”la Caixa” Annual Report Trust, social commitment and excellence in service 2009 ”la Caixa” GROUP HIGHLIGHTS Financial Information CHANGE Figures in millions of euros 2009 2008 AMOUNT % Balance Sheet Total assets 271,873 260,827 11,046 4.2 Total Banking Business volume 415,825 414,123 1,702 0.4 Loans and credits, gross 178,026 176,423 1,603 0.9 Total customer funds 237,799 237,700 99 0.0 Investee portfolio: Market value of listed companies 20,118 14,691 5,427 36.9 Unrealised gains on listed companies 3,945 1,026 2,919 284.5 Income Statement Net interest income 3,932 3,508 424 12.1 Recurring gross income 7,187 6,752 435 6.4 Recurring net operating income 3,622 3,223 399 12.3 Recurring profit after tax 2,004 2,317 (313) (13.5) Recurring profit attributable to the ”la Caixa” Group 1,710 2,052 (342) (16.7) Net extraordinary profit (200) (250) 50 Profit attributable to the ”la Caixa” Group 1,510 1,802 (292) (16.2) Efficiency and Profitability Recurring efficiency ratio (Administrative expenses / Gross income) 42.9% 45.2% (2.3) ROE (Recurring attributable profit / Average own funds) 11.3% 14.8% (3.5) ROA (Net recurring profit / Average total assets) 0.8% 1.0% (0.2) RORWA (Net recurring profit / Risk-weighted assets) 1.6% 2.0% (0.4) Risk Management NPL ratio 3.42% 2.48% 0.94 NPL coverage ratio 62% 66% (4) NPL coverage ratio including mortgage collateral 127% 129% (2) ”la Caixa” Liquidity 21,208 22,262 (1,054) (4.7) Capital Adequacy - BIS II Core capital 8.7% 8.8% (0.1) Tier 1 10.4% 10.1% 0.3 Capital ratio (BIS II ratio) 11.0% 11.0% 0.0 Own funds 16,696 15,619 1,077 6.9 Eligible capital 17,251 15,802 1,449 9.2 Surplus capital 4,667 4,260 407 9.6 Risk-weighted assets (RWA) 157,300 144,272 13,028 9.0 Commercial activity and resources (number) Employees – ”la Caixa” 24,944 25,335 (391) (1.5) – ”la Caixa” Group 27,505 27,818 (313) (1.1) Branches 5,326 5,530 (204) (3.7) Self-service terminals 7,951 8,113 (162) (2.0) Cards in circulation – ”la Caixa” 10,293,683 10,344,006 (50,323) (0.5) POS terminals 167,993 171,631 (3,638) (2.1) Línea Abierta – ”la Caixa” internet channel – Total customers 6,020,192 5,544,092 476,100 8.6 – Users 2,964,355 2,667,358 296,997 11.1 Caixamóvil customers – Mobile banking channel 1,415,533 941,603 473,930 50.0 Corporate Responsibility Direct contribution of ”la Caixa” operations to Spain’s GDP 0.49% 0.42% 0.07 Diversity: % men / women employed 53/47 54/46 Number of projects financed in line with the Equator Principles 65 64 1 1.5 Number of employees taking part in the Corporate Volunteer programme 3,061 2,538 523 20.6 Number of microloans granted 32,008 20,641 11,367 55.1 Welfare Projects

Welfare Projects budget 2010 Millions of euros % Social programmes 356 71.2 Environmental and scientific programmes 62 12.4 Cultural programmes 55 11.0 Educational and research programmes 27 50.4 Total 500 100 2009 ”la Caixa” Annual Report Trust, social commitment and excellence in service IDENTIFICATION PARTICULARS

CAJA DE AHORROS Y PENSIONES DE BARCELONA, ”LA CAIXA”, was established on 27 July 1990 by the merger of Caja de Ahorros y Monte de Piedad de Barcelona, founded in 1844, and Caja de Pensiones para la Vejez y de Ahorros de Cataluña y Baleares, founded in 1904.

It is registered under number 1 in the Register of Catalan Savings Banks of the Directorate-General of Financial Policy of the Department of Economy and Finance of the Catalonia Autonomous Community Government.

On 16 November 1990, it was entered under number 3003 in the Barcelona Mercantile Register, in volume 20,397, page 1, sheet B-5614, first entry. It is registered with code number 2100 in the Bank of Spain’s Special Register of General Popular Savings Banks.

The Bylaws of ”la Caixa” were approved by the Department of Economy and Finance of the Catalonia Autonomous Community Government and may be examined by that Department, at the Bank of Spain or at the Mercantile Registry.

The Board of Directors calls the Annual General Assembly to be held during the first half of the calendar year. The notice of the Assembly is published in the «Boletín Oficial del Estado» (Official State Gazette), in the «Diario Oficial de la Generalitat de Cataluña» (Official Journal of the Catalonia Autonomous Community Government) and in at least one newspaper with a wide circulation in the area of operations of the Institution, in the period and under the terms established in the Bylaws of ”la Caixa”. In addition, an Extraordinary General Assembly may be called whenever deemed fit, as provided in the Bylaws, in the same terms and conditions as those set forth for the Annual General Assembly.

”la Caixa” is a member of the Savings Banks Deposit Guarantee Fund.

CAJA DE AHORROS Y PENSIONES DE BARCELONA - ”la Caixa” Avenida Diagonal, 621-629. 08028 Barcelona, Spain Telephone: (34) 93 404 60 00 Fax: (34) 93 339 57 03 Telex: 52623-CAVEA E and 50321-CAIX E

Website www.laCaixa.es CONTENTS

The ”la Caixa” Group in 2009 5 ”la Caixa” Annual Report 13 Corporate Governance of ”la Caixa” 15 The ”la Caixa” Group 29 Strategic Keys 30 2009 Financial Report of the ”la Caixa” Group 33 1. High-quality profits in 2009 36 1.1. Business growth coupled with good profits and conservative write-downs 36 1.2. Positive margin evolution through efficiency and high returns 38 1.3. Welfare Projects 44 1.4. Business segment reporting 45 2. Great commercial capacity: the strength of the banking business 47 2.1. Sustained and balanced growth in banking activity 47 2.2. Customer base: the core of the business 51 2.3. Commercial network and human resources: cornerstones 57 2.4. Multi-channel management: an ongoing relationship with customers 59 2.5. Payment methods: a distinctive offering 63 2.6. Innovation in customer services 64 2.7. Quality and customer service: the groundwork for the future 68 2.8. Supporting the business: ”la Caixa” subsidiaries 69 3. Investee portfolio 71 3.1. Criteria CaixaCorp: Internationalising and diversifying income 71 3.2. Venture capital and financing for entrepreneurs 78 3.3. Active management of the ”la Caixa” Group’s investee portfolio 79 4. Active risk management 81 4.1. Comprehensive risk management at the heart of strategy 81 4.2. Credit risk 85 4.3. Managing the risk in balance sheet positions 97 4.4. Managing liquidity risk 102 4.5. Managing operational risk 104 4.6. Regulatory compliance risk management 106 5. High financial strength 107 5.1. Excellent liquidity levels 107 5.2. Excellent capital adequacy levels 108 5.3. ”la Caixa” Group ratings in the AA range 110 Report on ”la Caixa” Corporate Responsibility 113 1. Our values, our continuing commitment 114 2. ”la Caixa” with entrepreneurs 115 3. Trust 117 4. Excellence in service 118 5. Social Commitment 121 ”la Caixa” Welfare Projects 2009 Annual Report 127 Social Programmes 129 Educational Programmes 147 Science, Research and Environment Programmes 151 Cultural Programmes 159 2009 Data of ”la Caixa” Welfare Projects 171

2009 ”la Caixa” Annual Report Isidro Fainé Chairman I Juan María Nin President and CEO

2009 ”la Caixa” Annual Report 4 THE ”la Caixa” GROUP iN 2009

Financial bottom line: quality and consolidation of the financial strengths, the outcomes of a year of strong commercial activity

The activity of the ”la Caixa” Group in 2009 was hit by the economic and financial crisis, with volatile financial markets, plummeting interest rates, a slowdown in activity and employment, a rise in non-performing loans and stiff competition in the banking industry. Against this backdrop, the intense commercial activity undertaken by ”la Caixa” with respect to its 10.5 million customers proved successful, strengthening its leading position with increased market shares. The banking business volume managed rose to EUR 415,825 million thanks to the great commercial strength of the Group, which includes 27,505 employees, 5,326 branches and 7,951 ATMs, and its leadership in online banking, mobile banking and payment systems.

The sustained increase in income and the stringent cost-containment policy resulted in a 12.3% increase in recurring net operating income which, after recognition of substantial provisions, placed the recurring profit attributable to the Group at EUR 1,710 million in 2009. In accordance with its strategy of utmost prudence, ”la Caixa” allocated in full its net extraordinary gains of EUR 249 million to extraordinary provisions for contingencies. Also, with a proactive vision, it recognised an additional post-tax provision of EUR 200 million for the future management of the business. The total profit attributable to the Group amounted to EUR 1,510 million.

The contained NPL ratio of 3.42%, much below the 5.08% ratio for the Spanish financial system, and the high NPL coverage ratio of 62% (127% including mortgage collateral), continued to evidence the quality of the lending portfolio. Also, the general credit loss allowance stood at EUR 1,835 million, ensuring a high degree of financial soundness against a backdrop of adverse outlooks. Hence, the balanced growth and the quality of profits, combined with conservative risk management policies, consolidated the high liquidity and capital adequacy levels, the financial strengths of ”la Caixa”. With regard to capital adequacy, core capital was in a pre-eminent position in the Spanish banking system with a ratio of 8.7%, and an excellent position was maintained in terms of total liquidity, with EUR 21,208 million, 7.8% of the Group’s assets.

”la Caixa” continued to develop its Strategic Plan 2007-2010, and its leading position in individual banking in 2009 led to the consolidation of the business specialisation model. In this regard, ”la Caixa” continued to promote the private banking division and business banking and completed the implementation of a specialised model for personal banking and SMEs banking (SMEs, self-employed professionals and retail stores), with nearly 1,800 specialised managers. Within the framework of its international expansion plan, ”la Caixa” opened the first operational branch of a Spanish bank in Morocco (Casablanca), and through its subsidiary Criteria CaixaCorp it entered into strategic investment and cooperation agreements with its investees The Bank of East Asia (14.99%) and Erste Group Bank (10.1%).

The quality, soundness and strength of the ”la Caixa” Group’s activity and profits in 2009 are evidential signs of its strategy of secure, efficient, profitable and solvent growth.

2009 ”la Caixa” Annual Report 5 The ”la Caixa” Group in 2009

High-quality profits and stronger balance sheet performance with high, conservative provisions

The ”la Caixa” Group’s great commercial capacity, featuring a sound management policy for margins and for the services offered to the customers of its most traditional banking activity, and the positive trend of its investees’ income, brought about a substantial increase in total recurring income (gross income) to EUR 7,187 million in 2009, up 6.4% on 2008.

The stringent cost containment and streamlining policy restrained the increase in operating expenses to 1% which, together with the increase in total income, resulted in net operating income of EUR 3,622 million, a notable increase of 12.3%, with an ongoing improvement in the efficiency ratio, at 42.9% (–2.3).

The high level of profits earned on the Group’s recurring activities enabled it to recognise increased provisions, totalling EUR 2,821 million, of which EUR 2,092 million were charged to 2009 profit (EUR 1,401 million to recurring profit and EUR 691 million to extraordinary profit), giving rise to a net recurring profit of EUR 1,710 million, down 16.7%, with high returns (ROE at 11.3%).

Post-tax extraordinary gains amounted to EUR 249 million, and additional, unscheduled credit loss provisions and provisions for the investee portfolio were recognised for the same amount. Also, with a proactive vision, an additional post-tax provision of EUR 200 million was recognised for the future management of the business. Net attributable profit amounted to EUR 1,510 million, down 16.2%.

Great commercial capacity with growing business and market shares

The ”la Caixa” Group is committed to providing personalised quality service that is innovative and adapted to the needs of its customers through efficient multi-channel distribution, where the branch is at the heart of the relationship with the customer, with the support of leading-edge technology. ”la Caixa” is the leader in individual banking, with a penetration of 21.6%, i.e. one out of every five users of banking services in Spain is a ”la Caixa” customer; moreover, this leadership is confirmed for all age groups. The strategic objective, bolstered by the Group’s pre-eminence in individual banking, is to achieve leading positions in other segments, namely business banking, personal banking and private banking. The commercial activity is therefore focused on providing specialised service to the huge 10.5 million customer base through an appropriate segmentation process.

2009 was marked by the Group’s major commercial effort, with its banking business volume managed –customer funds plus loans and credits– increasing to EUR 414,825 million, up 0.4%, bolstered by the loans and credits portfolio, which rose by EUR 1,603 million to EUR 178,026 million, up 0.9%, with 1.1 million new transactions and EUR 104,045 million in credit risk approvals. In this regard, the credit granted throughout the branch network evidences the commitment of ”la Caixa” to the economic development of the territory, particularly with the 14% increase in loans and credits granted to businesses through the 80 specialised centres. Customer funds stood at EUR 237,799 million, with increases in current accounts and a prudent price and volume management approach, and strong growth in pension plans, insurance and investment funds.

The Group has 5,315 branches in Spain, the largest network in the Spanish financial system, and, owing to its wide-reaching model, it is a source of new jobs and wealth across the whole of Spain. The Group’s workforce numbers 27,505 employees, making ”la Caixa” one of Spain’s most important generators of employment.

As part of its international expansion plan, ”la Caixa” has eleven international branches, of which three are operational branches and eight are representative offices. In 2009 ”la Caixa” opened the first operational branch of a Spanish bank in Morocco (Casablanca) and started up its first representative office in Turkey (Istanbul) and the second in China (Shanghai). It also expanded its foreign trade business, increasing its share of export and import documentary credits to 9.4% and 12.7%, respectively.

2009 ”la Caixa” Annual Report 6 The ”la Caixa” Group in 2009

One of the ”la Caixa” Group’s distinguishing features is its leadership in multi-channel management, evidenced by its 7,951 self-service terminals and massive use of the Línea Abierta internet channel (www.laCaixa.es), with over 6 million contract customers, 2.9 million of which are operational users. In 2009 ”la Caixa” consolidated its leadership in online banking services in Spain, with a market share of 30.1% and strong innovation in contents and ease of access to the internet channel. The 1.4 million customer mark was exceeded in the Caixa Móvil Service, which positions ”la Caixa” as the leader in mobile-based financial services with a market share of 52%. The extensive multi-channel support is also the basis for the commercial efficiency of the branches, which can establish personalised customer care as a priority.

The differentiated offering in payment systems positions ”la Caixa” as the top card issuer in the Spanish market, with 10.3 million cards in circulation and a market share of 17.7%. In terms of point of sale (POS) terminals, ”la Caixa” is the market leader with a network of 167,993 units and a 20.9% share of retail outlet turnover. To consolidate this market advantage, in 2009 ”la Caixa” continued to launch new innovative service offerings for businesses and retail stores.

Despite the crisis, the growth of the business in terms of funds and loans, the extensive branch network, efficient multi-channel management and sound customer segmentation have all reinforced the ”la Caixa” Group’s leading position in the Spanish banking market, with a general increase in the market shares. Loans and customer deposits had a share of 9.9% and 10.4%, respectively, life insurance and individual pension plan products stood at 13.4% and 15.6% respectively, and there was a notable increase in the market share for investment funds to 8.5%, up from 6.9% in December 2008, with managed assets of EUR 13,805 million. Also, as a result of the relationship with customers and intense commercial activity, ”la Caixa” also strengthened its positioning as a supplier of basic but high-value banking services, with the result that in 2009 it achieved market shares of 15.1% for payroll direct deposits and 15.6% for social security pension direct deposits.

Excellence in service is the framework within which ”la Caixa” wishes all its dealings with third parties to take place, with a commitment to continuous improvement in order to retain the trust of customers. This strong focus on service is endorsed by the fact that, according to the Bank of Spain, ”la Caixa” is the bank which has the fewest claims in relation to its financial activities. Other independent surveys have also rated ”la Caixa” as one of the best in the banking industry in terms of quality.

Criteria CaixaCorp: a vehicle for international expansion and investment in special-interest industries

Criteria CaixaCorp is the subsidiary encompassing substantially all of the ”la Caixa” Group’s investee portfolio and is responsible for implementing the Group’s investing strategy and international expansion, with a portfolio made up of equity interests in leading companies in the utility, international banking, insurance and specialised financial services industries which complement the products and services of ”la Caixa”. 2009 saw the continuation of the strategy aimed at rebalancing the investee portfolio, giving priority to investing in the financial industry, without excluding investments in special-interest services. In this regard, considering the investments made and committed since the flotation of Criteria CaixaCorp in 2007, the volume of investments in the financial industry in relation to the value of the assets rose to 33% in 2009, up from 17%.

Criteria CaixaCorp holds the following ownership interests in international financial institutions: 20% of GF Inbursa, 30.1% of Banco BPI, 14.99% of The Bank of East Asia, after the increase in its interest through the EUR 331 million subscription to a capital increase in January 2010, 10.1% of Erste Group Bank, an interest reinforced in 2009 basically through the EUR 635 million subscription to a capital increase, and 20.9% of Boursorama. Also, in the context of the internationalisation process, in 2009 ”la Caixa” and Criteria CaixaCorp signed strategic investment and cooperation agreements with their investees The Bank of East Asia and Erste Group Bank.

2009 ”la Caixa” Annual Report 7 The ”la Caixa” Group in 2009

Also, Criteria CaixaCorp entered into an agreement to acquire Adeslas, the leading Spanish health insurer, for EUR 1,178 million, with the aim of reinforcing its dominant position in the health insurance industry. As a result, Adeslas will be integrated into the structure of SegurCaixa Holding in 2010. As part of this transaction, Criteria CaixaCorp agreed to sell Suez Environnement a 44.1% ownership interest in Agbar, in which it will continue to be a shareholder with an interest of between 15% and 25%, subject to the acceptance of Agbar’s delisting takeover bid which is underway.

In the context of its investments in utility companies, Criteria CaixaCorp subscribed to its share of the capital increase at Gas Natural (36.4% interest) for EUR 1,313 million as part of the merger with Unión Fenosa. Criteria CaixaCorp also entered into an agreement with Investindustrial, which became a 50% investor in the company operating the Port Aventura theme park, but retained the remaining 50%, plus 100% of the company that owns the land for residential and commercial use, the golf courses and the beach club, among others. Also, a 1% interest in Telefónica was sold in 2009, giving rise to consolidated net gains of EUR 249 million. Criteria CaixaCorp retained a 5.2% interest in this company at 31 December 2009.

The market value at 31 December 2009 of the listed investee portfolio of the ”la Caixa” Group amounted to EUR 20,118 million, with unrealised gains of EUR 3,945 million. In 2009 the market value of Criteria CaixaCorp rose by 18.5%, in line with its benchmark indexes IBEX 35 and Eurostoxx50.

Stringent risk management policy intensified

Within the framework of the proactive, conservative risk management policy which characterises ”la Caixa”, the Group continued its global, active and conservative management of all the business-related risks in the face of the complex, changing environment that marked 2009.

Particularly, the risk management and control structures were reinforced during the year and new risk approval systems based on expected loss were consolidated. Also, greater organisational resources were provided and new processes were defined for recovery management. In addition, work continued in the development of advanced scoring and rating techniques in risk acceptance processes and in risk assessment and monitoring mechanisms.

In the area of credit risk, the ”la Caixa” Group’s lending activity is geared towards meeting the financing needs of households and businesses and, accordingly, its lending activity is diversified and fragmented, as evidenced by the fact that 52% of the loan portfolio is in the hands of individuals. The lending portfolio is also strongly collateralised, since 66% is secured by mortgages with an average loan to value ratio of 49%. Following the application, at 2009 year-end, of principles of utmost prudence, the NPL ratio was 3.42% and the NPL coverage ratio was 62% (127% including mortgage collateral). The ”la Caixa” Group’s credit risk thus remains contained and ranks among the lowest of the Spanish financial system thanks to diversification, the value of collateral and a prudent risk coverage policy. In this regard, the notable general credit loss allowance of EUR 1,835 million, combined with the other financial strengths of ”la Caixa”, places the Institution in an extremely sound position to face new challenges.

Consolidation of the financial strengths: liquidity and capital adequacy. Very good ratings

Balanced growth, quality profit-making capacity in 2009, stringent risk management and prudent recognition of provisions consolidated the Group’s financial strengths with high liquidity and capital adequacy levels, in spite of the economic crisis.

Conservative and proactive management of liquidity and diversification of the sources of financing have always constituted a distinguishing feature of ”la Caixa” which places it in a sound position to deal with the growth

2009 ”la Caixa” Annual Report 8 The ”la Caixa” Group in 2009

of the business and meet the credit needs of customers. In this regard, the liquidity position at 31 December 2009 was excellent at EUR 21,208 million, 7.8% of the Group’s total assets, substantially all of which were totally liquid.

The ”la Caixa” Group retained an outstanding capital adequacy level within the Spanish financial industry. Specifically, core capital stood at 8.7%, and Tier 1 and the capital ratio (BIS ratio) reached the high level of 10.4% and 11.0%, respectively, with a total eligible capital of EUR 17,251 million and a surplus over the minimum regulatory capital requirement of EUR 4,667 million.

The long-term ratings were confirmed in 2009 as being in the AA range, thereby consolidating the ”la Caixa” Group as one of the only three groups in the Spanish financial market rated by the three agencies within this range indicating very strong creditworthiness. All the rating agencies gave a highly positive assessment of the Group’s banking position in Spain, of the success of its strategy and its sound management practices, of the high quality of its assets and of its high liquidity and capital adequacy levels.

Sustainable bottom line: our values, our long-standing commitment

In 2009 ”la Caixa” developed an action strategy based on its corporate values of trust, service excellence and com- mitment to society.

Accordingly, the main lines of action in the area of corporate responsibility in 2009 were targeted at maintaining the financial support for businesses and individuals and their financing needs, and the commitment of ”la Caixa” to entrepreneurs was reinforced through the activities of MicroBank and of the Caixa Capital Riesgo managers. Also, private borrowers who experienced a fall in their income may take advantage of the measures introduced by the Group to help them pay their mortgage instalments.

Also noteworthy was the role of the ”la Caixa” Welfare Projects, which, for yet another year, were characterised by their commitment to people and the community. In 2009, priority was given to the implementation of social and community programmes, which accounted for 65% of the expended budget.

Social bottom line: thinking of people, more than ever before

In a difficult context such as that of 2009, the importance of fostering social, educational, cultural and environmental programmes to help meet people’s main needs takes on even greater relevance.

For this reason, ”la Caixa” chose to reinforce, now more than ever, its commitment to people. The financial institution earmarked EUR 500 million for its Welfare Projects budget. It is an unequivocal sign which evidences that the care for people has always been and will continue to be one of our top priorities. It is probably our most distinguishing feature.

The development of social programmes, tailored to meet the most significant needs emerging in the current circumstances, was once again the focus of most of our efforts. Overcoming child poverty, promoting employment and struggling against exclusion were the priority lines of action.

Struggle against child poverty and social exclusion

CaixaProinfancia is probably our most ambitious project. The aim of this project is to help break the spiral of poverty in which many minors in Spain are trapped as a result of precarious family situations, which in turn give

2009 ”la Caixa” Annual Report 9 The ”la Caixa” Group in 2009

rise to a lack of educational opportunities, a deficient diet or unhealthy conditions. To date more than 140,000 children have received aid under this programme.

People with difficulties in finding a job are also trapped in this circle of exclusion. Aware that unemployment not only affects the unemployed but also has a bearing on society as a whole, the ”la Caixa” Welfare Projects has launched the Incorpora programme. It is probably our most brilliant programme. More than 9,400 companies have already joined us in the endeavour to provide decent employment for the most vulnerable groups, and 23,000 people have already found a job thanks to this programme.

Another major challenge to be faced by society is ageing. Older people are one of society’s main assets. Ensuring their well-being, their participation and full integration in society, fostering their self-sufficiency and preventing situations of dependence have been part of our commitment to society for more than 100 years. The programme for the elderly is, therefore, our most long-standing project.

Innovation has always played a significant role in Welfare Projects. Loyal to this spirit, in 2009 Welfare Projects consolidated our latest initiative, the programme of integrated care for the terminally ill and their families. With this programme we intend to provide aid to people who are in the last stage of their life, alleviate their suffering, contribute to making them feel properly cared for and guarantee that they and their families receive the appropriate emotional, spiritual and social care. 6,793 patients and 10,794 family members have already received attention within the framework of this programme.

In addition to the above lines of action, the ”la Caixa” Welfare Projects launched other projects aimed at covering various deficiencies in society. The promotion of affordable property rentals for the young, for families and for the elderly, drug consumption awareness and prevention, the integration of immigrants, the promotion of voluntary work or the grant of micro-loans through MicroBank were just a few.

To all these programmes we should add the 1,051 projects launched by associations throughout Spain which have been supported by Welfare Projects through their competitions for aid for social initiatives in 2009. All these projects were aimed at meeting the needs of society’s most disadvantaged groups, adapted to the characteristics and deficiencies of each territory in particular.

The ”la Caixa” Welfare Projects also act beyond the borders of Spain. The International Cooperation programme contributes to the eradication of extreme poverty in the most disadvantaged countries, where the lack of resources and diseases are very closely related. Aware of this, the ”la Caixa” Welfare Projects leads a vaccination programme targeted at children under five which immunised more than 425,000 children in 2009.

The expansion of knowledge is possibly one of the best ways of improving social welfare. In this regard, Welfare Projects fosters training for all types of groups. 221 university students had a chance to further their studies at the best universities in Spain and abroad thanks to the ”la Caixa” scholarships. This is completed, among others, by 40 beneficiaries of the programme of aid for biomedical research in Spanish scientific centres of excellence.

Research and the environment

Support for research also received a considerable boost from Welfare Projects in 2009. The opening of the Wider Centre for endoscopic surgery in Barcelona and the start-up of the RecerCaixa programme, which is geared towards encouraging research at Catalan universities, consolidate the commitment of ”la Caixa” in this connection.

Over recent years, the environment has become a primary issue within the fields of action of Welfare Projects. The Conservation of Natural Spaces and Social Rehabilitation programme contributes to the sustainment of the most valuable ecosystems in Spain, with priority being given to hiring the disadvantaged. In this regard,

2009 ”la Caixa” Annual Report 10 The ”la Caixa” Group in 2009

the 292 environmental projects launched in 2009 led to the rehabilitation of 1,869 people at risk of social exclusion. The programme known as ”la Caixa” a favor del mar (”la Caixa” Supports the Sea) is focused on heightening awareness and knowledge of Spain’s rich marine biodiversity. The scientific commitment of Welfare Projects is completed with the huge informative and awareness-raising task undertaken by both the CosmoCaixa science museums in Madrid and Barcelona and by the travelling exhibitions on the environment. The latter included most notably the exhibitions which dealt with the origin of language, the evolution of mankind and the use of energy.

Culture as a tool for social integration

Culture is a powerful tool for people’s growth. Based on this principle, Welfare Projects is committed to the dissemination of culture in all of its various forms to an audience comprising all age groups and educational levels.

The CaixaForum social and cultural centres spread knowledge about major civilisations in the past, contemporary creation, music, literature and humanities. The CaixaForum model has consolidated its identity as the 21st century reference model. It comprises meeting points, open spaces and platforms for knowledge, and tradition and vanguard are brought together in the proposed programmes. The existing centres in Barcelona, Madrid, Tarragona, Lleida and Palma will soon be joined by the new centre in Girona. Also, in 2009 the CaixaForum centres in Zaragoza and Seville took the first steps towards their inauguration, which is scheduled for 2011 and 2015, respectively.

The proposals made by the proprietary centres are complemented with the cultural exhibitions offered by Welfare Projects, which travel throughout Spain. The legacy of Alphons Mucha –the father of Art Nouveau–, the Antoni Tapies engravings or the works of Joaquim Mir were the theme of just a few. Particularly worthy of mention is the programme known as Art al carrer (Art on the Street), which in 2009 brought sculptures of Auguste Rodin and Manolo Valdés to the streets of the main Spanish capital cities.

One of the new cultural developments undertaken by Welfare Projects in 2009 was the signing of two cooperation agreements with the Prado Museum in Madrid and the Louvre Museum in Paris. The new programme known as ”la Caixa” - El Museo del Prado. El arte de educar (”la Caixa” – The Prado Museum. The Art of Educating) will immerse students and families visiting Spain’s best art gallery in the methodology of the educational activities organised by the ”la Caixa” Foundation. In coming years, the agreement with the Louvre Museum will secure the exhibition of works and exhibitions originating from the Louvre at the CaixaForum centres. The talks on current affairs, poetry, cinema and music have completed a cultural programme that has proved highly popular with the public.

The year 2009 was, in short, marked by the confirmation, from all standpoints, of the social commitment of ”la Caixa” to people.

2009 ”la Caixa” Annual Report 11

”la Caixa” Annual Report

Corporate Governance of ”la Caixa”

The ”la Caixa” Group Strategic keys

2009 Financial Report of the ”la Caixa” Group 1. High-quality profits in 2009 2. Great commercial capacity: the strength of the banking business 3. Investee portfolio 4. Active risk management 5. High financial strength

Corporate Governance of ”la Caixa”

Governing Bodies General Assembly Board of Directors Control Committee

Management Corporate Governance of ”la Caixa”

GOVERNiNG BODiES

Caja de Ahorros y Pensiones de Barcelona, ”la Caixa”, is a “THE GENERAL ASSEMBLY IS THE HIGHEST GOVERNING AND financial institution governed by Legislative Decree 1/2008, of 11 DECISION-MAKING BODY OF ”la Caixa”” April, approving the Consolidated Catalan Savings Banks Law, and is registered in the special register of savings banks of the COMPOSITION OF THE GENERAL ASSEMBLY Catalonia Autonomous Community Government. As a savings bank it is a non-profit foundational financial institution serving 20 (13%) the community, it does not depend on any other company and it engages in attracting, administering and investing the savings entrusted to it. 34 (21%) 58 (36%) According to the powers established in the law and its Bylaws, ”la Caixa” is governed, ruled, run, represented and controlled by the General Assembly, the Board of Directors and the Control Committee. 48 (30%) Total 160

General Assembly Deposit holders Founder and community-interest entities Local government Employees The General Assembly is the highest governing and decision- corporations making body of ”la Caixa”. In addition to its general governing powers, the following duties also fall especially and exclusively within its powers: (13%) • To appoint the Board of Directors and members of the Control The members of the General Assembly oversee that the (36%) Committee. interests of deposit holders and customers are safeguarded, • To decide upon the reasons for the removal and revocation of that the(21%) Institution’s community-oriented aims in its area of the powers of the members of the governing bodies before the influence are fulfilled and that the integrity of its assets is end of their term of office. preserved, while setting the regulations guiding the Institution’s • To approve and amend the Bylaws and regulations governing activities. the system for electing the members of the governing bodies. (30%) • To resolve upon the change of registered office. The stakeholder groups making up the General Assembly are • To resolve upon the alteration of the Institution’s legal form, represented in it. The Catalan savings banks law divides these or its merger with other institutions, or make any decision stakeholder groups into four sectors: affecting its nature, and resolve upon dissolution and liquidation. a) The deposit holders; • To define the general guidelines for the Institution’s annual b) The founder entities and other community-interest entities; action plan. • To approve management of affairs by the Board of Directors, c) Local government corporations; the notes to the financial statements, annual balance sheet and d) The Institution’s employees; income statement, and the allocation of profit to the aims of ”la Caixa”. The first three sectors always relate to the geographical scope of • To approve management of Welfare Projects, and the related operation of ”la Caixa” and this requirement is also implicit in the annual budgets and expenditure. fourth sector. Pursuant to the law, each of the above sectors must • To confirm the appointment of the President and CEO of the be represented in the following proportions: Institution. • To designate, at the proposal of the Board of Directors, the a) Between 30% and 40% representing the deposit holders. community-interest entities that are able to appoint members b) Between 25% and 35% representing the founder entities of the General Assembly. and other community-interest entities. • To deal with any other matter submitted to it for consideration c) Between 15% and 25% representing the local government by the bodies empowered to do so. corporations. d) Between 5% and 15% representing the employees.

2009 ”la Caixa” Annual Report 16 Corporate Governance of ”la Caixa”

Caja de Ahorros y Pensiones de Barcelona has stipulated these “THE BOARD OF DIRECTORS DECIDES UPON THE STEPS percentages in its Bylaws in the following manner, on a total of TO BE TAKEN TO CARRY OUT THE AIMS AND OBJECTIVES 160 General Assembly members: OF ”la Caixa”” a) 58 members representing the deposit holders (36.25%). COMPOSITION OF THE BOARD OF DIRECTORS b) 48 members representing the founder entities and other community-interest entities (30%). 3 c) 34 members representing the local government corporations (21.25%). d) 20 members representing the employees (12.5%). 4 8 General Assembly Meetings may be either annual or extraordinary. Annual Assembly Meetings are held once a year within the first six months of the calendar year to approve, where applicable, the notes to the financial statements, the 6 Total 21 balance sheet, the income statement, the proposed allocation of surpluses and the proposed transfer to the Welfare Projects, and to reappoint, where required, positions on the Board of Deposit holders Founder and community-interest entities Directors and the Control Committee, and to discuss and make Local government Employees corporations decisions in relation to the other matters and proposals on the agenda. Extraordinary Assembly Meetings are held as and when they are called, and may only deal with the purpose for the meeting. non members(14%) meeting the appropriate professional conduct requirements. (38%) Board of Directors • Six directors representing the founder entities or community- interest(19%) entities, elected from among the General Assembly Pursuant to the law, the Board of Directors is the body appointed members representing this sector. by the General Assembly to govern, manage run and represent • Four directors representing local government corporations, the savings bank and may be made up of a minimum of 10 and of which two must be elected from among the General a maximum of 21 members. Its composition must reflect the Assembly members(29%) representing this sector and two may be composition of the General Assembly. elected from among non members meeting the appropriate professional conduct requirements. The Board of Caja de Ahorros y Pensiones de Barcelona is • Three directors representing employees, elected from among made up of 21 members. As the largest savings bank in Spain, the General Assembly members representing this sector. it is reasonable for it to have chosen to appoint the maximum number of Board members (and General Assembly members) to Board meetings are also attended by the President and CEO of ensure that its governing bodies are as representative as possible, ”la Caixa”, who has the right to speak and vote by law. both in terms of the four stakeholder groups represented and from a geographical standpoint, in view of the areas where the The Welfare Projects Committee and the Executive Committee Institution carries on its activities and the close ties that savings are delegate committees of the Board of Directors. banks have in the territories where they operate. This relationship is especially clear in the way in which its Welfare Projects are distributed. Welfare Projects Committee

The Board of Directors is made up of: The role of the Welfare Projects Committee is to submit for approval by the Board of Directors all new welfare projects • Eight directors representing deposit holders, of which six for which support has been sought from ”la Caixa”, and the must be elected from among the General Assembly members budgets for existing projects, and to manage and run the representing this sector, and two may be elected from among projects, guided by economic rationality concerns and the aim

2009 ”la Caixa” Annual Report 17 Corporate Governance of ”la Caixa”

to serve, to the fullest extent possible, the general interests of Remuneration Committee the territory where they are carried out. The role of the Remuneration Committee is to inform the The members of the Welfare Projects Committee are the Board of Directors or the Executive Committee of the general Chairman of the Board of Directors and eight people elected by remuneration and incentive policy for the members of the the Board of Directors from among its members, in proportion Board of Directors and management personnel. to the sectors represented on the Board. Committee meetings are also attended by the President and CEO of ”la Caixa” and The Remuneration Committee consists of the Chairman of the Executive Vice-President in charge of Welfare Projects. the Board of Directors and two directors. Meetings are also attended by the President and CEO of ”la Caixa”. Executive Committee

The Executive Committee is the permanent delegate body of Control Committee the Board of Directors. Its powers are all those delegated by the Board of Directors and those attributed to it under The role of the Control Committee is to act as an the Bylaws, mainly in relation to activities concerning independent supervisory body of the Board of Directors management, disposal, taxation and ownership, as well as the which is not subordinate to the latter. Its supervisory role exercise of the administrative, court and out-of-court actions to not only encompasses financial issues but it also plays a which the ”la Caixa” is entitled. significant part in the Institution’s election processes and can even recommend to the Department of Economy and Finance The following Board members sit on the Executive Committee: of the Catalonia Autonomous Community Government that the Chairman, the Deputy Chairmen and four members, one any Board resolutions it considers to contravene current from each of the sectors represented at the General Assembly. legislation be suspended. Meetings are also attended by the President and CEO of Its composition must reflect the proportional representation ”la Caixa”. of the various stakeholder groups in the General Assembly. Moreover, there may be no duplication of representatives The Investment Committee and the Remuneration Committee so that no institution may have representatives on both the are formed within the Board of Directors and play an Board of Directors and the Control Committee at the same informative role. time.

To carry out these duties the Control Committee has the Investment Committee following powers: The role of the Investment Committee is to inform the Board • To supervise management of affairs by the Board of Directors, of Directors or the Executive Committee of the investments or while overseeing that their decisions are consistent with the divestments which, in accordance with current legislation, are guidelines and resolutions of the General Assembly and with of a strategic and stable nature. It also informs on the financial the aims of the Institution. viability of these investments and how they fit in with the • To monitor the functioning of and the tasks carried out by the Institution’s budgets and strategic plans. Current legislation Institution’s supervisory bodies. defines “strategic” as the purchase or sale of a significant • To examine the external auditors’ reports and be familiar with investment in a listed company or participation in business the recommendations made by the auditors. projects with a presence on managing or governing bodies • To review the balance sheet and income statement for each implying a total investment by ”la Caixa” of over 3% of its year and make such observations as it sees fit. eligible capital. • To report on its activities to the General Assembly at least once a year. The Investment Committee consists of the Chairman of the • To request that the Chairman call an extraordinary General Board of Directors and two directors, chosen according to their Assembly Meeting whenever it sees fit. specialist skills and professional experience. Meetings are also • To supervise elections for members of the General Assembly attended by the President and CEO of ”la Caixa”. and Board of Directors, jointly with the Department of

2009 ”la Caixa” Annual Report 18 Corporate Governance of ”la Caixa”

The Control Committee has nine members elected by the “THE CONTROL COMMITTEE OVERSEES CORRECT MANAGEMENT OF AFFAIRS BY THE BOARD OF DIRECTORS” General Assembly from among its non-director members, in the following proportions: COMPOSITION OF THE CONTROL COMMITTEE • Three members from the deposit holders sector. 1 • Three members from the founder and community-interest entities sector. • Two members of the local government corporations sector. 2 • One member from the employees sector. 3 In addition to the above bodies, also remarkable is the office of the President and CEO of ”la Caixa” as the executive who is responsible under the law for implementing the resolutions 3 Total 9 of the Board and carrying out the other duties entrusted to him in the Institution’s Bylaws or regulations. The post of President and CEO is especially important as, in addition to Deposit holders Founder amd community-interest entities Local government Employees being appointed by the Board, the office must be confirmed corporations by the General Assembly, as must the removal from the role. Moreover, under Catalan law the President and CEO sits on the Board of Directors in a speaking and voting capacity.

