applications can generate interest in learning new languages and furthermore encourage participants to take the next step and enrol in a real language school where they can receive more intensive education. Strand Consult would like to highlight five very important points to be learned regarding the current Brazilian mobile language school situation: 1. The mobile phone can be used to offer educational programs. 2. There is a large demand and need for learning new languages in Brazil. 3 million Brazilians from primarily the lower classes of society are sending out a big message - “we would like to learn new languages”. 3. Mobile operators like Vivo are showing a mature corporate social responsibility by offering this type of educational service to their mobile customers. 4. Language schools that offer more intensive courses can use this type of activity to attract new customers to their schools. 5. It would appear that the Brazilian politicians are not in touch with what their citizens really need, or the importance of this type of activity and education for their society to move forward. Everybody who works in the mobile industry knows and understands that the mobile telephone is an extremely versatile platform that can be used for many different applications and situations. That customers do not necessarily need to have smartphones is very obvious when you see what Vivo is doing in Brazil. The users can access their course via SMS, IVR, WAP, Apps and via the Internet. The service is totally interactive with immediate feedback to the users. The fact that 3 million Brazilians are paying 2,99 R$ a week to participate in mobile language courses on their mobile phones, shows that this market probably has a global value that is larger than even the currently bestselling smartphone apps like Angry Birds. In other words, you do not necessarily need smartphones to service the needs and demands of mobile customers. John Strand 68 apr/jun 2013 Strand Consult has been following the value added services market for many years, so it takes a great deal to impress us. However what we are currently seeing in Brazil impresses us a great deal. Brazilian mobile operator Vivo is using a very simple application together with a business model and content partner to make an educational service available that many Brazilians really need and can benefit from. And millions of Brazilians are purchasing and using this service. Brazil is one of the countries where Strand Consult has done a great deal of work and had many assignments through the years. Anybody who has been following the development of Brazil for the past 10 years can only be impressed by the way the country is maturing and growing in all areas, including financially. Brazil is also a country that still faces a number of challenges. One very important challenge is improving and expanding education and another is trying to minimise the corruption which there is unfortunately still far too much of in Brazil. An additional challenge is that the Brazil- ian telco market is one of the markets with the highest industry taxes in the world. Brazilian politicians do not differ between traditional telco services and telco services that the country can actually benefit from - like this mobile language service that has over 3 million Brazilian customers. The result is that this mobile Brazilian language school hands over a large part of their turnover directly to the Brazilian tax authorities. In other words the Brazilian government is in reality taxing the education of one of the poorest segments of the Brazilian population. In our opinion this Brazilian case shows how important it is for mobile operators, governments and educational institutions and schools to be able to create constructive partnerships to take advantage of the mobile operators’ large customer bases and boost interest for education - which is the single most important factor to any modern society. More operators around the world - and especially the Third World countries should launch activities similar to Vivo’s language service. They will thereby help influence and motivate populations to increase their level of education, by giving an increased number of people access to more different types of education on a simple and available platform. For this type of activity to be successful politicians must differ between traditional telco services and value added educational services. If politicians choose to tax educational content on mobile phones, they are misusing the telco market and preventing the mobile industry from making an important contribution to help develop society in countries like Brazil. We hope that the Brazilian politicians will re-evaluate how to tax their telco industry and especially make an effort to reduce the very high taxes that are currently being charged on helping educate the poorer segments of the Brazilian population via mobile services. If you would like to learn more about Strand Consult’s experiences and knowledge in this area, please do not hesitate to contact us to receive more information about our mobile reports and workshops. Strand Consult Danish Parliament’s Business, Growth and Export Committee visits São Paulo The Danish Parliament`s Business Growth and Export Committtee visited São Paulo on March 4th with ten Danish member of Parliament in presence. The Danish companies Grundfos, Lego and the ISS made presentations to the Danish parliamentary group and it created a lively dialogue and many questions. Jesper Rhode Andersen, vice-president of the Chamber was the moderator of the meeting. Ambassador Svend Roed Nielsen and Consul General Nicolai Prytz were also part of the official delegation. AMK apr/jun 2013 69 Innovation Centre Denmark helping Danish companies innovate and grow through partnerships in Brazil The general perception of commercial innovation is closely linked to the creation of values that can be sold on the market. In other words, commercial innovation can be defined as the development of solutions that meet new - often inarticulate - needs, or add value to old needs through the conversion of ideas and inventions into new products, processes or services - leading from concept to invoice. The starting point and basis for all commercial innovation is knowledge, and in today’s global economy with its ever increasing international competition, obtaining the newest and best knowledge becomes a key factor in a company’s – or even a country’s development and growth. In Denmark we only produce a very small fraction of the worlds’ new knowledge, making it natural - but also essential – for us, our universities and innovative companies, to continuously look beyond our own borders for knowledge that can create valuable and marketable products, processes or services. 70 jan/mar 2013 Innovation Centre Denmark expands in global hotspots In a unique collaboration between the Danish Ministries of Foreign Affairs and Science, Innovation and Higher Education, Innovation Centre Denmark (ICDK) has been created with the purpose of helping Danish universities and innovative companies get access to the best foreign knowledge environments, new technology, networks and capital – all elements that are of crucial importance to ensure and improve the competitiveness of Danish companies and the further development of Denmark as a knowledge society. As part of its national Innovation Strategy and Strategy for Emerging Markets, the Danish Government’s recently announced the opening of three new innovation centres in São Paulo, Seoul and Bangalore complementing the four existing centres in Shanghai, Hong Kong, Silicon Valley and Munich. ICDK in São Paulo will be co-located with the Danish Consulate General and will serve as a facilitator for cooperation and lasting partnerships between Danish companies and Brazilian higher education, research and innovation environments. In connection with the announcement of the new centres Danish Minister for Science, Innovation and Higher Education Morten Østergaard noted the importance of an increased internationalisation and the strategic presence of our universities and innovation companies in global hotspots: “For a small, open economy as the Danish, it is crucial to be present in the leading research- education- and innovation environments. The new centres in South Korea, Brazil and India shall collect new knowledge, attract talents and investments as well as strengthen the export and competitiveness, to the benefit for growth and employment in Denmark”. • Danish Minister for Trade and Investments Pia Olsen Dyhr elaborated: “With the new innovation centres we can help Danish companies who have research- and innovation driven needs in three central growth markets. Via these centres, it will become possible for Danish companies to create partnerships in international innovation environments. Through knowledge, Danish companies will become more competitive and at the same time, we help them develop solutions for the emerging markets”. • What does ICDK offer? The objective of ICDK in São Paulo is to help Danish companies and institutions identify new technologies and potential research- and innovation partners with a view to develop and globalize the companies, their business models and strategies, and Danish higher education and research. Especially for the large number of Danish small and medium-sized companies, gaining access to the latest international knowledge or the right international development partner can be an extremely difficult and expensive exercise. Through ICDK we will offer targeted counselling on the Brazilian market for commercial innovation. We will help Danish companies scout for technology, promote research projects, find the right research and development partners or get access to Brazilian students and professionals e.g. through our new Top Talent Brazilprogramme aiming at attracting young talented Brazilians to Danish educations and careers (as presented in the latest issue of Brazilian Review of January-March 2013). We will also help evaluate the market potential for innovative technologies, review business plans and provide adequate and up-to-date information on e.g. intellectual property rights, patents, access to venture capital, the Brazilian innovation system and its legal and financial incentives at state and federal level. So, whether you are a Danish start-up, a corporate company, a researcher or a university, ICDK hopes to become your natural partner if you want to turn knowledge into growth. With the establishment of ICDK and our new focus on commercial innovation it is our expectation to create value for Danish companies regardless of where they may be in their development process – as we will be offering companies professional counselling and services from the concept development stage until the entering into distributor agreements and sales. One of the main strengths of ICDK is precisely to bridge the gap between the Consulate General’s and the Danish Trade Councils existing export promotion services and the collaborative activities within research and higher education that has been developed over recent years. Focus on Brazilian strongholds ICDK allows everyone from start-up companies with “two men and a good idea” to major, well-established companies to improve whatever they do through links to “the best and the brightest” in São Paulo and the rest of Brazil’s most interesting innovation environments and technological hotspots. Recent international reports has put São Paulo and the greater São Paulo area (including Campinas) on the map as one of the world’s rising sites for scientific production and as a healthy and promising environment for commercial innovation activities. Furthermore São Paulo is by far the largest start-up ecosystem in Brazil and home to some of Latin Americas best universities with the very interesting characteristic that in the period from 2001 -2010 two out of the three biggest patent assignees in Brazil were public research institutions (USP and UNICAMP – only surpassed by Petrobras). ICDK will operate and offer its services focussing on a number of scientific and commercial areas and sectors where Brazil and especially São Paulo presents international strongholds. Initially, we foresee special opportunities within e.g. sectors as food sciences and agro technologies and will offer targeted counselling the Danish innovative environments and companies active in these areas. Over the last decade and especially since 2009 we have witnessed a steep increase in the number of Danish-Brazilian co-authorship of scientific publications and areas such as plant, animal and agricultural sciences, which are by far the fields where Brazil and São Paulo have the highest shares of the world’s scientific publications (approx. 