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Integrated Report 2021
Connectivity and Reliability - Bringing People and Business Together
PT
Integrated Report 2021
Connectivity and Reliability - Bringing People and Business Together
PT
Relato Integrado 2021
Conectividade e Confiabilidade - Aproximando pessoas e negócios
PT
Value Creation

Business Model

Manufactured Capital


Inputs
● Telecommunications infrastructure (115,000 kilometers of optical fiber cable and frequencies) spread over 372 cities in 16 Brazilian states plus the Federal District
Results
● 504,000 households connected, 473,000 of which by optical fiber
● 184,000 businesses connected
● 1,090 customers with mobile communication
● 2.3 million chips dedicated to M2M (Machine-to-Machine)
Challenges
● Converting 100% of customers into optical fiber

Natural Capital


Inputs
● 264,950 gigajoules of energy used to support the operation
● Investments of R$1.4 million in environmental protection
● GHG emissions and waste generation reduction programs (education and training, certification, research and development, and energy efficiency)
Results
● 100% of the energy matrix used comes from renewable sources (self-generation by solar panels, purchases on the incentivized market, and acquisition of I-RECs)
● 94% of the fuel used by our fleet comes from a less polluting source (ethanol)
● Emissions equivalent to 1,462 tons of greenhouse gases (CO2e), with a 54% cut for the year
● 366 tons of waste generated and collected, 94% of which used for recycling
Challenges
● Making the operation more energy-efficient
● Expanding the use of energy from less polluting and renewable sources

Human Capital


Inputs
● 4,600 associates
● Complete program for management, incentive and training of associates
● R$3.1 million invested in training
● “Algar Without Barriers” diversity program
● Occupational health and safety management
Results
● 202,600 hour of training
● Average 44.5 hours of training per associate
● 190% increase in number of people with disabilities among associates
● 5% increase in number of associates
● Zero deaths due to work accidents and zero serious work accidents
Challenges
● Expanding diversity in the Company’s staff and management
● Creating attraction and retention mechanisms in a global job market, with a boost from remote work

Intellectual Capital


Inputs
● Investment in innovation and technology
● We are founding partners of the Brain research and technology organization, working on four technology avenues: Internet of Things (IoT), 5G, Cloud Computing, and Digital
● 489 associates dedicated to innovation
● Culture and application of the agile methodology
● Partnerships
Results
● R$147 million in revenues from new products
● More than 500 qualified in agile methodologies
● 1 new patent, totaling 4
● 151 ideas taken from the Shark Tank show
● 7 awards received, 1 of which for Brain
Challenges
● Continuing to transform business through innovative projects

Financial Capital


Inputs
● R$690.0 million invested in the operation
● R$377.6 million invested in a subsidiary
● R$700.0 million in funds raised by the 11th issue of debentures
Results
● R$2.6 billion in net revenues
● R$1.1 billion in EBITDA
● R$76.3 million distributed to shareholders
● Rating - S&P - brAAA
Challenges
● Managing the profitability of the business in the current macroeconomic scenario

Social Capital


Inputs
● Relationship with 3,562 suppliers and 14 franchisees
● Support for the Algar Institute and its social actions
● 48 business hubs
● Participation in industry associations
Results
● Recognized customer experience (Reclame Aqui 1000 stamp for meeting five criteria, among them having response and solution rates of 90% or higher)​
● More than 500 people directly benefiting from social programs
● 315 actions conducted by a volunteering program
● 504,000 households connected
Challenge
● Expanding and strengthening the franchised network
● Improving supplier management

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