Economy and Finance. Also, the Control Committee will often (11%) Therefore, there is a separation between the various bodies supervise elections for new Control Committee members. with different functions which acts as a means of control and • To examine the reports of the delegate(33%) Welfare Projects provides a balance, in line with good corporate governance Committee(22%) and issue its opinion thereon. practices. Each of the governing bodies contains a suitable • To propose to the Department of Economy and Finance to proportion of the various sectors, thereby maintaining the suspend the Board of Directors’ resolutions if they contravene same balance. current legislation. • All of the duties conferred(33%) upon the Audit Committee by virtue of additional provision eighteen of Securities Market Law Regime applicable to members of the 24/1998, of 28 July, with regard to the powers not conferred Governing Bodies with the aforementioned functions, in particular: With respect to the characteristics of Board members, it should a) To inform the General Assembly of issues arising in be noted that the qualifications on use in codes of governance their committee meetings in relation to matters of their do not apply to savings banks since, due to their foundational competence. nature, they may not have proprietary directors. All of the b) To propose the appointment of external financial auditors members belong to or represent a specific stakeholder to the Board of Directors for submission to the General group, although the deposit holders and local government Assembly. corporations sectors may appoint up to two members of the c) To supervise internal audit services. Board of Directors for each of these sectors from among d) To be familiar with the financial information process and persons who are not members of the General Assembly but internal control systems. meet the requirements concerning professional conduct, e) To contact the external auditors to receive information without this resulting in the removal from the Board of on any issues that could jeopardise their independence, representatives of those groups who are also General Assembly including issues related to the audit process and any other members. communications envisaged in current legislation. Under applicable legislation, the following persons shall be • Any other powers conferred upon it by the General Assembly disqualified from holding office in the General Assembly and within the guidelines set in the above paragraphs. on the Board of Directors and Control Committee:

2009 ”la Caixa” Annual Report 19 Corporate Governance of ”la Caixa”

a) Undischarged bankrupt traders or non-traders, as well as calculated entirely in relation to the original office-holder. Eight persons subject to judgments that disqualify them from years after expiry of the previous term, the calculation of the holding public office. 12-year limit starts again. b) Those who breached their obligations to ”la Caixa”, prior to or during their appointment to office. In addition, members of the General Assembly, of the Board of c) Board members and members of the governing bodies of Directors and the Control Committee may not be linked to more than three business corporations or cooperatives, ”la Caixa” or to companies in which ”la Caixa” has an the chairmen, general managers, directors, CEOs, board investment of more than 25% due to contracts for project members, executives, managers, advisors and employees of work, services, supplies or paid work during the period in other credit institutions or companies dependent thereon, which they hold such office and in the two years following or of Caja de Ahorros y Pensiones de Barcelona itself, except their removal, except in the case of an employment relationship where they hold such positions in the interests of Caja de when they are members representing the employees. Ahorros y Pensiones de Barcelona, and of corporations or entities that promote, support or guarantee credit institutions Moreover, the grant of loans, guarantees and sureties to or establishments. This includes the holders of posts in any members of the Board of Directors or the Control Committee, commercial company, except: or to the President and CEO or to their spouses, ascendants, • Where the post is held, in their own name or otherwise, on descendants and second-degree relatives, as well as to the direct or indirect recommendation of Caja de Ahorros y companies in which such persons hold an ownership interest Pensiones de Barcelona and is exercised in its interests. which, individually or jointly, is a majority interest, or in which • Where the post is held solely for the purposes of carrying they hold executive office, must be approved by the Board out the holder’s commercial or professional activities. of Directors or by the Executive Committee (as authorised by • Where the post is held in a company which does not carry the Board and reporting to it) and expressly authorised by on independent commercial activity on a regular basis and the Department of Economy and Finance of the Catalonia which belongs to a family group of which the post holder, Autonomous Community Government. his/her spouse, ascendants or descendants form a part. • Where the post is in a company belonging to other This regime is also applicable to transactions performed by companies included in the calculation in accordance with the above individuals or legal entities for the purposes of the provisions of this Article. transferring the assets, rights or securities they own, or that Notwithstanding the above rules for calculating the were issued by them, to the Institution. Transactions performed number of members of the Board of Directors, under no by individuals not exceeding a total of EUR 139,675 and circumstances may members of the Board of Directors sit by legal entities not exceeding EUR 349,196 are generally on the Board of more than eight commercial or cooperative approved. However, transactions with legal entities in which companies, whether or not they are included in the limit the executive acts on behalf of the Institution and has no established in the rules. personal or family financial interest, either directly or through a d) Public servants with duties directly related to the activities of nominee, do not require authorisation. savings banks. e) Those holding public offices by political appointment From another standpoint, since the Institution issues securities, of public authorities and the Chairman of the founder Caja de Ahorros y Pensiones de Barcelona is subject to the institution or corporation. Internal Rules of Conduct of the Securities Market, approved f) Those who have held the offices of Board Member or by the Spanish Federation of Savings Banks, to which it President and CEO for more than 20 years in the same adhered by a resolution of the Board of Directors dated 19 savings bank or in an another which has been absorbed or July 2007, amended by a subsequent resolution dated 18 merged. September 2008, in accordance with a change to the Internal Rules. These Rules regulate various issues such as the general The term of office of the members of the General Assembly, rules, transactions carried out by parties subject to the Rules the Board of Directors and the Control Committee is six years, on their own behalf, the prevention of abuse of the market, and they may be reappointed for a second term if they meet the conflicts of interest management policy, the depositary the conditions for appointment, up to a maximum term of arrangements for collective investment schemes and pension 12 continuous or uninterrupted years. The calculation of this funds and the application of the Rules. Therefore, the Rules limit does not include any time when the office may have have been adapted to the latest changes with respect to been discharged through delegation, since the term must be this subject matter, introduced by the Securities Market Law

2009 ”la Caixa” Annual Report 20 Corporate Governance of ”la Caixa”

and implementing regulations, which, in turn, has been at 78, although the member in question may continue to implemented and completed by a Circular approved by the discharge office until the first Annual General Assembly Board of Directors on 23 October 2008, which relates to following his 78th birthday. In addition, in order to avoid specific areas such as the control and compliance structure, short-term appointments, members must be under 75 years the scope of application and transactions carried out by of age when elected. parties subject to the Rules on their own behalf, separate areas and information barriers, abuse of the market, suspicious 4) The Bylaws of Caja de Ahorros y Pensiones de Barcelona also transactions reporting and conflicts of interest policy. stipulate that persons belonging to the Board of Directors or Control Committee of another savings bank or financial or Other Corporate Governance measures credit institution are disqualified from taking a seat on the Institution’s Board of Directors. Having set forth above the legal regime applicable to the governing bodies of Caja de Ahorros y Pensiones de Barcelona, Public or private entities and local government corporations there follows a description of certain measures adopted by the represented on the Board of Directors or Control Committee of Institution concerning Corporate Governance: another savings bank may not have the same representatives on the Control Committee of Caja de Ahorros y Pensiones de 1) To counter one of the accusations traditionally made against Barcelona. savings banks that they are subject to excessive political influence, Caja de Ahorros y Pensiones de Barcelona chose a Lastly, in line with the corporate governance recommendations system for the election of members of the General Assembly vis-à-vis the flotation of the subsidiary Criteria CaixaCorp, S.A., to represent deposit holders based on delegates drawn by on 19 September 2007 ”la Caixa” signed an Internal lots and elected by the General Assembly members from Relationship Protocol with Criteria CaixaCorp, S.A. The purpose among the delegates in each electoral district, since a of the Protocol is to govern the relationship between ”la Caixa” direct electoral system could distort representation of these and Criteria CaixaCorp, S.A. and their respective groups, interests as there are very few organisations of the same with the aim of defining the required mechanisms to size as ”la Caixa”, besides the political parties, to organise guarantee the appropriate degree of coordination, and to ensure candidatures and a genuine electoral campaign throughout that it inures to the benefit and common interest of the the territory where they operate. The aim of using a system ”la Caixa” Group (to which Criteria CaixaCorp, S.A. belongs) of delegates who are elected in each electoral district is to and of the listed company, while ensuring due respect and prevent the election of deposit holders’ representatives from protection for the other shareholders of Criteria CaixaCorp, S.A. being affected by politics and to prevent politics from having within a framework of transparent relations. In addition, an an excessive influence on ”la Caixa”. objective of the Protocol is to strike a balance in the operating relations so as to minimise and regulate conflicts of interest 2) With regard to the duties attributed by the Spanish while responding to the requirements of the markets and the Companies Law to the Audit Committee (which is a body regulators. appointed by the Board of Directors), in accordance with the Bylaws of Caja de Ahorros y Pensiones de Barcelona, the In accordance with the above objectives, the areas governed Institution has opted to have such duties discharged by the by the Protocol are the principles and objectives, the main Control Committee, since it is an independent body from areas of activity of the Criteria CaixaCorp group, the intra-group the Board of Directors and this system enables thorough operations and services, the flows of information and the compliance with good governance guidelines. follow-up of the Protocol. The Protocol is available on the websites of the Spanish National Securities Market 3) The Institution has chosen to establish the maximum age for Commission (www.cnmv.es) and Criteria CaixaCorp, S.A. its Board members as well as Control Committee members (www.criteriacaixacorp.es).

2009 ”la Caixa” Annual Report 21 Corporate Governance of ”la Caixa”

General Assembly at 31 December 2009

Honorary Chairmen Members Josep Colomer Juan Antonio Samaranch Alejandro Aguilar Susana Company José Vilarasau Luis Enrique Alameda Maria Crespo Ricardo Fornesa Núria Aloy Josep Antoni Díaz Estrella Amoedo José Luis Echavarría Joan Albert Argenter Óscar Luis Egea Maria Artigas Irene Erra Chairman Eva Aurin M. Àngels Esteller Isidro Fainé Enrique Azpeleta Josep Fabra Enric Bach José Antonio Fayas First Deputy Chairman Ramon Josep Badia José Manuel Fernández Salvador Gabarró Joan Badia Albert Fernández Francisco Javier Báez Carlos Fernández-Lerga Second Deputy Chairman Albert Balcells M. Teresa Ferrés Jordi Mercader Victòria Barber Joana Font Antoni Baron Llorenç Fontan Third Deputy Chairman María Teresa Bartolomé Joaquim Forn Javier Godó Maria Teresa Bassons Josep Antoni Frias Albert Batalla Josep Fullana Secretary (non director) Ferran Bel Rafael Gabriel Alejandro García-Bragado Robert Benaiges Maria Cristina Galindo Deputy Secretary (non director) Josefa Benavent Bárbara García-Andrade Óscar Calderón Antoni Joan Bertomeu Rosa Garicano Macià Bibiloni Joan Gaspart Ruth Bolaños Joaquim Gay de Montellá Fernando Bonet Pere Gifré Carles Bonet Jaume Gil Guillem Boscana Maria Mercè Giné Mª del Carmen G. Bruach Albert Gras Francesc Cabana Josep-Delfí Guàrdia Montserrat Cabra Carlos Güell José Luis Calvo José Guirao José Ramón Calvo Monika Habsburg Joaquín Calvo Anna Hernández Aina Calvo Rafael Hinojosa Francesc d’Assís Carbonell Alicia Huerta Jordi William Carnes Lluís Jerez Antonio José Carrique Inmaculada Juan Marc Casadellà Enric Lacalle Ferran Casado Juan-José López Xavier Casoliva Montserrat López Jaume Castán Mario López Josefina Castellví Catalina Llibre Ramon Clotet Dolors Llobet Miguel Coca Manuel Llorca

2009 ”la Caixa” Annual Report 22 Corporate Governance of ”la Caixa”

Miguel Martín Anna Pagans Àngel Ros Gustavo Martínez Jordi Pàmies Josep Manel Ruiz Ferran Mascarell Anton Pàmies Gaspar Sabater Ramon Masià Jordi Panal María del Carmen Sanclemente Josep Maria Mauri Xavier Parés Carlos Santana Josep Mayoral Víctor Ignacio Pascual Pablo Saravia Vicente Miguel Francisco Javier Pérez José Antonio Segarra Francesc Josep Miró Celia Pino Mariano Serra José María Momblant Maria Carme Piqué Alfredo Santiago Serrano Rosa Maria Mora Joan Pons Joan Sierra Ángel Morales Jordi Portabella Juan Antonio Socías Joan Andreu Morant Ramon Pou Roser Soldevila Antoni Maria Muntañola Maria Rosa Pujol Benet Triquell María Antonia Muñoz Enrique Quijano María Ángeles Trouillhet Pere Navarro Francisco Ramírez Sandra Maria Van Dellen Carlos Nieto Francisco Ramos Josep M. Vila Miquel Noguer Xose Mario Rey Alfonso Vilá Enric Nosàs Lluís Riera Josep Vilaró Justo Bienvenido Novella Óscar Rionegro Jaume Vilella Lluís Obiols Miguel Ángel Roa Nuria Esther Villalba Albert Ollé Josep Roca Francisco Villoslada Nuria Ortega Leopoldo Rodés Jeroni Vinyet Antonio Padilla Jordi Roglà Josep Francesc Zaragozà

Executive Officers

President and Chief Executive Officer Juan María Nin

Senior Executive Vice-Presidents Antonio Massanell Tomás Muniesa Marcelino Armenter Juan Antonio Alcaraz

2009 ”la Caixa” Annual Report 23 Corporate Governance of ”la Caixa”

Board of Directors Executive Committee Investment Committee at 31 December 2009 at 31 December 2009 at 31 December 2009

Chairman Chairman Chairman Isidro Fainé Isidro Fainé Isidro Fainé First Deputy Chairman Members First Deputy Chairman Salvador Gabarró Javier Godó Salvador Gabarró Dolors Llobet Second Deputy Chairman Jordi Mercader Secretary (non director) Second Deputy Chairman Alejandro García-Bragado Jordi Mercader Third Deputy Chairman Javier Godó Deputy Secretary (non director) Third Deputy Chairman Óscar Calderón Members Javier Godó Inmaculada Juan Executive Officers Dolors Llobet President and Chief Executive Officer Directors Miquel Noguer Juan María Nin Victòria Barber Leopoldo Rodés María Teresa Bartolomé Maria Teresa Bassons Secretary (non director) Remuneration Committee at 31 December 2009 Montserrat Cabra Alejandro García-Bragado Aina Calvo Deputy Secretary (non director) Chairman Josep-Delfí Guàrdia Óscar Calderón Isidro Fainé Monika Habsburg Executive Officers Members Inmaculada Juan Salvador Gabarró President and Chief Executive Officer Juan-José López Jordi Mercader Montserrat López Juan María Nin Dolors Llobet Secretary (non director) Rosa Maria Mora Welfare Projects Committee Alejandro García-Bragado at 31 December 2009 Miquel Noguer Deputy Secretary (non director) Justo Bienvenido Novella Chairman Óscar Calderón Leopoldo Rodés Isidro Fainé Nuria Esther Villalba Executive Officers Members Josep Francesc Zaragozà President and Chief Executive Officer Salvador Gabarró Juan María Nin Jordi Mercader Secretary (non director) Javier Godó Alejandro García-Bragado Montserrat Cabra Deputy Secretary (non director) Aina Calvo Óscar Calderón Juan-José López Montserrat López Justo Bienvenido Novella Executive Officers Secretary (non director) Alejandro García-Bragado President and Chief Executive Officer Deputy Secretary (non director) Juan María Nin Óscar Calderón Senior Executive Vice-Presidents Executive Officers Antonio Massanell President and Chief Executive Officer Tomás Muniesa Juan María Nin Marcelino Armenter Juan Antonio Alcaraz Executive Vice-President Jaime Lanaspa

2009 ”la Caixa” Annual Report 24 Corporate Governance of ”la Caixa”

Control Committee at 31 December 2009

Chairman Jaume Gil

Secretary Àngel Ros

Members Josefina Castellví Josep Antoni Frias Josep Fullana Albert Gras Maria Rosa Pujol Carlos Santana Joan Sierra

2009 ”la Caixa” Annual Report 25 Corporate Governance of ”la Caixa”

Management Steering Commitee Isidro Fainé Chairman Juan María Nin President and Chief Executive Officer Antonio Massanell Senior Executive Vice-President Tomás Muniesa Senior Executive Vice-President Marcelino Armenter Senior Executive Vice-President Juan Antonio Alcaraz Senior Executive Vice-President Francisco Javier Coll Human Resources Executive Vice-President Alejandro García-Bragado General Secretary Jaume Giró Communication, Institutional Relations & CSR Executive Vice-President Jaime Lanaspa Welfare Projects Executive Vice-President Joaquim Vilar Financial Executive Vice-President

Management President and Chief Executive Officer Juan María Nin

Senior Executive Vice-Presidents Antonio Massanell Tomás Muniesa Marcelino Armenter Juan Antonio Alcaraz

Executive Vice-Presidents

HEAD OFFICE Ignacio Alegre Global Risk Management Ignacio Álvarez-Rendueles International Banking Francisco Javier Coll Human Resources Luis Deulofeu IT Services Elisa Duran Deputy to the ”la Caixa” Chairman’s Office Jesús Escolano Risk - Analysis and Approval Joan Fábrega Network business - International Banking Alejandro García-Bragado General Secretary’s Office Jaume Giró Communication, Institutional Relations & CSR Jaime Lanaspa Welfare Projects Robert Leporace Recoveries Sebastià Sastre Legal Services Joaquim Vilar Financial Division general area managers Evaristo del Canto Castile-Leon and Castile-La Mancha Juan Carlos Gallego Madrid Joan Ramón Fuertes Balearic Islands Juan José Muguruza Northern Spain Bibiano Manuel Martínez Levante - Murcia Andrés Orozco Canary Islands Juan Reguera Southern Spain Manuel Romera Catalonia

2009 ”la Caixa” Annual Report 26 Corporate Governance of ”la Caixa”

General Managers / Area Managers GENERAL MANAGERS Manuel Barrachina Organisation and Quality Luis Cabanas Business Banking Fernando Cánovas Markets Julián Cabanillas General Services Management Pablo Arturo Forero Asset Management Juan Miguel Gandarias Private and Personal Banking Juan Antonio García Banking Services Jordi Gual Research Department Juan Llopis Internal Audit M. Victòria Matia Electronic Banking Manuel Fdo. Menéndez Investment Banking Josep Ramón Montserrat Property, SMEs and Individuals Risk Oriol Ordax Validation and Technical Secretary’s Office Javier José Paso Tax Advisory Àngel Pes Corporate Responsibility and Brand

AREA MANAGERS Marc Arthur Benhamou Galicia José Alberto Gutiérrez South Western Madrid Miquel Àngel Pla Barcelona City Francisco Cornejo Córdoba and Málaga José Ramón Cuesta Castile-Leon Rafael Fernández Eastern Madrid Enrique Pujol Lleida Jesús Lorenzo Alonso North Western Madrid Jordi Nicolau Girona Antonio Gómez de Figueroa Castile-La Mancha Víctor Guardiola Murcia and Alicante José Manuel Bilbao Basque Country Juan Ignacio Zafra Granada, Jaén and Almería José Francisco Macario Valencia and Castellón Raúl José Marqueta Aragon, Navarre and La Rioja Amparo Martínez Tarragona Miguel Ángel Palanco Extremadura, Cádiz and Huelva Jaume Torrents Barcelona Province Victorino Lluch Seville Carlos Javier Serrano Asturias and Cantabria

BUSINESS BANKING AREA MANAGERS Juan Pedro Badiola Nothern Spain María de las Cruces Rivera Madrid Francisco Costa Levante-Murcia María Jesús Català Catalonia Juan Antonio Pérez Castile-Leon and Castile-La Mancha Felipe Pulido Southern Spain

PRIVATE BANKING AREA MANAGERS Lluís Caballé Catalonia Juan Andrés Llamas Madrid Ana Guzmán Nothern Spain

2009 ”la Caixa” Annual Report 27 Corporate Governance of ”la Caixa”

Division Heads Ricardo Agramunt Commercial Positioning Teresa Algans Quality Víctor Manuel Allende Private and Personal Banking Business Development Joan Alfons Álvarez Regulatory Compliance Fernando Arce Structured Finance-Businesses Ignacio Badiola Infrastructure Business José Ballbé Territorial Audit Juan Manuel Bermejo International Branches and Business Tomàs Bravo Customer Treasury Division Alfredo Bustillo Communication and Sponsorship Services Vicenç Buxarrais Counterparty Risk Pere Capella Institutional Relations Natividad Capella Market Risk Control Óscar Valentín Carpio Corporate and Public Sector Risk Pere Lluís Carrera Human Resources Employment Law-Legal Service Carles Casanovas Marketing and Advertising Services Juan Cebrián Credit Risk Methodology and Models Josep Lluís Compte Expenditure Control Carlos de Parias Corporate and Acquisitions Division Ángel José Díez Corporate Finance Ana María Díez Foreign Trade Carles Feliu Brand and Corporate Image Miguel Ángel Fernández Security Marta Fina Organisation and Efficiency Jordi Fontanals Multichannel Information Systems Javier Ceferino Garcia-Lluís Transactional Banking Ernesto Gil Accounting Adolfo Gómez Financial Audit and Risk Management Francesc Xavier Gómez Solvency Carles Gramunt Corporate Banking Pere Huguet Technical Secretary to the President and CEO’s Office Jordi Ibern Credit Risk Analysis and Monitoring María Beatriz Kissler Banking Operating Services Jesús Antonio Losa Energy Financing Javier Marín Martínez Distribution and Origination María Luisa Martínez Communication and Sponsorship Juan Masjoan Compliance and Investee Audit Jordi Mondéjar Management and Expenditure Control Ignacio Moreno de Guerra Commercial Information Management Juan Morlà Cards María Isabel Munuera Market Operating Services José Javier Nicolás Personal Banking Felipe Augusto Oriol Banking Strategic Alliances Javier Pano Treasury Josep Parareda SMEs Banking Juan José Pelayo Syndications Luis Enrique Pérez Business Development Javier Ignacio Peyra Approval Policies and Procedures Mª Luisa Retamosa Media Audit José María Rifé Default Management Joan Rosás International Financial Institutions and Representative Offices Francisco Emilio Ruiz Administration of Own and Investee Portfolios Alfons Salvó Human Resources Management Albert Soler Structured Finance Daniel Torras Human Resource Selection and Development Àlex Valencia Balance Sheet Risk Analysis

2009 ”la Caixa” Annual Report 28 The ”la Caixa” Group

Strategic Keys Mission and Vision and Values Triple Bottom Line: Financial, Social and Sustainable

This section of the 2009 Annual Report describes Management’s perspective on and analysis of the ”la Caixa” Group’s strategic keys: Mission, Vision and Values, and the goal of implementing the Triple Bottom Line - Financial, Social and Sustainable. The ”la Caixa” Group Strategic Keys

THE ”LA CAIXA” GROUP: STRATEGIC KEYS Mission, Vision and Values

Caja de Ahorros y Pensiones de Barcelona, ”la Caixa”, was established in 1990 as a result of the merger of Caja de Pensiones para la Vejez y de Ahorros de Cataluña y Baleares, founded in 1904, with Caja de Ahorros y Monte de Piedad de Barcelona, founded in 1844, and it is therefore the lawful universal successor to the personality of those institutions, namely their nature, aims, rights and obligations. It was established as a non-profit financial institution providing beneficent, community services with a private board of trustees, and is separate from any company or institution. The object of ”la Caixa” is to encourage all authorised forms of saving, to carry out beneficent work for the well-being of the community and invest the related funds in safe and profitable assets of general interest. The basic aims set forth in its Bylaws are as follows: • To encourage savings as the individual economic expression of collective interests. • To encourage providence generally as the expression of an individual and collective interest. • To provide financial and social-interest services. • To finance and support beneficent and/or social-interest activities. • To develop the Institution so as to enable it to fulfil its aims in the most appropriate manner.

The Mission and Vision of ”la Caixa”, which are its strategic keys, have been shaped by its origins, object and basic aims and constitute a reference for the Institution’s future. Its values, on the other hand, form the foundation on which its strategy stands.

Mission

The Mission of an institution defines its reason for existing, its aims and the basic “THE MISSION AND THE VISION OF ”LA CAIXA” AS BASIC FACTORS FOR THE objective to be achieved, vis-à-vis the various stakeholder groups. STRATEGIC DEVELOPMENT OF THE GROUP”

The Mission of ”la Caixa”: To encourage saving and investment by offering the best and most comprehensive range of financial services to the greatest number of customers and make a decisive contribution to society to provide flexible tailored coverage of basic financial and social needs.

Vision

Its Vision is a projection, an image of the institution’s future in the long term.

The Vision of ”la Caixa”: Leading financial group in the Spanish market generating value for its customers, employees and for society.

Values

The strategic activity of ”la Caixa” is underpinned by its defining values, guidelines “THE DEFINING VALUES OF ”LA CAIXA” and characteristic convictions. The Institution’s most important values are: Trust UNDERPIN THE INSTITUTION’S STRATEGY” based upon honesty and respect for people, Excellence in service based on professionalism and innovation and a Commitment to society, whereby society forms the backbone of its activities.

2009 ”la Caixa” Annual Report 30 The ”la Caixa” Group

Triple Bottom Line: FINANCIAL, SOCIAL AND SUSTAINABLE

The objectives of ”la Caixa” go beyond the strictly financial concerns of achieving “MAXIMISING IMPLEMENTATION OF THE safe, efficient, profitable and solvent growth, to focus on other areas that give TRIPLE BOTTOM LINE AS A GUARANTEE shape to its strong commitment to society, by reinforcing welfare activities to FOR THE FUTURE” cover basic needs in a proactive and flexible manner, and its commitment to sustainability, which is defined as responsibility and ethical conduct in all of the activities it carries out, which generate trust and the Institution’s corporate NE SUST LI AIN M A reputation. O B T LE T B O O B T T

L O M

This approach represents an investment in the future, in which the commitments A

I

L

C

I

”la Caixa” N O “la Caixa” has acquired will contribute towards increasing the Group’s overall E

S Group F returns and generating value for society. The objective is to place ”la Caixa” at the IN E A N N LI forefront of the Spanish financial industry and make it a leader in household and C M IAL BOTTO business banking.

2009 ”la Caixa” Annual Report 31

2009 Financial Report of the ”la Caixa” Group

1. High-quality profits in 2009 2. Great commercial capacity: the strength of the banking business 3. Investee portfolio 4. Active risk management 5. High financial strength

This section of the Annual Report describes the key features which may aid interpretation of the Group’s overall economic and financial performance in 2009, within the context of its business and risk management setting. The most significant details of these key features are provided on pages 34 and 35.

To aid analysis of the Group’s activities and profits, information from the last three years is provided. The information is based on the consolidated financial statements of the ”la Caixa” Group. The consolidated financial statements and directors’ report for 2009, together with the auditors’ report dated 4 February 2010, which contains an unqualified opinion, may be consulted on the website of the Spanish National Securities Market Commission (www.cnmv.es). 2009 FiNaNCial REPORT OF THE ”la Caixa” GROUP

1. High-quality profits in 2009 RECURRING PROFIT ATTRIBUTABLE TO THE GROUP 1.1 Business growth coupled with good profits (Millions of euros) and conservative write-downs page 36 2,011 2,052

� � 1,710 Recurring profit: EUR 1,710 million. Sustained high recurring profits afford conservative � 33.5% 2.0% provisions to manage business risks. Extraordinary profit of EUR –200 16.7% million with conservative write-downs. Group profit: EUR 1,510 million, –16.2%. Total assets: +4.2%. Total assets stood at EUR 271,873 million. 07 08 09 1.2 Positive margin evolution through efficiency and high returns page 38 Total profit attributable to the Group Increase in income and cost Substantial increase in income (+6.4%) and strict 2,488 1,082 1,510 contaiment. containment of operating expenses (+1.0%). RECURRING PROFIT 2009 Yr-on-Yr Improved efficiency. Recurring efficiency ratio: 42.9% (–2.3%). Change Gross income 7,187 +6.4% Net operating income: +12.3%. Strong net operating income absorbs major credit loss Net operating income 3,622 +12.3% provisions and write-downs. Net profit before High returns. Recurring ROE 11.3%, ROA 0.8%, RORWA 1.6%. non-controlling interests 2,004 –13.5%

2,488 Efficiency� 42.9% –2.3 1.3 Welfare Projects page 44 ROE 11.3% –3.5 17,8%� 1,802

The Welfare Projects budget for 2010 Welfare Projects budget maintained, reflecting 33,5% � 1,510 totals EUR 500 million. the commitment to society. � Textos picats WELFARE PROJECTS27,6% 16,2% 1.4 Business segment reporting page 45 EUR 500 million budget

Good performance of the Group’s Spanish Banking, Investee Portfolio and ALCO business. and Corporate Activities. 07 08 09 Resultat total 2. Great commercial capacity: the strength of the banking business ”la Caixa” THE LEADER 2.1 Sustained and balanced growth in banking activity page 47 Textos picats BANKING BUSINESS VOLUME The banking business increased by EUR Customer funds of EUR 237,799 million and Loans of EUR 178,026. (Millions of euros) 1,702 million to EUR 415,825 million. 414,123 415,825 High market shares: Deposits 10.4%, and Loans 9.9%. 387,850 2.2 Customer base: the core of the business page 51

Retail banking model: Segmenting 10.5 milion customers, with a penetration of 21.6% and providing a specialised focus on in individual customers. Boost to specialised business � � � commercial activity. ! approach. 14.1% 6.8% 0.4% 2, 011 2, 052 2.3 Commercial network and human resources: cornerstones page 57 1, 710 2, 488 Extensive retail network and qualified staff. 5,326 branches with a share of 12% and 27,505 employees. 07 08 09 1, 802 2.4 Multi-channel management: an ongoing relationship Customer funds Customer loans 1, 510 with customers page 59 ______Multi-channel management: an 33,5% ATMs: A2 ,network0% of 7,951.16,7 % 17,8% 27,6% 16,2% CUSTOMERS ongoing relationship with customers, Línea Abierta (internet channel): 6.0 million customers (share: 30.1%). providing a full offering of products Mobile banking services: 1.4 million customers. 10.5 million customers and services. 21.6% penetration in individual customers07 08 09 07 08 09 Resultat total 2.5 Payment methods: a distinctive offering page 63 Resultat recurrent COMMERCIAL NETWORK 2009 Payment methods: a distinctive range 10.3 million cards issued by ”la Caixa”, top-ranking and integrated service. institution in terms of turnover, with a share of 17.7%. Branches 7.187 5,326 Employees 27.505 3.622 27,505 167,993 Point of Sale (POS) terminals. ATMs 7,951 Textos picats 2.6 Innovation in customer services page 64 MULTI-CHANNEL MANAGEMENT 2009 2.6.1 Branches and services designed for personalised attention page 64 Leader in complementary channels: Leading-edge banking branch design Three components: individualised spaces, quick cash area Online banking market share 30.1% offering personalised attention. and self-service area. Textos picats Línea abierta customers (millions) 6.0 Mobile banking customers (millions) 1.4 2.6.2 Technological innovation as a priority for improving customer care and service page 66 Innovation as an ongoing objective: Efficient organisation with cutting-edge technological Línea Abierta channel, ATMs, mobile support where innovation is an integral part of the culture PAYMENT SYSTEMS 2009 phones and cards. of ”la Caixa”. Cards issued (millions) 10.3 Textos picats Point of Sale (POS) terminals 167,993 2.7 Quality and customer service: the groundwork for the future page 68 Quality to secure customer Customers’ quality perception scores higher than satisfaction and future growth. competitors’.

2009 ”la Caixa” Annual Report 34 Textos picats 2.8 Supporting the business: ”la Caixa” subsidiaries page 69 Subsidiaries which provide support Multi-channel management, property services and other. services. 3. Investee portfolio 79.5% CRITERIA CAIXACORP 3.1 Criteria CaixaCorp: Internationalisation and diversification page 71 UTILITIES 3.1.1 Criteria CaixaCorp: A subsidiary which encompasses the largest portion of the ”la Caixa” Group’s investee portfolio page 71 LISTED Investment strategy: diversification of Value creation with controlled risk. The ”la Caixa” Group UNLISTED income and international expansion. holds a 79.5% interest at 31/12/09. FINANCE 3.1.2 Utilities business page 72 Strategic investments in industries Investments in leading companies, with capacity for growth INTERNATIONAL BANKS offering basic services to society. and value generation. INSURANCE COMPANIES 3.1.3 Financial business page 74 SPECIALISED FINANCIAL SERVICES International banking. Interests in countries where the Group can provide added value and take advantage of growth potential. Insurers and specialised financial Complementing ”la Caixa” products and services. Leading LISTED PORTFOLIO: services. position in the Spanish insurance industry. MARKET VALUE AND UNREALISED GAINS (Millions of euros) 3.2 Venture capital and financing for entrepreneurs page 78 +3,539 20,118 Presence of the ”la Caixa” Group in Under the framework of the ”la Caixa” Group’s corporate Market the venture capital industry. social responsibility activities. +1,888 value 14,691 Change in value 3.3 Active management of the ”la Caixa” Group’s investee portfolio page 79 Market Net investments value Strategic objective: increase the Increase of the stake in Erste Bank and in The Bank of East proportion of the financial business Asia. through active management. EUR 1,313 million investment in Gas Natural, for the 1,026 3,945 acquisition of Unión Fenosa. Gross Gross Agreements to acquire Adeslas and sell part of Agbar, and unrealised gains unrealised gains joint venture in Port Aventura. 2008 2009 3.945 The market value of the listed portfolio is EUR 20,1181.026 million, with gross unrealised gains of EUR 3,945 million. 4. Active risk management QUALITY OF ASSETS 2009 Global risk management. Key factor in the Group’s strategy. NPL ratio Credit risk: ensure the quality of the Appropriate risk approval procedures. Support provided with ”la Caixa” Group 3.42% loan portfolio. advanced tools and measurement and monitoring procedures. Financial industry 5.08% Low-risk, diversified lendings with A contained NPL ratio, 3.42%, lower than the industry High coverage adequate collateral. average, with a high coverage ratio, at 62%, and 127% Coverage ratio 62% including mortgage collateral.Gràfic “calcat” Coverage ratio including mortgage collateral 127% Market risk: reduce exposure to risk Extensive natural hedges and financialTextos picats market dealings. Generic credit loss allowance (millions) 1,835 in balance-sheet positions. Textos picats +3.539 20.118 Liquidity risk: diversify the markets Active management of the balance sheet and of financing and products related to the financing sources to secure high liquidity levels. Valor de sources. mercat +1.888 Operational risk: minimise the risk An expert workforce and the procedures and controls in inherent to business activities. place help mitigate risk. 14.691 Variació valor Valor de Regulatory compliance risk. Foster the compliance culture. Inversions mercat netes 5. High financial strength FINANCIAL STRENGTH 2009

5.1 Excellent liquidity levels page 107 Liquidity (millions of euros) 21,208 Conservative proactive management Excellent liquidity position supports the growth of the of liquidity levels. Group’s business. Capital adequacy (%)

5.2 Excellent capital adequacy levels page 108 Core Capital 8.7% Tier 1 10.4% 3.945 Core capital at 8.7%. Capital ratio (BIS ratio): 11.0%. Tier 1: 10.4%. 1.026BIS Ratio 11.0% Plusvàlues PlusvàluesSurplus capital (millions of euros) 4,667 Surplus capital: 4,667 million. Textos picats latents brutes latents brutes

5.3 ”la Caixa” Group ratings in the AA range page 110 Moody’s Standard & Poor’s Fitch 2008 2009 Ratings Aa2 AA– AA– Very good ratings confirmed. Very good ratings in the AA range (very high creditworthiness). Outlook Negative Negative Negative

2009 ”la Caixa” Annual Report 35 2009 Financial Report of the ”la Caixa” Group 1. High-quality profits in 2009

1. High-quality profits in 2009 1.1. Business growth coupled with good profits and conservative write-downs

The ”la Caixa” Group’s recurring sustained increase in income, of 6.4% PROFIT ATTRIBUTABLE TO THE ”LA CAIXA” profit for 2009 amounted to year-on-year, up to EUR 7,187 million, GROUP (Millions of euros) EUR 1,710 million (–16.7%), with driven by the most traditional banking a 12.3% rise in recurring net activity. This strong rise in income, 2,011 2,052

� � 1,710 operating income and strong combined with the stringent cost- � 33.5% 2.0% write-downs: containment policy, made it possible 16.7% to continue to improve efficiency and • Solid 6.4% increase in total income maintain high returns. (recurring gross income) and stringent 07 08 09 cost-containment policy, +1.0%, with Hence, net operating income was up Recurring profit increased efficiency. 12.3% to EUR 3,622 million and absorbed the increased credit loss provisions with Extraordinary profit • Net extraordinary profit of EUR –200 the result that net recurring profit stood 477 (250) (200) million with provisions for the future at EUR 1,710 million, down 16.7%. Total 07 08 09 management of the business. attributable profit stood at EUR 1,510 million in 2009, including extraordinary

2,488 • The Group’s attributable profit stood at gains of EUR 249 million allocated in full � EUR 1,510 million. to additional, unscheduled provisions and 17.8% 1,802

to the investee portfolio, and also EUR � 1,510

The ”la Caixa” Group’s business 200 million (EUR 286 million before tax) in 27.6% � 16.2% experienced balanced, quality growth provisions for the future management of in 2009, in an economic and financial the business. context characterised by volatility in the 07 08 09 financial markets and plummeting interest All the above, in conjunction with active Total profit rates, a slowdown in activity, rising NPL and stringent risk, liquidity and capital ratios and fierce competition in the adequacy management, consolidated banking industry. the Group’s considerable financial strengths. Therefore, the ”la Caixa” The Group’s robust commercial capacity, Group is optimally positioned to manage its effective income management successfully a complex and demanding activities, its customer service context like the present, and to ensure the management efforts and the favourable growth of its businesses and respond to performance of the investees led to a the credit needs of all its customers.

2009 ”la Caixa” Annual Report 36 2009 Financial Report of the ”la Caixa” Group

4.2% increase in total assets. margins and structure and off-balance- “GROWTH OF THE BANKING BUSINESS” sheet funds increased. The ”la Caixa” Group’s total assets amounted to EUR 271,873 million, an Own funds (reserves plus profits) increase of EUR 11,046 million or 4.2% increased by EUR 1,077 million or 6.9%, in 2009. after taking into account the profit attributable to the Group of EUR 1,510 In an economic climate affected by the million and the sum allocated to Welfare Projects. In addition, the fair value slowdown in economic activity, adjustment to available-for-sale financial ”la Caixa” managed to achieve an assets increased in 2009 by EUR 963 increase in the volume of the banking million due to the positive performance business (loans and credits plus funds of the securities markets in 2009. managed) of EUR 1,702 million compared to 2008 to reach a figure of For a more detailed explanation of the EUR 415,825 million. The gross amount main balance sheet aggregates, please see of loans and credits grew by EUR 1,603 section 2. Great commercial capacity: the million, up 0.9%. Total customer funds strength of the banking business, section remained at EUR 237,799 million 3. Investee portfolio, and section 5. High thanks to active management of financial strength.

Consolidated management balance sheets of the ”la Caixa” Group

YEaR-ON-YEaR CHaNGE

(Figures in millions of euros) 2009 2008 aMOUNT % Assets Cash, balances with central banks and credit institutions and fixed-income securities 33,678 30,203 3,475 11.5 Loans and advances to customers, net 173,641 175,471 (1,830) (1.0) Insurance contract assets 21,261 19,829 1,432 7.2 Equity securities 19,997 15,624 4,373 28.0 Tangible and intangible assets 8,845 7,236 1,609 22.2 Other assets and prepayments and accrued income 14,451 12,464 1,987 15.9 Total assets 271,873 260,827 11,046 4.2 liabilities 250,470 241,906 8,564 3.5 Deposits from credit institutions 22,521 13,290 9,231 69.5 On-balance-sheet customer funds 205,631 209,376 (3,745) (1.8) Provisions 2,925 3,195 (270) (8.5) Other liabilities and accrued expenses and deferred income 19,393 16,045 3,348 20.9 Equity 21,403 18,921 2,482 13.1 Own funds 16,696 15,619 1,077 6.9 Of which: Profit attributable to the Group 1,510 1,802 (292) (16.2) Valuation adjustments 1,612 649 963 148.4 Non-controlling interests 3,095 2,653 442 16.7 Total liabilities and Equity 271,873 260,827 11,046 4.2

2009 ”la Caixa” Annual Report 37 2009 Financial Report of the ”la Caixa” Group 1. High-quality profits in 2009

1.2. Positive margin evolution through efficiency and high returns

Consolidated income statements of the ”la Caixa” Group

CHaNGE (Figures in millions of euros) 2009 2008 % Financial income 9,097 12,401 (26.6) Financial expenses (5,165) (8,893) (41.9) Net interest income 3,932 3,508 12.1 Dividends 400 395 1.3 Share of results of entities accounted for using the equity method 840 718 17.0 Net fee and commission income 1,303 1,250 4.2 Gains/losses on financial assets and exchange differences 130 163 (19.7) Other operating income and expenses 582 718 (19.1) Gross income 7,187 6,752 6.4 Total operating expenses (3,565) (3,529) 1.0 Net operating income 3,622 3,223 12.3 Credit loss provisions and other (1,401) (617) 126.4 Gains/losses on disposal of assets and other (90) 10 Profit before tax 2,131 2,616 (18.6) Income tax (127) (299) (57.6) Profit after tax 2,004 2,317 (13.5) Profit attributable to non-controlling interests 294 265 10.7 Recurring profit (*) 1,710 2,052 (16.7) Extraordinary income 249 260 Extraordinary write-downs (249) (260) Provision for future management of the business (200) (250) Extraordinary profit (200) (250) Profit attributable to the Group 1,510 1,802 (16.2) (*) Recurring profit excluding extraordinary profit.

In view of the particular significance of Gross income rose by 6.4% to EUR “SUSTAINED GROWTH the non-recurring extraordinary profits 7,187 million, showing a positive IN GROUP INCOME” recorded in 2009 and 2008, and in order evolution in the main items. to aid understanding and analysis of the performance of the business, Net interest income totalled EUR 3,932 NET INTEREST INCOME (Millions of euros) the accompanying consolidated income million, a notable rise of 12.1%. This statements show the profit from the increase reflects the sound growth of 3,932 3,508 ordinary recurring activities of the banking business and the operating 3,317 � � 12.1% the ”la Caixa” Group. In addition, margins management in a highly 5.8% the recurring profit is adjusted for the competitive environment, the impact effects of extraordinary profit net of tax of the yield curve and the positive and non-controlling interests, in order performance of the net financial income to establish the profit attributable to the from the life business of the insurance Group. subsidiaries. 07 08 09

2009 ”la Caixa” Annual Report 38 2009 Financial Report of the ”la Caixa” Group

The total income from the investee as well as improved price management. INCOME FROM INVESTEES portfolio (dividend income and the share The fees and commissions relating to Dividend income plus the share of results of companies accounted for using the equity of results of companies accounted for investment funds, meanwhile, fell in line method using the equity method) amounted with the performance of the market. (Millions of euros) to EUR 1,240 million, up 11.4% due 1,240 1,113 to the performance of the investees’ The gains/losses on financial assets and 979 � � 11.4% businesses and their capacity to distribute liabilities and exchange differences stood 13.6% recurring dividends. Thus, the dividends at EUR 130 million. from investees classified as available- for-sale financial assets totalled EUR Other operating income and expenses 07 08 09 400 million. The post-tax profits of the amounted to EUR 582 million and companies accounted for using the equity include the net insurance premiums and method, basically Gas Natural, Abertis COMISSIONS the mathematical provisions relating to Infraestructuras, Banco BPI, Aguas de (Millions of euros) the non-life business of the insurance Barcelona, GF Inbursa and Boursorama, totalled EUR 840 million, a considerable subsidiaries, as well as the income from the non-banking subsidiaries and the

rise of 17.0%. 1,257 1,250 1,303 accrued financial fees and commissions � � 4.2% Net fees and commission income grew offsetting expenses. 0.6% by 4.2% to reach EUR 1,303 million, thanks to appropriate management of the The considerable 6.4% increase in gross services offered to customers. Fees and income, combined with the strict control 07 08 09 commissions relating to banking services of expenses described below, is one of increased by 4.9%, based on the provision the cornerstones of the solid growth of of quality services and personalised advice, operating income. GROSS INCOME (Millions of euros) 7,187 6,752 � 6.148 � 6.4% 9.8%

07 08 09

2009 ”la Caixa” Annual Report 39 2009 Financial Report of the ”la Caixa” Group 1. High-quality profits in 2009

1.2. Positive margin evolution through efficiency and high returns (cont.)

Improved efficiency with technology and new retail channels, ANNUAL GROWTH OF INCOME increased productivity improvements to the information systems HIGHER THAN THE EXPENSES: IMPROVEMENT OF EFFICIENCY and the optimisation of processes to (Millions and annual change) The Group’s strict cost containment enhance the branches’ commercial +604 and streamlining policy, coupled with activities, the internal risk management 9.8% +288 8.9% +435 improved productivity, tempered the and control systems and human capital 6.4% increase in operating expenses which training. Nevertheless, the efforts made stood at EUR 3,565 million, up 1%. in streamlining and controlling operating +36 1.0% expenses, including administrative The Group’s considerable commercial expenses and amortisation charges, 08 vs. 07 09 vs. 08 strength, with its 27,505 employees, limited the increase in these expenses Income Operating 5,326 branches, 7,951 ATMs and to 1% in 2009, which is less than the (gross income) expenses leadership in online, mobile phone and considerable growth reported in gross electronic banking services, has resulted income of 6.4%. MAIN COMPONENTS OF THE OPERATING in the sustained, balanced and high- EXPENSES OF ”LA CAIXA” quality growth of the business and the Technological advances have cut 25,335 24,944 24,117 commercial activity. administrative tasks at the branches, 5,530 thereby freeing up resources to focus on 5,480 The objective of growing the ”la Caixa” 5,326 commercial activities and personalised Group’s banking business is being care to customers. carried out through the management of income/expense matching to ensure +604 The combination of these factors explains +288 competitiveness and future profits. In +9,8% the ongoing growth in the business 07 08 8,9% 09 2009 ”la Caixa” proved its flexibility and +435 volume ratios (total customer funds Branches Employees (*) considerable capacity to adapt to the and lendings) and in the recurring net (*) Total Group employees: 27,505 +36 environment by reducing the number 6,4% 1,0% operating income per employee and of branches by 204, without affecting branch, while the number of employees BRANCH PRODUCTIVITYIngressos RA Despeses TIOS d'explotació Ingressos Despeses d'explotació customer relations. The growth strategy (Thousands of euros(marge) brut) (marge brut) has always been based on an analysis per branch remains at a low level of 4.7, 78,075 one of the lowest in the Spanish financial 2008 2009 of the investment/expense ratio and on 74,887vs 2007 vs 2008 industry. undertaking projects that generate value. 70,776 678 583 At the same time, as part of its As a whole, the streamlining of the 534 international expansion plan, in 2009 Group’s costs and the favourable ”la Caixa” opened an operating branch in performance of the business volume Casablanca (Morocco) and brought two ratios show the high growth potential in 07 08 09 terms of efficiency and profit. new representative offices into operation Business Recurring net operating in Shanghai (China) and Istanbul (Turkey). volume income per branch In this respect, in 2009 the recurring per branch The large investments in recent years efficiency ratio improved, falling by 2.3 EMPLOYEE PRODUCTIVITY RATIOS have resulted in an increase in operating points to 42.9%, thereby confirming the (Thousands of euros) considerable improvement in the last few expenses. These investments basically 16,670 relate to the development of businesses, years. 16,346 16,082 144.8 127.2 121.4

07 08 09

Business Recurring net operating volume income per employee per employee

2009 ”la Caixa” Annual Report 40 2009 Financial Report of the ”la Caixa” Group

Efficiency improvement plan by ”la Caixa” and its close relationship with customers. In this regard, the “MAKING THE BEST USE OF The Efficiency Improvement Plan aims to level and scope of the service remained TECHNOLOGICAL ADVANCES TO IMPROVE PRODUCTIVITY AND MAXIMISE TIME achieve a high level of efficiency of the unchanged, since ”la Caixa” retains SPENT ON COMMERCIAL ACTIVITIES” ”la Caixa” Group, with permanent and its leadership in terms of share of the sustainable improvement over time. The total number of branches in the Spanish EFFICIENCY RATIO (%) (*) plan involves setting and implementing financial system, and its close contact objectives defined around three major with the market should enable it to seize cornerstones: the commercial opportunities afforded 46.1 by the new competitive environment. 45.2 • Securing income: To ensure that the –2.3 Group’s businesses and segments make In conjunction with the branch 42.9 positive and increasing contributions to optimisation plan, the Institution the Institution’s profit. The differentiated continued its major effort to contain product offering, the excellent standard and streamline costs and investments, 07 08 09 of service quality provided to customers analysing and assessing each item (*) Staff + overhead costs / gross income through the branch network or other based on need and expected savings banking channels, the commercial returns. ”la Caixa” also put in place effort and active margin management improvements aimed at achieving have been the keys to ensuring the energy savings at the branches and aforementioned growth in income in a reducing paper consumption and highly competitive setting. physical delivery of correspondence to customers, among other things, • Containment of costs and investment 46,1 needs: Given the current economic which, in addition to the positive 45,2 climate and the new specialised impact in terms of efficiency, contribute network model implemented, a Branch to strengthening the Institution’s 42,9 Optimisation Plan for the retail banking commitment to sustainability. segment was set in motion in 2009 to integrate certain branches, often • Fostering the self-service channels owing to the close distances between and operational innovation: These 07 08 09 them. The plan made it possible to factors are key to ensuring that, release resources, contain workforce while customers are provided with a growth and optimise overhead costs differentiated service, the operating (rent, electricity, etc.) while ensuring processes and therefore the related significant savings in future recurring costs are effectively managed, so that costs. This process involved a detailed the efforts of ”la Caixa” and its staff are analysis in order to guarantee and focused on serving the financial needs maintain the level of service provided of households and companies efficiently.