4%). Furthermore, food sciences and agro technologies are areas where Brazil compared to other growth markets and international R&D and innovation hotspots has a very high intensity of knowledge production – all in all making the sector very attractive for a number of Danish companies interested in expanding their network, development activities and consequently business and sales to one of the largest markets in the world. Consul General Nicolai Prytz Anders Ødegaard Christiansen Innovation Attaché apr/jun 2013 71 Frederikshavn The blue city with the green visions The proximity of the sea has always attracted many visitors from around the world; they come to shop, to experience the unique atmosphere and they stay for a while or settle here. 72 apr/jun 2013 Frederikshavn looks to the horizon and is pleased to welcome the outside world to a region which likes to be challenged and disturbed. Challenges and disturbances are what make us break away from habitual thinking and develop. Since the first people arrived here, the sea and the land have been the most important sources of survival for the local community. The sea is referred to as the ‘Blue Gold’ - the land as the ‘Black Gold’. The port of Frederikshavn is one of the largest ferry ports in Europe, frequented daily by thousands of passengers. Thanks to the many ferry departures, we remain closely linked with our neighbors in Norway and Sweden, with the Island of Læsø and the rest of Europe. In addition to ferry traffic and industrial activities, the port is also the base for Denmark’s biggest naval fleet. Frederikshavn has a rich and varied geography. From the air, the countryside presents a stunning pattern of vibrant green woods, plantations and fertile agricultural land, dune landscapes in the subtle hues, sand-colored beaches and the blue sea which surrounds it all. The history of the changing landscape stretches back thousands of years to after the last Ice Age. When the ice retreated, the land rose by as much as 60 m in some coastal cliffs, creating distinctive cliffs and flat beaches along the coast, for instance in the scenery found when approaching Frederikshavn from the south. Here stands Pikkerbakken a beautiful, green crest. From the top there are fantastic views across Frederikshavn and on a clear day also to the Island of Læsø. The towering Pikkerbakken stands in striking contrast to the flat, grassy beach area and the blue ocean below. The varied and unique countryside which characterizes the region and the nearness to the sea offer plenty of scope for development. The local Palm Beach is a shining example of how it does not have to cost a lot or be very complicated to create experiences which attract both locals and visitors. One of the longest pedestrian shopping streets in Denmark is found in the centre of Frederikshavn, only a stone’s throw from the ferry terminal. The range of shops, restaurants and accommodation offered far exceeds what one could expect in a town the size of Frederikshavn. Taking the move by the naval hero Peder Wessel Tordenskiold to Frederikshavn as a starting point, several hundred enthusiastic citizens make history come alive several times a year. They call it ‘story living’ because it is about living out the story of Tordenskiold and his deeds, and about life in the small fishing community Fladstrand in 1717. The Days of Tordenskiold in June - the largest 18th century festival in Scandinavia attracts approx 1,000 active participants and around 40,000 spectators! Everyone comes for the all-in experience of stepping onto the authentic set by the old gunpowder magazine at the harbor where the beautiful wooden ships are moored, as the soldiers dressed in the 18th century uniforms salute the King. Frederikshavn has everything that citizens and visitors could ask for. There are large recreational areas in which to relax or exert.. You can pick your own fruit from trees and bushes, or dig up vegetables from the fertile soil. You can taste all manner of healthy delicacies from nature’s own larder. You can feel the breeze on your face and the hive activity at the port of Frederikshavn or the harbor of Strandby owned by the local fishermen. You are always welcome in Frederikshavn. The Triangular Hat Arena Nord The Days of Tordenskiold offers an exceptional meal experience throughout the year at the Triangular Hat where guest provision coupled with 1717 narratives about the Days of Tordenskiold over many years have developed and refined into a comprehensive voluntary and professional organization. With realtime acting and dining, guests will now be able to experience strong elements from Tordenskiold days all year round in Frederikshavn. The focus of cooperation is to create a meal experience that connects history with seafood such as crabs, mussels and lobster and combined with the area’s unique maritime history and culture. Close to the centre of Frederikshavn you find Arena North. With its 7000 sqm Arena Nord is the largest culture, conference and sports center in Vendsyssel. It’s located a 45-minute drive from Aalborg Airport. Architecturally and aesthetically Arena Nord is one of a kind with its circular shape and breaks with the conventional view of what a conference center should look like. The total area with its decor is suitable for all purposes. Behind the shiny glass façade, a bright and spacious lobby welcomes guests, and it serves as a practical connective link between the large round Arena, the other halls, cafés and information area. From the foyer a wide staircase leads to the upper floor where fixed balcony seats, conference and meeting facilities are located. http://dentrekantedehat.dk www.arenanord.dk Facts Population: 61,158 Area: 643 km2 apr/jun 2013 73 Palm Beach Palm Beach has quickly become a magnet for tourists and locals, who like to go for a swim. Palm Beach has broken away from the norm for Danish and North European beaches. The purpose is exactly to challenge the conventional idea of what is possible on a Danish beach. Palm Beach itself is about 400 meters long and 30-50 meters wide. The sand beach is child-friendly, and the water is clean and clear. Sand dunes provide shelter from the wind and room for undisturbed sunbathing. Do you prefer enjoying your day at Palm Beach in the shade? Then feel free to choose a spot under the seaweed-sunshades or under the palm leaves. Borrow a lounger for free if you prefer to avoid getting sand into your bikini/ shorts. A beach bar (or outdoor kitchen) is located in the middle of the beach. With some creativity, you’ll have the perfect setting for your own beach party. Six beach volley courts (international measurements) and two beach handball courts are located in between the sand dunes behind Palm Beach. Another one is located in the middle of Palm Beach and a beach volley net is located in the water. www.palmestranden.dk 74 apr/jun 2013 Energy City Frederikshavn Energy City Frederikshavn is a business promoting projects intended to supply the municipality of Frederikshavn with 100% renewable energy. The task of the Energy City is to coordinate and initiate various pro jects within renewable energy in order to create green growth, and generate future new local jobs in the clean-tech sector. The ambition is that a defined geographical area has to be transferred to 100% renewable energy by the end of 2015. Afterwards the entire municipality must follow by the end of 2030. In order to achieve that goal Energy City cooperates with univer sities, educational institutions, businesses, inventors and citizens for creating a ’demonstratorium’ for testing sustainable climate and energy technologies in full-scale. www.energibyen.dk Curriculum Vitae Lars Mejlvang Møller of Frederikshavn Municipality •Mayor - Liberal Party January 6, 1958 in Stenhøj near •Born Frederikshavn. •Studied at Sindal School. •Vocational education in farming. •Independent farmer from 1984. to Kirsten since 1987, father •Married of 3 children. of LandboNord Farmers’ •Chairman Association 1997-2004. of the Agricultural Council •Member of Denmark. of the Danish Farmers’ •Member Associations. apr/jun 2013 75 Redrawing the map of Danish tourism The world’s first LEGOLAND® and a living Viking heritage centre – these are just two of Denmark’s tourism highlights not to be missed, according to destination manager André Meyer from DMC Nordic. He believes Danish tourism needs a shake up. Denmark isn’t just a gateway to Scandinavia, he says. Many Danish attractions can easily be reached from Germany, offering the chance to create new, engaging itineraries for the evolving Brazilian market. With offices in five countries in Scandinavia and the Baltic, international destination managing company DMC Nordic organises incentive travels, conferences and industry visits in a vast region that stretches from the Arctic north to Denmark’s southern border. Originally from Rio de Janeiro, André Meyer moved to Denmark 14 years ago to complete a marketing degree at the Copenhagen Business School. After playing an active part in the Danish tourism campaign in Brazil in 2010, André joined the DMC Nordic team in 2011. As a meeting destination, Copenhagen is a perfect product, he says. 76 apr/jun 2013 The city’s top-of-the-line infrastructure allows conference-goers to whiz to their hotel – literally in minutes. And adding to this the city offers a wide choice of attractions for relaxation and urban spice. But when it comes to leisure and incentive trips, Brazilians are usually looking for a combination of destinations. “For most Brazilians, travelling to Europe is still a relatively new luxury. The classic highlights – Lisbon, London and Paris – are still the top choices. But now I see a new generation looking to shake up the combo and include cities such as Berlin, which is booming with Brazilian visitors. And although the tourism industry sees Copenhagen mainly as a gateway to Scandinavia, the city can also easily be twinned with Berlin. Brazilians love shopping – and Copenhagen with all its flagship stores and small Scandinavian design boutiques offers great choice. This year, there’s a big promotional push in Brazil for tourism in Germany, but I could easily see Denmark as part of this message since many Danish attractions can also be reached from Germany.” André Meyer Manager DMC Nordic When asked which destinations in Denmark he believes would interest South American travellers, André once again redraws the map. “I believe a two-day tour of some of Denmark’s great highlights would be a very interesting experience, including destinations such as Odense, LEGOLAND®, Aarhus and Ribe. And Skagen is also an inspiring location – one that also allows you to continue north to Norway. These itineraries and products need developing but the destinations are already there and waiting,” André Meyer concludes. www.dmcdenmark.com CopenhagenEditors.com in association with VisitDenmark Danish highlights City of Ribe Reaching back 1,300 years, Ribe is probably Scandinavia’s oldest city. And with its 800-year-old cathedral and cobbled streets little has changed in the city for centuries. Ribe is also home to a handson Viking heritage centre with reconstructed longhouses, open-air markets and heritage crafts. LEGOLAND Denmark is home to the world’s first LEGOLAND®, which is still Europe’s biggest. There are whiteknuckle rides and theme park fun – and a Miniland featuring the world’s most famous landmarks made with 20 million LEGO® bricks. City of Aarhus Among the attractions of Aarhus, which is Denmark’s second-largest city, is an art installation by DanishIcelandic artist Olafur Eliasson that crowns the city’s art museum – a glass skywalk that lets you soak in the cityscape while bathed in the hues of the rainbow. Aarhus is also known for its boutique shopping. Seaside town of Skagen Denmark’s northernmost town, Skagen is known for its windswept beaches, drifting sand dunes, classic seaside hotels and superb local seafood. Travellers can continue to Norway via ferry from