Dear all,

In this first Efacec Switchgear newsletter we would like to share with you the 2015 results as well as the goals and challenges ahead for 2016.

Worldwide Switchgear has closed 2015 with 63 M€ of Orders and 59 M€ of Sales. We are in line with the budget, after a huge effort made in searching for alternative new markets, namely in the Middle East.

An important challenge now stands: Grow in a sustainable way, maintaining the business profitability levels.

The downturn context of European and Portuguese markets represents a significant challenge for 2016. The alternatives are mainly in Middle East, Africa and Latin America. In spite of the global scenario we believe we will achieve our 68 M€ sales target for next year, given our solid order-book and operational capability.

Commercially we intend to invest more time and resources in Business Development, following an internationalization strategy based in stronger cooperation with new local partners in new geographies.

We are today more assertive regarding resource management, and attentive and conscientious to all potential waste, ensuring our capability to address more competitive international markets, as well as to present our customers with better products and services. That is why we consider our continuous improvement programs mandatory, based on an strategy of globally optimized logistic flows, and, the best project and technical management from our teams.

In our factory in Portugal we have already invested in the modernization, cleanup and reorganization of layouts, to face the new demands on installed capacity. Following the search of operational excellence we have an important Lean Project in place, to be concluded in the first half of 2016, which involves all the business unit structure.

In 2015 we had an important R&D achievement, with the REVAC homologation. REVAC is a new vacuum recloser resulting from a joint development with the Automation business unit. This investment surely represents new profit potential, due to several tenders announced for next year in different geographies including EDP in Portugal. In line with our development strategy, we are driving the Portfolio completion and homologations to comply with additional market requirements.

Despite the uncertainties, we strongly believe that we are able to sustain the trust and loyalty of our clients. We will continue to be competitive, innovative and customer-focused, and we will find new opportunities towards sustained growth in global markets.

Thus, everyone in Efacec Switchgear is devoted to meet the challenges with more dedication, commitment and professionalism and with a strong focus in all internationalization opportunities. As a team, we will certainly reach our goals for 2016 with a sense of accomplishment.

We further profit from the opportunity of this message to deliver our season greeting and best wishes for next year.