2009 ”la Caixa” Annual Report 41 2009 Financial Report of the ”la Caixa” Group 1. High-quality profits in 2009

1.2. Positive margin evolution through efficiency and high returns (cont.)

Recurring net operating income: Nevertheless, the NPL ratio of 3.42% is “NET OPERATING INCOME UP 12.3%” eur 3,622 million, up 12.3%. lower than the industry average and the doubtful assets coverage ratio stands The solid increase in “Gross Income” (up at 62% (127% taking into account RECURRING NET OPERATING INCOME (Millions of euros) 3,622 6.4%), driven by the more traditional mortgage collateral). 3,223 � banking business and considerable 2,907 � 12.3% containment of operating expenses (up Recurring profit attributable 10.9% 1.0%), benefited the productivity of the to the group stood at eur 1,710 Group’s banking business and the “Net million (–16.7%), maintaining Operating Income”, which includes the high levels of returns (roe of profits from the Group’s businesses, 11.3%). amounted to EUR 3,622 million, up 07 08 09 12.3% on 2008. The large rise in income “Recurring Profit After Tax” amounted and, above all, strict cost control and to EUR 2,004 million, down 13.5%. monitoring, have resulted in the ongoing For a proper interpretation of “Income RECURRING NET PROFIT improvement of the recurring efficiency Tax”, first of all, it must be taken into (Millions of euros) ratio to 42.9% (–2.3 points). account that virtually all the dividends from investees are not taxed to avoid 2,317

The strong increase in “Net Operating 2,125 2,004 double taxation; that, in accordance with � � Income” evidences the ”la Caixa” Group’s 9.0% accounting regulations, the profits of considerable capacity to generate high 13.5% companies accounted for using the equity recurring profits and endorses its strategy method are shown net of tax and, lastly, to maximise the high potential for efficient profitable growth. that the contribution to Welfare Projects is 07 08 09 a deductible expense. The considerable profit generated from recurring activities afforded significant The profit of non-controlling interests of RECURRING ATTRIBUTABLE PROFIT (Millions of euros) provisions of EUR 2,821 million, of EUR 294 million relates basically to the which EUR 2,092 million were charged 2009 profit of the Criteria CaixaCorp to 2009 profit (EUR 1,401 million to Group attributable to non-controlling 2,011 2,052 interests. Therefore, the “Recurring Profit recurring profit and EUR 691 million to � 1,710 extraordinary profit). The increase in Attributable to the Group”, after tax 2.0% � 16.7% specific provisions was partially offset by and non-controlling interests, amounted the release of a portion of the generic to EUR 1,710 million (–16.7%), with a credit loss allowance, which stood at recurring return on average capital of 07 08 09 EUR 1,835 million at the end of 2009. 11.3%.

2009 ”la Caixa” Annual Report 42 2009 Financial Report of the ”la Caixa” Group

Extraordinary profit: The “Profit attributable to the ROE (Attributable profit/Average own funds) extraordinary income was offset Group” totalled eur 1,510 million. in full by conservative write- downs and additionally a Having considered the excellent provision of eur 286 million before performance of the businesses and of the 23.2% 19.4% tax, was recognised for the future ”la Caixa” Group’s high-quality 14.8% 13.0% management of the business. recurring profits, as well as the impact 11.3% 10.0% of the extraordinary profits, the “Profit Attributable to the Group” totalled EUR In 2009 a total of EUR 249 million in gains, 07 08 09 07 08 09 1,510 million in 2009, down 16.2%. net of tax and non-controlling interests, Recurring business Total were recognised on the sale of 1% of Telefónica. This income was offset in full Recurring return on average own funds (excluding extraordinary profit) (ROE) by additional unscheduled and other credit ROA (Net profit/Average total assets) stood at 11.3% in 2009. Taking into loss provisions amounting to a gross sum RORWA (Net profit/Risk-weighted assets) account the total profit, the ROE stood at 2.0% of EUR 241 million (158 million net) and 1.9% 10.0%. provisions relating to the investee portfolio 1.6% amounting to EUR 164 million gross (EUR The levels of return have been affected by 91 million net). 1.0% 1.0% the considerable increase in the Group’s 0.8% capital in the last few years, particularly In addition, provisions before tax as a result of the flotation of Criteria amounting to EUR 286 million (EUR 200 CaixaCorp in October 2007, and the million net) were recognised in 2009 for 07 08 09 07 08 09 performance of recurring profits. the future management of the business, ROA RORWA including a provision for the extension Recurring return on average total assets Recurring business of the pre-retirement scheme and (ROA), net of cash brokerage, stood at precautionary credit loss provisions. 0.8% in 2009.

Extraordinary gains totalled EUR 260 Also, the low risk exposure of the assets million in 2008 (due to tax benefits and on the ”la Caixa” Group’s balance sheet the release of the provisions for interest- meant that the recurring return obtained rate risk on insurance contracts) and were in relation to the risk taken (RORWA), offset in full by provisions recognised which is calculated on the basis of risk- to cover the investee portfolio, the weighted on-balance-sheet assets, was substandard loans portfolio and others. A much higher than the ROA, at 1.6% in net provision of EUR 250 million was also 2009. Taking into account the Group’s recognised to cover future risks relating to total profit, the ROA and RORWA stood at the business. 0.7% and 1.5%, respectively.

2009 ”la Caixa” Annual Report 43 2009 Financial Report of the ”la Caixa” Group 1. High-quality profits in 2009

1.3. Welfare Projects

Welfare Projects budget for 2010: The Welfare Projects budget for 2010 WELFARE PROJECTS 2010 BUDGET eur 500 million totals EUR 500 million, thereby showing, (Millions of euros) despite the unfavourable economic 356 In 2009 ”la Caixa” consolidated its climate, the Institution’s commitment to 500 commitment to the needs of society. society. Of this budget, 71.2% is to be Welfare Projects continued to develop its used for social programmes. programmes to provide opportunities to people, make culture more easily available to all and promote protection of the environment. 62 55 27

2010

Programmes Social Environmental and scientific Culture Educational and research

Programes:

Socials

Medi Ambient i Ciència (milions dʼeuros) Culturals

Educatius i Investigació

Fons social

500 500 356 500

297 278

71 69 64 63 60 62 55

33 35 29 27

2008 2009 2010

2009 ”la Caixa” Annual Report 44 2009 Financial Report of the ”la Caixa” Group

1.4. Business segment reporting

Business segment reporting an 80.0% increase on 2008, and net profit GROSS INCOME OF SPANISH BANKING of activity and profits: a basic attributable to the Group totalled EUR (Millions of euros) management tool for the group 1,430 million, down 13.4%. 6,170 5,966 � 3.4% The objective of business segment Investee portfolio: this segment reporting is to enable internal control, basically includes the recurring profits monitoring and management of the of the investee portfolio’s investments ”la Caixa” Group’s activity and profits. The in utilities and international banks, held information is organised by reference to through Criteria CaixaCorp. The dividend the various lines of business established on income and the share of results of equity 08 09 the basis of the Group’s organisation and accounted companies amounted to structure. The lines of business are defined EUR 1,222 million (of which EUR 839 BREAKDOWN OF THE GROSS INCOME taking into account the inherent risks and million relate to the share of results of OF SPANISH BANKING characteristics of each business. jointly controlled entities and associates accounted for using the equity method), 21% Under these principles, the ”la Caixa” up 10.4% on 2008, as a result of these Group comprises the following business investees’ ability to generate profits segments: and distribute recurring dividends. 79% Changes in the costs of financing the Spanish Banking: this is the ”la Caixa” business, characterised by an increase in Group’s core business and includes the funded portfolio and offset by the the entire banking business (loans and declining interest rates, together with the Individuals Business receivables, customer deposits and performance of other income statement banking banking marketing of investment funds, insurance items, meant that the net recurring and pension plans, among others) carried attributable profit of the business stood at on primarily in Spain through the branch EUR 744 million, up 12.1% on 2008. INCOME FROM THE INVESTEE PORTFOLIO network and the other complementary (DIVIDEND INCOME AND THE SHARE OF RESULTS OF EQUITY ACCOUNTED COMPANIES) channels. It encompasses the activity The market value of the ”la Caixa” Group’s (Millions of euros) and the profits generated by 10.5 million listed portfolio totalled EUR 20,118 1,222 � customers, whether individuals, companies million, of which EUR 12,739 million 1,108 10.4% or institutions. The volume of business related to investments in jointly controlled managed by this segment at 31 December entities and associates accounted for using 2009 amounted to EUR 366,123 million, the equity method, with unrealised gains in line with the 2008 figure, with a of EUR 3,945 million in 2009. gross amount of EUR 178,026 million in 08 09 customer loans and EUR 188,097 million ALCO and Corporate Activities: the in customer funds, excluding institutional activity of the ALCO (Asset-Liability issues and subordinated liabilities. Committee) encompasses management of interest rate and currency risk, as well The net interest income from this business as liquidity risk, through the management amounted to EUR 4,237 million and the of issues in the institutional market and gross income to EUR 6,170 million, a of capital and the investment/financing of rise of 3.4%. Business with companies the other businesses. Corporate activities and institutions accounts for 21% of encompass the activities and profits which gross income, an increase on its 17% are the outcome of decisions affecting the contribution to Spanish Banking in 2008. Group taken as a whole or which, due to This segment’s net operating income stood their nature, are not allocable to the rest at EUR 2,885 million, up 5.7%, thereby of the businesses, such as extraordinary enabling higher recurring credit loss profits, shared service costs and the provisions to be recognised which, for this Group’s property services business. The business, amounted to EUR 961 million, segment also includes the reconciling

2009 ”la Caixa” Annual Report 45 2009 Financial Report of the ”la Caixa” Group 1. High-quality profits in 2009

1.4. Business segment reporting (cont.) adjustments required for the inclusion of without significant impacts on the the other businesses is recognised in ALCO the financial statements of the various lines attributable profit for 2008 for each of the and Corporate Activities. of business in the Group’s consolidated segments. financial statements. The operating expenses of each business The gross income of the Spanish banking segment include both direct and Description of the segment segment is determined on the basis of the indirect expenses, which are allocated reporting methods and net gains or losses on each on-balance- in accordance with internal allocation measurement bases applied sheet financial asset or liability, which is methods. Shared service costs forming calculated by applying to the contractual part of corporate or institutional operating For the purposes of business segment income or expense a transfer price which services are allocated in full to the ALCO reporting of the Group’s activities and is equal to the market price for a term and Corporate Activities segment. profits, the core business units on which equal to its length or review frequency. In accounting and management figures are addition, income from services generated The allocation of capital to the businesses is available are taken as a reference. The by the banking activity is also included in calculated on the basis of the requirements same general principles as those used for gross income. of the New Capital Accord (Basel II), in the Group’s management information accordance with the risks taken by each are applied and the accounting principles business unit. These risks include credit and measurement bases used are basically The gross income from the investee the same as those used to determine the portfolio includes dividend income and risk, market risk, operational risk, equity financial statement figures, and there are income from the respective equity- risk, fixed asset risk and the risks relating to no mismatched allocations. accounted investments, net of the related the insurance business. borrowing costs, equal to the opportunity The data of the ”la Caixa” Group’s cost of retaining the investment in the long The consolidated income statements of segments were re-calculated in 2009 term. the ”la Caixa” Group for 2009 and the using the best available information changes with respect to 2008, by business and assumptions and, for comparison The balancing entry for the banking segment, and the aggregates of assets and purposes, the 2008 figures were unified, transfer prices and the cost of financing own funds of each, are as follows:

Consolidated income statements of the ”la Caixa” Group - By business segment

ALCO AND CORPORATE ”LA CAIXA" GROUP SPANISH BANKING INVESTEE PORTFOLIO ACTIVITIES (*) TOTAL

(Figures in millions of euros) 2009 Change (%) 2009 Change (%) 2009 2009 Change (%) Gross income 6,170 3.4 1,028 7.9 (11) 7,187 2.9 Administrative expenses (2,846) 1.6 (152) (6.1) (86) (3,084) 1.1 Depreciation and amortisation charge (439) 0.8 (26) (2.8) (16) (481) 0.5 Net operating income 2,885 5.7 850 11.3 (113) 3,622 4.9 Impairment losses on financial assets and other (961) 80.0 (10) 10.7 (834) (1,805) 29.9 Gains (losses) on disposal of assets and other (34) 2 (53.7) 83 51 Profit before tax 1,890 (13.6) 842 10.9 (864) 1,868 (9.9) Tax (428) (14.1) 120 14.9 273 (35) Profit after tax 1,462 (13.5) 962 11.4 (591) 1,833 (11.2) Profit attributable to non-controlling interests 32 (18.2) 218 8.9 73 323 23.8 Profit attributable to the Group 1,430 (13.4) 744 12.1 (664) 1,510 (16.2)

Total assets 196,926 (0.9) 20,365 18.1 271,873 4.2 Allocation of capital/Equity 11,166 10.2 5,063 4.0 21,403 13.1

(*) Including the Group’s net extraordinary profits (EUR –200 million in 2009 and EUR –250 million in 2008), see section 1.2, Positive margin evolution through efficiency and high returns.

2009 ”la Caixa” Annual Report 46 2009 Financial Report of the ”la Caixa” Group

2. Great commercial capacity: the strength of the banking business 2.1. Sustained and balanced growth in banking activity

In 2009 the volume of the banking sheet customer funds amounted to BANKING BUSINESS VOLUME (Millions of euros) business (loans and advances to EUR 205,631 million, with an increase 414,123 415,825 387,850 customers plus customer funds) increased of EUR 954 million in demand deposits by EUR 1,702 million, up 0.4%, to reach a and a fall of EUR 5,857 million in term figure of EUR 415,825 million. deposits and a decrease of EUR 639 � � million in debt securities and subordinated � 14.1% 6.8% 0.4% Customer funds liabilities, changes influenced by active price management and the effort made The ”la Caixa” Group’s total customer to protect margins with an impact on 07 08 09 funds (financial liabilities with customers, product structure. On the other hand, insurance contract liabilities (technical Customer funds Customer loans there was an increase of EUR 822 million provisions)) and off-balance-sheet funds (investment funds, pension funds, in institutional issues and of EUR 1,208 managed portfolios and other) reached million in insurance contract liabilities. TOTAL CUSTOMER FUNDS (Millions of euros) the figure of EUR 237,799 million at the Pension plans managed basically by 226,236 237,700 237.799� end of 2009. Compared to 2008, the VidaCaixa increased by 15.1%, while � = � investment fund assets managed rose 5.1% change was affected by the complex 12.4% economic and financial situation and by 19.4%, helped by the positive stiff banking competition. On-balance- performance of the capital markets.

07 08 09

6% 15%

79%

Financial liabilities - Customers Insurance, Investment funds pension plans and other Total customer funds

YEaR-ON-YEaR (At 31 December, in millions of euros) 2009 2008 CHaNGE % Financial liabilities - Customers 186,690 191,643 (4,953) (2.6) Proprietary products 142,778 148,320 (5,542) (3.7) Demand deposits 55,670 54,716 954 1.7 Term deposits 74,161 80,018 (5,857) (7.3) Debt securities and subordinated liabilities 12,947 13,586 (639) (4.7) Repurchase agreements and other accounts 4,121 4,354 (233) (5.4) institutional issues 39,791 38,969 822 2.1 insurance contract liabilities 18,941 17,733 1,208 6.8 Total on-balance-sheet customer funds 205,631 209,376 (3,745) (1.8) Investment funds 15,457 12,943 2,514 19.4 Pension plans 11,982 10,407 1,575 15.1 Other funds managed 4,729 4,974 (245) (4.9) Total off-balance-sheet customer funds 32,168 28,324 3,844 13.6 Total customer funds 237,799 237,700 99 =

2009 ”la Caixa” Annual Report 47 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.1. Sustained and balanced growth in banking activity (cont.)

Loans and advances to customers slowdown in 2009, reflecting the state GROSS LOANS AND ADVANCES of the property industry, characterised by TO CUSTOMERS (Millions of euros) Gross loans and advances to customers reduced growth in the price of housing 176,423 178,026 amounted to EUR 178,026 million in and demand. 161,614 � � 2009, an increase of EUR 1,603 million � 9.2% 0.9% 16.5% or 0.9%. In 2009 1,084,168 loans were On the other hand, other loans to approved and granted for a total of EUR the private sector increased by 2.2%. 104,045 million. The growth of loans to Therefore, investments in companies is both individuals and companies reflects driving growth through the 80 business centres (+14%) and the entire branch the Group’s contribution to the economic 07 08 09 development of the territory. network. Of particular note was the considerable growth in factoring and Of particular note among total loans reverse factoring products, with rises are financing transactions for the in market shares of 4.3 and 2.6 points, business segment, and investment in the respectively, to 10.2% and 13.2%. In 2009 productive development of other sectors. ”la Caixa” renewed various credit facilities Mortgage loans, mainly to primary with different employers’ organizations residence home-buyers, experienced a to finance working capital.

Gross loans and advances to customers by segment

YEaR-ON-YEaR CHaNGE

(Figures in millions of euros) 2009 2008 aMOUNT % Public sector loans 6,298 4,627 1,671 36.1 Private sector loans 171,728 171,796 (68) 0 Secured loans 119,607 120,800 (1,193) (1.0) Unsecured loans and other 52,121 50,996 1,125 2.2 Total loans and advances to customers, gross 178,026 176,423 1,603 0.9

176.423 178.026 161.614

_ _ _ 16,5% 9,2% 0,9%

07 08 09

2009 ”la Caixa” Annual Report 48 2009 Financial Report of the ”la Caixa” Group

The Group’s strong commercial SMEs. In this regard, the slight loss of “HIGH MARKET SHARES” activity secures high market market share in mortgages (which stayed shares. above 10.5%) due to the slowdown in property development, has been more “Among the top three in the main Following high growth levels in recent than compensated by a strong increase in financial products” years in banking activity, 2009 was the share of loans secured by other types marked by the stabilisation of volumes in of collateral which rose to 9.3%, up 1.2% the system, with growth rates standing at on 2008. The strategy for penetration into almost nil in terms of lending activity and the business segment has started to reap funds managed. significant rewards.

In this difficult economic situation, With respect to customer funds attracted, ”la Caixa” has managed to maintain and the considerable fall in interest rates even increase its market shares. According and the negative performance of the to the latest public information available Spanish economy meant that the market on credit institutions, including specialized did not grow in 2009, and remained at credit institutions, in 2009 the ”la Caixa” the same level as 2008, when it grew by Group obtained market shares in Spain 25%. There was also no growth in the of 10.0% in loans and 10.4% in deposits deposits market in 2009 compared to (excluding insurance and funds). As a the significant growth levels in recent whole, the share of business volume years. On the other hand, the favourable stands at 10.2%, catching up with the performance of the stock markets helped share of branches at 12.0%, in which make the offering of investment funds ”la Caixa” remains the leader, and and pension funds more attractive. In this exceeding the share of employees. context, ”la Caixa” maintained practically the same market share of deposits at ”la Caixa” continued to focus its lending 10.4% and of life insurance at 13.8%, business on financing for individuals and while the share of investment funds

Market shares and place in the ranking

Shares at December 2009 SHaRE Card turnover 17.7% Merchant business (POS terminals) 20.9% Salaries paid in 15.1% Pensions paid in 12.8% st 1 Demand deposits 11.3% Savings life insurance 13.8% Mortgages 10.5% National Electronic Clearing System (SNCE) 12.7% No. of branches 12.0% ATMs 12.9% Pension plans 15.6% 2nd Deposits 10.4% Loans 10.0% Factoring and Confirming 11.6% 3rd Commercial loans 9.3% Investment funds 8.5%

2009 ”la Caixa” Annual Report 49 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.1. Sustained and balanced growth in banking activity (cont.) increased considerably to 8.5% and that In line with its customer loyalty policy, of pension plans rose to 15.6%. ”la Caixa” launched the “Multiestrella Nómina” and “Multiestrella Pensión” Of particular note was the effort made to programmes, that have extended the adapt the lending and deposit offering advantages of the “Puntos Estrella” throughout the year in order to tailor the customer loyalty programme to customers offering to the various customer groups. who credit their salaries directly to In this regard, in the second half of 2009, their account. The success of these the “Hipoteca a Medida” mortgage was programmes brought about an increase launched for personal banking customers, in the share of directly credited salaries of where reductions are conditional upon over 15%, despite the fact that the job personal banking products being held, and the catalogue of deposits was market shrank by more than 5% in terms reviewed, developing hybrid products that of the numbers of employees registered provide attractive returns for customers for social security purposes. A figure of against the backdrop of interest rates at nearly one million pensioner customers historical lows which prevailed at the end has been achieved, with a market share of of the year. 12.8%.

2009 ”la Caixa” Annual Report 50 2009 Financial Report of the ”la Caixa” Group

2.2. Customer base: the core of the business

A broad customer base that Specialised approach to target “A BROAD BASE OF 10.5 MILLION guarantees growth customer segments CUSTOMERS BY PROVIDING A PERSONALISED ADVISORY SERVICE” The growth of the ”la Caixa” Group’s Additionally, with a view to business is underpinned by a broad supplementing the traditional leadership customer base totalling 10.5 million of ”la Caixa” in individual banking, the ”21.6% PENETRATION” customers at 31 December 2009. Strategic Plan expressed the intention to The customer base is the Group’s main implement specialised value proposals for Penetration as a % asset as it affords stability and drives the companies and individuals to enable the 21.0 21.6 growth of the volume of the business, Group to strengthen its position in these 20.4 managed funds and lendings, with high market segments. At 2009 year-end this market shares, all of which must be viewed implementation had been completed within the context of the high level of and all the specialised management competition in the financial industry. models are now fully integrated into the commercial network structure.

Leadership in Individual Banking 07 08 09 Personal Banking In the 2007-2010 Strategic Plan, The implementation of a personal banking Source: FRS/Inmark ”la Caixa” defined the consolidation of its customer management model, which leadership in individual banking as a key commenced in 2008, was completed in the first half of 2009. Accordingly, every branch objective. This strategy is supported by “SEGMENTING CUSTOMERS ALLOWS US currently has managers dedicated to serving the professional, innovative and TO FOCUS COMMERCIAL ACTIVITY” these customers, whose funds and securities high-quality service offered to our Gràfic “calcat” amount to between EUR 100,000 and customers, which is provided through Textos picats EUR 500,000. A central support unit was an efficient multi-channel distribution 10.5 created, which is responsible for defining million system, in which the branch, supported by total the value-added strategy and proposal customers cutting-edge technology, is at the heart 2008 for this segment, and shared commercial Corporate High Net Worth of our relationship with the customer. Our action protocols were established for all the Banking Customers focus on the customer is complemented branches. Also, the appointment of personal 200 10 by ongoing innovation in terms of the banking professionals in each geographical Private products and services offered, such as Business area enables the information, guidelines and Banking Banking mortgages, personal loans, insurance, support to be transmitted to the managers 10 0.5 direct credit of salaries and pensions, more effectively. SME Personal 2009 payment methods, complementary Banking Banking channels, etc., which enables ”la Caixa” to Of the more than 5,300 ”la Caixa” 1 0.1 retain its leadership and achieve significant branches, 842 branches now have a and ever higher market shares (see section sufficient critical customer mass to have one Individual Banking 2.1. Sustained and balanced growth in or more managers dedicated exclusively to banking activity – High market shares). the personal banking segment. There are LEGAL ENTITIES INDIVIDUALS currently 946 personal banking managers (Turnover) (Funds and securities) In this connection, with a penetration of at these branches, who receive sufficient (ranks in millions of euros) 21.6% in individual customers, according training and information at all times to to the FRS/Inmark study, ”la Caixa” is the be able to provide a high value-added leader in individual banking in Spain, with service. At the remaining branches, the Personal Banking the gap between the second institution personal banking customers are managed widening every year, which demonstrates by the employee assigned in coordination the Institution’s capacity to obtain its with the branch manager, who provides a customers’ loyalty, allegiance and trust. personalised service to this group. “946 PERSONAL BANKING MANAGERS”

2009 ”la Caixa” Annual Report 51 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.2. Customer base: the core of the business (cont.)

In the second half of 2009, following the segment, where the volume of assets has “PRIVATE BANKING: 31 CENTRES implementation of the model, the Group’s fallen by between 20% and 30%, the AND 373 SPECIALISED PROFESSIONALS” positioning in this segment was consolidated predominant feature in 2009 of with the launch of the “Made-to-Measure” ”la Caixa” Private Banking was growth, image, which transmits the main values both in the number of customers and in of the service: personal management, the funds under management. professionalism, experience, knowledge, closeness and trust. The image was Consequently, at 2009 year-end communicated internally and externally, with ”la Caixa” had more than 65,000 Noteworthy among the new developments the focus on a specific value proposal and private banking customers, with an aimed at high net worth customers is maximum contact with the customer. increase of 13% on 2008, and funds the marketing of a new investment fund, under management amounted to EUR Albus, which is intended to design a stable The launch of deposits specially designed 40,985 million, up 21.5% year-on-year. medium-term asset growth strategy, for this segment and various lending and This growth in assets is due mainly to proposing a return to tradition, and is aimed services campaigns have enabled the considerable commercial activity at customers who require counselling to ”la Caixa” to consolidate its position and performed by 373 private banking be able to make decisions with a certain the new image. The development of professionals, supported by the 31 degree of involvement and information. specific advisory tools, segment reporting specialist centres integrated into the Albus has been very well received, obtaining and the development of specific channels extensive branch network. contributions of more than EUR 330 million. will be fundamental to boosting the segment in the future. The considerable commercial dynamism Mention should also be made of the and the continuous efforts to adapt synergies generated with the other business ”la Caixa” has more than 468,000 personal to the market with the launch of new areas of ”la Caixa”. The strength of the banking customers, with funds and products and services led to strong branch network (which is the largest in securities totalling EUR 57,703 million. growth in terms of both customers and Spain), the parallel development of the funds in this segment. The Institution’s business and corporate banking network Private Banking efforts in private banking focused on and the Corporate department and ”la Caixa” Private Banking has providing the advisory services process Servihabitat XXI are the perfect combination consolidated its position as one of with a methodology based on a correct to enable ”la Caixa” Private Banking to offer the benchmark entities in Spain in the distribution of assets that responds to the a complete value proposal to its customers. private banking segment, focusing on customers’ different needs, on the basis Also key is the support of the customers with funds and securities of a case-by-case analysis, a standardised ”la Caixa” Foundation with regard to exceeding EUR 500,000. In contrast to message and choosing products with the matters relating to sponsorship and the general trend in the private banking customers’ needs in mind. corporate social responsibility.

2009 ”la Caixa” Annual Report 52 2009 Financial Report of the ”la Caixa” Group

High net worth customers: “Altium” market situation. Accordingly, at 31 For the management of asset portfolios December 2009, this business managed exceeding EUR 10 million, a segment was almost 179,000 ”la Caixa” customer created within ”la Caixa” Private Banking companies and self-employed individuals, with a specific value-added proposal. giving rise to a 30.8% penetration of the These customers have a specialised team Spanish market. The share is even greater –the “Altium” team– that meets the in Catalonia and Madrid where the Group quality, sophistication and commitment retains a notable leadership with market demands of high net worth customers. shares exceeding 40% for reasons of This segment’s current positioning in tradition and because of the presence of Spain is impressive, with 265 “Altium” the commercial network that affords family groups and a portfolio under ”la Caixa” a distinctive position in the two management totalling more than EUR autonomous communities in which a large 6,000 million. These aggregates make the portion of Spain’s SME business is located. Institution one of the main benchmark firms in high net worth wealth At 2009 year-end the volume of loans management in Spain, achieving net was close to EUR 29,000 million and the growth of 45% in funds in 2009. volume of customer funds amounted to EUR 10,500 million. The Group continued The “Altium” value-added proposal to add to the segment’s value offering, focuses mainly on the management of with the creation of new products financial investments, portfolio advisory aimed at SMEs, retailers, self-employed services, alternative investments, individuals and the agricultural sector, such successor training, global reporting and as the property mortgage to finance the management control, advisory services transfer of pharmacies, and advances in connection with corporate and real to agricultural customers (“agroanticipo“) estate transactions and Family Office to advance income from harvests. services. The loyalty building actions take Also, with a view to reinforcing the the form of customised training courses at support provided to SMEs, contracts prestigious universities and conferences on and agreements were entered into with matters such as tax and philanthropy, and several public bodies which ensure access exclusive events. to financing with preferential terms and conditions, e.g. the Spanish Confederation SME Banking of Employers’ Organisations (CEOE), In the first half of 2009 ”la Caixa” the Spanish Confederation of Small and implemented a proprietary personalised Medium-Sized Enterprises (CEPYME), management model and a comprehensive the Official Credit Institute (ICO), the and innovative catalogue of products and Centre for Industrial and Technological services covering all the needs of SMEs, and Development (CDTI), the Catalan Institute introduced a new specialised commercial of Finance (ICF) and the European Central professional dedicated exclusively to this Bank (ECB). customer group - the SME manager. At 31 December 2009, there was a team of Business Banking “BUSINESS BANKING: 80 CENTRES 852 managers present in 820 branches. In order to better serve medium-sized and AND 735 SPECIALISED PROFESSIONALS” All of the foregoing is supported by large companies (companies which have the commercial strength offered by the a turnover of between EUR 10 million extensive ”la Caixa” branch network. and EUR 200 million), in 2008 the Group implemented a differentiated management This specialisation in SME services enables model in the provision of services to ”la Caixa” to continue to report organic this group. Consequently, following the growth despite the current unfavourable opening of 11 specialised centres in 2009,

2009 ”la Caixa” Annual Report 53 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.2. Customer base: the core of the business (cont.)

”la Caixa” had a network of 80 business reverse factoring, which increased by 42% advance requests and the launch of banking centres at 2009 year-end, with a to a total of more than EUR 12,114 million, a new website specifically for non- workforce of highly specialised personnel representing a market share of 11.6% and customers. With respect to services, under a decentralised, flexible management moving ”la Caixa” up to third place in the in 2009 a procedure was introduced which is integrated within the territorial ranking. This development is in line with through CaixaFactura enabling factoring structure, thereby favouring synergies with the objective of becoming a transactional and reverse factoring remittances to be the other segments as much as possible. benchmark for companies, providing a generated directly from the electronic service in day-to-day transactions, with billing application. Turning to the treasury In what proved to be a lacklustre year the aim of making companies consider offering, ”la Caixa” continued to increase for the market, ”la Caixa” business ”la Caixa” as an alternative solution in their the product offering with the launch of banking achieved considerable growth in business decisions. Considerable efforts European barrier options, commodity commercial activity. Accordingly, in 2009 were also made to complete the offering of hedges, special currency hedging products it attracted more than 4,000 customers, products and services to meet companies’ linked to the price of the dollar, and new bringing the total to around 25,000. As international needs, which was very well structures for interest rate hedges. regards the performance of volumes, in received by our customers as reflected by the past twelve months the loans under the increase in documentary credits and in Additionally, customers’ operating needs management by these centres grew by financing for foreign trade. are dealt with through “Línea Abierta 14%, amounting to close to EUR 14,000 Empresas”, which allows users to access million, and the funds under management As regards the new products and services a wide range of products and services. exceeded EUR 7,000 million at 31 launched in 2009, particularly worthy It includes over 1,000 functions which December 2009, with year-on-year growth of note is working capital financing, facilitate the integral management all of 38%. with special reverse factoring lines for kinds of transaction. In the latest AQMetrix public authorities and new online reverse survey, ”la Caixa” was again selected as The products that proved to be most factoring services, with the possibility of the leading provider in Spain of internet dynamic include most notably factoring and signing the contract online, automatic services for companies.

2009 ”la Caixa” Annual Report 54 2009 Financial Report of the ”la Caixa” Group

Corporate Banking and growth was achieved on two fronts: of need and the presence of ”la Caixa” in Companies with an annual turnover on the one hand, the customer base each market. exceeding EUR 200 million are was increased, and, on the other hand, managed by two corporate banking the relationship with current customers In countries where there is an operating branches located in Madrid and was strengthened, incorporating the branch, ”la Caixa” offers financial services Barcelona. The strategy proposals Institution’s wide range of products. This to Spanish as well as local companies with regarding this customer segment and resulted in strong growth of 20% in the a presence in the country. It currently has the implementation of the necessary operating branches in Warsaw, Bucharest lending portfolio. adaptation of the relationship model and Casablanca (opened in 2009), and is and the product/service offering are the leading Spanish financial institution in In addition, within the framework of the performed by a specialised business these locations. specialised customer offering model, which has its own corporate structure. ”la Caixa” has two institutions branches To complement its direct presence, which, together with the wide reach of This model is intended to increase the ”la Caixa” has entered into commercial penetration in large companies with an the network, enable the Group to handle co-operation agreements with its strategic integrated proposal both for financing the business linked to the public sector partners. In Portugal, it has entered into requirements and the provision of and institutions with a differentiated an agreement with Banco BPI to offer services, underpinned by the Institution’s value proposal. a comprehensive service to businesses strong technological base and commercial that operate in a unified manner in the network, with the aim of being the first International business Iberian Peninsula. Under this agreement, choice for our customers with innovation, ”la Caixa” caters for its customers’ a specialised centre for businesses has efficiency and excellence of service. In international needs by offering a full range of been created both at ”la Caixa” and at 2009 progress was made with this model products and services based on the type Banco BPI and a range of products and

2009 ”la Caixa” Annual Report 55 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.2. Customer base: the core of the business (cont.) services has been tailored to this segment customers with commercial interests in agreed to allocate EUR 100 million to (“Iberian Solutions for Businesses”). In the Institution’s area of influence, and finance the economic development and addition, strategic agreements entered also help attract operations of foreign social integration of groups with limited into with investee financial institutions companies establishing or maintaining resources. This is the second time that the have increased in number and been commercial dealings with Spain. CEB has opened a credit facility of this kind, strengthened, such as the co-operation They offer the full range of products by lending funds for microloans outside agreement signed in 2007 with The for companies. ”la Caixa” has eight its target countries. It also represents an Bank of East Asia to enhance the range representative offices, located in France innovative alliance, being the second credit of products and services offered to (Paris), Germany (Stuttgart and Frankfurt), facility of its kind arranged in Spain. customers with interests in China and the United Kingdom (London), Italy Hong Kong, and a similar agreement with (Milan), China (Beijing and Shanghai) and Several transactions were arranged with Grupo Financiero Inbursa (GFI), Mexico’s Turkey (Istanbul). the European Investment Bank (EIB), sixth largest financial group, in which including notably the recent signing of Criteria CaixaCorp has a 20% holding. In addition, ”la Caixa” has 3,000 a loan to contribute, together with the Thanks to this agreement, we can offer correspondent banks throughout the Barcelona Provincial Council, to meeting our customers the ability to perform any world which enable customers to the European Union’s energy and climate financial transactions with one of the manage any foreign trade transaction change targets, by financing investment leading companies in that country. These anywhere in the world. It also provides an in energy saving in public buildings and agreements reflect the desire of international cash management service another loan to finance the construction ”la Caixa” to assist our customers in the through the Unicash Alliance, made up of and operation of the gas transport best way possible in their business dealings 27 top Banks which provide coverage in network. Lastly, corporate guarantees in areas with the greatest economic Europe and the United States. ”la Caixa” were signed to finance hospital building growth: Asia and Latin America. Lastly, a also has 75 bilateral cash management and refurbishment projects and energy similar agreement, entered into in 2009, agreements in force with the world’s efficiency improvements, and ”la Caixa” is being developed with Erste Group Bank leading banks. participated in issues launched by the EIB. for Central and Eastern Europe, where it is one of the leading banks with a customer Organisations and multilateral bodies Furthermore, ”la Caixa” entered into base of 17.5 million (see section 3.1. In 2009, agreements were strengthened foreign trade agreements with the Criteria CaixaCorp: Internationalising and with multilateral development EIB to increase the Forex transactions diversifying income). organisations and Spanish official bodies to between the two institutions, and the increase business and the customer base. CosmoCaixa centre in Barcelona was Meanwhile, the representative offices of host to the “EIB Forum 2009” entitled ”la Caixa” provide support to customers The Council of Europe Development “Connecting Europe: financing mobility who operate abroad and to potential Bank (CEB) and Microbank of ”la Caixa” and sustainable cities”.

General Managers of international Branches Mohammed Alí Morocco (Casablanca) Raúl Carmona Poland (Warsaw) Juan Luis Martín Rumania (Bucharest) Directors of Representative Offices Francisco Javier Serrado China (Beijing and Country Manager) Danni Cheng Zhou China (Shanghai) Claudina Farré Italy (Milan) Jordi Fuster France (Paris) Carlos Morales Turkey (Istanbul) Juan Francisco Riutort Germany (Frankfurt) Berta Rodó Germany (Stuttgart) Álvaro Valera United Kingdom (London)

2009 ”la Caixa” Annual Report 56 2009 Financial Report of the ”la Caixa” Group

2.3. Commercial network and human resources: cornerstones

”la Caixa” is the leading institution Outside Spain, it has three operating “THE NETWORK’S WIDE REACH IS by number of branches. branches (one in Warsaw, one in THE KEY TO OFFERING QUALITY Bucharest and another in Casablanca PERSONALISED SERVICE” The ”la Caixa” Group’s banking business which was opened in 2009) and eight strategy is based on an extensive representative offices (see section 2.2. NUMBER OF ”LA CAIXA” BRANCHES distribution system in the form of a wide- Customer base: the core of the business). reaching branch network, which is the 5,480 5,530 5,326 basic tool for forging relationships and 3,489 In 2009 a detailed analysis was 3,425 3,411 maintaining close ties with customers, performed of the universal banking reinforced by the development of additional communication channels (see network, which led to the integration section 2.4. Multi-channel management: of certain branches, in many cases 2,055 2,041 1,915 an ongoing relationship with customers). due to the close proximity between them. This process was performed 07 08 09 At the end of 2009, ”la Caixa” had while guaranteeing service levels and Catalonia Rest of Spain 5,326 branches, 5,315 of which were maintaining the close relationship and Balearic Islands located in Spain. ”la Caixa” is the leading between ”la Caixa” and the branches’ player in Catalonia and the Balearic customers, and as a result it enhanced Islands, its traditional area of activity, efficiency and enabled the commercial GEOGRAPHICAL DISTRIBUTION where it has 1,915 branches, and is OF BRANCHES network to adapt to the current business also one of the most well established 82 environment. With regard to specialised 50 185 institutions in other autonomous 201 56 branches, Business Banking and Private 30 communities such as Madrid, Andalusia 1,665 and Valencia. With its extensive network, Banking centres were opened in 2009, 276 93 as part of the specialised value-added 250 ”la Caixa” continues to be the Spanish 749 financial industry leader in terms of service model offered to these groups 130 494 number of branches, with a market share (see section 2.2. Customer base: the core 85 of 12.0%. of the business). 136 667

160 4 2

Total in Spain 5,315 Branches outside Spain 3 Representative offices 8 ”LA CAIXA” TOTAL 5,326

NETWORK DISTRIBUTION BY TYPE OF BRANCH

Universal banking branches 5,200 Specialised centres 115 Corporate and institutions banking 4 Business banking 80 Private banking 31 Branches in Spain 5,315 International branches 11 Total branches 5,326

2009 ”la Caixa” Annual Report Gràfic57 “calcat” Textos picats 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.3. Commercial network and human resources: cornerstones (cont.)

The ”la Caixa” Group’s workforce helping to consolidate a performance “QUALIFIED STAFF COMMITTED TO numbered 27,505 employees in appraisal culture and a professional PROVIDING GOOD SERVICE” 2009. development approach based on areas for improvement that have been identified. Yr-on-yr In 2009, 902 employees joined or returned The Virt@ula platform, a virtual employee EMPLOYEES 2009 2008 change to the Group and 1,215 employees left training area, has adopted the Web 2.0 ”la Caixa” 24,944 25,335 –391 permanently or temporarily, as a result standard, which opens up new interaction ”la Caixa” Group 27,505 27,818 –313 of the natural turnover of the workforce, opportunities among the participants including early retirement. in virtual learning, communication and

knowledge management activities. As part of the process to integrate certain “BEST COMPANY TO WORK FOR branches following efficiency criteria, an IN SPAIN” With respect to remunerationTextos picats outplacement procedure was defined (Source: MercoPersonas 2009) management, a remuneration master plan for the employees of the integrated was approved that sets the main guidelines branches. In order to take advantage of the and initiatives for this area. Noteworthy professional experience of the staff at these among these -already implemented in branches, temporary support teams were created to provide cover for commercial 2009- was the implementation of the and management functions. bonus schemes for each of the business segments. Also, in line with the Bank of With regard to the deployment of Spain recommendations based on the the business specialisation model that Financial Stability Board principles, the self- was launched in previous years, the appraisal of ”la Caixa” was completed, organisational solutions completing approved by the Remuneration Committee it were specified in 2009. The first and submitted to the Bank of Spain. initiative in this area took place in the first quarter and consisted of an internal In the area of personnel management and communication campaign to explain the administration, intense efforts were made model to the entire branch network. As from the standpoint of cost containment part of the personal banking management and tools were developed to assist centre system, 946 personal banking managers managers with staff management duties. were appointed and, as a result of the On-call teams were also strengthened, implementation of the SME banking thereby helping to manage workplace model, 852 employees assumed the absenteeism efficiently and cover the role of SME managers. Meanwhile, the vacancies generated by it. number of centres in the business banking network increased, thus opening up new Constructive dialogue was conducted professional development opportunities for on an ongoing basis with union more than a hundred employees. representatives through the normal operation of the employees’ committees With regard to talent management, the competence management system was and of various working committees, consolidated among the managers of the including the committee in charge of branch network in 2009. The system is monitoring the Work-Life Balance Protocol scheduled to be rolled out to the rest of the and the committee that led the signing of workforce in 2010. At management level, the Employment Protocol in the Branch much progress was made in the creation Integration process and, on the basis of an of a talent map of the organisation, with external analysis, work is already underway a detailed identification of development on various initiatives involved in the potential. These two programmes are forthcoming equality plan.