Frederikshavn or flight connection from Aalborg Airport. www.visitdenmark.com.br VisitDenmark Islands Brygge 43 2300 Copenhagen S Denmark Tlf.: 32 88 99 00 Fax: 32 88 99 01 E-mail: [email protected] apr/jun 2013 77 Redrawing the map of A Taste of Denmark “Discover what life is like in Denmark – head to Odense.” So says destination manager Thérèse Andersson from NW Production. The hometown of fairytale writer Hans Christian Andersen, Odense is an easy daytrip from Copenhagen and an inspiring destination not only for its romance, but also for its easygoing contemporary living. Many travellers looking for a true taste of Scandinavia combine scenic Nordic destinations – such as a cruise in the Nordic fiords – with urban experiences in cities such as Oslo, Stockholm and Copenhagen. NW Production is a destination managing company that specialises in such Scandinavian experiences. Based in the Swedish city of Malmö close to the Öresund Bridge – Europe’s longest combined rail and road bridge, connecting Malmö with the Danish capital – the company handles incentive travels to all Nordic countries from Iceland to Finland and helps organise conferences and events. Destination manager Thérèse Andersson has welcomed Brazilian visitors to Scandinavia since the company first entered the Brazilian market in 2011. And early in her career she spent time living and working in Mexico and Spain to gain firsthand experience. “Brazilians are very open people and that’s why it’s important to offer experiences that are really engaging. Copenhagen is a great destination because there is so much to see and do. And one of the city’s great attractions is the very, very good restaurant scene – the best in Scandinavia. Not only do you enjoy excellent food but the atmosphere is great too. The Danes are very good at that,” Thérèse says. Asked what other destination in Denmark she would recommend, Thérèse is quick to suggest the city of Odense on the island of Funen. “Odense is a very easy daytrip from Copenhagen. Travellers experience the landscape on route and get close to everyday life in Denmark – such as tasting Danish pastry from a bakery shop. And then there are all the Hans Christian Andersen attractions, such as the fairytale parade. Visitors often find the parade fascinating even if they don’t know all of Andersen’s tales. So combining a visit to Copenhagen with a daytrip to Odense is a great way to discover Denmark,” says Thérèse Andersson. www.nwproduction.se 78 apr/jun 2013 Odense The city of fairytales ‘The Little Mermaid’, ‘The Snow Queen’ – where would Disney be without Hans Christian Andersen? The city of Odense, hometown of the legendary fairytale writer, has dedicated several museums to its famous son. A daily parade of Andersen’s many fairytale characters takes place in July and August. Visitors can also meander downstream in a riverboat from the heart of Odense to the Funen Village, which is an open-air museum with historic farms – and even old breeds of farm animals – from the age of Andersen. Opening in 2013 is a new extension to the city’s townhouse museum, which relates the story of the island of Funen. The pedestrianised city centre is also home to a contemporary arts centre and among the old converted textile mills you’ll find alleys and courtyards with galleries, design stores, restaurants and boutiques. Thérèse Andersson, Destination Manager www.visitdenmark.com.br apr/jun 2013 79 Morten Soubak The Dane who brought Brazilian Handball into the world elite Morten Soubak, you have made the Brazilian national handball team world-class. How long have you been in Brazil? I have been here since June of 2005. What led to your coming here; what is your background? I moved here twice actually. The first time came about as the result of a contract with FIF (Frederiksberg Idræts Forening) in 1992. <missing>… By 1993, I had gotten the names of possible contacts from Claus Andersson, so I grabbed my backpack and showed up at the Mccann Erickson office in Sao Paulo with a guy called Marcus Garcia to inquire about becoming a coach in Brazil. I also traveled up to Aracaju to meet with the President of the handball confederation, which is still based there, and put in my name. At first, nothing came of these visits, but a year and a half later I got a call from the people in Sao Paulo, who asked me to coach a local team from ´95 on. I arrived in Brazil in 1995 where I coached a men’s team in Osasco until 1996. I then moved back to Denmark and somewhat lost touch with the people I had met in Brazil. In 2004 I received a call from the same guy who had been behind bringing me to Osasco; he wanted to know if I would be interested in coming to work for Sport Clube Pinheiros where he was now the head of the Cup division. I was of course interested; it was a way to do something completely different from what I had previously done in my coaching career. I have a passion for Brazil and Morten Soudbak 80 apr/jun 2013 the Brazilian people, so I was happy for the opportunity that presented itself. I came to Pinheiros in 2005 and coached their men’s team until 2008. In 2009, I became the coach for the women’s national team. You became the national champions when you were coaching Pinheiros, isn’t that right? Yes, we became Brazilian champions in 2007. We had won the Brazilian Cup tournament in 2006, and we won the renowned Brazilian championship Jogos Abertos twice for the city of Santo Andre who had purchased us. Moreover, we came in second in a number of other tournaments and championships. What was your initial impression of the Brazilian national team when you became their coach? I was in doubt as to the best approach to take with the players before meeting them for the first time. I was well aware that the very best players were not found in Brazil; they were in Europe. I became the coach about six months after the Olympic Games in Beijing. I did not know a lot about the women who played in Brazil. I had not paid close attention to the Brazilian women’s national handball team, but I followed the European teams, and therefore I knew a lot about the Brazilian players working in Europe. What happened when I took over was that a large number of players stopped playing on the national team or requested a leave from the team. Some of the players had injuries and others were not released for playing in the World Cup by their clubs. My first year as the coach was a hodgepodge of trying out different players whom I did not know at all beforehand. Winning the gold medals at the Panamerican Games in Guadalajara I had 26 players in 2011 and 24 in 2012. The final team for the Olympic Games was made up of 14 players. The World Cup team had 16 players. Did you play with the same team for the World Cup and the Olympic Games? Yes, very few changes were made. We had players from within Brazil as well as from European clubs participating. I have heard that the Brazilian goalie plays for Viborg, is that right? No, she actually plays for Randers. It’s quite a neat story as it was me who brought her to Denmark initially. I brought the first Brazilian handball player to Denmark in 2004. She played for FCK from 2004-2005 while I was their coach. She then went on to play for a German club where she had a Danish coach. He eventually left the German club to work for Randers. When he left, he ended up bringing some players, including Chana, with him to the Randers team. I believe that Chana has played for Randers ever since. Tell us a bit about the World Cup which was held in Sao Paulo and Santos, please. There are lots of interesting stories to tell about the World Cup. Historically speaking, it’s the first time ever that a Senior World Cup in Handball was held on American soil. Brazil being chosen as the host for a senior championship was quite a feat! When it was announced that we would host the World Cup, it of course motivated the Brazilian players enormously as they would have the home court advantage. We were all extremely motivated by the fact that we were going to play on Brazilian soil. There were a lot of discrepancies among the participants on the team; some had already played in previous World Cups, while others were complete novices. In July of 2011, five months before the World Cup, we hosted the Pan-American championship in Sao Benardo. The International Handball Federation, IHF, was present, and the World Cup groups were drawn at this occasion. As the host nation, we were allowed to choose which group we wanted “ I have a passion for Brazil and the Brazilian people, so I was happy for the opportunity that presented itself “ How many players were there on your team? apr/jun 2013 81 How many matches did you win? We won all the matches in our group and placed first. We then had to play against the Ivory Coast. If we won that match we’d be in the quarter finals. Winning turned out to be a piece of cake, and we were then up against Spain. It was a nerve-wrecking match. We ended up losing the ball and lost the match by one goal, and that was the end of Brazil in the World Cup. That was not nice at all. “ Brazil played a wonderful World Cup and we nearly became the “sensation” at the Olympic Games in London “ to join. I chose the group made up of France, Romania, Cuba and Japan. This might have been a rather peculiar choice for some, but I figured that we would have to win over these nations, if we were to go on and place first, second, third or fourth. I believed that we could make it. For the first time in a long while in the World Cup, the matches were sudden death games after the initial group matches. So, the winning teams would be catapulted directly into the round of 16, quarterfinals, semifinals and finally the final itself. The first match of the World Cup was us playing Cuba at the Ibirapuera Park stadium; there wasn’t a great turnout for this match in spite of the stadium being able to seat a large crowd. This actually surprised me; I thought that since handball is a big sport in schools, and since there were a lot of handball players in Sao Paulo, there would a lot of spectators. However, as each match was played, the number of spectators steadily grew as the media picked up its coverage of the Cup. More and more people started to find it interesting to follow the Cup, and the stadium started filling up. The atmosphere and excitement improved match by match. When we played France, we were hopelessly behind, but managed to turn the game around and win the match. The match ended up being a hit media-wise and was broadcasted on networks other than just the regular sports ones. What happened during the Olympic Games? You were ahead by nine goals and you still ended up losing. What happened? We won our group round. Nobody had expected Brazil to win their round at the Olympic Games, but we did. What was even less expected was that Norway basically placed last in their group. They came in fourth and were nearly eliminated from the Games. I think that Norway deliberately decided to play against Brazil; they knew that if they lost their last match against Spain, they’d meet Brazil because of the other results already in. I believe that Norway found it preferable by far to play us instead of Russia or Montenegro, and they knew that if they lost to Spain, they’d play us. That was the dis- tinct impression I got from watching them play that match. However, I had already before the Olympic Games stated that it was completely indifferent which team we’d meet at what point during the Games; all the teams were of a very high standard, and we’d have to take it all in stride. What happened then was that we played tremendously well against Norway and at half-time we were ahead by three goals. We were of course very pleased with this partial result. We truly believed that we would win the match. We had played two training matches in London the previous March; one of them was against Norway. That match ended in a tie, so our confidence as to our chance of beating them was strong. When the match resumed after half-time, we got ahead by six goals within the first minutes. What then happened is inexplicable to me; the Brazilian team simply fell apart and we couldn’t get back on track. In a situation like this, frustration of course mounts in me, sitting there on the coach’s bench, as they do in the players on the court. When we analyzed the match after it was over, we could see that we marked them efficiently for a while where they only managed to score two goals during 13 minutes. Then, they scored eight goals during counterattacks. That should not have been allowed to happen. However, it is what actually did happen, and it was one of the main reasons we lost the match. I still have not recovered from that loss, but I guess I’ll get over it one day. Did you place fifth? Sixth. France had also won their group round, and they were also eliminated during the quarter finals, in their case, against Montenegro. In the end, the teams that had placed fourth within their respective groups ended up playing each other in the final. Oh, that’s right. The Norwegians of course won again. Well, you have now brought Brazil up among the six best teams within handball from somewhere in the vicinity of the top twenty. Do you believe that Brazil has a chance of winning medals at the coming Morten Soudbak and Pelé in Copenhagen 82 apr/jun 2013 World Cup or Olympic Games? We made huge strides from 2009 to 2012. We have had to conquer and overcome a lot of obstacles. As a team, we have made extraordinary progress, and some of the players have undergone fantastic individual development. But first and foremost, we have become an internationally renowned team. Do you mean that they need to start playing for clubs abroad? Yes, for European clubs. Is it hard for a Brazilian to get to play in Europe? Yes, it is, but there has been a shift in attitude within the past two years; agents and clubs are now more interested in Brazilian female players. I always say that if one is a Brazilian soccer player, then it’s a mere formality to be signed on by a club in Europe, but if one is a handball player, then the reception is much less enthusiastic. This scenario is changing though. Do you encourage the players to seek to certain countries? Yes, I do. Are these countries in Eastern Europe? No, not at all. I would much rather see the players go to places like Scandinavia, Spain, France, Austria, Germany, Slovenia, etc. We have a relatively new project with Hypo Wetter Österreich through which we have had eight Brazilian players on the same team for the past two seasons. Isn’t that an excessive number? That might be. They are in the same club and train together. They play against the same opponents; they play in the Champions’ League, etc. We of course hope that their experiences will benefit the Brazilian national team in the long run. I am hopeful that we’ll be able to make similar – not identical - arrangements for some of the very young players so that they’ll get to play in Europe as well. The Norwegians have always been good, but I think that they are especially great presently. They are extremely well-organized, and they are determined to win. What will you have to do in order to ensure that Brazil has a shot at winning a medal in the 2016 Olympic Games? Brazil youth national team won the Olympic bronze medal in Singapore We’ll have to think outside the box. We’ll need to have the courage to try new strategies. We have to be more team-oriented; the Brazilian players are normally very individual-minded. I have to implement some changes there. We have to do things that nobody else dares to do. We have to develop and strengthen each player so that they’ll be the best at exactly their position on the team. We also have to make sure that we train more than the other teams do. If we train to the same extent that other teams do or as much as Norway does, then I don’t believe we will make it. We have to train harder than the others. Is it a problem that the Brazilians are more individual-minded? It’s kind of ingrained in them, isn’t it? The fact that there are Brazilians between the ages of 28 and 33 who have played in Europe for 6-11 years is very important for our team development. These players have gradually moved to better and better clubs, and today they play for clubs that participate in the Champions’ League, that is to say, clubs that are among the top three in the League, etc. It’s actually indifferent whether they play for Swedish, Danish, Hungarian, Russian or Austrian clubs, what matters is that they have learned to play as part of a team. The fact that we have eight players on the same team in Europe will also work to our advantage. Some of the Brazilian players’ ingrained individualism has disappeared as a result of having been integrated into playing systems within the European clubs. That’s why I insist on the necessity of the players going abroad to play. Are the players willing to go abroad? If they aren’t, then they won’t make it onto the national team. Are you able to help them get a contract abroad? Sometimes I help players make contacts abroad, or I talk to agents on their behalf. They of course have to be players of a certain standard in order to secure a contract. I do not broker contracts for the players though. Within the past month, I have been surprised to hear about some players signing contracts that I had no involvement in whatsoever. It makes me very happy to see players do well internationally. I believe that 6-10 potential national team players will be playing on contract within the coming eight months. What is your dream for the 2016 Olympic Games in Rio? Is it to win a medal? My dream for Rio is doubtless to become Olympic champions. That’s quite ambitious! Yes, it is. How old are you? I am about to turn 49 and involved in handball since 1987. JOL apr/jun 2013 83 Copenhagen Fashion Summit 2012 took place at the Copenhagen Opera House Global Leaders in Sustainable Fashion On the brink of potentially dangerous climate change and with attention to corporate social responsibility soaring to new heights, the world needs innovators who can lead the push toward a more sustainable economy. The Danish fashion industry has the potential to be one such innovator, working creatively and proactively to address critical environmental, social, and ethical challenges on a global scale. Already Danish brands like Ecco, Jackpot, Aiayu, New Generals, Katvig and A Question Of have created successful businesses with high environmental and social standards without compromising design and quality. It might sound like a paradox that the fashion industry engages in sustainability – the industry primarily builds its entire business model on increased consumption through constant launch of new collections. However, perhaps the fashion industry holds part of the solution to the global challenges we face? Along with the rest of the Nordic fashion industry, Denmark is right now working hard to take the lead on making the fashion industry sustainable. The Power of Fashion to Create Change Fashion has always reflected and influenced trends and tendencies. Fashion changes, amplifies and seduces us as individuals and has become a strong cultural factor in today’s society. Consequently, fashion holds the power to influence and change the society, and thereby set the agenda. 84 apr/jun 2013 A Question Of The Danish fashion industry is Denmark’s fourth largest export industry and is a key driver for job creation and economic growth. Over just a few years the industry has grown rapidly to be a crucial factor for the Danish economy and a unique platform for marketing and visibility. With an export share of more than 80% of revenue the industry is considered to be one of the most important future sources of income and growth drivers for Denmark. With influence comes responsibility. As one of the most polluting industries in the world that daily exploits human resources to send cheap products quickly to market, the fashion industry in recent years has acknowledged its responsibility within ethical, environmental and social performance. While the international fashion industry primarily works with sustainability from a risk minimization approach, the Danish fashion industry focuses on the unique opportunities for (green) growth embedded in the sustainability agenda. Under the heading ‘sustainable fashion’ the Danish fashion industry works hard to take a leading position on sustainable solutions to global and socially relevant issues in the international fashion industry. And there are great opportunities for growth if more focus is put on sustainability and development of green technologies. A recent survey conducted by Messe Frankfurt shows that the market for sustainable fashion consumption was growing about Her Royal Highness Corwn Princess Mary of Denmark at the Copenhagen Fashion Summit catwalk show Trash-Couture 10% more than the market for non-sustainable fashion. This development is currently changing the market and leaves untapped potential for growth. An emerging trend that the Danish fashion industry and Danish companies have a unique opportunity to take a lead on. Unique Opportunity for Denmark Besides consuming large quantities of water, chemicals, energy and other raw materials, the fashion industry is known for exploiting low-cost labor in developing countries. Danish Fashion Institute has worked hard to make the fashion industry join forces for being much more environmentally and ethically aware throughout the entire value chain. Denmark has now a unique opportunity to take a leading position as the first country to actively take ownership on the sustainable fashion agenda and make Denmark the key reference point for agendasetting and a hotbed for the most visionary strategies. Danish fashion companies are among the most advanced in the world within, for example, improving health, environmental management and cleaner technologies in the global fashion industry. Danish companies were among the first to put eco-labels in its products and still count as pioneers in the field of organic and cradle-to-cradle approaches. Many of the companies that have set up production facilities in lowwage countries, have included the tradition of high Danish standards and stand as good examples of how to engage in local New Nordic Fashion show in Helsinki. Dress by Susanne Rützou A Question Of apr/jun 2013 85 responsible production while while running a healthy business. In the years 2009-2012, the network organization Danish Fashion Institute initiated a number of projects, all of which have been intended to kick-start a long-term strategy that motivates and assists the Danish fashion industry in the integration of sustainability into their business processes and practices. 2013-2015 will showcase concrete change and action-oriented projects initiated in cooperation with the Danish fashion industry. The Danish fashion industry consists primarily of small and medium-sized enterprises and employs about 10,000 people (2012). Many start-ups demonstrate how sustainability is an integrated part of the strategy and make quality and aesthetics go hand in hand with social responsibility and sustainable business models. Also, the established fashion companies have changed the processes that will guide them. IC Companys employed in 2011, a CSR Manager and in 2012 Bestseller recruited a high-profiled manager to spearhead their overall CSR and communication efforts. In the near future, raw materials and resource efficiency will become crucial for business - including the fashion industry. With a growing middleclass demanding a high level of material goods including clothes, the current volume of cotton and oil based fibers Trash-Couture available are nowhere near adequate. However new innovative materials made from for instance wood, seaweed, cow milk, or crab shells, which all are plentiful in the Nordic region, can help meeting the demand. Potentially, this can become a new export success, help secure jobs and potentially even revitalize production in Denmark. Most companies in the Danish fashion industry have established strong relationships with their foreign suppliers to create the best conditions for sustainable production. Denmark is among the countries where most fashion companies per capita have chosen to let themselves and their suppliers get certified by international standards such as SA8000, BSCI (Business Social Compliance Initiative) or other internationally recognised standards. Pooling Resources to Achieve Global Positioning To fully integrate sustainable business processes is a long-term learning and training process for most companies. Few Danish fashion companies have the resources required to initiate and lead this learning process. It requires coordinated efforts and