2009 ”la Caixa” Annual Report 58 2009 Financial Report of the ”la Caixa” Group

2.4. Multi-channel management: an ongoing relationship with customers

”la Caixa” multi-channel functionalities of the ATM itself and for “7,951 SELF-SERVICE TERMINALS, management: shall we t@lk? locating other branches and ATMs nearby OF WHICH 6,985 SELL TICKETS” in a highly visual manner using Google The strategy of ”la Caixa” is based on Maps. LÍNEA ABIERTA CUSTOMERS providing customer satisfaction and (Thousands) offering all the services, technological All the Institution’s ATMs are adapted advances and information that customers to Braille and are also equipped with 6,020 5,544 need to enable them to manage their voice-operated software for the visually 4,953 finances effectively. The multi-channel impaired. In this regard, the Institution management of ”la Caixa” takes has 3,235 ATMs with a voice-operated advantage of new technologies to bring system, conceived and designed for quality banking services closer to all users customers with this type of disability. They and make them more accessible through also have a system that enlarges the font 07 08 09 innovative services that are available size for people with sight difficulties (see anywhere, any time. section 2.6.2 Technological innovation as a priority for improving customer care and The leading network of service). self-service terminals “30.1% SHARE OF THE ONLINE Of the total number of ATMs, 6,985 BANKING MARKET” ”la Caixa” has 7,951 self-service Gràfic “calcat” terminals sell tickets, giving customers Source: Nielsen Net Ratings terminals, with functionalities available in Textos picats access to the widest range of 15 languages. This makes it the institution entertainment on offer in Spain, including with the most extensive network of self- cinema, theatre, music and sport. service terminals in the Spanish financial system, with a market share of 12.9%, www.laCaixa.es is the leader in and the second largest in Europe, thereby Internet banking reflecting its strong commitment to, and vocation for, customer service. More than The website of ”la Caixa” has confirmed 527 million transactions were carried out its leadership in online banking services on these ATMs in 2009. with a 30.1% market share of active The most widely requested transactions Internet users, as measured by Nielsen Net were cash withdrawals and savings Ratings. passbook updates, which accounted for 69% of the main ATM transactions. The According to the latest AQMatrix survey, second most common transaction, which ”la Caixa” was once again rated the accounted for 23% of the total, was leader in terms of quality in all internet paying in cash. Currently, 7,567 ATMs banking services (individual banking, (95% of the total network) are equipped personal banking, professional and for paying in cash. business banking, online brokers and foreign trade). The ”la Caixa” ATMs also provide various features to make them more accessible The ”la Caixa” website provides access to and user-friendly, such as the “CaixaFácil” Línea Abierta, an online management tool functionality, which has a simpler menu for financial products, which is available in and larger buttons, and “My Usual 19 languages and has over 850 different Transactions”, which has a screen menu functionalities. More than 6 million that the customer can personalise. customers have signed up for this service, Another tool to help the customer is the of whom 3 million performed almost search engine, which is used both for the 1,600 million transactions in 2009.

2009 ”la Caixa” Annual Report 59 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.4. Multi-channel management: an ongoing relationship with customers (cont.)

The website also provides corporate Various documents with web the agreement between ”la Caixa” and information on the Group. It acts as a functionalities were also added, including Banco BPI aimed at supporting business showcase for promoting new ”la Caixa” the Corporate Responsibility Report and customers that operate in Portugal, while products and as a tool for providing the Puntos Estrella catalogue, which also attracting Portuguese businesses information on finance. enable easy reading by imitating a real with a presence in Spain. Another page being turned and provide links to development was the new functionality It is also the access point for ”la Caixa” the corresponding product descriptions. added to Foreign Trade, which enables Welfare Projects, the investment holding customers to consult the status of company Criteria CaixaCorp and non- ”la Caixa” continued to work on adding documentation sent to their supplier, both financial services, such as leisure services a number of multimedia initiatives to its for payment by documentary credit and (ServiCaixa.com). website. These constitute a decisive move remittances. Another business solution towards web 2.0, the second generation was the creation of the new website, Developments in 2009 included the web based on specific user communities, CaixaConfirming.com, a particular launch of the new MicroBank website and a range of services that encourage feature of which is the possibility offered (www.microbanklacaixa.com), which customer participation and the quick, to supplier companies that are not reinforces the image of ”la Caixa” easy exchange of information, including customers of ”la Caixa” to access the as a social bank, and changes to the notably the new services in “beta” reverse factoring functionalities of Línea Servihabitat XXI website, which now has format, as described below in section 2.6 a more modern look and feel and a search Innovation in customer services. Also, Abierta. engine adapted to users’ different needs, ”la Caixa” is the first financial institution which can be used to locate properties to have a corporate channel on YouTube The widespread acceptance of the using Google Maps or for scheduling (http://es.youtube.com/lacaixa), which service is reflected in the increase visits. The online sale of non-financial has more than 300 videos of exclusive in the absorption rate of the main products includes the newly-created services that it wishes to promote, and has functionalities, notably the 95% multiEstrella area, which describes all the received over 275,000 visits. absorption rate in the case of the transfer advantages of becoming a member of this of invoice files, 71% in the case of programme, from financial advantages to Noteworthy among the services to payment files, 67% for bank transfers special offers on Puntos Estrella gift points businesses is the new “Iberian Solutions” and 72% for the purchase and sale of and on leisure. area, which was created as a result of securities.

2009 ”la Caixa” Annual Report 60 2009 Financial Report of the ”la Caixa” Group

Mobile phone services: SMS message to various recipients based “2009: 1.4 MILLION CUSTOMERS USE on the type of alert. In 2009 more than 35 CaixaMóvil MOBILE PHONE SERVICES” million messages were sent to ”la Caixa” CaixaMóvil encompasses all the products customers’ mobile phones. million advance ticket sales through and services that the Institution has been electronic channels and the number of offering by mobile phone for over eight According to Nielsen Mobile, ”la Caixa” Club ServiCaixa members reached 1.6 years. ”la Caixa” is the leading financial is the leader of the Spanish mobile phone million, thereby consolidating its position institution in mobile phone financial services market, with a 52% market as one of Spain’s leading cultural clubs. services both in terms of the range of share. The Institution believes that in the services available and the 1.4 million future the mobile phone will be one of In 2009 ServiCaixa.com launched its new customers who use these services. the most frequently used channels for website, with a more innovative design financial enquiries and transactions, not including 3D technology, more animated Línea Abierta Móvil, which underwent only because of its widespread use but areas and a purchasing process that makes improvements to its design and browsing also because the technology is constantly it easier to buy tickets. capabilities in 2009, enables a wide evolving, thereby increasing the range of range of transactions to be carried out functionalities, the graphic capabilities, Accessible multi-channel using mobile phones. Of particular note speed, usability and accessibility. management were the addition of the Global Position feature, the new design of the Bolsa Ticket sales: ServiCaixa.com The ”la Caixa” Group’s strong social Abierta securities area, which has a wide commitment and its vocation to serve and range of functionalities, and the new Through ServiCaixa.com, ”la Caixa” leads mobile-enabled website for businesses, the Spanish ticket sales market, both in “2009: 9.3 MILLION ADVANCE TICKET with specific functionalities for businesses. terms of volume and the range of tickets SALES” available. In 2009 ”la Caixa” made 9.3 The service also added functionalities for businesses, such as the possibility of multi-signatures for transactions and authorisations for sending files.

”la Caixa” was the first banking entity to have a store selling mobile phone services and applications, “CaixaMóvil Store”, which can be downloaded easily by customers. In 2009 over 300,000 mobile phone applications were downloaded.

With regard to ticket sales, a new application was developed for ServiCaixa that enables purchases to be made in a similar way to on the ”la Caixa” website, in a user-friendly manner and displaying the complete programme of events available.

Also, thanks to the Alertas CaixaMóvil service, customers can receive SMS or e-mail messages on their accounts, account movements, settlement of card balances or cash withdrawals using self- service terminals. The alerts service also has exclusive alerts for businesses, such as cash, card and file status reports sent by

2009 ”la Caixa” Annual Report 61 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.4. Multi-channel management: an ongoing relationship with customers (cont.)

work in the general interest is shown in culture, geographical location or skills of “QUALITY ONLINE BANKING its efforts to make access to its services its users. To this end, the WCAG 1.0, AA FOR EVERYONE” easier for all user groups, through an active level accessibility guidelines have already policy aimed at removing architectural, been applied to a number of channels on technological and communication barriers. the website.

”la Caixa” aims to provide quality banking Furthermore, ”la Caixa” also participates to everyone and, for this reason, since in the INREDIS project (INterfaces for 2006 it has been implementing A level RElations between environment and international web accessibility standards people with DISabilities). This is an (under the Web Accessibility Initiative or accessibility initiative led by Technosite, WAI) for Línea Abierta, its online banking the ONCE technological company. The service. aim of the project, from 2007 to 2010, is to develop basic technologies to ”la Caixa” is committed to ensuring create communication and interaction that its website and Línea Abierta channels between people with some service are accessible, regardless of the kind of disability and their environment, type of hardware, software or network thereby helping to make a substantial infrastructure used, or the language, improvement to their quality of life.

2009 ”la Caixa” Annual Report 62 2009 Financial Report of the ”la Caixa” Group

2.5. Payment methods: a distinctive offering

With 10.6 million cards in circulation, of of 2009, 97% of which are equipped for “THE ”LA CAIXA” GROUP IS THE LEADER which 10.3 million were issued by transactions with smart cards. IN TERMS OF BANK CARD TURNOVER, ”la Caixa” and 0.3 million by Finconsum, WITH A MARKET SHARE OF 17.7%” the ”la Caixa” Group is the top card issuer Mention should also be made of the in the Spanish market. In 2009 the Group growth in business cards (490,000), as ”LA CAIXA” GROUP CARDS maintained the number of cards issued, a result of which ”la Caixa” became the (Millions) although the total number of cards in leading issuing entity in Spain, with the 546 556 560 Spain fell 3% with respect to 2008. In largest turnover for this type of card. The 2009 a total of 560 million transactions wide range of business cards available, 10.6 9.8 10.3 were carried out with the ”la Caixa” using all payment methods, and the cards Group’s cards, with turnover of retail that can be used for specific purposes sales and cash withdrawals from ATMs (restaurants, fuel, payments into ATMs, totalling EUR 33,657 million, of which EUR gifts), meet all the payment needs of 33,410 million related to ”la Caixa”, which companies. 07 08 09 represents a decline of 2.5% on 2008, as Cards issued Transactions compared with the drop of 4.1% in Spain’s 2009 saw an increase in the use of prepaid financial institutions taken as a whole. cards, especially in public institutions, to Adding the business volume generated channel economic assistance aimed at ”LA CAIXA” TURNOVER through cards from other issuers used social programmes, such as grants, food (Millions of euros) in retail stores and ATMs, the ”la Caixa” subsidies and social assistance subsidies, 32,957 34,260 33,410 Group manages EUR 1,570 every second. and in private companies, for which prepaid 16,036 16,476 16,226 cards are an especially useful instrument for ”la Caixa” is the top-ranking financial rewarding and encouraging customers and institution in terms of bank card turnover, 16,921 17,784 17,184 employees, e.g. in the form of gift cards. with a market share of 17.7%, or 17.9% including the Group. The market share of Also, 30 new “Tarjeta Comercio” shopper ”la Caixa” in terms of bank card turnover 07 08 09 advantage card projects tied to local through its customer retail stores stood at retailers’ associations were implemented Turnover Turnover 20.9%, 1.2 points up on 2008, which also at retail stores at self-service in 2009. ”la Caixa” now has 55 projects of makes it the leader in this area. Accordingly, terminals this kind up and running in various Spanish ”la Caixa” customers have access to cities, with over 100,000 cards issued and the widest range of payment methods available in Spain, including all the card 4,500 participating businesses. POINT OF SALE (POS) TERMINALS (Units) types and international brands. Also, in In services for retail outlets, at the Market share in terms of turnover at retail 2009 an agreement was entered into with stores in 2009: the Chinese card brand China Unionpay beginning of 2009 the innovative 20.9% 171,631 167,993 whereby its cards are accepted in CaixaRápida service was introduced, which 127,449 ”la Caixa” ATMs, making ”la Caixa” is aimed at stores dealing mainly with the first Spanish entity to enter into transactions involving small amounts and an agreement of this type with China where few card payments are made. This Unionpay, which has more than 1,800 system speeds up the payment process by removing the requirement for the million cards issued. 07 08 09 customer’s signature and filing of the copy Of the 10.6 million cards in circulation at of the receipt for this type of transaction. the end of 2009, 41.9% are credit cards Additionally, the installation of new GPRS (5.3% of which are revolving credit cards), dataphones with touch screens allows 48.8% are debit cards and the remaining the customer to sign directly on the POS 9.3% are private and purse cards. The terminal screen, in the case of transactions number of point of sale (POS) terminals, involving larger amounts, eliminating the in which ”la Caixa” is also the market need for printing and filing a paper record leader, had reached 167,993 at the end of the receipt.

2009 ”la Caixa” Annual Report 63 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.6. innovation in customer services 2.6.1. Branches and services designed for personalised attention

In 2009 the work carried out to aimed at providing better customer “THREE COMPONENTS: INDIVIDUALISED modernise the facilities focused mainly on service. In this regard, the features offered SPACES, QUICK CASH AREA the adaptation of 330 branches, based by the new financial terminal were AND SELF-SERVICE AREA” on the space layout concepts and criteria increased and now include securities, applied at the “new model” branches cards, loans, incident management, etc. introduced in 2006, which represented and the new Google search engine. “SPACES DESIGNED TO FACILITATE a genuine revolution in bank branch As a result, 46.7% of the transactions FACE-TO-FACE MEETINGS” design, affording comfort and privacy carried out by the branches are managed for business meetings with customers. using these new financial terminal As with the new design branches, these functionalities. Also, suggestions most adapted branches give priority to areas for frequently made by the branches were individualised attention, thereby fostering added such as “My Favourites”, a a personalised business relationship which list of transactions with balances, the enables advisory services to be tailored incorporation of the Sales Advisor service for each customer. The result of this and the resolution of incidents concerning adaptation process has been welcomed cheques. and highly appraised by customers. In addition, various activities were The use of glass as the main material for undertaken to improve the branch separating areas provides pleasant bright network communication model. Of surroundings, making our customers feel particular note was the new Home comfortable. The transactions and quick Page containing current events with a cash area is also sufficiently set apart and digital newspaper format and a more identifiable to make it easier to use. attractive intuitive design which, in addition to providing information, also In addition, in 2009, all the branches aids commercial activity by highlighting that were opened, relocated or fully issues that are relevant and require priority refurbished were adapted to the attention in commercial and business “new model”, which has now been activities. implemented at over 800 branches, where customers can enjoy all the advantages it In the same area of improvements brings. Also in 2009 business and private to support technology for branches, banking branches were opened which, Webcollaboration and Call Log as in previous years, have a similar design services were implemented in 2009. to the universal banking branches in Webcollaboration enables a call centre terms of materials used and comfort for operator to visualise the screen at which customers, but are also specially adapted the branch employee is looking, with to the particular characteristics of these the employee’s consent, thereby helping customer groups. to resolve complex enquiries, while increasing the security of access to the To complement the innovations in space ”la Caixa” financial platform. The Call Log layout and the use of latest generation service implemented in branch employees’ technologies, in 2009 particular emphasis telephones enables lost, answered was placed on energy efficiency at and completed calls to be consulted, branches so that, without affecting in a similar manner to mobile phone comfort, progress could be made calls, thereby enabling the numbers of in implementing the environmental managed calls to be consulted easily sustainability policy. and quickly. In the area of customer care, the private banking platform was A series of projects were consolidated in consolidated, particularly with respect to 2009 with respect to new technologies the inclusion of economic and commercial

2009 ”la Caixa” Annual Report 64 2009 Financial Report of the ”la Caixa” Group

follow-up information and backtesting of thereby making it possible to cater for the customers’ portfolios using information particular needs of the business in each on portfolio risk and returns analyses. The country. In this way, ”la Caixa” will have “MIFID Compliance” platform was also the same financial terminal and Línea built, consisting of a commercial proposal Abierta channel in all the countries where entailing the validation of volatility, it operates. liquidity and suitability with respect to the test signed by the customer. In the field of communications infrastructure, work continued on the plan With regard to international expansion, to replace the lines used for inter-branch with the opening of the new operating branch in Casablanca (Morocco), the new communications and communications banking IT platform for the international with head office, with high-speed fibre expansion of ”la Caixa” was brought optic lines, resulting in faster response into operation, which is remarkable for times for branch employees and its flexibility. The platform includes a hub customers alike, both with respect to for all the countries and specific parties, ATMs and attention for employees.

2009 ”la Caixa” Annual Report 65 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.6.2. Technological innovation as a priority for improving customer care and service

Línea Abierta acts as a showcase for mobile telephone “ecoCaixa” initiative also provides applications, and the new channel of the customers with various ways of carrying out Innovation is a constant objective for Institution’s website which displays the their activities in order to optimise resources ”la Caixa”. Customers can acccess new various mobile applications of ”la Caixa”. and protect the environment, through products through the Línea Abierta The Institution also launched the new ”la Caixa” Welfare Projects. channel, such as “Mis Finanzas”, which ”la Caixa” blog, the first corporate blog by enables customers to manage their a Spanish financial institution, in order to ATMs household finances using Línea Abierta and disseminate contents of general interest. now incorporates improvements based on By simply inserting their cards or comments made by customers who tested In the area of environmental responsibility, passbooks into ”la Caixa” ATMs, the service. It provides customers with up- as part of its “ecoCaixa” initiative, Línea visually impaired people can access a to-date information on all their account Abierta offers customers the full extent of specific screen showing white large-font and card transactions and personalised its range of technology, enabling them to letters on a black background, making categories into which they can be classified. consult any correspondence online without information easier to read. It also includes an income and expenses needing to receive anything on paper, budget which provides added value using the “Servicio de Correspondencia In addition, 3,200 ATMs now have for managing customers’ finances, all Personalizada” personalised assistance videos in sign language contained in an easy-to-use graphic visual correspondence service, which already has (Spanish and Catalan) that explain the environment. almost 2.5 million users. As a result of its most frequently used transactions: “cash launch, over 250 million communications withdrawals” and “checking account As part of its working methods, ”la Caixa” are no longer sent on paper. The balances and transactions”. incorporates systems that enable users to participate in the creation and improvement of Línea Abierta services. Users are invited to try new functionalities in “beta” format and give their opinions, and customers are provided with the “Ongoing Evaluation” feature whereby customers can evaluate and give their opinions on various Línea Abierta operations already up and running. The changes introduced based on the suggestions for improvement sent by customers mean that users are able to play an active role in improving the services.

The customer can also choose the colour and image for the Línea Abierta menu tabs from more than 32 different designs. This original functionality has resulted in over 170,000 customers personalising the service.

Various catalogues with web functionalities have been included in the ”la Caixa” internet website, www.lacaixa.es, which simulate the turning of a real page, and links to the related product descriptions have been added. Examples include the “Puntos Estrella” customer loyalty points catalogue or the Corporate Responsibility Report. At the end of 2009, the “CaixaMóvil Store” was created, which

2009 ”la Caixa” Annual Report 66 2009 Financial Report of the ”la Caixa” Group

Mobile phones full protection, thereby giving them peace Retail outlets of mind and confidence. The CaixaProtect ”la Caixa” has been a pioneer among service also activates a system of mobile All the services and products to cover banks in launching a store for mobile phone alerts when transactions involving the needs of retail outlets are grouped phone services and applications called large amounts are carried out, whether together under one label, “Comerci@”. “CaixaMóvil Store”, where customers purchases, cash withdrawals, or card The latest services are Premi@, can download them easily. The transactions and transfers using Línea Caixarápida, Multidivisa, Servicuentas, ”la Caixa” applications are available from Abierta or ATMs. In 2009 over 7 million Propinas, Crossborder, Taxfree, etc. the applications stores of the leading alerts were sent. manufacturers and operators. In 2009 a new free service was introduced for Cards retail outlets called “Taxfree” that refunds VAT An application has been created for to customers resident outside the European iPhone, Blackberry and Android , with Union who have made purchases using a A new card, Tarjeta Money, has been a branch locator that finds the nearest ”la Caixa” point of sale terminal in Spain. created mainly for customers who wish branches using the device’s GPS and to control their expenses as much as displays them using Google Maps; in As part of the search for new services possible. This is a free, prepaid card the case of Android, and for iPhone, an to facilitate card payment in all types of that may be topped up for use in retail augmented functionality has been added retail outlets, an innovative and unique which, in this case, shows information outlets and ATMs. A notable feature is application has been developed, which (address, telephone number, ATMs, etc.) the fact that this is the first card that can is specially designed to convert mobile on branches using the device’s camera. be topped up by mobile phone. When phones into portable point of sale a purchase or cash withdrawal is made, terminals for payment using cards for To improve users’ experience of distance a text alert is sent to the mobile phone home delivery services, for example, banking by mobile phone, the Línea number provided by the customer. which are traditionally paid for in cash. Abierta Móvil service has been redesigned to enhance not only visual display but also screen browsing. The “Mis Finanzas” service has also been included and adapted to mobile phone use, so that customers can manage their incomings and outgoings with no restrictions on their mobility. The latest development is the introduction of the “Transfi” service whereby transfers can be made between mobile phones. Also, the Puntos Estrella loyalty points catalogue can also be accessed by mobile phone and points exchanged for gifts.

CaixaProtect

To consolidate its leadership in the area of electronic channels, ”la Caixa” has continued to give priority to ongoing innovation by offering CaixaProtect, a service that automatically provides total security in the event of irregular transactions using cards, the Línea Abierta service or ATMs and guarantees customers

2009 ”la Caixa” Annual Report 67 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.7. Quality and customer service: the groundwork for the future

Service excellence accessible from the branches. “QUALITY WORKS TO SECURE FUTURE All the complaints received through any GROWTH AND PROFITS” Service excellence has always formed part of the above channels were handled by of the identity of ”la Caixa”. This quality the persons in charge in the territorial 2009 FINANCIAL BEHAVIOUR STUDY network, at head office or at the mission is borne out in its constant efforts Perceived quality scores to offer customers top-quality care, a fast Group’s subsidiaries. In 2009, 31,668 (Scale of 0 to 10) and effective service and personalised complaints were received. A total of attention. Independent market surveys 2,229 complaints were processed by the frequently confirm ”la Caixa” as one customer care/customer ombudsman 8.16 of the institutions with the highest service in 2009, of which 458 were Branch service quality of service. According to FRS resolved in favour of the claimant, 660 8.10 Inmark’s financial behaviour study, in favour of the Institution, 445 were ”la Caixa” is the institution with the classified as inadmissible, 24 claims were 8.43 highest recommendation rate, which dropped by customers and 642 have not ATMs indicates how strongly quality is yet been resolved. 8.32 associated with the Institution. Also, with regard to the multi-channel service, ”la Caixa” regards each complaint as 8.61 according to the data provided by an opportunity to improve internal Internet banking AQMetrix, the Línea Abierta service of procedures and the services it provides. 8.52 ”la Caixa” is the leader in terms of quality Thanks to the thorough way in which in all the categories measured. it handles claims, ”la Caixa” is regularly ”la Caixa” Market average one of the institutions with the fewest Customer satisfaction surveys number of complaints in relation to the Source: FRS Inmark size of its business, as highlighted by the In 2009 ”la Caixa” continued to monitor Bank of Spain’s Complaints Service. on an ongoing basis its customers’ assessment of the service they receive. Branch satisfaction with internal This programme of surveys is used to services obtain a service quality indicator for individual customers and businesses. To maintain and improve the high 223,457 surveys were carried out in 2009 standard of service that ”la Caixa” offers and were used to obtain a satisfaction its customers, it is first necessary to indicator for each ”la Caixa” branch. ensure that employees are fully satisfied This ongoing monitoring of customers’ with the service they receive from their opinions forms the basis for the internal suppliers. To this end, periodic continuous improvement plans. surveys of branches provide information about the employees’ level of satisfaction Customer service office with the internal services they receive. Quality levels are also monitored on the ”la Caixa” provides its customers with basis of objective data, using indicators multiple forms of communication: letters obtained by measuring various activity to the President and Chief Executive parameters e.g. the time taken to resolve Officer, the free customer care telephone breakdowns and downtime for certain service and the website, all of which are services.

2009 ”la Caixa” Annual Report 68 2009 Financial Report of the ”la Caixa” Group

2.8. Supporting the business: ”la Caixa” subsidiaries

The ”la Caixa” Group Serviticket, the leading company in the SUPPORT COMPANIES Spanish ticketing market, is the ”la Caixa” encompasses a number of 100% BUSINESS ACTIVITY E-LA CAIXA Multi-channel subsidiaries whose basic objective Group company in charge of managing management is to provide support services to the advance ticket sale service through 100% SERVITICKET Ticket sales the Group. the various existing channels (self-service 100% SERVICIOS INFORMÁTICOS terminals, internet, mobile phone, etc.), Technology ”LA CAIXA” support e-la Caixa and offers an extensive, permanent 100% entertainment programme. Serviticket MICROBANK Micro-loans e-la Caixa is responsible for carrying out 100% Default risk offers the widest range of entertainment GDS-CUSA management the multi-channel management strategy options including cinema, theatre, 100% CAIXAVIDA Life insurance developed by ”la Caixa” (see section 2.4 music, sports, theme parks and historical Multi-channel management). 100% Property monuments. SERVIHABITAT XXI management and sales e-la Caixa is in charge of co-ordinating, 100% Construction Servicios informáticos ”la Caixa” SUMASA projects and managing and developing the electronic 100% maintenance channels made available by ”la Caixa” PROMOCAIXA Marketing Servicios informáticos ”la Caixa” is 100% to its customers, which include both TRADECAIXA Administrative the company in charge of managing and services financial and non-financial services. The Development providing technology support to 100% FOMENT IMMOBILIARI of government- main tasks assigned to e-la Caixa include ”la Caixa” and its Group, by channelling ASSEQUIBLE subsidised both researching and implementing housing the implementation of the projects new functionalities and solutions and ARRENDAMENT Rental of making up the ”la Caixa” Strategic Plan in 100% government- commercial management of all distance IMMOBILIARI subsidised the field of IT. It is also the company that ASSEQUIBLE housing channels. These activities are carried manages the technology resources in the out in co-ordination with the branch ARRENDAMENT areas of internet, self-service, telephony 100% network to ensure full integration of all IMMOBILIARI Housing rental the channels used in its dealings with (land and mobile) and digital television, ASSEQUIBLE II customers, in line with the multi-channel monitoring the security and integrity of strategy adopted by the Institution. the systems, in order to offer customers a service of maximum quality. Through a hot-line service, e-la Caixa provides customers with all the assistance MicroBank they may need to make proper use of the various channels: telephone, e-mail or MicroBank, the social bank of ”la Caixa”, online tools. It also offers its services to is a new concept of financial institution other Group companies. specialised in providing financing through micro-loans to people at risk of social e-la Caixa also manages investments in and financial exclusion and other groups electronic channel projects which provide with limited resources, with the basic aim the traditional banking business with of fostering productive activity, personal added value and differentiated services. development and job creation.

2009 ”la Caixa” Annual Report 69 2009 Financial Report of the ”la Caixa” Group 2. Great commercial capacity: the strength of the banking business

2.8. Supporting the business: ”la Caixa” subsidiaries (cont.)

GDS-Cusa Sumasa

GDS-Cusa provides services related to Sumasa manages new office the management of default risk and the construction projects, refurbishment centralised handling of certain operating works and the maintenance of existing tasks of the ”la Caixa” branches. buildings, and is also in charge of procurements and utilities management CaixaVida for ”la Caixa” and the ”la Caixa” Group.

Caixa de Barcelona Seguros de Vida, PromoCaixa S.a. de Seguros y Reaseguros is one of the Group companies engaged in life PromoCaixa is the company in charge of insurance, to which ”la Caixa” transferred managing loyalty building programmes the insurance business in 1994 as credit and promotions and performing other institutions were no longer allowed to marketing activities for ”la Caixa” and recognise insurance operations in their other Group companies. financial statements. Since then, the company’s activity has been limited TradeCaixa to maintaining the existing operations until expiry. Since the establishment TradeCaixa provides administrative and of SegurCaixa Holding in 1992, the accountancy services for some support execution of new insurance contracts has companies in the ”la Caixa” Group. been channelled through its subsidiaries (see section 3.1. Criteria CaixaCorp: Foment immobiliari assequible, Internationalising and diversifying arrendament immobiliari income). assequible and arrendament Servihabitat xxi immobiliari assequible ii

Servihabitat xxi is the property services Foment immobiliari assequible, company of the ”la Caixa” Group. It arrendament immobiliari assequible engages in property investment and and arrendament immobiliari the provision of property services to the assequible ii are the companies through Group and to third parties. It develops, which the ”la Caixa” Welfare Projects’ manages, administers and sells properties Affordable Housing programme is carried relating to the Group’s business activity, out for the promotion and operation as well as properties of third parties and of quality housing rental at affordable Group-owned properties. prices.

2009 ”la Caixa” Annual Report 70 2009 Financial Report of the ”la Caixa” Group

3. investee portfolio 3.1. Criteria CaixaCorp: internationalising and diversifying income

3.1.1. Criteria CaixaCorp: A subsidiary which encompasses the largest portion of the ”la Caixa” Group’s investee portfolio

Criteria CaixaCorp is the company in charge Criteria CaixaCorp contributes long-term “TO BE A BENCHMARK FOR INVESTORS of implementing the ”la Caixa” Group’s value for its shareholders by actively IN FIRST-CLASS COMPANIES, PRIORITISING investment strategy and international managing its portfolio using a controlled OUR PRESENCE IN INDUSTRIES WHERE expansion. The ”la Caixa” Group’s interest risk approach, while fostering the growth, WE HAVE EXPERIENCE” in the capital of Criteria CaixaCorp, at 31 development and profit-making capacity of December 2009, was 79.45%. ”la Caixa” the companies involved in defining Criteria has stated its intention to hold a controlling CaixaCorp’s future policies and strategies. interest at all times. Criteria CaixaCorp has two lines of business: 79.45% The main strategic goals of Criteria CRITERIA CAIXACORP CaixaCorp are as follows: • Utilities, which comprises the stakes UTILITIES in listed companies operating in utility – Increase its exposure to the financial industries, and in unlisted companies at LISTED business: an advanced stage of the business cycle. UNLISTED FINANCE • Stakes in banks in Asia, Central Europe • Finance and insurance, which groups and America. together the interests in international INTERNATIONAL BANKS banks and insurance companies, and INSURANCE COMPANIES • Consolidation of the Spanish insurance in unlisted finance companies. SPECIALISED FINANCIAL SERVICES business.

– Active management of the investments.

• Presence in the investees’ governing bodies.

• Influencing the decision-making process and fostering the investees’ development and profit-making capacity.

• Value management, investing and divesting based on market opportunities.

In 2009 the strategy aimed at rebalancing the investee portfolio continued, giving priority to financial assets, without excluding investments of special interest in the utilities industry (see section 3.3. Active management of the ”la Caixa” Group’s investee portfolio).

2009 ”la Caixa” Annual Report 71 2009 Financial Report of the ”la Caixa” Group 3. Investee portfolio

3.1.2. Utilities business

Listed companies: Leading basin and one of the main combined LISTED COMPANIES companies in the energy, cycle operators around the world. The infrastructure and utilities new company has more than 20 million ENERGY industries customers (9 million in Spain) and 18 GW 36.4% GAS NATURAL of installed electrical power worldwide. 12.7% This group is made up of leading Gas Natural’s total assets exceed EUR REPSOL YPF companies with capacity for growth and 45,300 million. value generation, centred basically in INFRASTRUCTURE 25.0% Spain but with a high level of international Repsol YPF is an international integrated ABERTIS presence, in the energy, infrastructure and oil and gas company, with activities in more utilities industries, where the ”la Caixa” than 30 countries, and a leader in Spain UTILITIES / OTHER Group has accumulated knowledge and 44.1% and Argentina. It is one of the ten largest AGBAR experience. A profitable portfolio has been private oil companies in the world and 5.2% built up with the capacity to generate TELEFÓNICA the largest private company in the energy attractive dividends, with excellent 5.0% industry in Latin America in terms of asset BME performance and a controlled level of risk. volume. Repsol YPF’s total assets exceed Criteria CaixaCorp’s direct and The goal is to create a value differential EUR 58,000 million. indirect ownership interest in these companies by taking up core positions in the shareholder structure that Abertis is one of the leading European provide an active presence in the managing infrastructure development and bodies and enable participation in key decision-making and in the development management corporations, with more of business strategy. than 3,700 km of tolls managed and total assets exceeding EUR 24,000 million. Following completion of the merger with In the last four years it has increased its Unión Fenosa on 7 September 2009, geographical and business diversification Gas Natural has become one of the top with investments of over EUR 5,800 million ten energy companies in Europe and the in motorways, telecommunications, leading integrated gas and electricity airports, car parks and logistics centres. At company in Spain. It is the world’s leading present approximately 50% of its income is liquid natural gas operator in the Atlantic generated outside Spain.

2009 ”la Caixa” Annual Report 72 2009 Financial Report of the ”la Caixa” Group

Aguas de Barcelona (AGBAR) in the main countries (Brazil, Argentina, is a multi-concession operator providing Chile and Peru), while also carrying out services to the community. significant operations in other countries such as Mexico, Colombia, Venezuela and With total assets of over EUR 6,500 Central America. million, Agbar is the leading private urban water management company in Spain, BME integrates all the registration, supplying water to nearly 13 million clearing and settlement systems for people and providing sewerage services Spanish secondary markets. In 2009 over to more than 8.3 million. Internationally, 118,000 million securities were traded on the Agbar Group supplies drinking water the stock exchanges, with a trading total and sewerage to over 10 million people in cash of almost EUR 900,000 million. in Chile, the United Kingdom, China, Colombia, Algeria, Cuba and Mexico. Unlisted companies

As part of the transaction to acquire Port Aventura. The park had over Adeslas, Criteria CaixaCorp agreed 3.3 million visitors this season and is to reduce its ownership interest in continuing with its aim of extending its Agbar in 2010 (see section 3.3. Active offering and consolidating its position management of the ”la Caixa” Group’s UNLISTED COMPANIES as a differentiated product both in Spain investee portfolio). and abroad. Accordingly, it opened a 50% PORT AVENTURA ENTERTAINMENT new theme hotel, the Hotel Gold River, in Telefónica is one of the world’s July, and a Convention Centre in October 100% MEDITERRANEA BEACH & GOLF RESORT leading integrated telecommunications with capacity for 4,000 people. As a result operators, with a presence in Europe Criteria CaixaCorp’s ownership interest of a corporate reorganisation to enable and Latin America and a benchmark in the Spanish- and Portuguese-speaking the entry of a new shareholder, Port markets, with total assets of more than Aventura spun off into two independent EUR 108,000 million. With over 265 companies: million access connections, Telefónica has a high international profile and generates Port Aventura Entertainment (50%) more than 60% of its business abroad: includes the Port Aventura theme park, (i) in Spain, with nearly 47 million access the Caribe Aquatic Park, as well as connections, it is the leader in all the operation of the four hotels, two of which business segments, (ii) in Europe (the are owned, and the Convention Centre. United Kingdom, Germany, Ireland, the Mediterranea Beach & Golf Resort Czech Republic and Slovakia) it has more (100%) is the company that owns two of than 49 million access connections, and the four hotels, the convention centre and (iii) in Latin America, with nearly 169 the land for residential and commercial million access connections, it is the leader use, the golf business and the Beach Club.

2009 ”la Caixa” Annual Report 73 2009 Financial Report of the ”la Caixa” Group 3. Investee portfolio

3.1.3. Financial business

International banking and Eastern Europe with total assets over INTERNATIONAL RETAIL BANKING EUR 200,000 million. Outside Austria, 20.0% In the area of investments in the financial Erste Group Bank controls banks in seven GRUPO FINANCIERO INBURSA industry, the Board of Directors of countries (the Czech Republic, Romania. 10.1% ERSTE GROUP BANK ”la Caixa” resolved that Criteria Slovakia, Hungary, Croatia, Serbia and the (*) CaixaCorp should lead the international Ukraine) and is the market leader in the 14.99% THE BANK OF EAST ASIA expansion through acquisitions of Czech Republic, Romania and Slovakia. It 30.1% BANCO BPI financial institutions. This line of business serves 17.5 million customers and operates 20.9% consists of interests in the banking over 3,200 branches. BOURSORAMA industry, mainly abroad, in countries Criteria CaixaCorp’s ownership interest where it can provide added value and take In 2009 Strategic Investment and (*) Including the 5.18% increase in the ownership interest formalised in January 2010 advantage of growth potential. Cooperation Agreements were signed with the Bank and the main shareholder, Grupo Financiero Inbursa, with total together with an Agreement between assets of over EUR 15,000 million, close to Foundations. 190 branches, more than 5,900 employee and 14,000 financial advisors, is Mexico’s The Bank of East Asia (BEA), founded sixth largest financial group by total assets in 1918, with assets of over EUR 38,500 and one of the largest in terms of stock million, more than 250 branches and market capitalisation in Latin America. over 10,500 employees, is Hong Kong’s leading independent private bank and Founded in Mexico in 1965, GFI offers one of the best positioned foreign banks commercial banking services, a field in in China, where, through its subsidiary which it is a benchmark, as well as retail BEA China, it has a network of more than banking, asset management and life and 70 branches which is being expanded to non-life insurance and pension products, reach 100 branches in the short term. together with stock market brokerage and custody services. It is currently the leading BEA offers commercial, personal, business financial group in Mexico in terms of asset and investment banking services to its management and custody services, as well customers in Hong Kong and China. as the top insurance company in damages It also serves the Chinese community insurance, and is well positioned in other abroad by operating in other countries in insurance segments. South-East Asia, as well as in the United States, Canada and the United Kingdom. Erste Group Bank was founded in 1819 and was Austria’s first savings bank. The In 2009 Strategic Investment and bank was floated on the stock exchange in Cooperation Agreements were signed 1997 to expand its retail banking business with the Bank, together with an to Central and Eastern Europe. It is currently Agreement between Foundations. In Austria’s second largest banking group January 2010, the ownership interest was and one of the leading groups in Central increased from 9.81% to 14.99% through

2009 ”la Caixa” Annual Report 74 2009 Financial Report of the ”la Caixa” Group

subscription through a capital increase million, is one of the leading on-line (see section 3.3. Active management of the brokers and savings product retailers in ”la Caixa” Group’s investee portfolio). Europe and forms part of the Société Générale Group. Banco BPI is a universal, multi-specialised financial group, focused on the area of Boursorama operates in four countries commercial banking targeted at business, and in France it is the market leader in institutional and individual customers, and on-line financial information and is also a is the third-largest private financial group in key player in internet banking. It is one of Portugal by business volume. Its total assets the three top on-line brokers in the United exceed EUR 47,000 million and it has a Kingdom and Spain. Boursorama also commercial network of over 800 branches operates in Germany under the OnVista in Portugal and over 100 in Angola. Bank brand.

In 2009 ”la Caixa” and Banco BPI signed In 2008 Boursorama and ”la Caixa” a Strategic Cooperation Agreement to signed a shareholders’ agreement as serve companies operating in Spain and part of a joint venture to launch an on- Portugal called “Iberian Solutions for line bank in Spain. In the third quarter Companies”. of 2009, the commercial launch of new products took place at SelfTrade Bank, Boursorama, founded in 1995, with in which ”la Caixa” holds an ownerhip total assets of approximately EUR 3,000 interest of 49%.

2009 ”la Caixa” Annual Report 75 2009 Financial Report of the ”la Caixa” Group 3. Investee portfolio

3.1.3. Financial business (cont.)

Insurers and specialised The organic growth of the business has “LEADING POSITION IN INDIVIDUAL financial services: complementing reinforced VidaCaixa’s position as the top AND GROUP LIFE INSURANCE, WITH ”la Caixa” products and services life insurance company, with technical INCREASED PRESENCE IN NON-LIFE provisions exceeding EUR 17,200 million. INSURANCE” In order to meet at all times the entire In addition, VidaCaixa consolidated its range of financial and service needs of leadership of the supplementary benefits INSURERS households and businesses, particularly segment with assets under management 100% SMEs, as well as institutions, the Group (technical provisions and pension plans) complements the banking products SEGURCAIXA HOLDING exceeding EUR 30,800 million. and services offered by ”la Caixa” BUSINESS 100% with specialised products through VIDACAIXA Life SegurCaixa is the holding company that credit institutions, full-service leasing 100% focuses on non-life insurance, and has a SEGURCAIXA Non-life companies, insurance companies and 100% strong position in the home insurance AGENCAIXA Insurance managers of collective investment and agency securitisation undertakings. business. 67% GDS-CORREDURÍA Insurance DE SEGUROS brokerage In 2009 SegurCaixa consolidated the Insurers Criteria CaixaCorp’s ownership percentage vehicle insurance business started in 2007 An insurance group serving over 3.4 and launched two new products for SMEs million individual customers with and self-employed professionals assets under management worth (“SegurCaixa Negocio” and “SegurCaixa more than EUR 31,000 million Auto Negocio”), thereby extending the The insurance group carries on its Group’s product offering for this market business through the subsidiaries held by segment. Following the execution of the the holding company SegurCaixa agreement to purchase Adeslas in 2010 Holding. The insurance group offers (see section 3.3 Active management of customers a wide range of tailor-made the ”la Caixa” Group’s investee portfolio), life and non-life insurance products. More the Group will hold a leading position in than 3.4 million customers and 45,000 several lines of the Spanish insurance companies and employee groups have business, a segment in which the Group taken out pension plans and insurance foresees major growth in the years to (retirement schemes, life-long pensions and other products). come. Also, taking advantage of the synergies between the two groups will VidaCaixa engages primarily in life benefit both existing and future insurance. It also administers assets worth customers, since SegurCaixa Holding, a more than EUR 13,500 million in pension leading life and pension plan insurer, will plans, placing it second in the industry be joined by Adeslas, a leading health ranking. insurer.