access to information, knowledge, a wide network and an efficient platform to facilitate the industry-specific needs. This is the reason why the Danish Fashion Institute and a total of 10 partners from the Nordic fashion industry, have initiated the NICE project. NICE stands for Nordic Initiative Clean and Ethical. In short, NICE is a joint commitment from the Nordic fashion industry to take a lead on social and environmental issues. It is the first time that the entire Nordic fashion industry cooperates on a joint project with the same goal: To motivate and support industry in integrating sustainable principles and practices. The reason for this cooperation is a shared desire to be leaders in sustainable fashion on a global scale in order to increase competitiveness. The Nordic cooperation has been successful in creating the critical mass needed to actually be able to create change. NICE is coordinated from the secretariat based at Danish Fashion Institute. Setting Global Targets to Create Sustainable Change The timing around the NICE project has proved to be right. There is great interest in the topic in the industry and the international spotlight is set on Scandinavia and Copenhagen as a thriving center of sustain- 86 apr/jun 2013 able fashion. More and more international fashion companies are waking up to the reality that companies must take responsibility for the triple bottom line, People, Planet and Profit – the social, environmental and the financial bottom line. Most of the work within NICE is deliberately focused on regional and national levels. However, on a biennial basis Danish Fashion Institute organises the Copenhagen Fashion Summit – the world’s largest summit on sustainable fashion. This is whereUnder the patronage of the Royal Highness Crown Princess Mary of Denmark over 1,000 designers and decision makers from leading global fashion companies, experts, politicians and NGOs to inspire and challenge the industry to set new, ambitious targets for the development of sustainable fashion. On 3 May 2012, the Summit saw the launch of the world’s first industry-specific Code of Conduct based on the principles of the UN Global Compact. Danish Fashion Institute participated in Rio+20 to promote the results from the Copenhagen Fashion Summit which also showcased among others the fantastic story of Brazilian brand Osklen. Agenda setting events like Copenhagen Fashion Summit has the potential to create a real movement in the fashion industry – a driving force and common will to change things around production and consumption of fashion. If sustainability and responsibility becomes a real choice when consuming fashion and if the consumer acknowledges the “cool factor” the fashion industry has the ability to also affect the option of sustainability in other decisions and actions such as the purchase of organic food and investing in an electric car etc. In other words, fashion has the potential to drive a new responsible lifestyle. The next Copenhagen Fashion Summit will take place in Spring 2014. Learn more at nordicfashionassociation.com Development Director - Jonas Eder-Hansen and CEO Eva Kruse, Danish Fashion Institute Copenhagen Fashion Summit catwalk show. Dresses by Camila Norrback and Hanna Felting apr/jun 2013 87 The Nordic Model sets the pace Danish Economy in 2013 Denmark and other Nordic countries as global role models The respected magazine “The Economist” had a very interesting and positive analysis of the economic and political situation in the four Nordic countries – Denmark, Sweden, Finland and Norway in its February 2nd edition this year. The overall message was that the Nordic countries in time had restructured their economies to the new global realities and challenges. They had managed the economic downturn in the EU better than most other European countries and by slimming and modernizing their public sector, they had been able to keep the essential elements of the Nordic welfare model and a globally competitive private sector. So how is the economy doing in Denmark now? 88 apr/jun 2013 The global financial crisis of 2008 and the ensuing instability within the euro area has not left Denmark untouched. Nevertheless, in the contemporary European context, the country is still characterized by a rare macroeconomic stability of low public debt, high export surpluses, low inflation and relatively manageable unemployment levels. Two issues seem to be of particular importance for revival of economic activities; on the one hand a stabilization of near markets and re-initiation of growth in the Eurozone, and on the other, the restoration of confidence and investments in the private sector. Growth rates for 2012 have turned out to be slightly negative, but are expected to rise to 1.3% this year and possibly reach close to 2% in 2014 in case of a shift in regional economic tides. Euro Crisis Being a small and a very open economy, Denmark is extremely sensitive to international economic trends, and especially developments within the Eurozone. Estimates from the IMF indicate that the negative consequences, if the crisis should get out of hand, could lead to negative growth of around 1.5% in core Euro countries and up to 4% in countries directly affected by the crisis. Coordinated efforts in the handling of the crisis within the Eurozone have led to a recent narrowing of the interest gap between GIIPS countries (Greece, Italy, Ireland, Portugal, and Spain) and Germany, which points in a positive direction. On the other hand, uncertainty about Great Britain’s attachment to the EU and the unexpectedly high recessionary effect of public spending cuts imposed upon the GIIPS economies present some clear uncertainties as to whether a turning point in the crisis is near. All depending on the stabilization of the Eurozone, official estimates based upon different IMF scenarios indicate Danish growth rates for 2013 spanning from 0.2 (negative), 1.2 (baseline) and 1.7 (positive). Danish Exports Throughout the crisis, Danish exports have remained relatively stable due to continued growth within important trading partners in near markets. A stagnation in demand within the EU because of economic uncertainties from late 2011 has been offset by reliance upon sales mainly to the US and China. Thereby, recent numbers indicate a significant surplus on the balance of payments of DKK 103.9 billion, USD 18.4 billion – in the period from September of 2012 to September of 2013. Yet, a slowdown of economic activity in Germany and Sweden -which otherwise have proved to be important destinations for Danish goods and services during the crisis - may have a generally negative effect upon exports in case that a recovery within the EU is delayed. Public Sector In contrast to many other European countries, Danish public finances are relatively sound, and the country appears to be able to abide by the fiscal targets within the Stability and Growth Pact. From a present level of around 45% of GDP, public sector debt is expected to decrease to approximately 43% of GDP in 2013, well within the EU ceiling of 60%. The actual public budget balance deficit is expected to decrease to 2.5% of GDP in 2013, from a level of around 4% in 2012 due to extraordinary expenditures that year. It is hereby expected to lie within the EU requirements of 3% to be reached no later than 2013. Denmark is also set on course to comply with the structural deficit targets of maximum of –0.5% in 2013; this is expected to reach -0.2%. In its plan for the development of the public sector towards the year 2020, the Danish Government has established a level Employment for the annual growth of the public sector at around 0.8 % of GDP. This has been defined as the necessary level in order to secure the provision of welfare obligations, in a context in which a growing number of older generations leave the Danish labor market. Due to the introduction of new sanctioning mechanisms towards municipalities and regional governmental institutions, they very seldom exceed central spending targets. This means that in 2012, public spending is expected to have grown at a rate below 0.25% of GDP. With the present targets for the expansion of the public sector, the private sector is expected to increase its total part of the Danish economy towards 2020. Competitiveness The main challenges for Danish businesses in the beginning of 2013 can be summarized as low demand combined with many years of low productivity development. Since the year 2000, Danish wage costs have increased 20% more than those of neighboring countries, but productivity development has only risen slightly, not keeping up with competitors. The rise in Danish wages which increased dramatically from 2006-08 is now lower than the general pace of wage increases in the Euro area. This has in fact meant that Danish competitiveness has risen for the first time in 15 years. A range of labor unions have furthermore restrained their wage demands to such a degree that with a present inflation rate of 1.5%, real wages for many groups of skilled workers are actually decreasing. Important factors to have in mind when evaluating the Danish business climate are also the extremely smooth regulatory environment, easy access to capital as well as the country’s well-developed infrastructure. These were all significant factors in making Denmark ranking fifth on the World Banks “2012 Ease of Doing Business Index”. With the global recession caused by the financial crisis throughout 200809, unemployment in Denmark rose strongly, though from a historically low pre-crisis level. In 2010 private sector employment stabilized on the level at which it has remained until today, though public employment has continued to fall, mainly because of the implementation of strong measures to punish municipalities and regions for transgressing budgets. Within the private sector, employment in manufacturing has been hit hardest in comparison to construction and services. The continued slight downwards trend in manufacturing occupation should be seen as a prolonged tendency ongoing since the 70s, when this sector started declining gradually compared to other parts of the economy. At present 168,000 people are unemployed, which is a number that is expected to rise to about 180,000 in 2013. Projections suggest a recovery of the labor market in 2014 with moderately reversing employment trends. Compared to many other European countries, Denmark has a very flexible labor marked with a high degree of turnover and relatively low long-term unemployment. Seen in a historical perspective, the present Danish unemployment rate is not very high, though the steep drop in employment just after the crisis has meant that a significant number of people have lost their jobs in a relatively short time span. This has also generated a pressure on politicians to actively stimulate employment, especially because of recent cuts in unemployment benefit schemes. From a situation in 2006-08 in which a huge demand lead to overheating and bottleneck problems, the unemployment gap in 2012 rose for the first time to a positive level, at which the economy would be able to absorb some 30,000 without any inflationary pressures occurring. open economy such as the Danish one, an eventual revival of economic growth seems to depend upon on a general shift in economic activity in the Eurozone. Still, certain significant domestic circumstances also point towards a positive outlook for such an upturn, whenever it may occur. In the housing market, a slow stabilization of prices after a strong decline since 2006 seems to be in sight. Though the housing market is still fairly quiet with a low rate of sales and a relatively long waiting time to get houses sold, the latest projections point towards increased activity and the possibility of a slight increase in prices in 2013-14. In the years following the crisis, both households and businesses accumulated historically large savings due to uncertainties about the future. Because of instability within the banking sector, many businesses chose to consolidate themselves, meaning that total private savings along with households from 2008 to 2011 amounted to some staggering DKK 400 billion (USD 75 billion). Positive estimates of the increased boosting effect that the gradual spending of these assets could have on growth, indicate a rate above 2% during the coming years - in case that consumer and business confidence truly returns. Svend Roed Nielsen Ambassador Domestic Drivers in 2013 The present stagnation in Danish economy is primarily due to low internal demand because of the burst of the housing bubble and global repercussions of the financial crisis. In an apr/jun 2013 89 Holstebro Municipality a cultural pearl The town and the municipality is a dynamic hub for both art, culture, commerce, commercial development and tourism. To the west, the mighty North Sea roars against the coast. To the north, east and south, flat farm land and spectacular nature mingle in a neat pattern. And right there, in the middle of it all, one of Denmark’s cultural and commercial pearls – Holstebro – is situated. The town is famous and praised both in Denmark and abroad for wanting to “set the cultural agenda locally, nationally and internationally”. This deliberate venture has created the identity of the town – and made all of Holstebro Municipality into a dynamic hub for culture, music, ballet, sport, commerce, commercial development, environment, education and tourism. Every day, both the citizens of and the many guests in Holstebro experience what it means to be in a town and an area with a clear mission: We have drops of culture in everything! Cultural venture a success It is one thing to determinedly focus on cultural development on all levels to create lasting values. But it’s a whole other kettle of fish to actually succeed. This is something that Holstebro quite rightly can boast about having done. Holstebro is the town for lovers of dance, young and old, and has for example been dubbed The Town Of Ballet. This is due to, amongst other things, Holstebro being home to one of the two ballet schools of The Royal Danish Theatre outside of Copenhagen. Musically, Holstebro has a unique food chain, embracing all ages and musical genres. Holstebro Music School plays a pivotal role in this as one of the most efficient music schools in Denmark. The theatre environment here offers varied and multi-faceted experiences, and the town is home to three professional regional theatres, each with its own identity. Odin Teatret is the oldest regional theatre in Denmark, and also does work around the world. The theatre group was established in 1966 as Nordisk Teaterlaboratorium in Holstebro. Odin Teatret has its own publishing house and film production as tools for documentation and research. The sculpture “The Citizens Of Holstebro” is created by the artist Bjørn Nørgaard. 90 apr/jun 2013 Facts about Holstebro Musikteatret Holstebro is the town’s artistic centre for concerts, musicals, opera, theatre, ballet and family shows. The other two regional theatres are Operaen i Midten, a West Jutland opera company, and Black Box Theatre that aims to put performing arts on the edge. Besides this, Holstebro is one of the leading municipalities in Denmark when it comes to developing talents within music, sports and art. Sports-wise, Holstebro Municipality has been an elite sports municipality since 2004. On a creative level, Dansk Talentakademi is the leading centre in Denmark for artistic talent development, with a focus on music, art & design, dance, musical & theatre, and writers. Art in the urban life Holstebro’s philosophy about art and culture being accessible in the streets, squares and green areas of town instead of being hidden away, emerged just under 50 years ago. Mayor at the time Kaj K. Nielsen had promised himself as a young man that if he ever achieved deciding influence, he would make art and culture come to the people. In the mid-1960s, together with city manager Jens Johansen, he purchased the sculpture “Woman On Cart”. It is created by the Swiss sculptor Alberto Giacometti, and is today the most famous citizen of Holstebro, and the symbol of the town’s strategic venture into art and culture. Since then, many other works of art have joined it, and uniquely, many of them can be experienced as permanent fixtures both in the charming pedestrian street and elsewhere in town. You can also get up close to the art indoors, for example at the town hall and at the art museums. A beautiful commercial town When people talk about Holstebro’s reputation as a commercial centre, there is truth in it, as the town has been rewarded on several occasions. Four times, Holstebro has been awarded the title of Most Beautiful Commercial Town in Denmark. Once, Holstebro has been given the honour of becoming Best Commercial Town in Denmark, and twice, the town has been named Town Of The Year. This is, amongst other things, due to the atmosphere in the pedestrian streets with several hundred shops, cafes and restaurants, the large stores on the outskirts of town, and the art which is everywhere in streets and on squares. • Just under 1,400,000 oneday visitors visited at least one place in Holstebro Municipality in 2010 • In 2010, there were 618,000 overnight stays in the various places to stay in the municipality • Tourists turned over 591m DKK in total, divided between 57% Danish, 28% German, 5% Norwegian, and others. In the smaller urban communities Ulfborg, Vemb and Vinderup – there are also many types of shops. Furthermore, you can strike a bargain in the workshops and galleries of the local artists, or in the farm shops selling local foods around the municipality. Important commercial development Collaboration on commercial development and entrepreneurship is one of the great challenges in Holstebro Municipality, and an important part of this is the development park Nupark on the outskirts of town. Nupark is brimming with synergy, energy and opportunities day and night. apr/jun 2013 91 This commercial hub is home to,amongst others, Nupark Innovation A/S which is West Jutland’s centre for commercial development and growth. The aim is to develop new companies through investment and consultancy – primarily with a focus on smaller and medium-sized companies. Sea, nature and shops Tourism-wise, Holstebro Municipality lives up to what all studies show: That most people want to holiday in places with sea, nature and shops. All of this is just outside the door in the municipality. There is something for everyone: Those who just want to relax. Those who come for experiences. And those who appreciate an active holiday and who want to explore town and nature by foot or bicycle. Many of the nature areas and plantations in the municipality are open to the public, and hiking paths and other facilities have been created. At the same time, Holstebro Municipality is the municipality with the best and most well-developed bicycle lane network in Denmark. A green municipality Holstebro Municipality is a green municipality situated on the west coast of Denmark, and home to countless windmills. The municipality also has one of the best biogas plants in the world - Maabjerg BioEnergy – delivering climate friendly district heating to Holstebro Municipality Holstebro has been rewarded Most Beautiful Commercial Town in Denmark four times. Not least due to its cosy atmosphere in the charming pedestrian street. and the neighbouring municipality Struer. With its status as a climate municipality, Holstebro Municipality is committed to cut its internal CO2 emissions with two percent a year. On top of this, the municipality strives to become independent from fossil fuels and instead focus on renewable energy. We stick together In other words, Holstebro Municipality is a pulsating area with its very own identity and visions. These have been created by the municipality, the citizens, the business community and the culture and educational institutions standing shoulder to shoulder and pulling together. This is what makes the municipality successful in doing what it has set out to do. We do what we want – and what we believe in. Mayor H.C. Østerby Holstebro Municipality Curriculum Vitae Hans Christian Østerby •Chairman of the Culture and Leisure department 2006-2009. •Former Headmaster (for 15 years) •Social Democrat •Member of the City Council for 11 years •Chairman of the Culture and Leisure department 2006-2009. •Mayor since 2010 •57 years old You can find more information about Holstebro’s history, accommodation, attractions, events, activities, restaurants, etc. on the websites www.holstebro.dk and www.visitholstebro.dk. 92 apr/jun 2013 The world-famous sculpture “Woman On Cart” by Alberto Giacometti is the most famous citizen of Holstebro. apr/jun 2013 93 Brazil in the lead Danish export up by 21% in 2012 94 apr/jun 2013 Largest export product goods for jan-nov 2012 Export of goods Volume in million Dkk Medicinal and pharmaceutical products Pct. change to jan-nov 2011 Share of total export of goods 2.135 75,3% 43,3% Machinery and equipment for the industry 458 12,3% 9,3% Chemical materials and products 388 57,1% 7,9% Power engines and motors 336 282,9% 6,8% 4.930 15,7% Total export of goods to Brazil Svend Roed Nielsen Ambassador Export of goods 2011 and 2012 (jan-nov) 1.000 900 Million Dkk 800 2012 700 600 500 400 2011 300 200 100 0 jan feb mar apr maj jun jul aug sep oct nov Danish export of services to Brazil 5.000 4.500 Million Dkk 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 - 2006 2007 2008 2009 2010 2011 2012 Danish export of goods to Brazil Million Dkk Brazil is leading among the BRIC countries when it comes to growth in Danish exports in 2012. The latest figures of Danish exports for the whole of 2012 shows a very positive picture of Danish exports to Brazil. Our export of goods has increased from DKK 4.7 billion in 2011 to DKK 5.8 billion in 2012. This is on top of an increase in each of the previous 2 years of more than 45% year-toyear growth. Furthermore, our export of services has gone up with 17% and totaled an amount of DKK 4.7 billion in 2012 – the larger part being from sea transport services. Our export of goods to the BRIC countries (Brazil, Russia, India and China) was up almost 13% with an increase of exports to China close to 17% and a more flat development for Russia and India. Exports to the US were also up at close to 15%, but there was no increase in exports to the EU countries as a whole. The result in Brazil was somewhat a surprise because the first seven months showed a negative trend for Danish exports compared to 2011, but the last five months in particular totally changed that picture. It is also remarkably to see such an increase in Danish exports in a year where the Brazilian economy showed growth of only about 1% and an overall fall in imports. Danish companies have thereby been able to gain market shares in Brazil. Well done. The sector specific export figures for all of 2012 have not yet been released from Statistics Denmark, but figures for the first 11 months of 2012 show that pharmaceuticals, not least insulin, and industrial equipment, including wind turbines, now make up an even bigger share of Danish exports to Brazil. I very much hope this positive trend in Danish export to Brazil will continue in 2013. 6.000 5.500 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 - 2006 2007 2008 2009 2010 2011 2012 apr/jun 2013 95 Lionel Messi wins Ballon d’Or Barcelona and Argentina forward Lionel Messi wins the Ballon d’Or 2013 ahead of Ronaldo & Iniesta for a record breaking fourth consecutive time. Spain wins the the 2013 World Men’s Handball Championship, Denmark wins silver The 23rd World Men’s Handball Championship won the title, beating Denmark in the final 35– took place in Spain from 11 to 27 January 2013. 