2009 ”la Caixa” Annual Report 76 2009 Financial Report of the ”la Caixa” Group

Specialised financial services has enhanced its presence in the SME SPECIALISED FINANCIAL SERVICES segment, through distribution on the Complementary range of fund ”la Caixa” network. In 2009 CaixaRenting BUSINESS 100% Fund and portfolio management services entered into new vehicle, capital goods INVERCAIXA GESTIÓN management InverCaixa Gestión is the management and property leases amounting to EUR 100% Full-service CAIXARENTING company of the ”la Caixa” Group’s 362 million. It managed a total of 34,894 leasing 100% Consumer collective investment undertakings and cars: 31,965 under full-service leases FINCONSUM financing manages a diverse range of products: and 2,929 under fleet management 100% GESTICAIXA Asset investment funds, OEICs and portfolios. arrangements. securitisation InverCaixa Gestión also advises ”la Caixa” Criteria CaixaCorp’s ownership percentage in connection with marketing investment Finconsum offers consumer financing funds managed by third-party managers. products mainly through the POS channel (retailers of goods and services and car INVESTMENT FUND ASSETS MANAGED BY THE ”LA CAIXA” GROUP In 2009 the funds managed by InverCaixa dealers). In 2009 it brought in EUR 574 (Millions of euros) Gestión stood at EUR 15,457 million and million in new business. 15,457 its share of the investment fund market 13,518 12,943 rose from 6.9% (December 2008) to GestiCaixa continued to operate on the 8.5%, placing it third in the ranking for financial markets as an asset securitisation fund managers. manager. In 2009 GestiCaixa structured and set up five new asset funds, with Specialised financing products issues totalling EUR 8,925 million. At CaixaRenting specialises in full-service December 2009 GestiCaixa managed 07 08 09 lease (“renting”) transactions, both for 35 securitisation funds with a volume Fixed income, money Mixed fixed vehicles and capital goods and property. of outstanding bonds totalling market and other income The sales policy carried out in recent years approximately EUR 20,000 million. Equity Guaranteed funds

LOANS AND RECEIVABLES: FULL-SERVICE Gràfic “calcat” LEASES AND CONSUMER FINANCING Textos picats (Millions of euros) 928 870 852

1,037 930 1,016 (Milions d'euros) 15.457

13.518 12.943 07 08 09

Full service Consumer financing leasing

07 08 09

Gràfic “calcat” FIM Renda Fixa, Renda Fixa Mixta Textos picats Monetaris i altres Renda Variable Fons Garantits

07 08 09

Renting Finançament al Consum 2009 ”la Caixa” Annual Report 77

(M ilions d'euros)

928 870 852

,

930 1.016 1.037

07 08 09

Renting Finançament al Consum 2009 Financial Report of the ”la Caixa” Group 3. Investee portfolio

3.2. Venture capital and financing for entrepreneurs

The ”la Caixa” Group maintains a Caixa Capital Pyme Innovación has programme and in conjunction with the presence in the venture capital industry funds of EUR 31 million, EUR 25 million of branch network and leading national through the following companies: which have been committed by ”la Caixa” and regional institutional organisations, and the rest by institutional investors it conducts specific activities such as the Caixa Capital Risc, whose object is to (Instituto Catalán de Finanzas y Empresa organisation of awards, courses and Nacional de Innovación-ENISA), and seminars, and supports networking and administer and manage the assets of complements the venture capital business business angel activities, among others. venture capital companies and funds. by investing at the growth capital stage. It currently manages two funds: Caixa The company invests, on a temporary The activities carried out through these Capital Semilla and Caixa Capital Pyme basis, in small, recently created innovative companies form part of the ”la Caixa” Innovación. companies which require financing to Group’s Corporate Social Responsibility strengthen their structure and enable activities. Caixa Capital Semilla has funds totalling them to reach a stage where they can EUR 15 million. The company invests, consolidate a strong competitive position. on a temporary basis, in small innovative At the end of 2009 it had a cumulative ”LA CAIXA” companies at the concept building and portfolio of 10 projects underway. The VENTURE CAPITAL developmental stage of their product amount of the committed investment totalled EUR 10.5 million. 100% or service, helping to cover the lack of CAIXA CAPITAL RISC financing for business innovation by 100% Iniciativa Emprenedor XXI aims to CAIXA CAPITAL SEMILLA entrepreneurs. At 2009 year-end it had a promote and support entrepreneurs in 80.7% CAIXA CAPITAL PYME INNOVACIÓN portfolio of 52 projects. The amount of general and the creation of innovative 100% INICIATIVA EMPRENEDOR XXI the committed investment totalled EUR companies with a high growth potential 11.5 million. throughout Spain. As part of its % of ownership of ”la Caixa”

2009 ”la Caixa” Annual Report 78 2009 Financial Report of the ”la Caixa” Group

3.3. active management of the ”la Caixa” Group’s investee portfolio

Active management of the ”la Caixa” agreement with Suez Environnement ACTIVE MANAGEMENT – MAIN Group’s investee portfolio in 2009 to sell it a sufficient ownership TRANSACTIONS: resulted in net investments of percentage of Agbar to enable Suez approximately EUR 1,888 million. In Environnement to obtain a 75.01% this respect, in 2009 the Group continued interest in Agbar following completion Financial business with its strategy to rebalance the of the delisting tender offer made by • Increase in the ownership interest in investee portfolio, giving more weight to Agbar itself and effectively targeted at Erste Group Bank to reach 10.1%, financial investments, without excluding 10% of the total share capital of Agbar basically through subscription to a capital increase with an investment of investments in utilities. In this regard in the hands of minority shareholders. EUR 635 million. the proportion of investments in the The final ownership interest held by financial sector went from 17%, at the Criteria CaixaCorp in Agbar will consist of • Agreement to subscribe to a capital increase in The Bank of East Asia with time of the Criteria CaixaCorp flotation, between 15% and 25%, depending on an investment of EUR 331 million, to 33%, taking into account all the the final outcome of the delisting tender performed in Janaury 2010, resulting in corporate resolutions formalised prior to offer. the increase of the ownership interest 31 December 2009. to 14.99%. On 30 December 2009, Criteria • Agreement to acquire 99.8% of With regard to investments in the CaixaCorp signed an agreement with The Adeslas for EUR 1,178 million and financial business, the interest in Erste Bank of East Asia (BEA) to subscribe to the reduction of the interest in Agbar, Group Bank was increased from 4.9% a large part of a capital increase which maintaining beetween 15% and 25%. to 10.1%. This increase was carried out concluded on 14 January 2010 and mainly through subscription to a capital increased Criteria CaixaCorp’s ownership Utilities business increase performed in November 2009 by interest in the bank from 9.81% to • Subscription to the corresponding the bank. Criteria CaixaCorp subscribed 14.99%, with an investment of EUR 331 portion of the capital increase for the to 36% of the capital increase through million. This transaction was carried out takeover bid by Gas Natural of Unión the acquisition of the subscription rights under the agreements signed in June Fenosa with an investment of EUR on shares of Erste Group Bank owned 2009 between BEA, ”la Caixa” and 1,313 million. by the DIE Erste Foundation, with an Criteria CaixaCorp. • Sale of 1% of Telefónica, giving rise investment of EUR 635 million. This to consolidated gains amounting to ownership interest increase is in line with With respect to interests in utilities, EUR 249 million net of tax and non- the Preferential Cooperation agreement Criteria CaixaCorp supported the controlling interests. signed by Criteria CaixaCorp and the DIE acquisition of Unión Fenosa by Gas • Joint venture agreement with Erste Foundation in June 2009 to regulate Natural and, accordingly, subscribed Investindustrial for its inclusion as a their dealings as shareholders of Erste to its proportion of the capital increase shareholder (50%) of Port Aventura Group Bank. performed by Gas Natural for EUR 1,313 Entertainment, the company that million. The merger between the two operates the Port Aventura theme park. The interest in Banco BPI was also companies concluded on 7 September increased in 2009, by 0.72% to 30.10%. 2009 with the admission to listing of ”la Caixa” contributed EUR 42 million to the shares of the new company and the the incorporation, in conjunction with the registration of the public deed of merger Boursorama Group, of a new Internet in the Mercantile Register. Following bank, the Self Bank. completion of the transaction, Criteria CaixaCorp’s ownership interest in Gas In addition, in 2009, Criteria CaixaCorp Natural amounted to 36.43%. reached an agreement, to be formalised in 2010, with Suez Environnement, on In December 2009, Criteria CaixaCorp the one hand, and Malakoff Médéric entered into a joint venture with on the other, for the acquisition of Investindustrial, for its inclusion as 99.8% of Adeslas, the leading health an investor (50%) in Port Aventura insurance company in Spain, for a total Entertainment, the company that of EUR 1,178 million. At the same operates the Port Aventura theme park, time, Criteria CaixaCorp reached an Caribe Aquatic Park, and four hotels,

2009 ”la Caixa” Annual Report 79 2009 Financial Report of the ”la Caixa” Group 3. Investee portfolio

3.3. Active management of the ”la Caixa” Group’s investee portfolio (cont.) two of which are owned, as well as a Performance of the market LISTED PORTFOLIO: convention centre. In addition, Criteria value and unrealised gains of PERFORMANCE OF MARKET VALUE AND UNREALISED GAINS CaixaCorp holds 100% of Mediterranea the listed companies of the (Millions of euros) 20,118 Beach and Golf Resort, which owns ”la Caixa” Group +3,539 Market two of the four hotels, the convention +1,888 value The market value of the interests in the 14,691 Change centre and the land for residential and in value listed companies of the ”la Caixa” Group Market Net commercial use belonging to the golf club value investments at 31 December 2009 was EUR 20,118 and Beach Club business. million, with gross unrealised gains of EUR 3,945 million. In 2009, 1% of the ownership interest 1,026 3,945 in Telefónica was sold, giving rise Gross Gross The market value of Criteria CaixaCorp, unrealised gains unrealised gains 3.945 to consolidated gains of EUR 249 1.026 the company that includes the ”la Caixa” 2008 2009 million net of tax and non-controlling Group’s interests in listed companies, was interests. In addition, a 1% ownership revalued by 18.5% in 2009, as part of the interest was acquired subject to financial recovery of the capital markets and in line YEAR-ON-YEAR PERFORMANCE AS COMPARED TO THE INDEXES agreements, whereby the ”la Caixa” with the benchmark indexes, the Ibex- Group does not assume any market risk. 35 and Eurostoxx, which had a positive 18.5% Criteria CaixaCorp The ownership interest in Telefónica at 31 performance, at 29.8% and 21.1%, December 2009 amounted to 5.2%. respectively. Gràfic “calcat” 29.8% IBEX 35 Textos picats 21.1% EUROSTOXX 50 +3.539 20.118

Valor de mercat +1.888 3.945 1.026 14.691 Variació valor Valor de Inversions mercat netes

3.945 1.026 Plusvàlues Plusvàlues latents brutes latents brutes

2008 2009

2009 ”la Caixa” Annual Report 80 2009 Financial Report of the ”la Caixa” Group

4. active risk management 4.1. Comprehensive risk management at the heart of strategy

Management of the risks inherent are classified as follows: credit risk, “GLOBAL RISK MANAGEMENT TO arising from the banking activity and to the business is an essential OPTIMISE THE RETURN/RISK RATIO” component of the Group’s also associated with the investee strategy to secure a balance portfolio; market risk, which includes between returns and risk. structural balance sheet interest rate risk, the price or rate risk associated with Global risk management is essential for treasury positions and foreign currency the business of any credit institution. risk, liquidity risk, operational risk and At the ”la Caixa” Group, global risk regulatory compliance risk. management is aimed at optimising the return/risk ratio by identifying, measuring The ”la Caixa” Group’s risk management, and assessing risks and ensuring that monitoring and control tasks are they are always taken into account in the performed autonomously from the business decision-making process, without standpoint of independence with respect losing sight of enhancing customer service to the risk approval function. Risk quality. Likewise, the Group wishes to safeguard the health of risk and preserve management is geared towards setting the capital adequacy mechanisms as a risk profile aligned with the Group’s a guarantee to confirm the ”la Caixa” strategic objectives and helps to ensure Group’s position as one of the soundest progress towards a delegation model groups in the Spanish market. for risk approval underpinned by all the fundamental risk variables and amounts, The fundamental risks undertaken as while supporting the quantification of risk a result of the Group’s own activities through capital use scenarios.

2009 ”la Caixa” Annual Report 81 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.1. Comprehensive risk management at the heart of strategy (cont.)

Structure and organisation In addition, Criteria CaixaCorp manages and controls almost the entire equity The Board of Directors of ”la Caixa” is securities portfolio of the Group. the Group highest risk policy-setting body. Senior management acts within ”la Caixa” has a Senior Executive Vice- the framework of the duties assigned by President’s office in charge of risk over the the Board of Directors and sets up the whole Group. The Global Risk following risk management committees: Management Division, which reports to the Senior Executive Vice-President’s • Global Risk Committee. The Global office, is the global control unit Risk Committee is in charge of the performing the independence functions comprehensive management of required by Basel II, with responsibility for the Group’s risk, as well as of the safeguarding the quality of the assets and implications of risk on capital adequacy preserving the capital adequacy and and capital management. It analyses the security mechanisms. The objectives of Group’s risk positioning and sets policies this division are to identify, measure and aimed at optimising risk management integrate the various risk exposures within the framework of the Group’s together with the risk-adjusted return in strategic challenges. each line of business, from the overall standpoint of the ”la Caixa” Group and in • Loan Approval Policy Committee. accordance with its management strategy. The Loan Approval Policy Committee proposes loan approval powers and One of the most important missions of loan prices, process efficiency and the division, in conjunction with other streamlining measures, the level of divisions of ”la Caixa”, is to lead the risk taken in the loan acceptance implementation of instruments diagnostics, and the risk profiles throughout the branch network to ensure accepted in commercial campaigns. comprehensive risk management under the Basel II guidelines, in order to secure a • Lending Committee. The Lending balance between the risks taken and the Committee analyses and, where expected returns. appropriate, approves the transactions that fall within the scope of its authority The tasks assigned to complete this and refers any transactions that exceed mission define the organisational its level of authority to the Board of structure of the Global Risk Management Directors. Division, which is arranged around each of the risks of the ”la Caixa” Group: • Refinancing Committee. The Refinancing Committee analyses and, • Credit Risk: defining, validating where appropriate, approves the and monitoring the portfolio risk transactions that fall within the scope of measurement models, at operational its authority and refers any transactions and customer levels (ratings, scorings, that exceed its level of authority to the probability of default (PD), loss given Lending Committee. default (LGD) and exposure at default (EAD)) and developing tools for their • Asset-Liability Committee (ALCO). The integration into management and ALCO analyses liquidity, balance sheet monitoring. The above measurements interest rate and foreign currency risk are used to determine the minimum as part of structural risk and proposes capital requirements, from a regulatory taking out hedges and launching issues and financial standpoint, and the to manage those risks. risk-adjusted return on the portfolio.

2009 ”la Caixa” Annual Report 82 2009 Financial Report of the ”la Caixa” Group

Analysis of credit risk monitoring method (initially) or the AMA methods Procedures, tools and strategies and control: direct responsibility for in the future. monitoring and controlling the most For several years the ”la Caixa” Group significant credit risk positions and for • Risk Aggregation and Economic Capital: has used a set of tools and techniques the steps taken by the branch network aggregation of the total risk, taking into based on the specific needs of each type to monitor the lending quality of the account all risk types and studying any of risk. These include probability of default portfolio. interactions between them. calculations obtained through rating and scoring tools, loss given default and expected loss calculations relating to • Market Risk: independent supervision In 2009 the Recovery Management the various portfolios and risk-adjusted of the monitoring and control of risk Division was created, which reports to the return tools, both at customer and branch relating to own positions, balance-sheet President and CEO’s office and aims to level. Value at Risk (VaR) calculations are risk and liquidity risk, measured by the reduce non-performing loans, by helping also performed for the various portfolios General Markets Division. to prevent lending transactions from as a method for controlling and setting being placed in dispute status or speeding market risk limits, as well as a qualitative • Operational Risk: definition and up the removal of such status. identification of the various operational implementation of the operational risks relating to each of the Group’s Finally, to supplement the controls in risk management model, developing activities. the policies, methodologies and place, the ”la Caixa” Internal Audit tools required to adopt advanced Division performs continuous checks The “Banking Business Management management models –AMA– in on the adequacy of the internal control Model”, implemented throughout the the future, as an upgrade on the systems and the accuracy of the risk organisation down to branch level, enables standard model initially adopted; and measurement and control methods monitoring of the return obtained according measurement of the capital required to employed by the various divisions involved to the credit risk taken and, as a result, of cover this risk, either under the standard in the risk monitoring function. the capital allocated. The branches therefore

2009 ”la Caixa” Annual Report 83 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.1. Comprehensive risk management at the heart of strategy (cont.) have innovative tools on hand to assist them concentration of risk, credit risk with global management of all the business pressure, liquidity risk, balance-sheet they generate. interest-rate risk, etc.

Use of internal credit risk • Pillar 3, which supplements the other models – Basel II two pillars, encourages market discipline by setting out disclosure requirements All the risk measurement, monitoring helping the market players to assess the and management work is performed in information on capital, risk exposure accordance with the recommendation and measurement processes. of the Basel Committee on Banking Supervision: “International Convergence Following a validation process, in June of Capital Measurement and Capital 2008 the Bank of Spain authorised the Standards – A Revised Framework”, ”la Caixa” Group to use advanced models commonly known as Basel II, and the for the calculation of the minimum capital ensuing implementation thereof by the requirements to meet credit risk. In 2007 related European directives and Spanish the Bank of Spain authorised use of the legislation in force, supported by three internal model for measuring market pillars: risk associated with financial assets and liabilities held for trading, foreign currency • Pillar 1 determines the minimum capital and gold risk or commodity price risk requirements for financial institutions for the calculation of regulatory capital based on several financial risks: credit consumption from 31 December 2007 risk, market risk associated with onwards. financial assets and liabilities held for trading and the position in foreign currency and operational risk. Going beyond merely satisfying the regulatory capital requirements proposed • Pillar 2 analyses the main principles of by Basel II, which relate to formulations the supervisory process. It also sets out geared towards guaranteeing capital the guidelines to be followed to develop adequacy with confidence levels of an internal capital assessment process, 99.9%, the ”la Caixa” Group applies and defines the capital objectives more exacting levels and is making in relation to each institution’s risk progress towards a risk management profile and control environment, in model based on Economic Capital with order to cover possible risks, whether the objective of assuring, at the least, its or not included in Pillar 1, such as: current rating levels.

2009 ”la Caixa” Annual Report 84 2009 Financial Report of the ”la Caixa” Group

4.2. Credit risk 4.2.1. High-quality loan portfolio

”la Caixa” loans and receivables 76.1% of the loan portfolio of ”la Caixa” “medium/LOW RISK PROFILE” have a medium/low risk profile is classified as being between low risk and medium-low risk, demonstrating the LOAN PORTFOLIO COMPOSITION The Bank of Spain’s accounting Institution’s intention to invest in assets RISK TRANCHES (*) regulations classify loans and receivables with the highest solvency and keep a and debt instruments into various medium/low risk profile. 3.4% 3.1% categories according to the default 21.5% 20.8% status and/or the existing risk, as follows: Diversified lendings with 25.1% 22.5% standard, substandard, doubtful and loss. adequate collateral 50.0% 53.6% The ”la Caixa” Group’s lending activity Standard risk also contains the following is geared towards meeting the financing subcategories: negligible risk (public needs of households and businesses, and 08 09 sector, credit institutions, cash collateral), its lending portfolio is characterised by its low risk (mortgages on completed Low risk Medium-low risk diversified and fragmented nature, which Medium risk Medium-high / housing and on amounts under 80% therefore reduces the already low and High risk of the appraised value), medium-low risk strongly collateralised credit risk. (*) Categories based on the classification (other types of mortgages and secured issued in Bank of Spain Circular loans), medium risk (other resident Along these lines, despite the stagnation sectors and OECD countries), in the property industry, mortgage loans medium-high risk (consumer loans account for 65.2% of total loans with a and loans to non-OECD countries) and loan-to-value (LTV) ratio of 48.6%. 88.5% high risk (card balances and current of the mortgage portfolio has an LTV ratio and credit account overdrafts). of less than 80%.

“TOP QUALITY LENDING” “AVERAGE MORTGAGE “88.5% OF PORTFOLIO WITH LTV < 80%” PORTFOLIO LTV OF 48.6%”

BREAKDOWN BY COLLATERAL MORTGAGE PORTFOLIO BY LTV RATIO

3.5% 11.5%

28.7%

31.3% 20.2%

65.2% 16.4% 23.2%

Mortgage Non-mortgage <= 50% 50%-60% portfolio 60%-70% 70%-80% Public sector > 80%

2009 ”la Caixa” Annual Report 85 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.2.1. High-quality loan portfolio (cont.)

Loans to private borrowers account for construction, industry (manufacturing 52.0% of the ”la Caixa” Group’s total companies and electric, gas and water loan portfolio, 89.9% of which are utilities), services (retail trade, hospitality mortgages. Of these, 92.2% are granted and transport) and the primary sector to primary residence homebuyers. (agriculture, livestock breeding and fishing). The strategy undertaken A portion of the loans to primary by ”la Caixa”, which is aimed at achieving residence homebuyers are first taken a greater presence in the business out temporarily by developers to finance segment, gave a boost to lending for construction work, and then, once the productive activities in 2009. development is finished and has been sold, the private homebuyer is subrogated Financing for SMEs accounts for 62.1% to the loan. Developer loans are of the Group’s business lending portfolio. characterised by being granted primarily In line with its clear commitment to for the construction of new homes concentrated in urban areas, and have an further strengthening its ties with the LTV ratio of less than 70%. country’s industrial fabric, in 2009 ”la Caixa” continued to develop new Through the financing it grants to products and services for SMEs. businesses, the ”la Caixa” Group participates in the productive In terms of geographical distribution, the development of all of the business sectors ”la Caixa’’ Group’s lending activity is of the Spanish economy: infrastructure basically concentrated in Spain.

BREAKDOWN BY CUSTOMER

TOTAL LOANS TO PRIVATE BORROWERS LOANS TO BUSINESSES By collateral By type of business 7.4% 10.1%

37.9%

52.0% 89.9% 62.1%

40.6%

Private Companies Mortgage Other SMEs Large companies borrowers collateral (*) collateral (*) Of which 92.2% relates to primary residence homebuyers Other

Gràfic refet Text picat

2009 ”la Caixa” Annual Report 86

2009 Financial Report of the ”la Caixa” Group

Following the application of mortgage collateral brings the total “CONSERVATIVE RISK principles of the utmost prudence coverage up to 127%. At 31 December COVERAGE POLICIES” in terms of risk rating and 2009, the general allowance amounted to

provisions at 2009 year-end, the EUR 1,835 million. The general allowance DOUBTFUL LOANS AND NPL RATIO NPL ratio was 3.42% and the NPL ratio stood at 100% of the α ratio defined coverage ratio stood at 62%, 3.40% 3.38% 3.53% 3.42% under Bank of Spain rules, considerably NPL ratio 2.48% 127% with mortgage collateral. higher than the required minimum. 6,345 6,367 6,577 6,321 Since most loans are to private borrowers Therefore, the level of credit risk at 4,590 and consist primarily of mortgages to the ”la Caixa” Group remains among the Doubtful loans primary residence homebuyers, the lowest in the Spanish financial system loan structure has a significantly low as a result of diversification, the value risk level. Doubtful loans rose to EUR 08 1Q09 2Q09 3Q09 09 of the collateral and a prudent risk 6,321 million in 2009 as a result of the coverage policy. Management of the overall deterioration of the economy ”la Caixa” Group’s credit risk is and of prudent risk rating policies, which PROVISIONS AND NPL COVERAGE RATIO characterised by a prudent loan approval resulted in an NPL ratio (doubtful loans 66% policy and a high degree of anticipation 60% 60% 62% as a percentage of total loans) of 3.42% NPL 51% to achieve one of the soundest equity for the ”la Caixa” Group and 3.20% for coverage positions in the Spanish financial market. ratio 3,917 3,914 ”la Caixa”. Despite the increase in 2009, 3,790 3,026 3,240 these ratios continue to be lower than the As a result of management of the average for the Spanish financial system Provisions taken as a whole, which stood at 5.08% credit portfolio, the ”la Caixa” Group’s property portfolio amounted to a net sum at 31 December 2009. 08 1Q09 2Q09 3Q09 09 of EUR 3,097 million at 31 December Credit loss provisions totalled EUR 3,914 2009, with coverage for 20% thereof. million, EUR 888 million more than Property sales rose significantly in the in 2008, with the result that the NPL last quarter of 2009, thanks to active coverage ratio stood at 62% at 2009 management by Servihabitat, the year-end. The coverage provided by ”la Caixa” Group’s property subsidiary. Gràfic “calcat” Textos picats

DOUBTFUL LOANS. ADDED AND REMOVED, BY QUARTER (Millions of euros) 2,626

70% 66% 7.000 2,057 60% 60% 62% Fewer added in 51% 2009 1,437 1,428 –1,406 –1,304 1,067 1,073 1,048 Significant 3.790 3.917 3.914 -871 –863 increase 3.026 3.240 552 –562 in loans –356 –361 removed –244

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Added Removed 0% 0 % recovery 30% 72% 2008 1T09 2T09 3T09 2009

2009 ”la Caixa” Annual Report 87

Entradas Salidas

2,626 2700 2400 2,057 2100 1800 1,437 1,428 -1,406 1500 -1,304 1200 1,067 1,073 1,048 -871 -863 900 552 -562 600 -356 -361 -244 300 0 1T08 2T08 3T08 4T08 1T09 2T09 3T09 4T09 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.2.2. Credit risk management

Lending organisation respect to companies, the system for the LOANS GRANTED BY LEVEL OF AUTHORITY and processes calculation of the risk-adjusted price in % of approved loans the SME segment has been consolidated. 4% The new internal system of credit approval These systems enable a risk premium to 16% powers based on expected loss was be allocated to transactions. consolidated in 2009. This system has enabled the powers to be much more In addition, implementation began of a 8% closely adapted to shifts in the economic second phase of the current system of cycle, a particularly significant feature customer risk adjusted return, which will 72% in the current climate. In addition, part provide a simulation of returns in light of the system of powers continues to be of future changes in the business with associated with the transaction amount customers, as well as information on and has been maintained mainly for the Branches Business Division returns on capital in the analysis of loan Managers individuals segment and for very large applications. companies. Area Head Office and Managers Board of Directors Lastly, also of note was a far-reaching Use of the electronic file as a tool to organisational change that took place provide and increase the efficiency of the in 2009: a change in the risk structure LOANS GRANTED BY LEVEL credit approval circuits was consolidated OF AUTHORITY throughout the network in order to % of principal granted in 2009. It has been used not only for separate risk assessment entirely from 13% the approval of transactions other than commercial considerations, while 2% new applications (such as credit facility strengthening the independence of the or credit account overdrafts) but also for 14% transactions which, although not strictly risk function as a core principle 54% lending transactions, do involve the of prudent risk management. As part of assumption of risk, such as the merchant the application of the change, sign-off activity of stores. is required from the two lines, risk and business, for transactions exceeding the 17%

A risk-adjusted price system has been levels set for Business Division Managers introduced in relation to the approval or Business Centres, both in relation Branches Business Division Managers of consumer loans for individuals, to risk transactions of companies and Area Managers Head Office complementing the system already in individuals, all under the control of the place for mortgage transactions and, with system of powers. Board of Directors

2009 ”la Caixa” Annual Report 88 2009 Financial Report of the ”la Caixa” Group

Recovery Management customers. Accordingly, ”la Caixa” with higher risks and monitor risk holders is adapting short-term payments to whose creditworthiness shows signs of The Group’s risk management has debtors’ current available funds, with the deteriorating, using a rating system based focused on the organisational efforts expectation that this deferral will result in on risk alerts on each borrower. begun in the second half of 2008 to deal a successful outcome for the transactions with the increase in non-performing loans concerned. Among the various options to The risk alert system and the borrower and to adopt careful measures to ensure achieve this end (such as the introduction scoring system based on the borrower’s that debts that are difficult to recover of grace periods, waiting clauses or a risk performance play a key role in may be claimed effectively, starting moratorium on payments), an analysis assisting both the approval system, as from the first signs of deterioration is carried out with customers of the one discussed above, and the monitoring of borrowers’ solvency, with ongoing which would best suit their situation, process. As a result, borrowers with a monitoring of their creditworthiness and always ensuring the final objective of higher probability of default in the short of the mortgage collateral. Of particular recovering the loan, while complying with term are analysed more thoroughly and note was the creation of the Recovery internal risk approval procedures. more frequently. Management Division in the fourth quarter of 2009, which reports to the Credit Risk Analysis Another feature of the alert system is that President and CEO’s office and aims to and Monitoring it is fully integrated with the customer reduce non-performing loans, by helping information systems as the alerts are to prevent lending transactions from At ”la Caixa”, the Credit Risk Analysis and allocated to each borrower and a rating being placed in dispute status or speeding Monitoring Division, which reports to the is established on a monthly basis. In up the removal of such status. Global Risk Management Division, is kept addition, the information on a customer’s independent from the Risk Analysis and alerts is integrated with the rest of Notwithstanding the constant monitoring Approval Division and is organised into a set the information on the customer and of the lending portfolio, ”la Caixa” has of territorial monitoring units. Its function whenever the customer applies for a loan, also adopted measures to mitigate the is twofold: to prepare follow-up reports a report is obtained on these alerts and on impact of the recession on individual on borrowers or groups of companies the customer’s rating.

2009 ”la Caixa” Annual Report 89 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.2.2. Credit risk management (cont.)

The outcome of the monitoring process use an internal ratings based approach is the establishment of “Action Plans” for to calculate the minimum capital each of the borrowers analysed. These requirements for credit risk. The “Action Plans” aim to complement the ”la Caixa” Group is therefore now among alert-based rating system, while acting as a the leading institutions that have passed guide for the lending policy for future loans. the supervisory validation process.

Monitoring borrowers in the property To achieve the Division’s aims, periodical development and construction industries reviews are performed of all the models, to was a priority for the Credit Risk Analysis detect any deterioration in the quality of and Monitoring Division. With respect to the measurements, and of the estimates individuals, a risk prevention management made, in order to include any shifts in project was undertaken to detect, as soon the economic cycle. Practically the entire as possible, any signs of deterioration in retail banking portfolio, which includes borrowers’ ability to repay, in order to the individual and SME segments, is analyse each case individually and adopt assessed on a monthly basis, enabling the most appropriate solution. the knowledge base on these customers and their portfolios to be updated almost Credit risk measurement continually. This continual risk assessment and rating provides information on the distribution of the risk exposure in the various portfolios The mission of the Credit Risk with respect to creditworthiness, expressed Methodology and Models Division, which as a probability of default. reports to the Global Risk Management Division, is to build, maintain and monitor the credit risk measurement systems. It Risk measurement involves two basic is also in charge of guaranteeing and concepts: expected loss and unexpected advising on the use of these systems, loss. Basel II provides for the need for while seeking to ensure that the decisions entities to cover the expected loss based on these measurements take into amount through provisions. In this area, account their quality. As established in the the ’’la Caixa’’ Group applies the rules best practices, this function is independent contained in Annex IX of Bank of Spain from the business divisions to ensure that Circular 4/2004. Therefore, it recognises the risk rating policies are not affected by the specific, general and country risk commercial considerations. provisions required under the Circular to cover expected loss. Unexpected loss, on On 25 June 2008, the Bank of Spain the other hand, must be provided for with authorised the ”la Caixa” Group to capital.

2009 ”la Caixa” Annual Report 90 2009 Financial Report of the ”la Caixa” Group

Expected loss for each transaction in order to provide the aforementioned estimate. Expected loss is the result of multiplying three factors: exposure, probability of Probability of default default and loss given default. These ”la Caixa” has management tools in place three factors provide an estimate of the to assist with predicting the probability expected loss through credit risk from of default (PD) associated with each each loan, customer or portfolio. borrower, covering virtually all of its lending business. Exposure at Default Exposure at Default (EAD) provides an These tools are either product- or estimate of the debt outstanding in the customer-oriented. Product-oriented tools event of default by the customer. This take into account the debtor’s specific measurement is particularly significant for characteristics in relation to the product financial instruments with a repayment concerned and are used basically in structure that varies according to customer connection with the approval of new retail drawdowns (credit accounts, credit cards banking transactions. and any revolving credit product, in general). On the other hand, customer-oriented tools assess the debtor’s probability of This estimate is obtained through default on a general basis; however, the observation of the Institution’s internal results for individuals may be differentiated default experience, and relates the according to product. Customer-oriented drawdown levels upon default to tools include behavioural scoring models the drawdown levels in the 12 preceding for individuals and ratings for companies, months. The relationships observed in and are implemented throughout the terms of product type, term to maturity branch network as part of the ordinary and customer characteristics are modelled credit approval tools.

BREAKDOWN OF EXPOSURE. CORPORATE (%) BREAKDOWN OF EXPOSURE. MORTGAGES (%)

2 39 11 0 28 30 0 20 9 19 14 14

0 0 Gràfic ”calcat” 2 6 6 AAA / AA A BBB BB B CCC AAA / AA A BBB BB B CCC Xifres picat Non developer companies Property developers

AAA-CCC: descending scale of credit-worthiness (0.0-1.3) (1.3-2.6) (2.6-4.0) (4.0-6.0) (6.0-8.1) (8.1-9.5)

(0.0-1.3) (1.3-2.6) (2.6-4.0) (4.0-6.0) (6.0-8.1) (8.1-9.5)

Gràfic ”calcat” Xifres picat 2009 ”la Caixa” Annual Report 91

2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.2.2. Credit risk management (cont.)

The credit risk rating tools were developed according to the customer segment. The The results of all the tools are linked on the basis of the Institution’s NPL rating process for micro-enterprises and to a risk master scale which provides a experience and include the measurements SMEs is very similar to that for individuals. standard classification for the lending needed to fine-tune the results to the In this case a modular algorithm was portfolio, namely it allows risk to be business cycle and the projections for the developed, which rates three different grouped according to a common next cycle, in order to provide ratings that sets of data: the financial statements, the expected NPL ratio. are relatively stable in the long term which information drawn from dealings with may differ from the default rates observed customers and certain qualitative factors. Loss given default from time to time. The ratings obtained are also adjusted to Loss given default (LGD) is the percentage the economic cycle. of debt that may not be recovered in the The accompanying chart illustrates the event of customer default. The Institution annual performance of default frequency The Corporate Rating function, which reviews the default recovery and default (the percentage of customers or, regarding reports to the Credit Risk Analysis and remedial procedures on an ongoing basis the retail segment, of contracts in the Monitoring Division, has three internal to minimise the impact of a potential healthy portfolio at the start of the models in place to obtain ratings for the write-off. year that have defaulted at any time large companies segment. These are during the year). In order to provide expert models and give greater weight The historical loss given default rates more representative information on the to analysts’ qualitative opinion and are calculated using ”la Caixa” internal portfolios, unlike in previous years, the were built in line with Standard & Poor’s information, taking into consideration chart shows the overall past performance methodology and, as a result, the global of each segment, regardless of the default rates published by this rating all of the cash flows associated with the existence of multiple advanced models or agency could be used, which made the contracts from the moment of default the lack thereof. Therefore, the historical methodology more reliable. The models until the situation is either remedied or a values of the series are not comparable were developed on the basis of data with write-off finally declared. This calculation with those published in prior years. sufficiently significant historical depth and, also includes an estimate of the indirect therefore, they include the cycle effect to a expenses (office personnel, infrastructure All the rating tools for companies are reasonable degree and ensure the stability costs and the like) associated with the customer-oriented and vary considerably of the measurements obtained. process.

Trend in NPL frequency

2007 2008 2009 Developers Companies 0.96% 10.38% 14.81% SMEs 1.15% 5.12% 8.96% Non-developers Companies 0.99% 2.46% 3.60% SMEs 1.59% 3.48% 4.84% Retail Mortgage 0.42% 1.26% 1.65% Consumption 1.34% 1.89% 3.09% Cards 0.55% 0.70% 0.99%

Risk master scale

Expected NPL % 0.01 0.02 0.03 0.05 0.08 0.12 0.19 0.29 0.44 0.68 1.04 1.59 2.44 3.70 5.59 8.36 12.30 17.70 25.00 37.00

Scoring/Rating 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5

2009 ”la Caixa” Annual Report 92 2009 Financial Report of the ”la Caixa” Group

In addition, work is being carried out on Tools were developed in 2009 for a more modelling loss given default in order to in-depth analysis of the risk-adjusted provide correct initial estimates, based returns of each customer or group of on the collateral, the loan-to-value ratio, customers, together with applications to the type of product, the borrower’s estimate risk-adjusted returns in the future creditworthiness and, as required by and link them to the transaction approval current legislation, the recessionary phases processes (see the section, Lending of the economic cycle. organisation and processes).

As a result of the composition of the Unexpected loss and economic portfolio, which is the consequence of the capital credit approval policies, of the collateral provided and of the related loan-to-value The measurement of expected loss ensures ratio, and of active management of the that credit risk can be properly controlled default remedial procedures, the loss given in “normal” market conditions. In fact, default rates of the ”la Caixa’’ Group’s expected loss can be considered an exposures at default are very low, with additional cost of the business. However, an average of 11.65% for exposures in actual losses may occasionally exceed mortgage loans to individuals, which expected losses as a result of sudden represent 54% of the total exposures changes in the cycle, or in the risk factors assessed under the IRB approach, and specific to each portfolio, and of the 33.39% for exposures in loans to SMEs, natural correlation among the credit risks which in turn represent 17% of the of the various debtors. In fact, Pillar 1 total exposures assessed under the of Basel II provides for certain minimum IRB approach. The above values were capital requirements specifically to cope determined in accordance with the internal with potential unexpected losses. If an models approved by the Bank of Spain internal ratings-based methodology such for use in estimating the minimum capital as the one used by the ’’la Caixa’’ Group requirements for credit risk. is adopted, the relevant formula for each business segment should be used, which Risk-adjusted return takes into account the influence of the probability of default, the proportional ”la Caixa” has a number of tools in place impact of the loss given default, the to assess the rate of return that may be adjustment for the term to maturity of expected from a contract/customer based the transaction concerned and certain on the coverage of the expected losses established correlations, whether fixed and an adequate return on the capital or in inverse proportion to the probability retained to meet the unexpected losses of default, depending on the business which might arise from the risks taken. segment in question.

The benchmark spread for companies The variability of expected portfolio Risk master scale indicates the cost of the risk taken in each losses constitutes the unexpected losses, Expected NPL % 0.01 0.02 0.03 0.05 0.08 0.12 0.19 0.29 0.44 0.68 1.04 1.59 2.44 3.70 5.59 8.36 12.30 17.70 25.00 37.00 customer’s outstanding loans in the last which represent the potential unforeseen year-on-year period. This cost is compared losses. These losses are calculated as the Scoring/Rating 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 with the Risk-Adjusted Spread, which loss associated with a sufficiently high indicates the customers’ overall rate of confidence level of the loss distribution, return, net of the finance and operating less the expected loss. The aim of the costs, and ultimately determines the Institution is to have sufficient own funds Customer’s Added Value. or capital to meet unexpected losses.

2009 ”la Caixa” Annual Report 93 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.2.2. Credit risk management (cont.)

Two concepts have traditionally been industry best practices in this area and distinguished: includes the Group’s risk profile as Management Quality integration accurately as possible. of data • Economic capital is the capital that an map and report institution should have in order to assume Internal Validation Validation the unexpected losses which might be cycle incurred and which might jeopardise the The New Basel Capital Accord is geared Institution’s continuity. It is an internal towards determining the minimum capital Follow-up Follow-up estimate which is gradually adjusted requirements of each entity in accordance report on report on according to the Institution’s own level with its risk profile. In the area of credit variables the model of risk tolerance, volume and business risk it enables entities to use internal activity. rating models and their own estimates of risk parameters to determine their capital • Regulatory capital is the mandatory requirements. capital to be maintained by the entity as required by the supervisory body. The importance of the process for determining capital requires adequate Economic capital is not a substitute for controls to be in place which guarantee regulatory capital but a supplement Textos picats the reliabilityDoncs of the estimates.és imatge deThe word control thereto which is used to achieve greater environment must also be sufficiently alignment with the actual risk profile specialised and ongoing, supplementing assumed by the Institution and include risks the traditional control functions (internal not foreseen, or only partially considered, audit). in the regulatory requirements. The Bank of Spain establishes the The level of capitalisation of an institution internal validation of internal rating (not necessarily in regulatory terms) and models and risk parameters as an the risk profile assumed, measured in essential prerequisite to validation by Mapa i terms of capital requirements, define an In fo rmeExec uti dʼIn te gracóen laGestói the supervisory authority, and it must be informe institution’s capital adequacy, i.e. its credit u i performed by a specialised independent worthiness. department within the Institution. In this Cicled e respect,”la Caixa” has an independent Appropriate capital management is and vali dació will be a differentiating factor among the unit from the model development team and the team in charge of defining most advanced and competitive entities. In fo rmes deseguimen policies and procedures, in order to de Paràme tresde Risc A management approach based on the Dossi er deseguimen t validate the correct functioning of the risk (PD, EAD i measurement of economic capital makes t it possible to measure and manage risk, measurement models in broad terms. LG D) while identifying the riskier transactions or lines of business and also those which The validation function is carried out generate the highest economic value by the Internal Validation Unit, which according to the measurements of return falls under the General Division of the on capital. Validation and Technical Secretary’s office, which reports to the Senior Executive The Institution therefore has an integrated Vice-President’s office in charge of Risks. model in place that, using its own standards, measures the integrated The internal validation unit must ensure risk on the credit portfolio and on the that the credit risk models are adequate, equity portfolio. This internal economic both from a quantitative and qualitative capital model is undergoing continual standpoint, in order to determine capital improvement to ensure that it incorporates requirements correctly.

2009 ”la Caixa” Annual Report 94 2009 Financial Report of the ”la Caixa” Group

The main goals of the Internal Validation loss, segmentation) and the adequacy of Unit are as follows: the existing documentation.

• Issue an opinion on whether the internal • Data: verification of the integrity and models are adequate for regulatory and consistency of the current calibration management purposes, identifying all and exposure databases, both regarding the relevant uses thereof. database design and construction and the performance thereof over time. • Assess whether the risk management and control procedures are aligned with • Quantitative procedures: guaranteeing the Institution’s risk profile and strategy. the strength of the models by means of replication procedures (defaults, • Support senior management, and the segmentation, model outputs), periodical Global Risk Management Committee follow-up tests (discriminatory capacity, in particular, in their responsibilities back-testing and stress-testing), analysis regarding approval of the use of the of sensitivity of the parameters and models for management and regulatory benchmarking of the internal models. purposes and their periodical review • Qualitative procedures: checking processes. whether the Institution uses the models and the output thereof in the risk • Coordinate the supervisory validation management processes (use testing) process with the Bank of Spain and and assessing senior management’s prepare the follow-up file as required knowledge of and reliance on the by the regulatory body for each of the models and the use thereof (model internal models. reporting and approval cycle and organisational structure). The Internal Validation Unit’s tasks consist basically of the following: • Review of the technological environment: assessing the degree • Validation cycles, which consist of of integration of the models with the periodical (yearly) reviews which ensure Institution’s systems and the functionality the adequacy of the models and the use of the models (and ensuring that they thereof. meet actual information needs).

• Specific tests consisting of a At the beginning of each year the Internal comprehensive review of the process Validation Unit issues a Validation Report of model building and parameter which contains the work carried out calculation. In addition, replication and details the conclusions and main procedures are performed and the recommendations issued in the reviews of adequacy of the documentation is the previous year. verified. Investee Portfolio The areas of review are as follows: The risk relating to the ’’la Caixa’’ Group’s • Methodology and documentation: investee portfolio is the risk associated analysis of the models (type of model, with the possibility of incurring losses as methodology, explanatory variables, a result of fluctuations in market prices validation of the model’s construction, and/or default on the positions making up identification of changes), analysis of the equity portfolio within a mid- to long- the significant definitions used (default, term time horizon. At 31 December 2009,

2009 ”la Caixa” Annual Report 95 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.2.2. Credit risk management (cont.) the market value of the listed investee performance of the markets and of the The principle guiding the work of this portfolio amounted to EUR 20,118 ’’la Caixa’’ Group’s strategy. unit is to apply a holistic approach to risk, million, including pre-tax unrealised gains so that the equity investments of amounting to EUR 3,945 million. These measurements and the related ”la Caixa” are considered within a broad developments are necessary to monitor risk assessment context. Analysis of these The Global Risk Management Division, management of the investee portfolio positions provides a dynamic overview with the support of Criteria Caixacorp, and enable strategic decisions to of the effects of the diversification and measures the risk of these positions, both be made on the composition of the concentration of the Group’s global from the standpoint of the underlying risk portfolio by senior executives of portfolio. The work carried out by this unit in terms of market price volatility, applying is designed to provide management with the ’’la Caixa’’ Group. VaR models (a statistical estimate of the a global analysis of the risk associated maximum potential losses by reference to with the interests in investees, comparing The Global Risk Management Division has historical data on changes in prices) to the them with the investments in other assets. an Investee Risk Control unit, the main return spread in relation to risk-free interest objective of which is to optimise the risk/ rates as indicated in Basel II, and of the In addition, the Market Risk Control return ratio on this portfolio and monitor uncertainty of default, using models based Division, in conjunction with Criteria on the PD/LGD approach, also following and, once investments or divestments CaixaCorp, includes in its risk monitoring the guidelines contained in Basel II. have been made, follow up on the risk process the risk arising from derivatives and relating to the asset positions held by the foreign currency risk associated with These indicators are monitored on an ”la Caixa” in investees. The risk relating the investee portfolio, and also performs ongoing basis to ensure that the most to the asset positions comprises two an ongoing follow-up of the risks relating appropriate decisions are always adopted factors: the ownership interest and the to the financial market transactions on the basis of the past and projected risk granted to investees. associated with the financial investees.