19. Croatia took the bronze medal and Slovenia This was the first time Spain hosted the World came in fourth. Men’s Handball Championship, becoming the JOL twelfth country to host the competition. Spain Novak Djokovic wins the Australian Open 2013 Men’s Singles Novak Djokovic defeated Andy Murray in an over three hours and 40 minutes long game, winning 6-7 (2-7) 7-6 (7-3) 6-3 6-2, his fourth victory in the Australian Open. The win maintained his world number-one ranking. JOL Victoria Azarenka wins the Australian Open 2013 Women’s Singles Victoria Azarenka retained her Australian Open title and kept hold of the world number one spot with a 4-6 6-4 6-3 victory over Li Na in the Melbourne final. JOL 96 jan/mar 2013 jan/mar 2013 97 Baltimore Ravens win Super Bowl XLVII American Football Conference (AFC) champion Baltimore Ravens defeated the National Football Conference (NFC) champion San Francisco 49ers by the score of 34–31 and became the National Football League (NFL) champion for the 2012 season. AMK Stéphane Peterhansel and co-pilot Jean-Paul Cottret wins the 2013 Dakar Rally After two weeks of racing, French pilot Stéphane Peterhansel and co-pilot Jean-Paul Cottret have won the 2013 edition of the Dakar Rally in a heavilymodified MINI Countryman ALL4. The podium finish marks MINI’s second Dakar victory and Peterhansel’s eleventh career win, a record for the race. Held in South America for the fifth consecutive time, the 2013 edition of the grueling race took competitors 5,000 miles through Peru, Argentina and Chile while crossing harsh terrain such as the Andes mountain range and the Acatama Desert, widely regarded as one of the driest areas of the world. AMK 98 jan/mar 2013 jan/mar 2013 99 COP18 in Doha At the Climate Change Conference COP18 in Doha agreement has been reached to extend the Kyoto Protocol with eight years until 2020. The Kyoto Protocol was originally signed in the ancient Japanese imperial city in 1997. The agreement came into affect seven years later, when Russia finally joined it. According to the Kyoto Protocol, nearly 40 industrialized countries committed to cut down CO2 emissions. The developing countries have no reduction targets for greenhouse gases, nor does the current emerging economies China, India and Brazil. The EU has taken the brunt of Kyoto. It was originally thought that CO2 requirements should be increased in the next stages. 100 apr/jun 2013 Japan and Canada have said that countries will not help to extend Kyoto into a new period. The same message has come from Russia and the United States was never part of the deal. The UN climate talks failed to deliver increased cuts to carbon pollution, nor did they provide any credible pathway to $100 billion per year in finance by 2020 to help the poorest countries deal with climate change, according to the 700 NGOs who are members of Climate Action Network-International (CAN-I). Even though the agreement was extended for eight years it does still have loopholes that allow carry over, use and trading of hot air. There was a call for Kyoto Protocol countries to review their emissions The results of COP18/CMP8 1) Amendment of the Kyoto Protocol The Kyoto Protocol, as the only existing and binding agreement under which developed countries commit to cutting greenhouse gases, has been amended so that it will continue as of 1 January 2013. Governments have decided that the length of the second commitment period will be 8 years. The legal requirements that will allow a smooth continuation of the Protocol have been agreed. The valuable accounting rules of the protocol have been preserved. Countries that are taking on further commitments under the Kyoto Protocol have agreed to review their emission reduction commitments at the latest by 2014, with a view to increasing their respective levels of ambition. The Kyoto Protocol’s Market Mechanisms - the Clean Development Mechanism (CDM), Joint Implementation (JI) and International Emissions Trading (IET) - can continue as of 2013. Access to the mechanisms will be uninterrupted for all developed countries that have accepted targets for the second commitment period. JI will continue to operate, with the agreed technical rules allowing the issuance of credits, once a host country’s emissions target has been formally established. Australia, the EU, Japan, Lichtenstein, Monaco and Switzerland have declared that they will not carry over any surplus emissions trading credits (Assigned Amounts) into the second commitment period of the Kyoto Protocol. •Elements of a negotiating text are to be available no later than the end of 2014, so that a draft negotiating text is available before May 2015. In Doha, the UN Secretary General Ban Ki-moon announced he would convene world leaders in 2014 to mobilize the political will to help ensure the 2015 deadline is met. • • • 3) Completion of new infrastructure • • In Doha, governments significantly advanced the completion of new infrastructure to channel technology and finance to developing nations and move toward the full implementation of this infrastructure and support. Most importantly, they have: endorsed the selection of the Republic of Korea as the location of the Green Climate Fund and the work plan of the Standing Committee on Finance. The Green Climate Fund is expected to start its work in Sondgo in the second half of 2013, which means that it can launch activities in 2014. confirmed a UNEP-led consortium as host of the Climate Technology Center (CTC), for an initial term of five years. The CTC, along with its associated Network, is the implementing arm of the UNFCCCs Technology Mechanism. Governments have also agreed the constitution of the CTC advisory board. • reduction target inline with the 25-40% range by 2014 at the latest. While it could have been stronger, the decision reinforces clear moral obligation for countries to increase their emission reduction targets prior to 2020 and provides opportunities for them to do so. It was agreed to make a work program on loss and damage to help victims of climate change. It will start immediately and a decision to establish institutional arrangement, such as an international mechanism, at COP19. Developed countries failed to agree a way to account for their carbon in a comparable way. Several countries point to the absurdities in the Kyoto framework. For example, shipping and aviation are exempted from regulation of their CO2 emissions. Apart from that the division between developed and developing countries today seems rather arbitrary. Many countries with high GDP per capita are categorized as developing countries. This applies to Qatar, which ranks as one of the world’s richest countries. On the other hand a country like Romania is considered as a developed country. The COP18 was by many considered a failure but the European union chose to commit to a cut down of emissions to 20%. The text is going to be revised in 2014 where these values will be revised. AMK • • • 2) Time table for the 2015 global climate change agreement and increasing ambition before 2020 Governments have agreed to speedily work toward a universal climate change agreement covering all countries from 2020, to be adopted by 2015, and to find ways to scale up efforts before 2020 beyond the existing pledges to curb emissions so that the world can stay below the agreed maximum 2 degrees Celsius temperature rise. A significant number of meetings and workshops are to be held in 2013 to prepare the new agreement and to explore further ways to raise ambition. Governments have agreed to submit to the UN Climate Change Secretariat, by 1 March 2013, information, views and proposals on actions, initiatives and options to enhance ambition. • • • • 4) Long-term climate finance •Developed countries have reiterated their commitment to deliver on promises to continue long- term climate finance support to developing nations, with a view to mobilizing 100 billion USD both for adaptation and mitigation by 2020. The agreement also encourages developed countries to increase efforts to provide finance between 2013-15 at least to the average annual level with which they provided funds during the 2010-2012 fast-start finance period. This is to ensure there is no gap in continued finance support while efforts are otherwise scaled up. Governments will continue a work programme on long-term finance during 2013 under two co- chairs to contribute to the on-going efforts to scale up mobilization of climate finance and report to the next COP on pathways to reach that target. Germany, the UK, France, Denmark, Sweden and the EU Commission announced concrete finance pledges in Doha for the period up to 2015, totaling approximately 6 billion USD. • • • apr/jun 2013 101 The minister for trade and investments to inaugurate the Danish stand at Hospitalar 2013 With a continuously growing healthcare sector in Brazil that has shown double digit growth for the past decade, the possibilities for suppliers in the sector seem endless. Further, this sector is considered one of the most promising in Brazil with an estimated compound annual growth rate (CAGR) of 12.6 per cent from 2011 – 2015. It is therefore not surprising that so many companies choose to participate in the second largest healthcare trade show in the world, “Hospitalar”. 102 apr/jun 2013 By far the largest of its kind in Latin America and second only to the world leading fair “Medica” in Germany, the Hospitalar trade show gathers more than 92,000 professional visitors from all of Brazil and a total of more than 60 countries. The fair displays everything from the most sophisticated state-ofthe-art medical technology to the more basic equipment, using simple and advanced solutions, in a wide variety of alternatives in quality and prices. The Hospitalar tradeshow is considered to be the great thermometer of the healthcare sector in Brazil, whose total revenue amounts to approx. USD 219 billion annually, a figure that corresponds to about 9 per cent of the GDP. Brazilian import of medical devices totaled around USD 5.5 billion in revenues in 2012, and Danish devices and pharmaceuticals are acknowledged by the large players in the market. Albert Einstein Hospital in São Paulo, for instance, which is considered the best of its kind in Latin America, closed an order with the Danish company Radiometer last year, attracting attention from the Royal Crown prince couple upon their visit to Brazil in September of 2012. Hospitalar has grown nearly 20% a year over the past four editions and the 2012 event attracted more than 1,250 exhibitors. On top of this, all indicators show that the 2012 edition was the best in the history of the trade show, with record numbers in immediate business and prospective deals with hospitals, clinics and laboratories from all over Brazil and from abroad. International participation is also more popular than ever and the 2012 edition showed a large increase compared to previous years; companies from France, Italy, Germany, Egypt, England, Denmark, Sweden, United States, Argentina, China, Taiwan, Korea and Uruguay were all present with national stands. Hospitalar has also grown into a focal point for sharing of New Norwegian Ambassador Aud Marit Wiig Jimmy Kortegaard Lau Olsen, General Consulate São Paulo new technologies and ideas for doctors and other health professionals. With nearly 60 seminars and events held simultaneously during the fair, gathering more than 6,000 attendees, the Hospitalar fair is thus a great place for healthcare professionals to network and get updated on recent development and technologies. Keeping in mind the importance of Hospitalar, the Danish Consulate General in São Paulo will for the 20th consecutive year organize a Danish stand where various Danish companies join forces and showcase their unique products. According to Consulate sector expert Jimmy K.L. Olsen, Danish companies should be aware of the potential of the market and the importance of Hospitalar “With the growth rate that the Brazilian healthcare industry is experiencing it is simply a market that you cannot afford to not take seriously. Whether you are already present on the market or in the startup process, the Hospitalar trade show is imperative for your success”. He further explains “The Brazilian business culture to a high degree promotes direct contact with potential customers and many companies expect you to be at Hospitalar as a reference. This year, Hospitalar coincides with the visit of Min- ister for Trade and Investments Pia Olsen Dyhr, and we have made sure to utilize her presence to promote Danish participants at Hospitalar. The Danish stand attracts a lot of attention that is difficult to get as a sole exhibitor and through the Minister visit we can expand this even more”. The Danish minister for trade and investments, Pia Olsen Dyhr, will inaugurate the Danish stand at this year’s edition of Hospitalar, thus securing further promotion of Danish healthcare companies. Hospitalar 2013 will take place in Expo Centre Norte in São Paulo from May 21st – 24th, and this year the Danish stand will consist of a record 184 sq. meters with 10 Danish exhibitors. Aud Marit Wiig (born July 29, 1953) is a Norwegian diplomat. She was born in Mandal, and holds a Master of Philosophy. She started working for the Norwegian Ministry of Foreign Affairs in 1983. She served in the Norwegian embassy in Pretoria from 1996 to 2001, and worked as head of department in the Ministry of Foreign Affairs from 2001 to 2004. From 2004 to 2007 she was the executive director of the African Development Bank. She then served as the Norwegian ambassador to Pakistan from 2007 to 2008, and as deputy under-secretary of state in the Ministry of Foreign Affairs from 2009. JOL Knud Bach honored with the Chamber Medal Danish Consulate General The Danish Consulate General in São Paulo Rua Oscar Freire 379 cj. 31 01426-900 São Paulo Contact: Mr. Jimmy K.L. Olsen E-mail: [email protected] Phone: +55 (11) 21270750 apr/jun 2013 103 Brazilian Review EVENTS Rio Chamber Event The Brazilian Economy and its Many Taxation Implications on Our Businesses” , Professor Istvan Krazner Ph.D of FGV enlightened the group on the difficulties we encounter when doing business in Brazil. There are 58 different types of taxes in Brazil. We discussed how power struggles between municipalities, states, and the federation play out in higher taxations. Since 2000, the tax burden (carga tributaria) has almost continually increased to 36% of the GDP and reached record heights in 2012. The many taxes paid are decentralized because it is generally not believed that taxes would be fairly distributed if they were paid to a centralized organ instead. Many serious attempts have been made to streamline the taxation policy and restructure it to a more convenient and transparent system, but they have been politically blocked as they would represent a direct attack on the government’s revenue. 