2009 ”la Caixa” Annual Report 96 2009 Financial Report of the ”la Caixa” Group

4.3. Managing the risk of balance sheet positions

Management of balance sheet the ALCO. To carry out this task, various “MINIMUM EXPOSURE TO BALANCE measures are used to evaluate the risk: interest rate risk SHEET INTEREST RATE RISK THROUGH NATURAL HEDGING AND FINANCIAL Interest rate risk, which is inherent to all I. Static gap analysis provides a breakdown MARKET HEDGING” banking activities, arises when changes of maturities and interest rate resets, at in the structure of the market yield curve a given date, of sensitive items on the affect assets and liabilities and cause them balance sheet. The sensitivity to interest sheet assets and liabilities, taking into to be renewed at rates other than those rates and the expected term to maturity, consideration scenarios of rises and falls set previously, thereby affecting their based on past experience of customer in interest rates of 150 basis points each economic value and net interest income. behaviour, are analysed for items without and distributing the rate fluctuation over This risk, also known as structural interest a contractual maturity date (e.g. demand the two years is approximately 0.25%. rate risk, is managed and controlled deposits), while taking into account the directly by management of ”la Caixa” likelihood of customers withdrawing III. The sensitivity of asset/liability values through the ALCO. the funds from these products. to interest rates measures the potential Internal models are used for the early effect on balance sheet present value in The ”la Caixa” Group manages interest repayment or termination assumptions the event of interest rate fluctuations. rate risk pursuing a twofold objective: which include behavioural variables of The sensitivity of net interest income to reduce the sensitivity of net interest customers, products, seasonality and and equity value are measures that income to interest rate fluctuations macroeconomic variables, in order to complement each other and provide an and preserve the economic value of infer the customers’ future performance. overview of structural risk which is more the balance sheet. To attain these two focused on the short and medium term, objectives, the Group actively manages II. The sensitivity of net interest income in the case of net interest income, and interest rate risk by taking out financial shows the impact upon the review of on the medium and long term in the market hedges in addition to the on-balance-sheet transactions caused case of equity value. natural hedges generated in the Group’s by changes in the yield curve. This own balance sheet as a result of the sensitivity is determined by comparing IV. VaR measures are used following the complementary nature of the sensitivity to a net interest income simulation by treasury-specific methodology (see the interest rate fluctuations of the deposits reference to various interest rate next section). and lending transactions arranged with scenarios. The most likely scenario, customers. which is arrived at using underlying V. EaR (earnings at risk) measures are used market rates, is compared against other to establish, with a given confidence The General Markets Division is scenarios of rising or falling interest level (99%), the maximum expected responsible for analysing interest rate rates and changes in the slope of the loss in net interest income for the next risk and proposing hedging transactions curve. The two-year sensitivity of net two years, considering a given level of aligned with the above objectives to interest income to sensitive on-balance- balance sheet growth.

Matrix of maturities and repricings in the sensitive balance sheet (static gap) of ”la Caixa” at 31/12/09

(Figures in millions of euros) 1 year 2 years 3 years 4 years 5 years > 5 years Assets 166,692 7,407 4,754 2,242 3,664 6,542 Mortgage collateral 114,360 576 179 133 96 506 Other guarantees 47,841 2,696 2,865 1,817 481 2,021 Money market 2,315 0 0 0 0 0 Debt securities 2,176 4,135 1,710 292 3,087 4,015 Liabilities 120,108 19,152 12,336 4,811 12,196 22,698 Customer funds 98,313 12,564 8,687 2,811 7,696 8,548 Issues 21,795 6,588 3,649 2,000 4,500 14,150 GAP 46,584 (11,745) (7,582) (2,569) (8,532) (16,156) HEDGES (37,816) 8,170 3,862 1,800 8,892 15,091 TOTAL GAP 8,768 (3,575) (3,720) (769) 360 (1,065)

2009 ”la Caixa” Annual Report 97 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.3. Managing the risk of balance sheet positions (cont.)

In keeping with current legislation, the in the present value of each of the “THE POSITIONS TAKEN ARE BASED ON ”la Caixa” Group does not consume future flows (actual or forecast) in the A MARKET SCENARIO THAT PREMIUMS capital as a result of the structural interest event of a one basis point (0.01%) LOW RISK ABOVE RETURNS” rate risk taken, due to its low balance change at all stages of the curve. sheet risk profile. Although the balance DISTRIBUTION OF THE DAILY RESULTS sheet interest rate risk taken by ”la Caixa” • For foreign currency risk, a calculation is OF THE FRONT OFFICE TRADING is substantially below levels considered performed of the change in the counter ACTIVITY IN 2009 (Frequency: number of days) significant (outliers), in keeping with the value of each of the foreign currency Millions of euros proposals of Basel II, a series of steps flows in the event of a one percent (1%) 85 continue to be taken at ”la Caixa” towards change in the exchange rate. 60 more intense monitoring and management of balance sheet interest rate risk. • For the price risk on shares or other 33 equity instruments arranged by the 32 16 Management of the market risk front office, and for commodity price 9 6 4 4 4 of treasury positions risk, a calculation is performed of 2 0

the change in the present value of the >7 <–3 0/1 1/2 2/3 3/4 4/5 5/6 6/7 –1/0 The Market Risk Control Division is position or portfolio in the event of a –3/–2 –2/–1 responsible for monitoring these risks one percent (1%) change in the price of and assessing counterparty risk and its components. the operational risk associated with the activity in the financial markets. To fulfil its • For Gràficthe volatility ”calcat” risk (interest-rate or duties, each day this division monitors the pricexifres fluctuations) picat associated with contracts traded, calculates how changes options transactions (interest-rate in the market will affect the positions caps and floors and currency or equity held (daily result of marking to market), options), a calculation is performed quantifies the market risk taken, monitors of the change in the present value of compliance with the limits and analyses each of the future flows in the event of the ratio of actual return to risk taken. volatility changes in quoted exchange rates at all stages of the curve, in As a result of its front office activities in exchange rates and/or in asset prices. financial markets, the ”la Caixa” Group is exposed to market risk due to adverse These sensitivity analyses provide changes in the following risk factors: information on the impact on the interest and exchange rates (caused by economic value of positions of a rise in the treasury positions taken), share prices, interest rates, exchange rates, prices commodity prices, inflation, volatility or volatility, but do not provide any and changes in the credit spreads on assumptions regarding the likelihood of private fixed-income positions. The two this change. most commonly used risk measures are Sensitivity and VaR (Value at Risk). In order to standardise risk measurement across the entire portfolio, and to provide Sensitivity calculates risk as the impact on certain assumptions regarding the extent the value of positions of a minor change of changes in the market risk factors, in the risk factors, as follows: the VaR methodology is employed (VaR: a statistical estimate of the potential • For interest rate and inflation risk, a losses by reference to historical data on calculation is performed of the change changes in prices), using a one-day time

2009 ”la Caixa” Annual Report 98 2009 Financial Report of the ”la Caixa” Group

horizon and a statistical confidence level Market Risk Control Division completes “AVERAGE VAR IN 2009: EUR 4.3 MILLION” of 99%. In other words, 99 times out of the quantification of market risk with 100 the actual losses sustained will be less an estimate of the losses arising from than the losses estimated under the VaR RISK OF THE FRONT OFFICE TRADING changes in the volatility of the credit ACTIVITY IN 2009 method. In 2009 the average VaR in the spread on private fixed-income positions Daily performance of VAR (in thousands of euros) front office trading activity was EUR 4.3 (Spread VaR), which constitutes an 7,000 million. The highest consumption levels, estimate of the specific risk attributable 6,000 up to a maximum of EUR 5.9 million, to securities issuers. This calculation is 5,000 were attained in October, mainly as a performed with a given stress component, 4,000 result of a slightly better positioning of assuming that the daily change in credit 3,000 the front office with regard to the market 2,000 spreads may result in a change equal to risk limits allowed, both for the purpose 1,000 that historically experienced over a one- of obtaining returns on its market 0 week time horizon (taking into account, Jan. Feb. Mar. Apr . May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. performance expectations (in particular in the yield curve and in equity securities) when doing so, the potential lower liquidity of these assets) and a confidence and as part of its assignment to invest in VaR by risk factor order to optimise the returns obtained on level of 99%. (Thousands of euros) average var residual balance sheet liquidity. 2009 At 31 December 2009, the ’’la Caixa’’ Interest Rate 2,423 Two methodologies are used to obtain Group’s exposure to structured credit, Exchange Rate 562 this measurement: which is included under “Financial Assets Share Price 524 and Liabilities Held for Trading”, is residual InflationGràfic ”calcat” 207 Text picat • The parametric VaR technique, which and is measured at market price. Commodity Price 125 is based on the statistical treatment Interest-Rate Volatility 167 Exchange-Rate Volatility 52 of parameters such as volatility and The Market VaR (arising from fluctuations Credit-Spread Volatility 2,294 matching fluctuations in the prices and in interest rates, exchange rates and the Share-Price Volatility 39 interest and exchange rates of the assets volatility of both) and the Spread VaR composing the portfolio. According are aggregated on a conservative basis, to the recommendations of the Basel assuming zero correlation between the Committee on Banking Supervision, two groups of risk factors. it is applied using two time horizons: 75 days, giving more weight to recent In the following table there is an estimate observations, and 250 days, giving equal of the average VaR amounts attributable weight to all observations. to the various risk factors. As may be noted, consumption levels are moderate • Historical VaR calculates the impact on and basically relate to yield curve the value of the current portfolio of and credit spread risks. The volatility, historical changes in the risk factors; the changes over the last 250 days are taken commodity price and inflation risk into account and, with a confidence amounts are of very marginal significance. level of 99%, VaR is taken to be the third worst impact on the value of To confirm the suitability of the risk the portfolio. estimates, daily results are compared against the losses estimated under the A drop in the credit rating of asset issuers VaR technique (backtest). As required by can also give rise to adverse changes in banking regulators, two validations are quoted market prices. Accordingly, the made of the risk estimate model:

2009 ”la Caixa” Annual Report 99 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.3. Managing the risk of balance sheet positions (cont.) a) Net backtesting, which relates the calculate the possible losses on the portfolio past situations on the value of the portion of the daily result of marking in situations of extreme stress: positions held, such as the collapse of to market for open transactions at the the Nikkei in 1990, the US debt crisis close of the previous session to the 1. Systematic stress testing: this technique and the Mexican peso crisis in 1994, estimated VaR over a time horizon of one calculates the change in value of the the 1997 Asian crisis, the 1998 Russian portfolio in the event of a specific day, calculated on the basis of the open debt crisis, the growth and collapse of series of extreme changes in the main positions at the close of the previous the technology bubble in 1999-2000, risk factors. The following factors are session. This validation is the most or the terrorist attacks that have caused appropriate means of performing a self- considered: parallel interest rate shifts (rising and falling); changes at various the most severe effects on the financial assessment of the methodology used to points of the slope of the yield curve markets over recent years, the credit quantify risk. (steepening and flattening); increased crunch of summer 2007 or the liquidity and decreased spread between the and confidence crisis triggered by the b) Gross backtesting, which involves an instruments subject to credit risk and failure of Lehman Brothers in September assessment of the total result obtained in government debt securities (bond-swap 2008. the day (therefore including any intraday spread); shifts in the euro-US dollar transactions) by comparing this result curve spread; higher and lower volatility To complete these analyses of risk under against the VaR over a time horizon of one of interest rates; the appreciation and extreme situations, the “worst-case day calculated on the basis of the open depreciation of the euro versus the dollar, scenario” is determined, which is the state transactions at the close of the previous the yen and sterling; higher and lower of the risk factors in the last year that would session. This provides an assessment of volatility of exchange rates; rising and cause the heaviest losses in the current the importance of intraday transactions in falling stock and commodity prices and, generating profit and calculating the total lastly, the increased and reduced volatility portfolio. This is followed by an analysis risk of the portfolio. of stocks and commodities. of the distribution tail, i.e. the size of the losses that would arise if the market factor Lastly, two stress testing techniques are used 2. Historical scenario analysis: this analysis movement causing the losses is calculated on the value of the treasury positions to addresses the potential impact of actual on the basis of a 99.9% confidence level.

NET BACKTESTING 2009 GROSS BACKTESTING 2009 (In thousands of euros) (In thousands of euros) 12,000 12,000 9,000 9,000 6,000 6,000 3,000 3,000 0 0 –3,000 –3,000 –6,000 –6,000 –9,000 –9,000 –12,000 –12,000 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

VaR + VaR – Income Statement VaR + VaR – Income Statement

Gràfic ”calcat” text picat

2009 ”la Caixa” Annual Report 100

2009 Financial Report of the ”la Caixa” Group

As part of the required follow-up and primarily in European countries and the BREAKDOWN OF RISK BY control of the market risks taken, United States. COUNTERPARTY RATING (%) Balance at 31/12/09 management approves a structure of 40 overall VaR and sensitivity limits for In addition, the distribution by rating 35 the front office activity. The risk factors reflects the significance of the operations 30 are managed by the General Markets with counterparties rated as investment 25 20 grade, i.e. those which the international Division on the basis of the return/risk 15 ratio determined by market conditions credit rating agencies have considered to 10 and expectations. The Market Risk be safe due to their high payment capacity. 5 0 Control Division is in charge of monitoring A AA A+ A– BBB AAA AA+ AA– The Global Risk Management Division BBB– compliance with these limits and the BBB+ Other risks taken, and generates a daily report has responsibility for integrating those on position, risk quantification and the risks within the Group’s overall exposure utilisation of risk limits which is distributed management framework, although the specific responsibility for managing to management, front office executives and monitoring the exposure to the and the internal audit division. counterparty risk arising from the front collections and payments between the office activity lies with the Risk Analysis Therefore, the market risk of the parties for all the transactions covered by and Approval Division, which prepares the ”la Caixa” Group’s treasury positions proposalsGràfic for ”calcat” approval of risk lines and these contracts. is managed in accordance with the monitorstext picat the use of such lines. Distribució de risc per rating methodology and monitoring guidelines ContrapartidaThe ”la Caixa” (en%) Group has entered proposed by Basel II. situació a 31-12-08 The ”la Caixa” Group controls into collateral agreements with most counterparty risk by means of an counterparties which act as security Control of the risks taken in financial integrated, real-time system which for the market value of the derivatives market operations must be supplemented provides knowledge of the limit available transactions. A collateral agreement is an by a calculation and monitoring of to any counterparties, by product and agreement whereby two parties undertake the losses that could arise as a result term, at all times. The risk is measured to deliver an asset to each other as security of default by the counterparty due with reference to both present market for the net credit risk position arising from to insolvency or inability to meet the value and future exposure (value of the the derivatives traded between the parties, payment obligations. risk positions taking into account future on the basis of a prior close-out netting changes in the market factors underlying agreement included in the clauses of ISDA The maximum authorised exposure the transactions). or CMOF contracts. to credit risk with a counterparty is determined on the basis of a calculation, Furthermore, the Risk Analysis and In order to ensure that the collateral approved by management, which is based Approval Division, together with the Legal agreements are effective, the market primarily on ratings for the entities and on Advisory Division, as part of monitoring value of the collateralised transactions and the analysis of their financial statements. the credit risks taken by the market the deposits made by the counterparties operations, actively manage and monitor are monitored on a daily basis. Most of The exposure of the ’’la Caixa’’ Group the adequacy of the related supporting the collaterals received are cash and, vis-à-vis credit institutions (excluding contractual documentation. Hence, accordingly, there is no risk of adverse the balance with the Bank of Spain) virtually all the risks taken in connection effects due to correlation between the amounted to EUR 11,479 million at 31 with derivative instruments are covered collateral and the collateralised portfolio. December 2009. Nearly all the exposures by ISDA and/or CMOF standardised The collateralisation percentage of the arising from front office activities are contracts, which provide for the possibility ”la Caixa” derivatives with financial undertaken with counterparties based of offsetting the flows of outstanding institutions exceeds 97%.

2009 ”la Caixa” Annual Report 101 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.4. Managing liquidity risk

The ”la Caixa” Group keeps with sufficient liquidity levels to cope “active management of the balance successfully with the crisis situations excellent liquidity levels with sheet to guarantee adequate careful monitoring of natural considered. These analyses are used to levels of liquidity and stable hedging on the balance sheet and prepare the Liquidity Risk Contingency and diversified financing sources” active management of financing Plan which contains an action plan for sources. each of the crisis scenarios established (systemic, specific and combined) and (Millions of euros) gives details on measures to be taken The Balance Sheet Risk Analysis Division, Total 21,208 which reports to the General Markets on a commercial, institutional and Liquidity 10,166 Division, is in charge of analysing liquidity communications level to deal with this ECB risk. type of situation. The Plan also includes facility the possibility of using a series of spare 11,042 7.8% The ”la Caixa” Group manages liquidity reserves or extraordinary financing of Group assets risk so as to ensure that it is always able sources. On-balance-sheet to meet its obligations on a timely basis liquidity and never see its investment activities The ALCO monitors medium-term liquid 2009 suffer from a lack of lendable funds. This assets on a monthly basis by analysing objective is achieved by actively managing forecast time lags in the balance sheet liquid assets, through ongoing monitoring structure and verifies compliance with of the balance sheet structure, on the the limits and operating lines of action basis of due dates and early detection approved by the Board of Directors. The of potentially undesirable structures of ALCO makes proposalsGràfic “calcat” to the Board short- and medium-term liquid assets, of Directors on theTextos optimum picats issues or while adopting a strategy that stabilises financing or investment programmes financing sources. to suit market conditions and the instruments and terms needed to support Also, ”la Caixa” has a Liquidity Risk the growth of the business. The ALCO Contingency Plan, in which analyses periodically monitors a series of indicators are made under both ordinary market and warnings in order to anticipate a conditions and crisis situations, and in liquidity crisis and take the corrective which various systemic and combined measures, as laid down in the Liquidity crisis scenarios are considered, entailing Risk Contingency Plan. In addition, a various loss given default assumptions in monthly analysis is performed of the terms of reduced liquidity. Five categories potential liquidity levels under each of the of crisis scenario are analysed: three hypothetical crisis scenarios. systemic crisis scenarios (macroeconomic crisis, upsets in the capital markets and Short-term liquid assets are managed alterations in payment systems), a specific to ensure that liquid assets are available crisis scenario (reputational crisis) and a on the balance sheet at all times, i.e. combined crisis scenario considered as a minimising the structural liquidity risk “worst-case scenario.” These scenarios inherent to the banking business. To assist address various timeframes and loss given with this management process, a daily default levels based on the nature and breakdown of liquid assets by due dates is depth of the crisis analysed. For each of made available by preparing projections of 21.208 the crisis scenarios, “survival” periods future flows, which provides information are calculated (defined as the ability to on the time structure of liquid assets at all fulfil acquired commitments), together times. 7,8 Ac tiu del Gr up

2009 2009 ”la Caixa” Annual Report 102 2009 Financial Report of the ”la Caixa” Group

As part of this approach to managing Framework Programme, which ensures high levels of liquid assets can be made liquidity risk, so that it can anticipate the availability of long-term funds. The available at short notice (ECB facility), potential needs for lendable funds, the principal amount of this issue is EUR currently standing at EUR 10,166 ”la Caixa” Group has a variety of ordinary 25,000 million, of which EUR 24,125 million. financing programmes that cover the million were available at 31 December various maturity periods to ensure that it 2009. In short, the ”la Caixa” Group takes has adequate liquidity levels at all times: advantage of the existing mechanisms • In addition, as a prudent measure to on financial markets to ensure that it has • The Note Programme, with a principal prepare for potential stress on liquid adequate levels of liquid assets to meet amount of EUR 12,000 million, provides assets or market crises, i.e. to cope its strategic objectives, while taking into access to short-term funds. with the contingent liquidity risk, the account a balanced distribution of the ”la Caixa” Group has placed a series of maturity dates of issue, thereby avoiding • Renewal and extension of the guarantee deposits with the European concentration and diversifying the Simple Fixed-Income Securities Issue Central Bank (ECB) through which financial instruments.

OUTLINE OF LIQUIDITY RISK MANAGEMENT

There is a continuum of possible situations involving the need for liquidity in the activities of ”la Caixa”

– Severity Daily Minor systemic Serious reputational operations crisis and systemic crisis + Severity

Serious systemic + Probability Seasonality Serious – Probability of occurrence crisis reputational crisis of occurrence

ORDINARY CONDITIONS SYSTEMIC CRISIS SPECIFIC CRISIS Combined crisis PROBABILISTIC DISTRIBUTION OF THE SEVERITY OF LIQUIDITY RISK: Three severity or stress levels

SCENARIOS LIQUIDITY SOURCE RISK OF FUNDS + Serious or very serious crisis SPECIFIC CONTINGENT ECB FACILITY Minor or OR SYSTEMIC RISK + SPARE RESERVES

Severity moderate crisis CRISIS

–

ORDINARY STRUCTURAL ORDINARY Ordinary conditions CONDITIONS RISK FINANCING Likelihood – +

2009 ”la Caixa” Annual Report 103

Crisi greu o molt greu

Crisi lleu o moderada

- Normalitat

- Probabili tat 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.5. Managing operational risk

Operational risk management The ’’la Caixa’’ Group is also developing “MINIMISE THE OPERATIONAL RISK a strategic project, promoted by is based on specially qualified INHERENT TO ALL BUSINESS ACTIVITIES personnel, and the procedures, management and in keeping with Bank of BY MONITORING THE MAIN RISKS UNDER systems and controls in place. Spain proposals and regulations, for the QUALITATIVE AND QUANTITATIVE implementation of a single comprehensive TECHNIQUES” Operational risk includes all the events operational risk measurement and that could give rise to a loss caused control model at the ’’la Caixa’’ Group. OPERATIONAL RISK MANAGEMENT MODEL by shortcomings in internal processes, Management at Group level covers all AT THE ”LA CAIXA” GROUP human error, malfunctioning of the companies included in the scope of Management Identification information systems and/or external application of Bank of Spain Solvency events. This risk is inherent to all business Circular 3/2008. activities and, although it can never be wholly eliminated, it can be managed, The ’’la Caixa’’ Group applies the standard mitigated and, in some cases, insured. method to calculate the regulatory capital for operational risk, in order to progress Operational risk has become increasingly towards the advanced model to be used Assessment important as a result of the greater once the data available on operational dependence of the banking business losses covers a minimum period of five on such factors as the intensive use of years and when authorised by the Bank “DISTRIBUTION OF OPERATIONAL RISK information technology, outsourcing and of Spain. In this regard, ”la Caixa” has EVENTS AT THE ”LA CAIXA” GROUP IN complex financial instruments. an “Operational Risk Management 2009 BY TYPE OF RISK” Framework” which defines the Group’s Management of this risk takes place operational risk objectives, policies, 0.7% 1.7% at the highest level. Management and management model and assessment 9.8% methods. It also establishes the gradual the Global Risk Committee define the 36.9% strategic lines of action and monitor the progression from the standard operational 24.7% operational risk profile, the main loss risk measurement model to the adoption events and the actions taken to mitigate of an advanced measurement approach them. (AMA).

There are two main lines of action: The ”la Caixa” Group’s overall objective 9.1% 17.1% training employees so that they have the is to improve the quality of business skills and information required to carry out management based on information on Process perfomance, Practices with delivery and customers their functions and systematic recurring operational risks, aiding decision-making management reviews of the business and operating to ensure the long-term continuity of the Internal fraud External fraud processes, putting improvements and organisation and improving processes and Impairment of tangible System new controls in place. In addition, where the quality of customer service, while also assets failures necessary, ”la Caixa” transfers the risk complying with the established regulatory Labour relations and to third parties by taking out insurance framework and optimising capital safety at work policies. consumption.

2009 ”la Caixa” Annual Report 104

2009 Financial Report of the ”la Caixa” Group

The organisational model is based on the The operational risk management model while anticipating potential causes of risk following: and policies establish an ongoing process and mitigating their economic impact. based on the following: • Business and support divisions and In 2009 a process was begun by the subsidiaries: responsible for the • Identification and detection of all current process experts to streamline and simplify identification, assessment, management, and potential operational risks, based the risk self-assessment system. This project control and reporting on the operational on qualitative techniques (the opinion began to be applied to pilot business areas risks relating to their activities. of process experts and risk indicators) and will be extended to the other areas and procedures for the management and subsidiaries in 2010. In addition, in • Operational Risk Unit: responsible for of operational risks, in order to define 2009 the implementation began of key the definition, implementation and the ”la Caixa” Group’s operational risk risk indicators (KRIs) to supplement the standardisation of the operational profile. qualitative and quantitative information on risk management, measurement and operational risks and help determine the control model at the ”la Caixa” Group. • Quantitative assessment of operational ”la Caixa” Group’s operational risk profile. It provides support to the divisions risk based on actual data on losses and subsidiaries and consolidates the recorded on the database of operational Progress also continued to be made information for management reporting events. in building the “operational events purposes. It forms part of the Credit Risk database” and recognising and Methodology and Models Division within • Active management of the Group’s monitoring operational losses, especially the Global Risk Management Division. risk profile, which implies establishing those classified as significant (operational a reporting model at all levels of the events with the biggest economic impact), • Internal Audit Division: responsible organisation to assist with decision- to be used, together with the qualitative for supervising compliance with making aimed at mitigating the risk information, for proactive operational the Management Framework and (setting up new controls, developing risk management, so as to anticipate implementation of established business continuity plans, reengineering the possible causes of risk and reduce operational risk assessment, control and processes, taking out insurance against its financial impact, with the resulting management procedures. potential contingencies and others), adjustment of capital requirements.

EVENT CAPTURE PROCESS

Manual input of significant operational events Loss events database Automatic collection of recurring loss events

Accounting reconciliation / identification process Accounting records

2009 ”la Caixa” Annual Report 105 2009 Financial Report of the ”la Caixa” Group 4. Active risk management

4.6. Regulatory compliance risk management

The regulatory compliance policy of the which may be suffered by the ”la Caixa” COMPLIANCE REPORTS ”la Caixa” is based on the principles Group upon violation of laws, regulations, Regulations reviewed: 22 of integrity and ethical conduct, which regulatory standards or codes of conduct. Compliance obligations analysed: 29 form the cornerstones of the ”la Caixa” Business divisions/Head Office Group’s activities. In addition, following This mission involves carrying out a series contacted: 15 transposal into Spanish law of the of activities including most notably: Markets in Financial Instruments Directive creating, disseminating and implementing (MiFID), the regulatory compliance a compliance culture at all levels of function appears as a legal requirement the ”la Caixa” Group; advising senior It should be noted that the regulatory for financial institutions in the following management on regulatory compliance compliance function is universal in nature legislation: issues, preparing and/or promoting and includes all of the business activities of internal standards and codes or, where the ”la Caixa” Group. • Securities Market Law 47/2007, of 19 necessary, improving them; and defining December, amending Law 24/1988, of effective procedures and proposing Internal Rules of Conduct 28 July. appropriate controls. In this regard, any Gràfic “calcat” of the Securities Market risk of noncomplianceTextos picats must be detected • Royal Decree 216/2008, of 15 February, and, where necessary, proposals for In October 2008 the Board of Directors on capital of financial institutions. improvement drawn up and monitored, approved a new version of the Internal and any potential deficiencies with respect Rules of Conduct (IRC) of the Securities • RD 217/2008, of 16 February, on to professional ethics must be examined. Market to bring them into line with the investment services companies. latest changes in legislation and, in this To attain these objectives, the respect, various activities were carried out The mission of the regulatory Regulatory Compliance Division issues in 2009 to comply with the code: compliance function regulatory compliance reports, monitors improvements and carries out the activities • Additions were made to the contents The mission of the ”la Caixa” Group’s set out in the Internal Rules of Conduct of of the dedicated intranet website on regulatory compliance function is geared the Securities Market. regulatory compliance which contains towards managing the risk of penalties information on the rules and codes imposed by laws or regulations and These improvements are monitored on of conduct of ”la Caixa” and on all financial, material or reputational losses a monthly basis until their resolution. activities carried out in the area of regulatory compliance and other issues IMPROVEMENT MEASURES of interest to all employees.

80 • The Inventory of Separate Divisions 70 (departments or work groups which, due to the nature of their duties, may 60 have access to privileged information) 50 was updated and periodical tests carried 40 out on the functioning of their barriers 30 (physical and logical) to prevent undue 20 transfer of privileged information. 10 0 Integrity Securities Customer Money-laundering Corporate Other market products prevention governance and services and personal data and capital protection adequacy

Pending legal/administrative definition Not yet started Under examination Planned In progress Completed

2009 ”la Caixa” Annual Report 106 2009 Financial Report of the ”la Caixa” Group

5. High financial strength 5.1. Excellent liquidity levels

The Group’s excellent liquidity comfortably exceeding the objective “MAINTAIN HIGH LIQUIDITY LEVELS” position enables it, with prudent set in the 2007-2010 Strategic Plan of management, to guarantee maintaining a minimum level of 5%. the growth of the business and (Millions of euros) Total 21,208 respond to customers’ credit Liabilities to customers account for 70% Liquidity 10,166 needs. of the Group’s sources of financing, providing it with considerable stability ECB Conservative proactive management of facility and reflecting our customers’ trust in us, 11,042 liquidity levels has always been one of the 7.8% deposits from credit institutions account of Group distinguishing features of the ”la Caixa” assets for 11% and institutional issues for the On-balance-sheet Group, enabling it to ensure the growth remaining 19%. liquidity of the Group’s business and respond 2009 to its customers’ credit requirements. In addition, dependence on international Prudent liquidity management, coupled institutional markets is very limited since with the objective of maximising returns, ”la Caixa” actively manages the issues, DIVERSIFIED THIRD-PARTY FINANCING is the reason behind the increase in the SOURCES distributing maturities and avoiding investments in assets with the highest At 31 December 2009 significant concentrations in particular solvency, which may be turned into cash 11% years. Proof of this are the maturities immediately, while also reducing exposure Gràfic “calcat” 19% scheduled for 2010Textos and picats 2011, totalling in the interbank markets. EUR 2,810 million and EUR 7,118 million, The ”la Caixa” Group maintained very respectively. Therefore, in 2009, in the 70% high liquidity levels in 2009, to reach EUR context of a global financial crisis and a 21,208 million at 31 December, including climate characterised by a general lack the credit facility with the European Central of confidence, the ”la Caixa” Group Bank amounting to EUR 10,166 million. demonstrated its considerable capacity to attract the interest of domestic and Liabilities to customers Institutional issues Total liquidity accounts for 7.8% of international investors, obtaining up to Deposits from credit institutions the ”la Caixa” Group’s total assets, EUR 4,604 million on the capital markets.

Gràfic refet, dades picades Textos picats

21.208

7,8 Ac tiu del Gr up

2009

2009 ”la Caixa” Annual Report 107 2009 Financial Report of the ”la Caixa” Group 5. High financial strength

5.2. Excellent capital adequacy levels

The ”la Caixa” Group’s high reduction of 54% and of 93% in the “KEEP CAPITAL AT A LEVEL ENSURING memorandum items. solvency SUSTAINABLE GROWTH”

The own funds attributable to the In 2009 risk-weighted assets (BIS II) OWN FUNDS Group amounted to EUR 16,696 million, increased by 9.0%. (Millions of euros) 16,696 up 6.9% on 2008. The balance was 15,619 14,418 increased in 2009 as a result of the profit The required minimum capital level is attributable to the Group (EUR 1,510 calculated by reference to credit and 10,769 million) and reduced mainly by the counterparty risk, currency risk, the portion of 2008 profit allocated to risk associated with financial assets Welfare Projects. In addition, the Gràficand ”generat”liabilities held for trading, the risk ”la Caixa” Group’s equity, which includes Textosassociated picats with the investee portfolio and attributable own funds, non-controlling operational risk. Practically all the Group’s 06 07 08 09 interests and valuation adjustments, capital requirements are to cover credit amounted to EUR 21,403 million at and counterparty risk. 31 December 2009, up 13.02% on WEIGHTED RISK AT 31/12/2009 December 2008, due to the positive Basel II 100% 100% performance of the markets which is 20000 reflected in an increase in the valuation The application of the Basel II Accord, adjustments. transposed to Spanish legislation by 15000 Bank of Spain Circular 3/2008, has The ”la Caixa” Group’s eligible capital had a significant positive effect on the 46% at 31 December 2009, calculated management of the ”la Caixa” Group’s 10000 in accordance with the guidelines capital adequacy levels. The regulations 7% established by Bank of Spain Circular are structured around three pillars. On-balance-sheet5000 assets Memorandum items 3/2008, of 22 May, in addition to own Risk-weighted Risk reduction funds (less the contribution to be made to With respect to Pillar 1, minimum capital assets0 and resulting from Welfare Projects in 2009), includes other requirements, the ”la Caixa” Group has memorandum items weighting items such as non-controlling interests been applying internal models to calculate (EUR 2,392 million), preference shares market risk since December 2007 (EUR 4,898 million) and subordinated and, with respect to credit risk, to the debentures (EUR 3,195 million), subject main asset categoriesGràfic “calcat” since June 2008, to the limits set forth in the Circular. following the requiredTextos picats authorisations by 16.696 However, eligible capital excludes the Bank of Spain. The ”la Caixa” Group 15.619 intangible assets, consolidation goodwill, continues to strengthen its risk and 14.418 significant investments in unconsolidated capital adequacy management processes 10.769 financial institutions and insurance and tools (see section 4. Active risk entities, as well as any excess amounts management). in qualified investments in non-financial entities. In accordance with the guidelines of Pillar 100% 100% 2, the supervisory review process, the Risk-weighted on-balance-sheet ”la Caixa” Group has designed a capital assets fell considerably with self-assessment process which aims to ensure an appropriate relationship respect to total assets. 46%06 07 08 09 between its capital and its risk profile. At 31 December 2009, after each balance The results of the capital self-assessment 7% sheet item had been weighted according process are included in a capital self- Actius Comptes d'ordre to its exposure to risk pursuant to Basel assessment report each year. The first II, the figures showed an estimated total official capital self-assessment report, Reducció del risc per l'efecte de la ponderació Actius i Comptes d'ordre ponderats pel seu grau de ris

2009 ”la Caixa” Annual Report 108 2009 Financial Report of the ”la Caixa” Group

compiled in the first quarter of 2009, The ”la Caixa” Group’s eligible capital CAPITAL RATIO (BIS II RATIO) confirmed the ”la Caixa” Group’s totalled EUR 17,251 million at 31 high level of capital adequacy, both in December 2009, which gives a capital 11.0% regulatory and economic terms. ratio of 11.0%, with an estimated excess 10.4% of EUR 4,667 million over and above the 8.7% As regards Pillar 3: market discipline, from minimum capital requirement of 8%. 2008 on, the ”la Caixa” Group publishes the document entitled “Information of In order to strengthen its high capital Prudential Relevance”, which contains adequacy level and maintain its position information on capital, exposures to risk 09 among the best in the industry, the and risk assessment processes at the Core capital Tier 1 Tier 2 ”la Caixa” Group launched two issues in ”la Caixa” Group, and aims to provide the first half of 2009, one totalling EUR market players with an assessment of the 2,500 million of subordinated debt and Group’s capital adequacy. another EUR 1,898 million of preference “SURPLUS CAPITAL: EUR 4,667 MILLION” Self-financing of organic growth shares. This will make it possible to undertake the future business growth CORE CAPITAL IN 2009 (%) Core capital at 8.7%. strategy while keeping the Group’s capital adequacy at appropriate levels. 8.8 8.8 (0.1) 8.7 Core capital (capital and reserves, net of goodwill and other intangible assets) The performance of eligible capital Self-financing stood at EUR 13,735 million, with a throughout 2009 enabled the self- ratio of 8.7%. Tier 1 capital totalled EUR financing of the additional core capital 16,349 million, representing 10.4% of requirements arising from the ”la Caixa” Equity Organic securities portfolio risk-weighted assets. Group’s recurring business. growth purchases Dec. 2008 Subtotal Dec. 2009

Capital adequacy - BIS II Ratio

(Amounts in millions of euros) 31/12/2009 31/12/2008 CHANGE

Core capital 13,7358,8 12,6648,8 (0,1)8.5% 8,7 Ratio 8.7% 8.8% (0.1)

Preference shares 4,898 Auto 3,000 Tier 1 capital 16,349 finançament14,618 11.8% Ratio 10.4% 10.1% 0.3 Tier 2 capital 902 Creixement1,184 ororggànic Total eligible capital 17,251 15,802 9.2% BIS Ratio 11.0% 11.0% 11,0% Minimum capital requirement (8% ratio) 12,584Des. 2008 11,542Subtotal Des. 2009 Surplus capital 4,667 4,260 Ratio 3.0% 3.0% Risk-weighted assets 157,300 144,27210,4% 9.0% Tier 2 Tier 1 Core capital 8,7%

09

2009 ”la Caixa” Annual Report 109 8,8 8,8 (0,1) 8,7

Auto finançament

Creixement Compres orgànic cartera r. variable

Des. 2008 Subtotal Des. 2009 2009 Financial Report of the ”la Caixa” Group 5. High financial strength

5.3. ”la Caixa” Group ratings in the aa range

Following confirmation in 2009 of the credit rating. Lastly, in April 2009, Fitch “THE AGENCIES CONFIRMED THE ”la Caixa” Group’s credit ratings in confirmed the “AA–/F1+” long- and very good RATINGS OF ”la Caixa” IN the AA range, the Institution is one of short-term credit rating. THE AA RANGE IN 2009” the only three Spanish financial groups to be rated in the AA range, denoting The agencies rate very highly the SHORT LONG its very high creditworthiness, from the success of the Group’s strategy and its TERM TERM OUTLOOK three agencies. sound management, and particularly Standard & Poor’s A1+ AA– Negative emphasise its commercial strength In this regard, in September 2009 due to the excellent positioning of Moody’s P1 Aa2 Negative Standard&Poor’s confirmed the ”la Caixa” in Spain, which secure the Fitch F1+ AA– Negative “AA–/A–1+” long- and short-term credit good performance of the banking rating. In addition, as part of the review business. The quality of the Institution’s conducted of the Spanish financial assets and its financial strengths, system’s ratings in June 2009, Moody’s together with the high liquidity and revised the ”la Caixa” Group’s long- capital adequacy levels, are highlighted term credit rating to “Aa2” from “Aa1” by the agencies as fundamental factors and confirmed the “P1” short-term explaining the Group’s very good ratings.

2009 ”la Caixa” Annual Report 110

Report on ”la Caixa” Corporate Responsibility Executive Summary

1. Our values, our continuing commitment 2. ”la Caixa” with entrepreneurs 3. Trust 4. Excellence in service 5. Social Commitment

This section is the summary of the 2009 ”la Caixa” Corporate Responsibility Report. The full version can be consulted on www.laCaixa.es/corporateresponsibility, where you will find more detailed information on the subjects tackled, the advances made and the Entity’s commitments for the future in questions of Corporate Responsibility. 1. Our values, our continuing commitment

1. Our values, our continuing commitment

Trust, social commitment and situation. Along these lines, last year’s main million euros and focused on social and excellence in service are the values lines of action were: care programmes. that have inspired the operations • To give financial support to private The commitment of ”la Caixa” to its of ”la Caixa” since its beginnings. individuals, the self-employed and stakeholders (customers, employees and This is why, even though 2009 companies, placing special attention on society) has led it to set up consultation was a difficult year, the Entity has entrepreneurs’ innovatory initiatives, mechanisms to discover their expectations continued to bet on people and through MicroBank, Caixa Capital Risc and give them a proper response. their projects and continues to and other channels. As a result of this dialogue, the themes be committed to the advance of • To help private customers who were to which ”la Caixa” and its stakeholders society. having short-term problems in paying have given greatest priority and which their mortgages. are reported in its 2009 Corporate In 2009, ”la Caixa” combined the • To maintain jobs. Responsibility Report are the following: development of its financial operations with its social action, to contribute to • To contribute to the advance of society overcoming the current adverse economic through ”la Caixa” Welfare Projects, which maintained its budget of 500

Maturity of the theme Latent Being consolidated Integrated into ”la Caixa” strategy Ecological footprint Financial responses to the crisis Impact of Welfare Projects Commitment to the community Very Important Environment management Customer satisfaction Importance Financial inclusion for stakeholders Establishment and Life/Work Balance communication of Commitment to maintaining jobs objectives and challenges Equality of opportunities Important Transparency of information Corporate volunteer work

Financial Education (*) Socially responsible Growing investment

Relevant themes relating to customers. Relevant themes relating to employees. (*) To be developed in the future. Relevant themes relating to society. Relevant themes relating to the environment.

2009 ”la Caixa” Annual Report 114 2. ”la Caixa” with entrepreneurs

2. ”la Caixa” with entrepreneurs MicroBank, the social bank of ”la Caixa”, responding to the needs of entrepreneurs, families and social organisations

• In 2009, 4,131 business microloans were Supporting the country’s business “The idea was born in the need I had fabric and the people who want granted. for someone to come and look after my to set up their own business • MicroBank responds to people’s needs, two dogs at home. Internet led me to and make it grow, is one of the MicroBank, to whom I put forward a helping them to overcome short-term viable project. It is very important that challenges of ”la Caixa”, especially family difficulties or to develop personally. the security on the loan is your project. in a period marked by economic In 2009, 27,877 microloans for these With the 15,000-euro microloan and some recession. purposes were granted. small savings, I was able to set up Cangur. There we offer a full service for pets, • During 2009 a credit line was created to which includes service at home. I began Many people have managed to start their attend to the needs of disabled people on my own, but now there are two of us business careers thanks to the microloans: and their families. full-time. In addition, we donate 0.7% of loans thought up for entrepreneurs who our profits to entities working for animal welfare.” want to develop a personal or professional • 417 entities throughout Spain work together with MicroBank to help project, but have no resources of their own Montse Nzang, biologist. and cannot easily obtain traditional credit. concretise and develop business ideas. • MicroBank makes available to social Montse Nzang’s case is an example of entities products and services that enable the 32,008 microloans that, to a volume them to develop their work in a more of 176.8 million euros, MicroBank has agile and comfortable way, such as to financed. pay in advance invoices pending from the State or Autonomous Communities. More on MicroBank

• Microloans for the self-employed and small business-people have contributed to creating over 16,000 jobs. 6 out of every 7 businesses financed by MicroBank are successful and a fifth of them have had to take on more staff.

MICROBANK INVESTMENT NUMBER OF MICROLOANS GRANTED (Millions of euros) 176.8 32,008 THE CHALLENGE: 137.1 ”LA CAIXA” PLANS TO ACHIEVE IN 20,641 THE 2009-2010 PERIOD: 85,000 MICROLOANS 100,000 CUSTOMERS 33.7 3,099 350 MILLION EUROS INVESTMENT

07 08 09 07 08 09

For further information: www.microbanklacaixa.com

2009 ”la Caixa” Annual Report 115 2. ”la Caixa” with entrepreneurs

We bet on innovation and entrepreneurs

Converting ideas into business of private investors, such as the Keiretsu projects is one of the aims of Forum. ”la Caixa”, not only through the • ”la Caixa”, through its 900 branches financing of business initiatives, in rural areas, accompanies rural but also through the training and entrepreneurs, thanks to whom the quality consciousness-raising of future of life of these areas is improved by the business-people. creation of new services and infrastructure. The Entity provided them with access to For many entrepreneurs, the backing from financing to the amount of 4,600 million ”la Caixa” is a determining factor in their euros. being able to carry out their projects. As SAGETIS won the BioEmprendedorXXI well as obtaining finance and recognition programme, contest in which 18 projects of a good business plan, they are able to were entered. draw on the experience of ”la Caixa”.

• During 2009, through Caixa Capital Risc, ”la Caixa” invested 3.6 million euros in various innovative Spanish projects

belonging to emerging sectors such as ICT “Winning the prize has given an injection or biotechnology. of self-esteem to all of us involved in the project. At the same time it gives us the • The EmprendedorXXI programme trains THE CHALLENGE: TO SUPPORT NEW RURAL INITIATIVES. chance to receive financing in a simpler future business people and organises way, in order to turn the company we had activities to raise entrepreneurs’ awareness TO INCREASE PARTICIPATION IN THE imagined into reality.” of their social function. In addition, it assists EMPRENDEDORXXI PRIZE Salvador Borros Gómez, SAGETIS. the financing of projects through networks

Financial responses for companies and support for their international deployment

Companies need access to credit • ”la Caixa” has 11 representative offices • It renewed its collaboration with the lines and other products that in Europe, Africa and Asia. 2009 saw CEOE and the CEPYME for the granting enable them to finance their sales, the opening of offices in Istanbul, of loans under the best possible reach new markets and develop Casablanca and Shanghai. conditions. their businesses. • ”la Caixa” places at the disposal of companies 2 corporate banking offices ”la Caixa” continues to construct an and 80 business centres. agile, effective and friendly structure that • It collaborates with the ICO (Official can adapt to the needs of every kind of THE CHALLENGE: Credit Institute) and the European company and to help Spanish businesses TO OPEN NEW COMMERCIAL OFFICES Investment Bank to offer financing under with their international expansion plans IN 2010 IN DELHI, ALGIERS AND company-friendly conditions. through its network of overseas branches. DUBAI.

For further information: www.emprendedorxxi.com / www.caixacapitalrisc.es

2009 ”la Caixa” Annual Report 116 3. Trust

3. Trust Solid results

The trust of the customers of • For yet another year, the international ”la Caixa” has been constructed agencies that measure financial bodies’ THE CHALLENGE: since its beginnings on the basis solvency awarded ”la Caixa” a high TO KEEP ”LA CAIXA” AT THE TOP OF of its solvency and a prudent rating (in the AA range). THE SPANISH SYSTEM’S FINANCIAL ENTITIES IN TERMS OF ITS SOLVENCY risks policy that guarantees all • ”la Caixa” maintained a good level of AND LIQUIDITY. operations to the maximum. liquidity (7.8% of assets) thanks to its prudent management, based on the ”la Caixa” is one of the most solvent following of good practices. entities in the Spanish and European • The portfolio of customer loans increased financial system. by 1,603 million euros, with over 1,084 million operations and 104,045 million euros of risk on loans extended.

Ethics and transparency in its sales activity

The relations of ”la Caixa” with respect for people and cultures, personal Money Laundering investigated its customers are sustained on and social responsibility and team-work. 685 operations. the basis of business ethics and • It maintains its commitment to • It safeguards strict compliance with the transparency in sales activity. transparency in its commercial protection of the confidentiality of its communications, with an internal code customers’ data, in business conducted • It approved a new Code of Ethical Values that goes beyond the legal regulations. through both branches and other and Operating Principles, based on its It also takes part in the Association channels. corporate values, which it wants to be for the Self-Regulation of Commercial a public commitment of ”la Caixa” to Communication (AUTOCONTROL). its surroundings. The Code promotes • It reinforced its systems for the THE CHALLENGE: principles such as integrity, confidentiality, prevention of money laundering and TO APPLY AND SPREAD service to customers, transparency, the financing of organised crime. The THE ETHICAL CODE. Operative Unit for the Prevention of

For further information: consult the new ethical code at www.laCaixa.es/corporateresponsibility

2009 ”la Caixa” Annual Report 117 4. Excellence in service

4. Excellence in service We contribute solutions to the crisis

In the current economic climate, • Credit Line of Mortgage Moratorium • ICO lines (such as ICO-liquidity for SMEs, ”la Caixa” has created new from the ICO for deferring repayments of ICO-Moratoria for SMEs and the Business products and services to help its the self-employed and private individuals Development Plan), so that its self- private and business customers with substantial reductions in income, employed and SME customers can gain to overcome any economic with over 2,200 families benefited. access to this finance and stimulate their operations (16,278 loans to a total value difficulties. • Financing through loans against security of 773.7 million euros). in kind (Monte de Piedad). The value of • Aid Plan for people with a mortgage on the pledges deposited marks the amount their home, designed for families that of the loan, which is granted at once have historically behaved well, in financial at one year’s term. If necessary, terms, towards the entity and who have ”la Caixa” offers facilities to renew the THE CHALLENGE: now seen their income reduced due to loan for a further year. In 2009, the loans TO STRENGTHEN THE ROLE OF temporary circumstances. Under the on pledges increased by 8.5%. ”LA CAIXA” AS A LEADING ENTITY Plan, over 53,500 families benefited IN FINANCING SMES AND from postponements in repayments or THE SELF-EMPLOYED. reductions in them.

We support social organisations

”la Caixa” supports the “third • MicroBank developed in 2009 a range of sector” not only through its specific products and services for these THE CHALLENGE: Welfare Projects, but also in its organisations. TO CONVERT ”LA CAIXA” INTO A REFERENCE FOR SOCIAL day-to-day operations. • The collaboration of its customers ORGANISATIONS. through the Estrella Points programme, Years ago, ”la Caixa” eliminated the which allows customers to donate the charging of commissions on transfers that value of points to social projects or donated money to the accounts of these exchange them for Fair Trade products. organisations. In 2009, this exemption reached approximately 300,000 euros. • The creation of financial products in favour of social and environmental causes such as the Solidarity Estrella Deposit Account.

For further information: www.microbanklacaixa.com

2009 ”la Caixa” Annual Report 118 4. Excellence in service

We listen to our customers and give them replies

• In the first half-year of 2009, the number ”la Caixa” is highly demanding “Giving customers good service involves with itself in seeking to satisfy its of complaints received increased, though improving every day, being attentive to customers. It bases its relationship in the second six months this trend their needs and searching for new ways with them on trust, close contact reversed. The overall increase over 2008 to sort out problems. For this reason, was about 60%. Despite this, ”la Caixa” and after discussing with several business and personal attention. customers the various possibilities of the is one of the entities with the fewest on-line correspondence service, I thought complaints received, in proportion with The evaluation of customer satisfaction it would be a good option to group all its business volume, according to the enables improvements to be added all the their receipts in just one pdf, to facilitate latest data available from the Bank of control of them and reduce consumption time, both in products on offer and in the Spain. of paper. I put forward the proposal and service provided. Just as ”la Caixa” is in this option was included in the service.” close contact with its customers to get to • Last year, objective indicators to measure know their concerns, it also responds to quality were added. These complement Sergio Villegas Jiménez, Manager, Branch 1446 Quevedo (Madrid). their suggestions and demands. the habitual indicators of perception of customer satisfaction. These indicators Permanent monitoring of customers’ are based on measurements of various views is the basis of its plans of ongoing operating parameters. Examples of this improvement. kind of indicator are the time taken to replace a card or the non-availability of Quality and customer service certain services.

• In 2009, ”la Caixa” obtained the Madrid Excelente Prize for customer trust. • Various internal and external studies indicate that ”la Caixa” maintains consistently a level of service quality above the average in the sector.

THE CHALLENGE: TO REDUCE THE NUMBER OF CUSTOMER COMPLAINTS BY 15%.

2009 ”la Caixa” Annual Report 119 4. Excellence in service

We promote innovation and access to financial services

For ”la Caixa”, innovation is • Multiple channels: branches, self-service “From the Cards division, we work turning ideas into value for its terminals, mobiles (CaixaMóvil) and constantly to create new forms of customers, which includes offering Línea Abierta (Internet, phone and digital payment that are comfortable for our services that become more and television). customers. Thinking of professionals and the self-employed who do work at home, more accessible. • Adaptation of the websites, branches such as repairs of electrical appliances, (30 in 2009) and self-service terminals we developed mobile POS terminals. With ”la Caixa” responds to the needs for (50.03% are already fully accessible). this, they only need a mobile phone to accept card payment -- it’s that easy. This improvement through innovation, just • Continuing collaboration with the removes the risk of theft or loss when as its 2007-2010 strategic plan defines. ONCE Foundation in the INREDIS Project carrying cash. In addition, they can offer Similarly, it understands that access to for developing technology to create their customers an easy way to pay and have the security of being paid for their financial services is a right for everyone. channels of communication between work at once.” visually handicapped people and their In 2009, 166.5 million euros were invested surroundings. Sergio Segovia Rubio, Administration in technology, of which 24.65 were Director of Electronic Banking. dedicated to R+D+i. • Presence in 100% of Spanish towns of over 20,000 inhabitants and in over Advances in 2009 90% of those with between 5,000 and 20,000. • Signature of accords with leading information technology companies (such as IBM, HP and Telefónica).

• New services for customers such as a THE CHALLENGE: mobile phone search engine for branches TO DEVELOP NEW FORMULAE FOR and ATMs, the CaixaMóvil Store or new PAYMENT BY MOBILE PHONE. facilities in shops’ point-of-sale terminals.

2009 ”la Caixa” Annual Report 120 5. Social Commitment

5. Social Commitment Welfare Projects with impact

In the same way as ”la Caixa” with • Elderly People: to promote the “Now more than ever we must contribute its financial business, so Welfare integration and social participation to palliating citizens’ principal worries, Projects responds to the concerns of the elderly through lines of action among which are unemployment and of the people with whom it works. encouraging volunteer work, learning poverty. It is time to move closer to people.” In a year that was difficult for new technology and preventing dependency. disadvantaged groups, ”la Caixa” Isidro Fainé, Chairman of ”la Caixa” and of paid special attention to their • In the area of education, the Scholarship the ”la Caixa” Foundation. social requirements. programme stands out. This programme allows people to study postgraduate In 2009, ”la Caixa” allocated to Welfare courses in Spain and other countries; it Projects a fund of 500 million euros. also promotes journalism placements and studies in biomedicine. In 2009, • With the premise of helping people, by ”la Caixa” granted 276 scholarships. offering them, regardless of their age or circumstances, opportunities that help • In conservation of the environment, meet their needs, ”la Caixa” Welfare “la Caixa” Welfare Projects promotes Projects prioritised in 2009 its social initiatives such as ”la Caixa” in Favour of programmes, to which it dedicated 65% the Sea and the conservation of natural of the expended budget. The following spaces, within a project that prioritises stand out among these programmes: the hiring of the less privileged and integrated over 1,800 people into jobs. • CaixaProinfancia: to fight child poverty in Spain. Welfare Projects • The following cultural projects and invested between 2007 and 2009 over projects to spread knowledge should also 100 million euros in improving the be emphasised: conditions of over 140,000 children. • The initiation of a new line of

• Incorpora Employment Programme: collaboration with major museums, to facilitate integration into work of such as the Prado and the Louvre. groups at risk of social marginalisation. • Plans to give Saragossa and Seville their By the end of 2009, 30,850 people had own CaixaForum centres in the future. THE CHALLENGE: found work thanks to this programme, TO COLLABORATE WITH THE GAVI • Reflection and analysis through the which had 358 job placement experts ALLIANCE, THROUGH THE BUSINESS Research Department, the ”la Caixa” and over 9,400 member companies. ALLIANCE FOR CHILD VACCINATION, Economy and Society Chair and the IN ORDER TO ACHIEVE THE • Programme of Integrated Care for the ”la Caixa” Business Social Responsibility REDUCTION OF CHILD MORTALITY BY Very Ill People: to provide help for those and Corporate Governance Chair, in TWO-THIRDS BEFORE THE YEAR 2015. at the final stages of their lives. The collaboration with the IESE. programme set up 30 multi-disciplinary TO STRENGTHEN BUSINESS teams of emotional, psychological AWARENESS IN FAVOUR OF HIRING and spiritual support. ”la Caixa” has PEOPLE WITH DIFFICULTIES OR AT RISK allocated 11 million euros since the start OF SOCIAL MARGINALISATION. of the programme, which has already TO CONSOLIDATE THE PARTICIPATION attended 6,793 patients and 10,794 OF THE EMPLOYEES OF THE families. ”LA CAIXA” GROUP IN THE DEVELOPMENT OF SOLIDARITY ACTION.

For further information: www.laCaixa.es/obrasocial

2009 ”la Caixa” Annual Report 121 5. Social Commitment

In favour of sustainability

”la Caixa” understands that its • ”la Caixa” follows the Equator Principles • It offers its customers socially responsible responsibility cannot be limited in evaluating the economic, social and investment products, in which the Entity to just identifying and financing environmental viability of finance projects cedes part of the handling charges economically viable projects, of more than 10 million dollars: 65 to social projects and gives ethical but that it must also ensure that projects in 2009, with a total volume of guarantees on the use of funds. 7,837 million euros. these projects are socially and environmentally sustainable. • Together with other entities, it financed In addition to this, the Entity 21 renewable energy projects, to the sum is committed to reducing the of 3,172 million euros. negative impact of its operations • To reduce expenditure on electricity, by on the environment. 6.58%, it improved management of equipment, lighting and air conditioning. The commitment of ”la Caixa” to By means of these measures, and thanks THE CHALLENGE: sustainability is concretised in its financing to reduction in travel, CO emissions fell 2 TO REDUCE ELECTRICAL of environmentally sustainable projects, by 5,087.7 tonnes. CONSUMPTION BY 10%. its financial support for renewable energy • Paper consumption fell by 7% and use of projects and its attempts to reduce to the TO PROMOTE SOCIALLY RESPONSIBLE recycled paper increased to 99%. maximum the impact of its operations on INVESTMENT. the environment.

We contribute to the welfare of society

In all its operations, ”la Caixa” is In 2009, it repeated the contribution of committed to Human Rights and 4 million euros made to this organisation The challenge: in 2008. In addition, it promotes the people’s needs. To build the 4,000 homes Business Alliance for Child Vaccination, planned in the Accessible a responsible initiative to which over 150 • Since 2005, ”la Caixa” has been a part Housing programme. of the United Nations Global Compact Spanish companies contributed more for promoting an ethical and responsible than 450,000 euros. business culture. In 2009, its subsidiaries • Through Affordable Housing (Vivienda Caixa Capital Risc, GDS-CUSA, Asequible), the entity assists groups with PromoCaixa, ServiHabitat, Silk, Sumasa, difficulties to find a home. By 2012, Vivienda Asequible, MicroBank and 3,000 flats will have been built for people e-la Caixa joined too. aged 18 to 35 and for people over 65. • Since 2008, ”la Caixa” has been The programme expanded in 2009 contributing to the fight against with 1,000 new homes for low-income child mortality as one of the strategic families. European partners of the GAVI Alliance.

2009 ”la Caixa” Annual Report 122 5. Social Commitment

A good company to work for

The most valuable asset of • Training and personal development: “I began working at ”la Caixa” thirty-five ”la Caixa” are its employees, personal programmes of talent and years ago and throughout my long career who are in charge of the day-to- skills management were drawn up. have been able to develop my profession in a stable working environment, taking day transmission of the Entity’s In addition, ”la Caixa” invested 10.99 million euros in both class-room courses advantage of the opportunities for corporate values. Recognising learning and professional growth that the and virtual training, which added up to this, it seeks to maintain the most Entity offers us.” 584,000 hours of training received. favourable working conditions, Juan Antonio García Gálvez, which permit its staff to develop • Reconciliation of private and professional General Manager of Banking Services. their professional life to the life: ”la Caixa” applied a Protocol of maximum. Life/Work Balance and Equality, which watches over the welfare of its staff. ”la Caixa” was elected for the fourth Employees benefited from advantages consecutive year, according to the Merco and social benefits to the tune of 196 Personas report, as the best company to million euros. work for in Spain. The Entity’s sensitivity to • Encouragement of Corporate Volunteer its employees’ expectations is key to this work: through 45 associations in 46 of choice. Spain’s provinces that channel the activity of 3,061 volunteers (current, retired, Commitment to its employees early-retired employees, family and friends), with a contribution of 328,100 Despite the adverse economic climate, euros. ”la Caixa” continues to be faithful to its commitment to its employees. • Defence of jobs: the new strategic model redistributed human resources. This led to the combination of some branches, in which no-one was made redundant, as staff opted for retirement, early retirement or partial retirement. • Equal opportunities: in 2009 a new THE CHALLENGE: equality plan began to be drawn up. A TO CONSOLIDATE THE COMMITMENT protocol to prevent and handle sexual OF ITS VOLUNTEERS AND harassment is in place. ENCOURAGE VOLUNTEER WORK IN ITS SUBSIDIARY COMPANIES. NUMBER OF EMPLOYEES OF ”LA CAIXA” DIVERSITY GROUP

27,818 27,505 26,226 45.2 46.2 47.1

54.8 53.8 52.9

07 08 09 07 08 09 Men Women

2009 ”la Caixa” Annual Report 123 5. Social Commitment

Commitment of our suppliers

The suppliers of ”la Caixa” must • They are especially tightly controlled if the not only comply with legal supplies come from outside the OECD “We want to make sure that the products countries. we buy have been manufactured with requirements, but act in line with respect for the principles of the United the corporate values and ethical • They may be inspected to evaluate Nations Global Compact on Human Rights commitments adopted by the compliance with these commitments. and under the necessary conditions of protection of the environment. For this Entity. One of PromoCaixa’s audits, in reason, we request outside audits of Bangladesh, found that safety at work the factories concerned and demand In 2009, the Entity had 551 strategic was not complied with and the contract compliance with the above principles.” suppliers and a total turnover of was cancelled. Carles Guillot Colls, Managing Director of 1,144 million euros. PromoCaixa.

• They are selected through a purchase forum or, depending on the volume, at public auction. • They must undertake to respect human rights and the environment, and must sign, in contract, clauses to protect the environment and respect the principles of THE CHALLENGE: the Global Compact. TO OBTAIN THE CERTIFICATE OF THE • They must be fully aware of their legal EUROPE STANDARD ON PURCHASES. obligations.

2009 ”la Caixa” Annual Report 124 Note of the auditor and GRI stamp

This Corporate Responsibility Report of ”la Caixa” was drawn up in line with the regulations in the GRI Guide for Drawing up Sustainability Reports, published in 2006, and known as G3, and the financial services sector suplement, updated in 2009.

The Corporate Responsibility Report version, that do not cover all the points • The information provided on the (CRR) of ”la Caixa” meets the requisites recommended by GRI are identified. advances in the lines of work on for the A+ rating for applying G3, which After them review, no aspect stood out Corporate Responsibility in 2009 has means it complies with the specifications to make them think that: significant errors. for G3 Level A for Profile, Management Approach and Performance Indicators and • The ”la Caixa” CRR has not been • In the complete version of the 2009 that it has been subjected to verification prepared in line with the Guidelines ”la Caixa” CRR, the pages and mechanisms under the conditions set by for drawing up Sustainability Reports coverage of the requisites, management this standard. of the Global Reporting Initiative, approaches and indicators are shown. version 3 (G3). Deloitte checked the complete version of the ”la Caixa” CRR and concludes that • The information in the 2009 CRR of in Chapter 5 of this report the scope of ”la Caixa” on applying the principles the review is explained in detail and that of the AA1000 regulation on relevance, the indicators reviewed, included in an integrity and stakeholder feedback additional document to the complete contains material errors or omissions.

2009 ”la Caixa” Annual Report 125

”la Caixa” Welfare Projects 2009 Annual Report

Social Programmes Educational Programmes Science, Research and Environment Programmes Cultural Programmes 2009 Data of ”la Caixa” Welfare Projects

Social Programmes

Introduction Fighting Child Poverty Integration of disadvantaged groups into Society and Work Integrated Care for Very Ill People Active and Socially Integrated Elderly people Accessible Housing International Cooperation and Child vaccination MicroBank, the Social Bank of ”la Caixa” Aid for projects of social organisations to assist disadvantaged groups Social Programmes

Social Programmes

The basic aim of ”la Caixa” Welfare A long tradition of service by internationally renowned speakers Projects since its beginnings has been such as Dr. Nora Volkow, Director of the to offer opportunities to people, ”la Caixa” Welfare Projects, in addition National Institute on Drug Abuse (NIDA) especially the most disadvantaged to its responses to society’s recently of the United States. Dr. Volkow took members of society. In a year like emerging needs, has programmes which part in a debate with over 300 secondary 2009, marked by the tough economic already have a long tradition. school students, informing them directly situation, the entity devoted 278.6 of the effects of drugs on the brain, million euros to its many social “Let’s Talk about Drugs” aims to health and behaviour. programmes, 65% of its overall prevent the consumption of drugs in the budget of 430.1 million euros. general population, but especially among Violence: zero tolerance, set up in young people. It operates through several 2005, supports psycho-social care and Main lines of action in 2009 lines: a touring interactive exhibition the reintegration into society of victims that offers innovative resources and of gender violence, as well as promoting The main lines of action of Welfare information for understanding the the prevention of violent behaviour Projects in 2009 were the fight against effects of drug consumption on the and generally raising awareness of this child poverty through CaixaProinfancia; brain, behaviour and health in general; problem. This initiative consists of a the promotion of jobs for disadvantaged a campaign of raising awareness aimed travelling exhibition that visited 7 cities groups through the Incorpora project; at families, including a prevention in 2009 and was seen by 36,147 people Integrated care for the very ill; and the guide, of which 1,143,000 copies have and of a double line of educational social integration and participation of been distributed since the start of the workshops, aimed at secondary students, elderly people, including the prevention programme in 2007, and a free phone- teachers and university students, and of dependency. line for guidance (900 22 22 29); training workshops for professionals educational material for working on specializing in the question. We should add to these as our main prevention at school from a scientific areas of work the promotion of perspective; and a campaign of training This programme also pays attention accessible housing for families, the and updating professionals working in to women who are victims of male young and elderly people, the granting of Health Centres. Within the framework of violence. Among other actions, it has social or financial microloans through this programme, CosmoCaixa Barcelona organised a joint project with the Red MicroBank and the support for child hosted between June 3 and 5, 2009, Cross, which has already re-integrated vaccination in low-income countries. the International Congress Let’s Talk 2,900 women. about Drugs. Families and Young People, Through these programmes, on which Together for Prevention, organised the following pages offer more detailed jointly with the Drug Addiction Help information, the entity tries to provide Foundation (FAD) and the Ministry of solutions to some of today’s most Health and Social Policy. The Congress, pressing social problems. opened by HM the Queen, was attended

“As a volunteer, I am not only helping others. I’m also doing something that enriches me...”

Nino, aged 36, ”la Caixa” branch manager and Welfare Projects volunteer.

Annual Report ”la Caixa” 2009 130 Social Programmes

Intercultural relations and social To encourage ethical values and living in To minimize the impact of a hospital stay cohesion is another of today’s great harmony in the school context, Welfare for both children in hospital and their challenges on which Welfare Projects Projects developed KitsCaixa Values, family members, ”la Caixa” Welfare concentrates its efforts. It runs various an educational resource for teachers Projects has created educational-play activities to assist the social integration of and primary school children aged 8 to spaces in children’s hospitals. These are recently arrived people and to encourage 12. These materials seek to get students the Hospital CiberCaixa. This Project harmony and social cohesion between to assimilate civic values through three reinforces the humanisation of the health people from different cultures. Thus, the main themes: Identity, Living in Harmony system, by creating a happy environment initiatives in this programme are aimed and Responsibility. Since the start of full of friendly interchanges in hospitals, at both new neighbours and society the programme, Welfare Projects has which has positive repercussions on as a whole. An important aspect is the distributed 387 Kits to 1,249 schools, with children’s welfare. Both ”la Caixa” network for mediation between cultures, which 657,100 children have worked. volunteers and those from other hospital which last year operated throughout volunteer associations work together in Spain with over 114 professionals. In operation since 2005, the programme stimulating activities organised in the There is also a specific network of 50 to support and foster Volunteer Work hospital CiberCaixa. Mention should professionals who act in the health-care encourages the involvement of all the be made of the Hospital KitCaixa that field, facilitating health provision for new employees of the ”la Caixa” group makes children more aware of their residents in Catalonia. In addition to in Welfare Projects and contributes new situation and softens the impact of assisting integration through intercultural to optimizing the human resources, their illness. At present, Welfare Projects mediation, ”la Caixa” Welfare Projects materials and management systems of has 65 Hospital CiberCaixa in health has set up a postgraduate course in social entities working with volunteers. centres throughout Spain, as fruit of the management of cultural diversity, Within this Corporate Volunteer Work accords between Welfare Projects and designed for professionals wanting to Scheme, 3,061 current and early-retired the governments of the Autonomous improve their skills and abilities in this employees of the entity, along with family Communities since 2002. field. Lastly, through the Intercultural members and friends, work actively in Relations and Social Cohesion plan of solidarity initiatives. This figure is Two travelling exhibitions on social the Programme of Assistance for Social over 12% of the total staff of the entity. questions, Let’s Talk about Drugs and Initiative Projects, Welfare Projects At present, ”la Caixa” already has Violence: zero tolerance, toured 12 channelled 1 million euros to 69 projects 45 provincial associations of volunteers. Spanish cities. promoted by associations and NGOs with In 2009, they took part in 1,347 similar aims. volunteer activities in Spain.

“When I grow up, I’d like to be a doctor to cure myself of all the needles they’ve stuck into me...”

Ramón shares his happiness with other children at a Hospital CiberCaixa.

Annual Report ”la Caixa” 2009 131 Social Programmes

Fighting Child Poverty

Child poverty is not a reality alien to • In 2009, ”la Caixa” Welfare Projects CaixaProinfancia our own surroundings. It is increasing spent over 50 million euros on the in many developed countries and CaixaProinfancia programme, which is Definition Spain has a very high rate. ”la Caixa” designed to promote the development of Social, educational and economic Welfare Projects wants to help the children and families in our country resources aimed at families with children palliate it, to make society aware of that have the fewest resources. The at risk of social marginalisation, to this problem and to mobilize people. project has functioned since 2007 with provide them with opportunities that The CaixaProinfancia programme of the aim of strengthening the welfare help promote their social integration and Welfare Projects tries to ensure that and development of vulnerable children, construct a better future for them. minors in our country who live at risk through provision of services and Action of social marginalisation can open economic assistance that favour the social Help to promote children’s social and a door onto a better future and can integration of children and provide them educational development: psychological enjoy the same opportunities as with opportunities to build a better future. support and family therapy, educational the rest. back-up, schools opened, summer camps • The beneficiaries are families with and schools. Within its framework and on its more children aged 0 to 16, who are in process Help to improve the families’ economic educational side, the CiberCaixa Let’s of social integration or could enter such situation: school equipment, basic meet after class! sessions provide a process. necessities for babies. these children with an informal Ambit educational context out of school • Most of the children attended were Madrid, Barcelona, Valencia, Seville, hours and in the holidays. under 8 years old. Moreover, 78% of Málaga, Saragossa, Murcia, Bilbao and the children assisted were born in Spain. their metropolitan areas, the Canary The rest came from countries such as Islands and the Balearic Islands. Morocco, Ecuador and Bolivia. Beneficiaries Families with children aged 0 to 16 at • ”la Caixa” Welfare Projects is the first risk of social marginalisation. private foundation in Europe to take Collaborating this initiative. The CaixaProinfancia 307 social entities. programme promotes the network of Figures. 2007-2009 “What I most like about my life is that I’m 307 social organisations in charge of 140,386 children assisted. lucky enough to go to school. And I’m not coordinating the initiative and putting it 378,655 assistances given. hungry.” into practice in the various areas. These José Miguel, aged 10, beneficiary of the organisations and Local Government CaixaProinfancia programme. bodies identify the children and families that might benefit from the programme, make a general assessment of the child’s needs and monitor him/her through a work-plan for the family.

• CaixaProinfancia tackles child poverty in an integrated way, promoting children’s social and educational development and providing them, when it is necessary, with material assistance. The activities of the programme include: • Psycho-social care: psychological help and family therapy, educational back-up, activities at open centres and summer camps and schools. • Help for babies: food and child hygiene products, school equipment, José Miguel attends a Maths class glasses and hearing aids.

Annual Report ”la Caixa” 2009 132 Social Programmes

• This assistance is made available • The CiberCaixa Let’s meet after class! • Activities focus on three areas: through the CaixaProinfancia cheques, sessions, for children aged 3 to 12, take • Computer space, in which children which can be exchanged for the different place in public centres (schools, civil can relate to each other through new services and basic goods offered by the centres, social action centres etc.) and technology. programme in the establishments and remain open out of school hours and in • Reading and audiovisual space, with entities belonging to it. holiday periods. The children receive non- various pedagogic materials. regulated training and do educational • Infants’ space, equipped with activities in an informal educational the furniture, games and specific CiberCaixa Let’s meet after class! context. Trained staff work on the resources for the very young. children’s social, emotional and cognitive development. • In 2009, 2,407 children benefited Definition from the 40 CiberCaixa Let’s meet after Social and educational spaces for class! programmes now operating. reception out of school hours and in holiday time of children aged between 3 and 12, whose families find it difficult to look after them. Action Resources and activities that strengthen children’s cognitive, emotional and social development. The activities promoted at these facilities are aimed at encouraging the access of the children to information and communication technology, the habit of study, and play as a tool of socialisation and amusement. Ambit Madrid, Barcelona, Badalona, Valencia, Málaga, Palma de Mallorca, Las Palmas de Gran Canaria, Valladolid and La Laguna. Beneficiaries Children aged between 3 and 12 from families that find it hard to reconcile jobs and child care and/or are in an especially vulnerable situation. Figures 40 CiberCaixa in operation. 2,407 beneficiaries.

• The CiberCaixa programme Let’s meet after class! is part of the overall strategy of overcoming child poverty promoted by ”la Caixa” Welfare Projects, by fostering the social and educational advance of children with very few opportunities. The initiative is designed both for those children who live in homes where the parents find it hard to reconcile jobs and family life and for children in situations of CiberCaixa Let’s meet after class! Programme particular vulnerability.

Annual Report ”la Caixa” 2009 133 Social Programmes

Integration of disadvantaged groups into society and work

One of the objectives of ”la Caixa” • The Incorpora programme, set up in Incorpora. ”la Caixa” Welfare Welfare Projects is the struggle Projects with integration into work 2006, received funding of over 11 million against the social marginalisation of euros for 2009. The full consolidation vulnerable groups, since inequality, of the project and the efforts of Definition as well as affecting those who suffer the organisations taking part in the Programme of intervention for jobs it, has repercussions on society as a programme allowed it to confront the that encourages the integration into whole. Having a proper job is, as well effects of the crisis with a 20% increase normal companies of people who have as a source of economic subsistence, in the number of people attended difficulties in entering the world of work, a factor in social integration and (30,850 people attended in 2009 and as a mechanism to combat their social opens a door onto a future with 25,786 in 2008). marginalisation. opportunities. Thus, the programme Action Incorpora. ”la Caixa” Welfare • Despite the economic crisis, the Joint work of companies, social Projects with integration into work number of companies collaborating organisations and job developers to assist encourages the hiring of people with the programme grew considerably, the hiring of people from disadvantaged at risk of social marginalisation or rising from 6,020 in 2008 to 9,542 in groups and so promote their social already suffering it. 2009. The figure of social organisations integration. belonging to the programme also rose: Ambit In parallel, the Scholarships for prison to 236 in 2009 from 227 in 2008. All of Spain and Morocco. inmates awarded by Welfare Projects Beneficiaries provide training for prisoners, with a • Through the figure of the job developer, People with special difficulties to enter view to facilitating their reintegration Incorpora builds a bridge between the world of work: disabled people, into work and society when they the social organisations that operate people with a mental disorder or people complete their sentences and leave to integrate people into work and in a situation of social marginalisation or prison. companies. The 358 job developers in at risk of it (young people, the over-45s, the programme, who receive ongoing immigrants and women affected by training from Welfare Projects, research domestic violence). the preferences of the companies Collaborating in their area with the aim of offering 9,452 companies who took on a them the profiles that best match their beneficiary. requirements. They also monitor the 236 social entities. future employee’s training process, 358 job developers. accompany at work the people placed Figures. 2006-2009 and mediate in any possible conflicts that 23,004 vulnerable people taken on. might arise in the labour relationship. 47 Incorpora courses for Technicians in Integration into Work in 24 Spanish universities, in which 1,179 job developers have taken part.

“I am in charge of unloading goods, controlling everything and seeing that nothing’s missing. They’ve given me a chance and I’ve responded to their trust… I have changed from feeling hopeless to feeling I can touch the sky.”

Miguel Ángel, aged 36, found work at Leroy Merlin through the Incorpora programme.

Annual Report ”la Caixa” 2009 134 Social Programmes

• Thanks to Incorpora, collaborating • The Scholarships for prisoners Scholarships for prisoners companies take part in a programme programme of ”la Caixa” Welfare of Corporate Social Responsibility for Projects offers an opportunity to improve Definition integration into work, which gives them the future of the prison population. Training scholarships for prisoners in the chance to integrate into their activity Through these scholarships, prisoners order to give them access to knowledge social and economic commitment values, serving the second and third levels attend and professional skills that permit their which in addition make the company professional training courses at centres reintegration into society on completing more competitive and foster sustainable outside the prison, in order to acquire their sentences. development. knowledge that will enable them to Action confront their future reintegration into Professional training courses in trades • In June 2009, the presentation society with a guarantee of job stability. in high demand on the job market. The ceremony of the II Incorpora Prizes scholarship covers the cost of travel to the took place. The Prize recognises the • In 2008-2009, 1,417 scholarships were training centre, keep and a monthly salary. best actions in the field of employing granted, with overall funding of 6.9 Ambit people who are socially excluded or at million euros and a mean investment per All of Spain. risk of social marginalisation. The prize- scholarship of 4,700 euros. The training Beneficiaries winning companies were: Ventana y courses have had to change to fit in with Prisoners in the second and third levels of transformación de aluminio, from Aragon the new realities of the labour market. their sentences. (small company category); Limpiezas Last year, courses in the following jobs Collaborating Saramar, from Galicia (medium-sized increased: warehouse assistant, kitchen 83 educational centres. company category); Clece, from Catalonia helper, waiter, geriatric assistant and Figures. 2008-2009 (large company category); and Decathlon industrial cleaning specialist. 1,417 scholarships granted. Spain (work on the web category). 4,700 euros on average for each • Another new feature last year was scholarship. • Incorpora also organises courses for the setting-up in Catalonia of a support Scholarships completed: 1,287. Job Development Experts. Since the start team of various professionals in different Beneficiaries taking part: 1,300. of the programme, 1,179 job developers disciplines – job development experts, Beneficiaries gaining diplomas: 1,136. have been trained with the assistance psychologists, teachers etc. – , who of 24 universities throughout Spain. monitored each beneficiary individually.

“I’ve had the luck of being able to devote myself to giving and receiving affection...”

Enrique, aged 50, ex-prisoner working at an elderly person’s centre.

Annual Report ”la Caixa” 2009 135 Social Programmes

Integrated Care for Very Ill People

Among other initiatives, ”la Caixa” • A first evaluation of the new Integrated Care for People Welfare Projects has set up new who are Very Ill programme, a year after it was set up, lines of action that are notable. One concluded that almost half the very ill of these is the Programme for the patients attended (45%) experienced a Definition Integrated Care of Very Ill People, reduction in their anxiety, depression and Programme of integrated care for the which has received funding of 11 insomnia. The programme also improved very ill, aimed at improving their quality million euros since it started in 2008. their ability to relate to others and their of life and complementing the current degree of acceptance of the illness, under model of care with emotional, social and The aim of this programme is to assist circumstances in which it is more normal spiritual support. people at the final stages of their for this to worsen. Action lives: in other words, to palliate the Integrated care focusing on the suffering of those who are extremely • The programme, backed by the psychological and social aspects: ill, to help see they are well looked Ministry of Health and the World Health emotional, social and spiritual support after in their final days and to ensure Organisation, has 30 multi-disciplinary for patients, handling of grief, that both they and their families teams from non-profit organisations support for families and for Palliative receive proper emotional, spiritual throughout Spain. These teams, selected Care professionals; raising awareness in and social care. and trained by Welfare Projects in a 250- society about the end of life; promotion hour postgraduate course, consist of of volunteer work. 120 professionals – psychologists, social Ambit workers, nurses and volunteers – working All the Autonomous Communities. throughout Spain in over 60 hospitals Beneficiaries and social-health centres and at patients’ Persons who are very ill or terminally homes. This new model of support for ill and their families. Professionals and the very ill includes the following facets: volunteers in the area of palliative care. • Spiritual and emotional help for Figures. 2009 patients and their families: facilitating 6,8 funding for the programme. the expression of emotions and 6,793 patients and 10,794 family feelings, reinforcing the value of members attended in 2009. positive experiences in this adverse 30 multi-disciplinary emotional and situation, helping to adapt steadily to psychological support teams. the illness, supporting carers in giving care to the patient. • Treating families’ grief: diagnosing a • The programme of ”la Caixa” Welfare person’s stage in the grieving process, Projects to care for the very ill was assisting them to become aware of proposed in 2008 as a complement to the situation, helping them to search the current model of health care for these for meaning in the experience of loss. patients, with an intervention that also • Support for the health-care and took into consideration the spiritual and social teams that look after the very psychological well-being of the patient ill, helping them in their work and and his/her carers. reducing the risk of burn-out.

• In 2009, ”la Caixa” attended 17,587 people, including both patients and family members. The aim is to increase this figure in the coming years.

Annual Report ”la Caixa” 2009 136 Social Programmes

• In addition, the programme for the • During 2009, the programme took part • Palliative Care Conference at the San Integrated Care of the Very Ill includes in the following conferences: Camilo Hospital, Madrid. ongoing assessment and interpretation of • Inter-county Day-school on grief at • Congress of the SEPO (Spanish the results obtained, both quantitatively the Sant Camil Hospital Foundation in Psycho-Oncology Society) in and qualitatively. It is planned to present Sant Pere de Ribes (Catalonia). Barcelona. in 2011 the results of this scientific • VII Palliative Care Conference of • Conference on integrated care for assessment so as to appraise the the SECPAL (Spanish Palliative Care very ill persons, organised jointly importance of psycho-social factors Society) in Logroño. with the SAR Foundation and held and the need to include and develop • Congress of the Catalan-Balearic in Lleida. them within a new social-health care Association for Palliative Care in model of integrated care for the very Badalona. ill. The aim is to go beyond the limits • “The art of accompanying well: in life of the programme and set a scientific and death” day-school at the Sant precedent, exporting this model of Jaume i Santa Magdalena Foundation, integrated care and opening up new Mataró. research pathways. • Palliative Care Conference organised by the Almería Red Cross. • The programme also collaborates, • First Aragonese Conference on through publicity activities, in making Palliative Care, at the San Juan de society as a whole more aware of the end Dios Hospital, Saragossa. of life and palliative care.

“Accompanying someone in the difficult moments of his/her life makes me feel fulfilled. There is always something to do for the sick person.”

Silvia Viel, aged 63, clinical psychologist at the Sant Camil General Hospital. ”la Caixa” Welfare Projects attended 17,587 very ill people and their families in 2009

Annual Report ”la Caixa” 2009 137 Social Programmes

Active and socially integrated Elderly people

”la Caixa” Welfare Projects develops where the classes are given – as Elderly people care programmes for the elderly, platforms for social participation. aimed at improving their quality • A wide range of activities are included Definition of life and encouraging personal in the framework of the Health and Complete programme based on autonomy. The Elderly Persons Welfare programme, from talks on volunteer work, work within associations, programme promotes active and questions of today to workshops getting to know the new information healthy ageing, with activities favouring personal development, the and communication technologies and encouraging ongoing training, desire to learn and keeping up-to- ongoing education, in order to develop personal development, healthy date by introducing healthy habits to elderly people as active and fully habits of life, stimulation of skills and improve the quality of life. integrated members of society. abilities and the social integration • Another of the programmes, Older Action of the elderly. It is complemented Readers, organises workshops to Computers and Communication by the Prevention of dependency promote reading that encourage programme; courses and workshops in programme, which assists old personal autonomy. In 2009, 848 new technology; talks and debates on people starting to find difficulties in “Older Readers” workshops were held questions of interest to the elderly; reading conducting their day-to-day life. all over Spain, with 11,877 people workshops; inter-generational workshops; The participation of elderly people in attending. Within this programme, volunteer activity. volunteer tasks that reinforce their the publishing project Lectura+, Ambit contribution to society is another of promoted by Welfare Projects, the Throughout Spain. the programme’s main features. As Planeta Group and Edicions 62, was Figures. 2009 such, the Solidarity CiberCaixa stand set up last year, to promote large-print 605 own centres and centres under out as spaces where elderly people editions of classic and current books accord with Government bodies. and vulnerable groups inter-relate. so that elderly people with eyesight 525 CiberCaixa in elderly persons’ difficulties can read. centres. Through these programmes, elderly 6 CiberCaixa in prisons. people not only add years to their • In addition, in 2009 the First Contest 4,813,482 beneficiaries. lives but, above all, life to their years. of Stories written by Elderly People was convened. It was promoted jointly by ”la Caixa” Welfare Projects and Spain’s • The Elderly Persons programme of National Radio (RNE) programme Juntos ”la Caixa” Welfare Projects is held in Paso a paso (Together, step by step). 605 centres, 69 of its own centres and 536 centres in accords with Government • Encouragement of volunteer work Bodies and Elderly People’s Associations. is another of the main features of this A wide range of courses and workshops programme. For this reason, Welfare of different programmes take place in Projects supports associations of them: volunteers consisting of elderly people • The Computers and (67 Elderly Persons’ Associations Communication programme helps that manage their own centres, 16 elderly people to find out about Associations of computer volunteers and Information and Communication 1 Association of Volunteers that conducts Technology (ICT), avoiding their solidarity actions on social questions, isolation from the world of new science, culture and computer studies). technology and giving them the chance to use this new knowledge in • Another relevant part of this their daily lives. In addition, it fosters programme is the Inter-generational volunteer work by the elderly people activities designed to encourage links who are most experienced in the and exchanges of experience between subject as teachers of new students of children and the elderly. ICT. It also promotes the CiberCaixa Older volunteers bring ICT to prison – rooms in elderly persons’ centres inmates

Annual Report ”la Caixa” 2009 138 Social Programmes

Dependency Prevention programme. Solidarity CiberCaixa Prevention of dependency and support for the family carer of “The Challenge of Autonomy” dependent persons Definition • The programme encourages fragile Volunteer Project for elderly people who Definition elderly people to include healthy habits in bring new technology to disadvantaged “The Challenge of Autonomy” their life styles, with the dual objectives of groups. Programme to encourage the autonomy increasing their autonomy and delaying Action of elderly people. the loss of capacity caused by ageing. Workshops to bring new technology to “One Carer. Two Lives” new residents, prison inmates and people Programme aimed at non-professional • The workshops are held free in the marginalised in society, which are held in family carers for dependent persons. elderly persons’ centres of ”la Caixa” the CiberCaixa of elderly persons’ centres Action Welfare Projects, jointly with various local or in prisons. “The Challenge of Autonomy”: psycho- Government Bodies throughout Spain. Ambit social care workshops; service of free Throughout Spain. adapted transport to facilitate attendance • The workshops last for three months. Beneficiaries at the workshops; KitCaixa; exercise They are given by professional course Prisoners, immigrants, people suffering a guide and a DVD. leaders in small groups in two weekly mental or physical handicap, etc. “One Carer. Two Lives”: KitCaixa with sessions lasting 90 minutes each. Figures. 2009 two consultation guides; class-room 2,194 beneficiaries of CiberCaixa in workshops for family carers; permanent • ”la Caixa” Welfare Projects organises elderly persons’ centres. phone line service. an adapted transport service that brings 226 beneficiaries of CiberCaixa in prisons. Ambit the elderly with mobility problems or Throughout Spain. reduced mobility to the centres for the Beneficiaries workshops. • In the Solidarity CiberCaixa, elderly Elderly people starting to find their people who have started to understand day-to-day activities difficult and non- Programme of Support for Family new technology become the support professional carers of dependent persons. Carers. “One Carer. Two Lives” group for other vulnerable social groups. Figures. 2009 “The Challenge of Autonomy” • ”la Caixa” Welfare Projects promotes • 2009 saw new CiberCaixa opened in 3 2,224 workshops organised at 342. the workshops “One Carer. Two Lives” Spanish prisons. elderly persons’ centres. for non-professional family carers of 32,568 beneficiaries. dependent persons, which are held 92 microbuses for adapted transport. in conjunction with local government “One Carer. Two Lives” bodies and various federations and 393 workshops. confederations. 7,393 beneficiaries. 7,334 phone calls. • Family carers take part in workshops 165,160 guides distributed. that offer techniques and advice to enable them to look after themselves better and improve both their own quality of life and that of the dependent person they are responsible for. Carers also have a kit that provides information on all the resources and services within their reach. There is also a free 24-hour care line.