2012 will close with one of the most disappointing growth rates in a decade, close to 1%, mainly due to barriers to consumption and productivity. Brazil has let itself become very expensive within the current regime in the current commodity cycle (an extremely productive industry) allowing to overcome some of the structural deficiencies. It was easy to ignore policy restricting pressures at a 4.5 % growth rate, but it is inevitable at 1.5%. Jan Lomholdt Rio Chamber Business Luncheon Ambassador Svend Roed Nielsen at the Danish Chamber Ambassador Svend Roed Nielsen gave a very interesting speech, for a full house, about “Challenges for Danish companies in Brazil and other Latin American countries”. The presentation was very open and a dialog took place with many questions. JOL 96 apr/jun 2013 INTERNATIONAL MOVINGS TEAMWORK INTERNATIONAL MOVING is an agile and modern company, that counts with professionals with wide experience on international moving. Our philosophy is 100% based on Client Service. - Multi-language staff (Portuguese, English, Spanish, Japanese, Danish, German). Our services go beyond the moving day, they are based on the services and informations that we provide during all stages, from the initial visit to your residence until the arrival at the final destination. Our moving coordinators have the most updated informations about all the aspects of a move, which guaranties that all necessary documents will be requested. We help with all paperwork and with the notary services (cartório). We also offer consular support. Our packing material follows the highest international standard. The packing material counts with specific boxes for: - - - - - - - - Clothes China Paintings Books Cd’s Shoes and Suit pockets Comforter pockets Dissecants (to avoid mould and humidity) SÃO PAULO: R. Adherbal Stresser, 454 A – São Paulo, SP, Brasil – CEP 05566-000 Tel. (55 11) 3785-3425 RIO DE JANEIRO: R. São Félix, 830 – Rio de Janeiro, RJ, Brasil – CEP 21235-610 Tel. (55 21) 2481-2531 [email protected] www.teamworkintl.com.br apr/jun 2013 97 Vila Isabel Olivia Culpo Wins the Rio Carnival Vila Isabel wins the Carnival for the third time and Rosa Magalhães Carnival Designer wins her eighth title. Rosa Magalhães is the most winning Carnival designer in the history of the Rio Carnival. Rosa Magalhães created the Hans Christian Andersen samba parade for Imperatriz Leopoldinense in 2005. JOL from Rhode Island, USA wins Miss Universe 2012 Rosas de Ouro wins the São Paulo Carnival 106 apr/jun 2013 apr/jun 2013 107 The Danish Cultural Institute April – June 2013 Danish children and youth theatre in Brazil 2013/14 April 2013 – May 2014 Curitiba, São Paulo and Rio de Janeiro The visit of a Danish delegation in November of 2011 showed that there is great room for children’s theatre in Brazil. Therefore a Brazilian delegation was sent to Denmark to find future partnerships and inspiration. As a result of this, a larger project with partners such as SESC Sao Paulo, the Curitiba Theatre Festival and Sao Paulo Escola de Teatro are now organizing several events on theatre for the young crowd. This includes visit of Danish theatre groups at festivals, seminars and workshops. It all ends in May of 2014 with a mini Danish showcase event. Mostra de Musica dinamarquesa II April-May - São Paulo Together with SESC Sao Paulo the Danish music festival will repeat the success it experienced in 2012. Three to five Danish bands will play concerts in one of SESC´s best venues. The bands are carefully selected by SESC and are all bands that played in the SPOT Festival in Aarhus 2012. You might ask why. The answer is that the SPOT Festival is where the newest and best music in Denmark plays first – so let us give Brazil a chance to hear some of it! Give a Story April - Rio de Janeiro Hemisfério April - Brasilia and São Paulo The film and sound art festival Hemisfério was carried out with great success for the first time in December of 2012. It was held at one of the leading cultural venues in Rio called Comuna. Hemisfério is all about the new and upcoming artists and this festival is a playground for them to explore. Varieties of films were shown during three days with a sound artist concert closing the festival. Next, the festival will be in Matilha Cultural in Sao Paulo and Brasilia! Dinâmica Dinamarquesa Friday February 22 - The Week Club, Sao Paulo Saturday February 23 - Green Sunset Party, Sao Paulo March 1-3 - Rio de Janeiro With focus on the BRIC countries and the delegation in November of 2011, the institute is proud to present, in connection with Danish genre organizations, the music project Dinâmica Dinamarquesa. 21 jazz and electronic musicians were selected to give concerts and exchange ideas with local artists in Rio de Janeiro and Sao Paulo. The project runs from August of 2012 until December of 2013. It was put together by the the Danish Cultural Institute, Music Export Denmark, Jazz Denmark and the Ministry of Culture and the Ministry of Foreign Affairs. The Brazilians are due to get jazzed up a bit and explore the wonders of the new electronic scene coming from Dinâmica Dinamarca! The first artist arriving in 2013 is the DJ Peter Visti, who has had a long DJ career and is known for his melodic Balearic house. He has played all over the world and is coming to Sao Paulo for the first time. 108 jul/sep 2011 The city of Rio and the Danish Cultural Institute make the pre-defined Danish project Tell Me Stories which centers around story telling. Who better to tell a story but children? This is why the project will be carried out in public schools. It also involves workshops and seminars about stories. In the end, this will give the children tools to create, read and write. C:NTACT April - Rio de Janeiro It must be the first time in history that the Betty Nansen Theatre in Copenhagen and the city of Rio de Janeiro are working together. Nonetheless, it is a fact that the pilot project of the social-cultural theatre C:NTACT is soon to be present in Rio. Two schools from Rio´s South Zone and two schools from the Rio´s North Zone, which are very different in terms of milieu and economic capacity, will make a theatre play together. The children are in the middle of elementary school and in the middle of getting an experience of a lifetime. www.dankultur.dk Language School January-December - Rio de Janeiro This semester, the Danish Cultural Institute’s very own language school offers classes at both beginner and intermediate level for Brazilians who wish to learn the Danish language. Furthermore, we are opening a long distance course in Sao Paulo and there will also be a division in Brasilia. More specifically, we are working intensely to create a language course specifically for companies so that they will be better suited to go deal with Danish matters. Come learn a new language! jul/sep 2011 109 Survey for Exports goods to Brazil the last years compared with other countries Export in Euro 2012 2011 2010 Germany 11,623,226,790 11,104,290,393 10,316,704,140 Denmark 774,232,995 610,788,614 426,785,915 Finland 724,826,028 543,573,369 545,829,982 Holland 3,104,934,191 2,331,749,062 1,861,691,221 Sweden 1,352,713,901 1,479,375,405 1,134,191,574 Norway 772,143,515642,308,000702,693,000 Source: Royal Danish Embassy, 2013 Year-to-Year in % Germany 2012 2011 4.7 7.6 Denmark 26.843.1 Finland 33.3-0.4 Holland 33.225.2 Sweden -8.6 Norway 30.4 9.4-16.8 Source: Royal Danish Embassy, 2013 Brazilian-Review Apr/Jun 2013 President Jens Olesen Chamber Representatives Rio de Janeiro Jan Lomholdt, Inventure Paraná Pedro Luiz Fernandes, Novozymes Rio Grande do Sul, Frank Woodhead Editor Jens Olesen First Vice-President Jesper Rhode Andersen (Ericsson Telecomunicações) Assistant Fernão Kastrup Prates Rua General Almerio de Moura, 780 05690-080, São Paulo-SP Tel.: (+55 11) 3758-2101 Fax: (+55 11) 3758-5986 Website: http://www.danchamb.com.br E-mail: [email protected] Second Vice-President Peter Grangaard Gyde (Maersk) 1946-2013 20 april/june 2006 The Board: Finance Director Per Lerdrup Olsen (DI) Translations between Danish, English and Portuguese Brasseriet, Lisbeth Jarl Jørgensen & Anita H. Thomsen Luciano Executive Secretary Anders Munroe Kjersem Graphic Production and Desktop Publishing Nobreart Comunicação Ltda. (+55 11) 3739-4947 Directors Francisco Davos (FLSmidth), Kjeld Roslyng Jensen (Widex), Zacarias Karacristo (Danisco), Knud Bach, Willy Lehmann Andersen Jr. (Danflow), Gustavo Mizraje (Novo Nordisk), Eduardo Grecco Lemos (Chr. Hansen), Pedro Luiz Fernandes (Novozymes) Miguel dos Santos (Danfoss), Luiz Antonio Guimarães (Cheminova), Marcelo Hutschinski (Vestas), Erik Christensen (Graber), Finn Egholm (ISS), Fábio Augusto Deleuse (Lundbeck), Alejandro Giangaspero (GN Resound), Thiomas Jürgen Weidauer (Leo Pharma), Christian Maxe Petersen (LEGO Educations), Michael Kristensen (Lauritzen Offshore), Vitor Pacheco Muniz Junior (Coloplast), Kjeld Aabo (MAN-Diesel), Sandro Sandanelli (Grundfos), Michael Bak (Hempel), Jan Lomholdt (Inventure), Christian David Christensen (Nordea). Print Referência Gráfica (+55 11) 2065-0763 Brazilian Review is a quarterly publication of the Danish-Brazilian Chamber of Commerce. The opinions expressed in this publication are those of the authors or persons interviewed and do not necessarily reflect the views of the editors or the Chamber. Reproduction of any kind of material from this magazine is not allowed without written permission from the Danish-Brazilian Chamber of Commerce. Como instrutor físico, Jonathan sabe que para mudar é preciso estabelecer objetivos, ter um método para atingi-los, assim como receber todo apoio para superar os desafios que possam surgir. Nós, da Novo Nordisk, adotamos uma abordagem semelhante para conduzir mudanças nas sociedades em que atuamos. Seguindo o princípio do Triple Botton Line, consideramos o impacto econômico, social e ambiental em cada ação que realizamos para alcançar nosso objetivo de um futuro mais saudável para as pessoas. A filosofia do Triple Botton Line direciona nossos esforços em combater as mudanças climáticas, que, de certa forma, está relacionada com a pandemia do diabetes quando relacionamos isso ao consumo excessivo e a um estilo de vida pouco saudável. Desde 2004, nossa emissão de CO2 foi reduzida pela metade, atividade realizada em parceria com a World Wildlife Foundation. E conseguimos isso, sem nunca perder nosso foco principal que é promover mudanças positivas na vida de pessoas com diabetes. Saiba mais sobre a Novo Nordisk: www.novonordisk.com.br mudando o diabetes 20 april/june 2006 ® Mudando o Diabetes e o logo do Boi Apis são marcas registradas da Novo Nordisk A/S. NNK-002-06/2012 mudando o diabetes. mais que um objetivo, essa é nossa missão. JONATHAN CHARLESWORTH Treinando para mudar o diabetes, África do Sul Jonathan é portador do diabetes tipo 1