“I am very happy to be coming here, • The workshops are directed by a because it gives me more life...” professional and are organised in small Carmen, aged 82, has had a more active groups during four sessions of two and life since she started attending workshops a half hours each. at an elderly persons’ centre.

Annual Report ”la Caixa” 2009 139 Social Programmes

Accessible Housing

Since 2004, ”la Caixa” Welfare Flats for the young and elderly people Flats for families Projects has run a programme to promote low-rental housing with • In 2004, ”la Caixa” Welfare Projects set • Given the current demand for family three basic aims: to help young up the Accessible Housing programme, flats, in 2009 ”la Caixa” Welfare Projects people to become independent, with the commitment to build 3,000 agreed to expand the Accessible Housing to offer dignified housing to the homes by 2012. These were for young programme, by building 1,000 additional elderly and, a new facet in 2009, to and elderly people, considered the two homes for this group by 2012. This will help families to find housing at a sectors of the population with most enable families to have access to housing reasonable rent. problems of access to the housing at rents below the market price and, market, due to the high purchase and in some schemes, have the option of rental prices. buying their home. In 2009, the entity Accessible Housing earmarked 10 million euros for this new • The flats have 1 or 2 rooms and a initiative. 2 Definition surface area of between 45 and 50 m . Promotion of housing at rents below The conditions and requisites of access • The homes have two or three rooms, those set in the Official Protection are as follows: with usable surface area of not less than 2 Regime, in order to help palliate the • Being a young person aged 18 to 35 60 m . deficit of flats for rent and help young or someone over 65. people to become independent, old • Having an income no higher than 4.5 • In the housing for families, the people to have a decent home and times the value of the Public Multi- conditions and requisites of access are families to find accessible housing. Effect Indicator of Income (IPREM). as follows: Action • Proving minimum income, so that the • Being of legal age. Construction of homes in provincial annual rent is no higher than 30% of • The family unit can have as many capitals and metropolitan areas with a this income, or finding someone to members as the housing unit’s surface deficit of flats to rent; managing the vouch for it. area allows (according to the official provision of homes at rents below the • Not owning a home. regulations). market rates. • The homes are adjudicated by means • Rental with purchase option, Ambit of a draw conducted before a Notary. depending on scheme. Provincial capitals and their metropolitan • The rent contract lasts 5 years and can areas in Catalonia, Madrid, Andalusia, be extended. the Community of Valencia and the Basque Country. Beneficiaries People aged between 18 and 35, people aged over 65 and families. Figures. 2004-2009 1,610 homes handed over. 1,176 housing units being built.

”When I opened the letter and saw they had given me the flat, I was very moved. I’ve won the lottery, my friends told me.”

Teresa, awarded an Accessible Housing flat for her and her husband. The couple will pay 250€ a month.

Annual Report ”la Caixa” 2009 140 Social Programmes

• Having a maximum income no higher Promotions of homes under Flats for families than 5.5 times the value of the IPREM. construction • Proving minimum income, so that the • By the end of 2009, Welfare Projects annual rent is no higher than 30% of Flats for young and elderly people already had the land to build 306 family this income, or finding someone to homes in the towns of Sentmenat (87), vouch for it. • The second stage of the Accessible Terrassa (22), Olot (23), Tarragona (55), • Not owning a home. Housing programme ends in 2010. Ten Bilbao (30), Sant Just Desvern (30) and • The homes are adjudicated by means promotions in several Autonomous Vila-Seca Tarragona (54). of a draw conducted before a Notary. Communities – Catalonia, Madrid, the • The rent contract lasts 5 years and can Valencian Community and the Basque • In 2010, land will be acquired to build be extended. There is a possibility of Country – will have constructed 998 the remaining 694 homes. rental with purchase option. homes.

• Some of the housing for families will • Between 2010 and 2012, the third be assets originating in agreements with stage will be completed with the delivery construction companies to cancel their of the rest of the housing units up to the debts. Thus, ”la Caixa” will reactivate 3,000 envisaged in the Young and Elderly promotions that are currently paralysed Persons Programme. because of the economic conjuncture, by transferring their management to Welfare Projects to give citizens access to housing.

Promotion of Accessible Housing in Vallecas

Annual Report ”la Caixa” 2009 141 Social Programmes

International Cooperation and Child Vaccination in Developing Countries

In 1997, ”la Caixa” Welfare • Through its International Cooperation International Cooperation Projects started the Programme of programme, ”la Caixa” Welfare Projects International Cooperation with the supports initiatives of Spanish NGOs in Definition aims of helping to wipe out extreme Asia, Africa and Latin America, working Programme of support for initiatives to poverty in the developing countries together with local NGOs. The basic lines help improve the conditions of life and and to foment the culture of of action are: promote sustainable development for the solidarity in Spain. In these countries, • Social and economic development: population most in need in developing lack of resources and disease are encouraging and supporting countries. closely linked, which makes health processes of local development, Action such a key part of the fight against through financing actions to create Basic lines: social and economic poverty. jobs and economic activity. development; training of social capital in • Training of social capital in Africa: Africa; Crisis and humanitarian action; Through its Child Vaccination preparing professionals (medical CooperantesCaixa Programme; training programme, Welfare Projects and teaching staff, scholarships for for international cooperation workers; contributes to improving the health women entrepreneurs, among other raising the awareness of Spanish society. of the population most in need in the things) to improve basic social services Ambit most vulnerable areas of the planet. in Africa. Developing countries of Africa, Asia and • Emergencies and humanitarian Latin America. action: promoting protection and Figures aid to victims of natural disasters and 355,920 beneficiaries. armed conflicts. Donations from the 26 initiatives selected in 2009: Burundi, general public, the “Estrella Solidario” Cameroon, Chad, Democratic Republic Deposit Account and resources from of Congo, Ecuador, El Salvador, Ethiopia, the ethical and solidarity investment Gambia, Guinea Conakry, Honduras, fund of ”la Caixa”, FonCaixa India, Ivory Coast, Mali, Morocco, Cooperation, are devoted to this Mozambique, Nicaragua, Peru, Senegal, initiative as well. Sudan, Tanzania, Zambia.

“The help received has given me hope. Thanks to it, I believe in a better future for my family...”

Bau, father of a Cambodian family who lost a leg because of a mine.

Annual Report ”la Caixa” 2009 142 Social Programmes

• Welfare Projects offers technical • Since this programme started twelve • En 2009, ”la Caixa” Welfare Projects assistance to NGOs through the years ago, Welfare Projects has devoted renewed its contribution to the GAVI programme CooperantesCaixa, over 51 million euros to promoting 398 Alliance to encourage child vaccination whereby ”la Caixa” volunteers, experts projects in 60 countries. in low-income countries, strengthening in areas such as marketing, accountancy, its position as GAVI’s leading private finance, viability studies, microloans, partner in Europe. communication and sales of products Child Vaccination work with projects of local organisations • ”la Caixa” also leads in Spain the first in several developing countries. Definition Business Alliance for Child Vaccination, Accord with the GAVI Alliance to set up in 2008 to encourage Spanish • The programme promotes the encourage vaccination of children in low- companies to join and collaborate in the professionalisation of cooperation agents. income countries. social task of collecting funds for child In 2009, the programme “Management Action vaccination. and Administration of NGOs” was held Collaboration with the GAVI Alliance, as for the eleventh time and “Leadership the main private partner of ”la Caixa” in • This corporate initiative of social and Social Innovation in NGOs” for the Europe, in the distribution of vaccines. responsibility, channelled by ”la Caixa” fourth time. ”la Caixa” Welfare Projects Promotion and channelling of Spanish through its network of branches, and the ESADE Business School set up companies’ contributions through the is collaborating in trying to achieve these programmes years ago to supply Business Alliance for Child Vaccination, the Fourth Goal of the Millennium ongoing training to NGO managers. a corporate social responsibility initiative Development: to reduce child mortality We also have a training programme run promoted and led by ”la Caixa”. by two-thirds by 2015. To date, 155 jointly with the Spanish Coordinating Ambit companies have joined the project. Council of Development NGOs. The GAVI Alliance operates in countries with an annual income per head of • Similarly, since 2001, the International under 1,000 dollars (72 countries at Cooperation programme has organized, present). jointly with the IECAH, a Training Beneficiaries Programme to Improve the Quality of Children under 5. Humanitarian Action, whose aim is to Figures. 2009 improve the efficiency of humanitarian 4 million euros funding from ”la Caixa” aid interventions. Training is for experts, Welfare Projects. volunteers and managers of NGOs and 62 companies with a total contribution non-profit organisations. of 182,650 euros.

• The task of raising society’s awareness, dialogue, social debate and promotion of solidarity is carried out through the lectures, seminars, exhibitions, publications and school and family workshops promoted by the programme.

• In 2009 the following exhibitions were organised: Cambodia, Land of Hope; Fair Trade, a Product, a History; Maternities; Chasing the dream; and finally Refugees, Lives in Transit.

Business Alliance for Child Vaccination

Annual Report ”la Caixa” 2009 143 Social Programmes

MicroBank, the Social Bank of ”la Caixa”

In 2009, the main activity of MicroBank, • MicroBank was born in 2007 as a new projects. To concretise and develop the social bank of ”la Caixa”, was kind of financial entity specializing in the their business idea, customers are to grant microloans. Difficulties in granting of microloans to people with advised by an entity collaborating gaining access to credit are, to a great limited resources who find it difficult to with MicroBank. extent, a way of marginalising people, enter the traditional credit system. Since • Financial microloans. These are which means that these personal then, it has financed 57,060 operations personal loans of up to 25,000 loans, which encourage the creation to the sum of 376.9 million euros, of euros for the self-employed or small of employment, productive activity which operations to the sum of 237.6 business people who need finance to and personal and family development, million are currently in the portfolio. start or expand their business. contribute not only to stimulating • Family assistance. These are loans economic growth but also to social • The criterion for granting a microloan to meet personal needs, such as cohesion. is basically trust in the person and the housing expenses, financing for the viability of the project to be financed. regroupment of families, loans for disabled people and family situations MicroBank • As well as the more than 5,300 needing special attention. branches of ”la Caixa”, 417 social entities Definition collaborate in the granting of microloans. • Over half of MicroBank’s operations Social bank of ”la Caixa” specializing These entities provide MicroBank with are microloans for families (56%), to a in granting microloans to encourage information on possible beneficiaries and value of 214.1 million euros. The financial productive activity, personal and family the evaluations needed before ratifying and social loans that fill the rest of its development and the creation of projects. These are organisations of portfolio account for 162.8 million euros. employment. all kinds with experience in economic 60% of its financial and social loans were Action and social assistance to create micro- to set up a business project, whilst 40% Concentration on microloans has meant companies, foment self-employment and were used to expand an already existing that MicroBank has built up a full stimulate entrepreneurial activity. project. portfolio of specially adapted financial products and services. MicroBank • After two years specialising in • The social impact of microloans is operates through the ”la Caixa” network microloans, MicroBank has built up a full seen in their encouragement of private of over 5,300 branches and has the portfolio of specialist financial products, initiative in the area of creation of backing of over 400 collaborating both assets and liabilities. MicroBank employment and small businesses, as a entities. offers social, financial and family way of stimulating economic growth and Ambit microloans: social cohesion. Throughout Spain. • Social microloans of up to 15,000 Beneficiaries euros to finance self-employment Persons and groups who may find it difficult to find support in the traditional credit system for their projects and entrepreneurs who need resources to set up, consolidate or expand a small business or self-employment project. Figures. 2009 32,008 microloans granted. 52,000 beneficiaries. 417 collaborating entities.

MicroBank grants loans to groups with limited economic resources

Annual Report ”la Caixa” 2009 144 Social Programmes

Programme of assistance to social initiative projects

”la Caixa” Welfare Projects has as one • Integration of people with a • Inter-cultural relations and social of its priorities to support entities disability into society and work: cohesion: projects favouring relationships that work in solidarity to improve the initiatives to promote personal autonomy between people from different cultures quality of life of vulnerable groups. and to give psychological and social and offering inter-cultural mediation. ”la Caixa” Welfare Projects calls for support to the families of beneficiaries, various bids from non-profit social and projects to promote routes for • Encouraging volunteer work: organisations for help in developing integration into ordinary jobs and into projects to welcome, train and integrate projects designed to meet the needs the specific job market. volunteers into social organisations and of the most socially disadvantaged, to improve the management of groups of adapted to the specific deficits and • Fight against poverty and social volunteers. needs of each area. marginalisation: projects that offer services that cover the basic needs of • Social action projects: initiatives to people at risk of social marginalisation promote health, gender equality and Social assistance projects or who are already marginalised, that education in values; and to improve the promote these people’s participation and quality of life of people with physical or Definition integration into society and that favour mental health problems. Programme to help social initiatives routes of integration into work in order undertaken by non-profit organisations to overcome marginalisation. • Help for cultural activities with a in Spain. social impact: initiatives to promote Action • Support for temporary activities linked to the plastic arts, Financing of projects to integrate people accommodation encouraging photography, music, literature and drama with a disability into society and work, to social integration: projects that as resources for personal development fight poverty and social marginalisation, offer temporary accommodation to and social integration; and to foster the to support temporary accommodation people on their own and without social active involvement in social action of encouraging social integration, to relationships, women victims of gender participant groups and of professionals of foster inter-cultural relations and social violence and people with serious social or the world of culture. cohesion, and to encourage volunteer family problems. In addition, each case is work, social action and cultural activities monitored in order to assist beneficiaries with a social impact. to overcome difficulties. Ambit Throughout Spain. Beneficiaries Non-profit social organisations that carry out projects in benefit of the most needy. Figures. 2009 Support for 1,051 projects: 263 projects to integrate people with a disability into society and work. 206 projects to fight poverty and social marginalisation. 94 projects to support temporary accommodation encouraging social integration. 69 projects to foster inter-cultural relations and social cohesion. 168 projects encouraging volunteer work. 200 social action projects. 51 projects of cultural activities with a social impact.

“la Caixa” Welfare Projects collaborates on projects that foster good relations between people from different cultures

Annual Report ”la Caixa” 2009 145

Educational Programmes

Introduction Spanish, International, Journalism Scholarships and Scholarships to study a Biomedicine PhD Educational Programmes

Educational Programmes

Investment in education is Social Studies • Sport, Health and Quality of Life, which fundamental for society, as the warns against increasingly sedentary advances in this field contribute to Another of the initiatives of ”la Caixa” habits in Spanish society and vindicates improving the level of progress and Welfare Projects to promote the creation sport as a source of health. social welfare. Convinced as it is of knowledge in the social science field of this, ”la Caixa” Welfare Projects is the Social Studies collection, whose • Spain’s rural population. From has run since its beginnings several aim is to analyse the social, technological, imbalances to social sustainability, educational programmes to support environmental and public health which explains the consequences of the advance of knowledge. In 2009, transformations in contemporary society demographic imbalances in Spain’s rural Welfare Projects devoted 28.9 million and promote reflection and debate about areas. euros to educational initiatives. them. In addition in 2009, ”la Caixa” Social Scholarships 27 books have come out in this Science Prize, worth 40,000 euros, collection. Three works were presented was convened for the first time. In this Welfare Projects’ various scholarship in 2009: contest, academically and scientifically programmes contribute to the training rigorous research into Spain’s social reality of the young, one of the groups it • Vocational Training in Spain. Towards will be rewarded. The winner will be prioritises. The scholarships help create the Knowledge Society, which points published in the Social Studies collection equality of educational opportunities and to the importance of modernizing of ”la Caixa” Welfare Projects. train excellent professional people who vocational training to adapt what’s on will benefit society as a whole. offer to the needs of the labour market.

As in 2008, scholarships were offered in 2009 for Master’s degree studies in Spain, postgraduate studies in other countries, journalism placements and a PhD in Biomedicine.

Award of the 2008 scholarships for taking Master’s degree courses in Spanish universities

Annual Report ”la Caixa” 2009 148 Educational Programmes

Spanish and International Scholarships, in Journalism and for a PhD in Biomedicine

”la Caixa” Welfare Projects is • In 2009, the following were awarded: Scholarships for postgraduate convinced that investment in • 100 scholarships for Master’s degrees studies in other countries education is one of the main pillars in Spain. for climbing to the highest levels of • 121 scholarships for postgraduate Definition progress and social welfare. This is studies in other countries. Programme of scholarships for why, since 1982, the entity has been • 15 scholarships for journalism postgraduate studies at any university or offering scholarships to help students placements. centre of higher education in the United to extend their university education • 40 scholarships for PhDs in Status, Germany, France, Great Britain in the best universities of Spain and Biomedicine. or Canada and Business Management other countries. studies in China or India. Action • The objective of the Scholarships Scholarships for Master’s To encourage mobility and give a first programme of ”la Caixa” Welfare degrees in Spain opportunity to do postgraduate work Projects is to collaborate in training top in another country. professionals, which is of benefit to Definition Funding given society as a whole. Programme of scholarships to take an Return air ticket, university registration official Master’s degree at any university fees, monthly income, initial funds for • The funding on offer, the number of or centre of higher education in Spain. settlement costs, health insurance, scholarships, the services provided for Action academic guidance course, cost of students before, during and after the To encourage mobility and give the applications to the country’s universities scholarship and the diversity of subjects support necessary for students to take and visa costs. subsidised mean that the scholarship the Master’s degree that best suits their Number of scholarships programme of ”la Caixa” is one of the abilities and potential and to derive the 121. best in the world. maximum benefit from it. Countries Funding given United States: 40 scholarships. Registration fees, monthly income and Germany: 20 scholarships. initial funds for travel and settlement France: 20 scholarships. costs. Great Britain: 20 scholarships. Number of scholarships Canada: 10 scholarships. 100. China: 8 scholarships. India: 3 scholarships.

“My dream, to develop products that help to improve people’s quality of life.” Scholarships for journalism Patxi, aged 29, enjoyed a scholarship from placements ”la Caixa” to study a Master’s degree in Clinical Research. Definition Programme of scholarships for students in the final year of Information Sciences (Journalism branch) for two-year training placements. Action Placement work in offices of the Efe Agen- cy in the Autonomous Communities for the first year and in its international offices for the second. Funding given Monthly income and travel allowance. Number of scholarships 15.

Annual Report ”la Caixa” 2009 149 Educational Programmes

• In 2009, ”la Caixa” Welfare Projects • These scholarships favour the Scholarships for studying a PhD in Biomedicine awarded 40 scholarships for the second scientific integration into our country year of international students taking part of the world’s best young biomedical in this programme, thanks to which each researchers, wherever they come from. Definition of the following Spanish centres received This gives Spanish biomedical science Programme of scholarships for students ten young researchers: the Carlos III a new resource for remaining an from all round the world to study their National Centre for Oncology Research international leader in the field. doctorate at four Spanish biomedical (CNIO), the National Biotechnology research centres. Centre (CNB-CSIC), the Genome Action Regulation Centre (CRG) and the Institute To favour the settlement among Spain’s for Biomedical Research (IRB). These scientific community of top young scholarships, lasting four years, are aimed researchers in Biomedicine. at students worldwide. Funding given Monthly income, annual grant equivalent • The amount of funding given and to a monthly payment for travel, the scientific excellence of the Spanish settlement and seminar costs. centres where the doctorates are taken Number of scholarships mean that this programme can compete 40. with the world’s best in the field of Biomedicine.

”la Caixa” offers scholarships for PhD studies in Biomedicine

Annual Report ”la Caixa” 2009 150 Science, Research and Environment Programmes

Introduction Science Research Environment Science, Research and Environment Programmes

Science, Research and Environment Programmes

The science, research and organises permanent and temporary Antarctic plain. The objectives were to environment programmes of exhibitions that analyse a wide variety of show the capacity of disabled people and ”la Caixa” Welfare Projects contribute contemporary themes, from biological to gather samples to show the impact to the advance and spread of evolution to climate change. of climate change on the Antarctic scientific knowledge, to the raising continent. “Really the final three hours of citizens’ awareness in favour of Welfare Projects also organises travelling passed by as in a dream. On reaching the conserving our biodiversity and to exhibitions throughout Spain, to bring South Pole itself, our emotions flooded the conservation of our country’s scientific and environmental themes over. Our families, team, collaborators, most valuable ecosystems. before the general public and raise friends, ”la Caixa” Welfare Projects, all social awareness. In 2009, 16 travelling of them reached the Pole lodged in our In 2009, the entity devoted 63 million exhibitions were shown in marquees hearts”, said Jesús Noriega, one of the euros to the promotion of environmental, in 98 Spanish cities. Those related expedition members, disabled through scientific and research initiatives. to Science were: And then came... The lack of a hand. Shape!, Neolithic: from nomads to The programme Conservation of natural settlements, Origins. Five landmarks in In 2009, Welfare Projects finalised spaces and reintegration into society human evolution, Objective: Flying!, the availability to all Autonomous contributes to maintaining our country’s Stick your nose. Essences and natural Communities of a Mobile Unit most valuable ecosystems with several fragrances, Human. The first settlers, equipped with the technology needed activities to protect the environment. Neuronal landscapes, Mars-Earth. Their to handle emergency situations. This ”la Caixa” in favour of the sea anatomy compared and Sedentary. Once equipment, an authentic “intelligent focuses on the dissemination of scientific upon a time... Speech!, There were truck”, has all the resources needed to knowledge about the sea and on the also environmental exhibitions: Energy. create an environment of information, raising of environmental awareness. Get moving for a sustainable future, coordination and useful logistics in both Along with it, ”la Caixa” Welfare Projects, mountains in the Canaries and The forest. preventive Civil Defence operations and convinced that the impact of science on emergencies. daily life is taking giant steps forward, is A major initiative in 2009 was the South developing the important task of making Pole without Limits Expedition: The entity’s investment in each of these science popular. ”la Caixa” Welfare Projects, an adventure vehicles, delivered to regional governments, in which, for the first time in history, was a million euros per truck. In the CosmoCaixa Science Museums a group of physically disabled people of Barcelona and Madrid, the entity travelled 250 kilometres across the

South Pole without Limits Expedition: ”la Caixa” Welfare Projects

Annual Report ”la Caixa” 2009 152 Science, Research and Environment Programmes

Science

The programme to popularise science • CosmoCaixa Barcelona is an • In 2009, CosmoCaixa Barcelona puts on exhibitions and organises international point of reference in celebrated its fifth anniversary with a activities that bring scientific questions of popularising science, as wide range of activities on astronomy. knowledge to the general public and it offers an extensive programme of encourage positive changes of attitude temporary and permanent exhibitions, Temporary Exhibitions towards the environment. workshops, lectures, courses and debates on science, in which renowned • Technology compared. Previously researchers from all over the world unknown treasures of Pre-Colombian CosmoCaixa Barcelona take part. Its activities change every Science. From 28 October 2008 to 13 four months and are organised September 2009. Details around the exhibitions and the most • Numb3rs of good family. From 16 July Opened in 2004. relevant scientific events in Spain and 2008 to 18 April 2010. •  30,000 m2. internationally at the time. Let’s Talk about Drugs. From 15 2,082,154 visits. January 2009 to 31 January 2010. 752,981 visitors. • Opened in 2004, this Science Museum • Darwin observer. From 21 October Location of ”la Caixa” Welfare Projects brings 2009 to 15 November 2010. Isaac Newton 26, Barcelona. scientific knowledge closer to the public • Abracadabra, conjuring and science. Facilities in all its age-groups –elderly people, From 19 November 2009 to March 4 halls for temporary exhibitions. families, young people, children–, and 2011. 7 multi-purpose rooms and halls. at all educational levels. Auditorium. Cycles of Talks, Debates and Agora. • CosmoCaixa’s educational provision Courses to Popularise Science Science Plaza. is based on constant innovation in the • Cycle of talks Talk today… Science Permanent exhibitions and spaces teaching resources and formats of its and Citizens, jointly with the Catalan Drowned Forest. activities. As well as guided tours, the Association of Public Universities Geological Wall. centre puts on workshops, itineraries, (ACUP), with the lecturers Manel Hall of Matter. science classes, scientific theatre and talks Esteller and Roderic Guigó. Planetarium and Meteorological Station. for school students, initiatives that are • Mysteries of the Cosmos. Three Click and Flash. highly valued by teachers. CosmoCaixa unresolved questions about the Bubble Planetarium. Barcelona is a museum where visitors use Universe, cycle of talks organised Touch, touch! all their senses, participate, play, learn jointly with the Institut de Ciències de and, above all, enjoy themselves. l’Espai (Space Science Institute). • VIII International Congress on research into Science Education. • Scientific Day-school. Stem Cells; a Debate on the Future of Biomedicine, with the lecturers Jonathan Moreno and Juan Carlos Izpisúa.

CosmoCaixa Barcelona

Annual Report ”la Caixa” 2009 153 Science, Research and Environment Programmes

• Exhibitions, talks, films, workshops and Temporary Exhibitions CosmoCaixa Madrid guided tours are some of the options at CosmoCaixa Madrid, a museum • Understanding to Survive: the Climate. Details committed to popularising science, in From 26 June 2009 to 31 January Opened in 2000. which adults, young people, children, the 2011. 11,000 m2. elderly, teachers, students and scientists • Mars-Earth, their anatomy compared. 1,133,471 visits. all find a place. From 6 August 2008 to 15 May 2009. 295,194 visitors. • Neuronal landscapes. From 17 June Location • Since it opened in Alcobendas in 2008 to 17 May 2009. Pintor Velázquez s/n, Alcobendas 2000, this centre belonging to • Long Live Difference! The most (Madrid). ”la Caixa” Welfare Projects has managed Valuable Treasure of the last Thousand Facilities to get a lot of people, especially the Million Years. From 6 November 2008 3 Exhibition Halls. very young, to stop thinking of science to 31 January 2010. 4 multi-purpose rooms and halls. as a complicated, alien and boring Conference room/ Auditorium. subject. Its success is based on visitors’ Cycles of Talks, Debates and Permanent exhibitions and spaces participation and experiments with the Courses to Popularise Science Hall of Matter. scientific concepts transmitted. Above Bubble Planetarium. all, CosmoCaixa Madrid is an interactive • Cycle of talks Around the Sun. Our Touch, touch! centre. star from ten points of view, given by Click for children. Fred Espenak and Paal Breke. Digital Planetarium. • The number of visitors to CosmoCaixa • How, How much and Why. Climate Explore your five senses. Madrid has steadily increased to the Change and its Consequences, talks figure of 1,133,471 visits in 2009. by Fernando Valladares and Josep Enric Llebot. • Cycle of talks The Rhythm of Life: Evolution and Biological Diversity, with Michael Coates and Charles Godfray. • Course of Initiation into Astronomy.

CosmoCaixa Madrid

Annual Report ”la Caixa” 2009 154 Science, Research and Environment Programmes

Research

Since 1995, ”la Caixa” Welfare Projects • As evidence of the commitment of • Since 1995, Welfare Projects has has promoted scientific research in ”la Caixa” Welfare Projects to scientific collaborated with biomedical research in order to support the development of research, 2009 also saw the opening various centres. The IrsiCaixa laboratory science and, by extension, the advance of the WIDER-Barcelona Centre at the Germans Trias Pujol Hospital, of knowledge and people’s welfare. (World Institute for Digestive Endoscopy Badalona, in which the entity invested Research, Barcelona), directed by Dr. 1 million euros in 2009, has become one • It is in this context that RecerCaixa was Josep Ramon Armengol-Miró within the of the world’s leading references in AIDS set up in 2009. This new programme, Research Institute Foundation of the research. fruit of the collaboration between Vall d’Hebron University Hospital (FIR- ”la Caixa” and the Catalan Association HUVH). ”la Caixa” will devote 10 million • In addition, ”la Caixa” supports the of Public Universities (ACUP), aims euros over the next five years to this National Centre for Cardiovascular to stimulate research in Catalonia. centre, which will promote the advance Research of Madrid (CNIC), directed RecerCaixa has two basic objectives: to of endoscopic surgery through natural by Dr. Valentín Fuster; and the research support researchers in Catalan universities orifices. This technique avoids incisions programmes of the Cancer Research and research centres and to attract and means fewer infections and a Institute of the Vall d’Hebron Hospital researchers from all round the world to quicker and less painful recovery. (VHIO), directed by Dr. Josep Baselga and support to the most innovative projects. the Centre BarcelonaBeta – Barcelona The investment of ”la Caixa” in this Research Complex for Better Aging. project will reach 9 million euros by 2014.

Opening ceremony of the WIDER Centre, set up jointly by ”la Caixa” Welfare Projects and the Generalitat of Catalonia at the Vall d’Hebron Hospital

Annual Report ”la Caixa” 2009 155 Science, Research and Environment Programmes

Environment

The Environment programme Conservation of natural spaces • Lines of action focus not just on the encourages respect for the and reintegration into society conservation of our natural surroundings environment and promotes actions (forest habitats, rivers, marshes, river- for the conservation of natural spaces Through the programme banks, degraded areas etc.), but also on land and sea. Conservation of Natural Spaces on fire prevention, improvement of and Reintegration into Society, infrastructures, the conservation of ”la Caixa” Welfare Projects offers biodiversity, making spaces accessible to people belonging to disadvantaged the disabled. Conservation of natural spaces and reintegration into society groups the chance of integrating into society and work by developing • The programme is also designed to Definition actions to protect and conserve the strengthen the economic fabric of the The programme, fruit of agreements most valuable natural spaces in our towns located in sites of great natural with the Autonomous Communities country. value and to train the local population. and Regional Councils, has a dual objective: to contribute to improving • This initiative was set up in 2005 with • As publicity and awareness-raising and maintaining natural spaces and the signing of a first agreement activities, in 2009 ”la Caixa” Welfare to promote the placement in work of with the Barcelona Regional Council. Projects and the Regional Council of disadvantaged people. Now, Welfare Projects has agreements in Barcelona presented the book Oak Action force with all of Spain’s Autonomous Woods, one of a collection of fifteen Restoration of degraded areas, protection Communities, most of which were manuals to manage habitats, which of rivers and their banks, fire prevention renewed in 2009. The rest will explains experiences to improve the and improvement of natural habitats and be renewed in 2010. It should be management of forests, rivers and open landscapes; conservation of biodiversity, emphasized that these years have seen spaces. encouragement and publicising of research action in most of Spain’s national and into environmental values; strengthening natural parks. of the economic fabric and in-job training of the local population in towns within natural spaces; strengthening actions “The mountains call to me. I’d like to be a that help minimize the effects of climate forest ranger...” change; and the introduction of activity to encourage use of renewable energies. Tolo, aged 19, gardener with intellectual disability. Ambit Throughout Spain. Beneficiaries People at risk of social marginalisation, preferably with a physical or mental disability, the mentally ill, former prisoners, former drug addicts, immigrants, the long-term unemployed and women in an extreme situation. Collaborating Autonomous Communities and Catalan and Basque Regional Councils. Number of beneficiaries in 2009 1,869 people at risk of social marginalisation. Number of projects in 2009 292.

Annual Report ”la Caixa” 2009 156 Science, Research and Environment Programmes

• To cite just some of the initiatives taken ecological kitchen-garden to train • The restoration of the Belate peat bog as part of the programme to conserve groups at risk of social marginalisation (Navarra) natural spaces, Welfare Projects supported in the restoration of degraded • The cleaning up of water-ways and last year: environments in Tarragona forest on the slopes of Lorca Castle • The rehabilitation of thirteen • The elimination of invasive plants (Murcia) fountains in the Collserola Natural at various beaches on the coast of • Restoration of Lake Hervías (La Rioja) Park (Barcelona) Cantabria for public use • The reforestation of the area affected • The improvement of energy and • Environmental restoration of the by the fire at La Palma (Canary reduction of light pollution in the uncontrolled dump of waste materials Islands) Network of Natural Spaces of Castilla at Eslida (Castellón) • The recovery of the Barbate marshes y León • The placing of explanatory signs on (Andalusia) • The drawing up of the Environmental paths and routes in Las Lagunas de • The creation of forestry brigades Radioactivity Map of the Community Ruidera Natural Park in Castilla-La to improve and maintain the of Aragon Mancha. environment in all the Balearic Islands • The study of the adaptation response • The restoration of highly sensitive of pre-Pyrenean vegetation in Aragon • 2009 saw a total of 292 projects, habitats in the Somiedo Natural Park to climate change in which 1,869 people from socially (Asturias) • Making sensory routes adapted for disadvantaged groups took part. • The creation of a nursery of the visually challenged in the National autochthonous plants and an Park of Aigüestortes (Catalonia)

The programme promotes job placement of disadvantaged people

Annual Report ”la Caixa” 2009 157 Science, Research and Environment Programmes

”la Caixa” in favour of the sea projects and rescuing threatened marine In 2009, the Vell Marí visited 25 ports: species, and a mobile class-room which Barcelona, Badalona, Blanes, Tarragona, Our seas possess one of the world’s can become a publicity platform open to Castellón, Valencia, Alicante, Ibiza, highest biodiversity indexes, but everyone. In the latter, biologists specializing Mallorca, Menorca, Cartagena, Almería, many of our marine species are in environmental education guide visitors Málaga, Marbella, Barbate, Cádiz, Seville, catalogued as at grave danger of through the most characteristic marine Huelva, Donostia, Santander, Gijón, extinction. ”la Caixa” Welfare Projects, depths of our country with the help of an A Coruña, Vigo, Las Palmas de Gran aware of the importance of marine audiovisual, a multimedia presentation Canaria and Santa Cruz de Tenerife. In biodiversity, has developed the and simulation glasses. addition, in 2009 educational activities programme ”la Caixa” in Favour of took place outside the schooner too, the Sea, to contribute to the raising of • Conservation and research focus concretely in workshops held in awareness about the most valuable on campaigns to study zoological and hospitals and schools in Madrid, Burgos, ecosystems on the shores of Spain’s botanical groups, ecosystems Saragossa and Lleida. islands and mainland and to their and­ communities that are especially conservation. sensitive to the sustainability of marine • The main 2009 innovation in the ecosystems. programme ”la Caixa” in favour of the sea was a new environmental campaign ”la Caixa” in favour of the sea • The educational and information that, as part of the European Carboocean activities of the programme transfer Project of La Laguna University, collected Definition to society the knowledge obtained in water samples from the entire shoreline Series of actions to conserve the conservation and research activities, with and islands of Spain. The objective of the ecosystems of the Spanish shore-line a view to encouraging attitudes in favour campaign was to reveal the relationships and of its islands through the rescue and of environmental sustainability. These between the atmosphere, the oceans and recovery of marine species facing the activities include visits of school groups to CO2 and to evaluate the viability of seas danger of extinction, to research the the Vell Marí, in which all the equipment and oceans as carbon (CO2) sources and state of marine ecosystems and to raise and technology deployed are shown. sinks. environmental awareness. Action The Route of the Vell Marí, for rescuing, publicising and researching threatened marine species and ecosystems; the Carboocean campaign, to analyse the importance of oceans as sources and sinks of CO2; an acoustic underwater map of Spain’s coastal waters, to find the levels of acoustic pollution and its effects on marine ecosystems and organisms. Ambit Spain’s entire shore-line. Number of visits in 2009 13,875 visits.

• One of the bulwarks of the programme ”la Caixa” in favour of the sea is The Route of the Vell Marí, developed jointly with the Foundation for the Conservation and Recovery of Marine Animals (CRAM). The project has a scientific schooner (the Vell Marí), which sails Spain’s The Route of the Vell Marí conserves the ecosystems of Spain’s shorelines shores and islands developing research

Annual Report ”la Caixa” 2009 158 Cultural Programmes

Introduction CaixaForum Barcelona CaixaForum Madrid CaixaForum Palma, Lleida, Tarragona and the ”la Caixa” Foundation in Girona New CaixaForum centres at Seville and Saragossa Exhibitions Music Cultural Programmes

Cultural Programmes

The cultural programmes of Broad cultural provision Collaboration in favour of art ”la Caixa” Welfare Projects, which received 59,6 million euros funding Welfare Projects organises travelling One of last year’s cultural innovations was in 2009, are planned and run to exhibitions and concerts outside its the establishment by ”la Caixa” Welfare popularise culture and so have centres, on stages and in cultural spaces Projects of collaboration agreements greater social impact. Their aim is throughout Spain. One of its main with the Prado Museum in Madrid and to encourage in society habits of initiatives is the programme Art in the the Louvre in Paris. The programme cultural consumption that improve Street, which installs key modern and ”la Caixa”. The Prado Museum. The the general public’s quality of life. contemporary sculptures in cities’ best- art of educating, launched in 2009- Thus, the various cultural initiatives known public spaces. 2010, promotes visits led by stimulating of the entity bring art, music, theatre guides to Spain’s best picture gallery for and the humanities to every kind The cultural programmes of ”la Caixa” primary and secondary school groups. of public, but particularly to people Welfare Projects revolve mainly around The collaboration agreement with the who lack the opportunities or habits four main areas: exhibitions, the Louvre will permit in years to come the of going to museums, theatres humanities, music and the theatre. showing at various CaixaForum centres or concert halls. In short, Welfare The humanities programme tackles of works from the Louvre Museum. Projects promotes culture as a motor classical and contemporary thought, Among the exhibitions planned are the of society and a tool for personal literature, film, history, the plastic arts first major retrospective in Spain of growth. and the dramatic arts. It aims to probe the Romantic painter Eugène Delacroix the roots of culture and stimulate debate and archaeological exhibitions on Saudi Two new CaixaForum centres on the huge changes in society. In Arabia and the Sumerian and Coptic addition, Welfare Projects offers a music civilisations. To this end, ”la Caixa” has set up and programme that seeks to create social runs a new model of socio-cultural cohesion and favour relations between Another line of action starting in centre, the CaixaForum, a space that cultures. Dramatic art is the protagonist 2009, run jointly with the Generalitat is free and open to everyone and that of CaixaEscena, a programme that (Autonomous Government) of Catalonia, puts on activities relating to the various bets on the educational possibilities was a programme to recover Catalan branches of culture. The CaixaForum of the stage arts among secondary monuments that have great importance centres maintain all year round stable school students. The importance of to Catalonia’s art heritage. The project cultural programmes), which are noted art education at the successive stages Open Romanesque is one of these. for their transversal character and are of the learning process is widely Its objective is to review, improve and regularly renewed. In addition, they recognised. In the concrete case of prevent the deterioration of Catalan house the ”la Caixa” Welfare Projects the theatre, factors and values that Romanesque. The initiative comprises Contemporary Art Collection, which are instrumental and expressive and the restoration and improvement of 74 holds over 700 works and is a point of which inspire social harmony coincide, Romanesque monuments and items and reference for international collectors. making drama an effective argument for the dissemination of their artistic and both individuals and groups. Through heritage value. Another initiative related At the end of 2009, Welfare Projects CaixaEscena, Welfare Projects provides to this new line is the collaboration started building the future CaixaForum ongoing appraisal, specialist resources agreement to rehabilitate nine Saragossa, whose opening is scheduled and technical experts to all those cooperative wine cellars in Catalonia for 2012, and CaixaForum Sevilla. The schools that work with the theatre that have great architectural value. latter project will convert the Royal as a tool to educate in values. The Dockyards of Andalusia’s capital into an programme is designed to encourage innovatory cultural centre, due to open creativity, stimulate students’ capacity of in 2015. These two new centres will expression and get them to take part in a be added to those already operating in contributive, non-competitive spirit. In the Madrid, Barcelona, Palma de Mallorca, 2008-2009 school year, the programme Girona, Lleida and Tarragona. was introduced into all the Autonomous Communities, with the participation of 591 school groups and a total of 12,749 students, 1,232 performances and 152,651 beneficiaries.

Annual Report ”la Caixa” 2009 160 Cultural Programmes

CaixaForum Barcelona

activities and multimedia programmes Exhibitions CaixaForum Barcelona put on a great many events in several formats: concerts, theatre shows, debates • Palladio, the architect (1508-1580) Details and talks, literature and thought cycles, • Cambodia, land of hope Opened 2002. film shows, courses and workshops. • ”la Caixa” Foundation Collection of 12,000 m2. Graphic Art. Sign, space, time 1,573,201 visits. • Of all the exhibitions put on in 2009, • Fair Trade: a history, a product 782,493 visitors. the most popular was that of the Catalan • The sea of Barceló in the hall of Location painter, Joaquim Mir, which received human rights and of the alliance of Avinguda Marquès de Comillas 6-8, 130,000 visits, followed by the one civilizations, United Nations building, Barcelona. on the architect Richard Rogers with Geneva Facilities over 120,000. The retrospectives of the • The bread of angels. Collections from Five exhibition halls. Fauve painter Maurice de Vlaminck, the Uffizi gallery. From Botticelli to Auditorium holding 340 people. the architect Andrea Palladio, and “The Luca Giordano Three halls for courses, talks and other Worlds of Islam” were also popular, with • Imaginations. ”la Caixa” Foundation activities. each receiving almost 100,000 visitors. Contemporary Art Collection Arts Laboratory for educational activities. Special mention should be made of the • FotoPres ”la Caixa”09 Media library. exhibitions that showed works from the • Joaquim Mir. Retrospective (1873- ”la Caixa” Foundation Contemporary 1940) Art Collection, one of the most • The look of the artist: Luis Gordillo. • In 2009, over a million and a half important in the Spanish state, which Dogmatic Cosmetics. ”la Caixa” people of all ages attended the various were seen by nearly 300,000 visitors. foundation contemporary art activities and exhibitions organised at collection CaixaForum Barcelona, the cultural centre • In the area of Photography, we • The worlds of Islam in the collection of ”la Caixa” Welfare Projects located in highlight the exhibition of the of the Aga Khan Museum the former Casaramona factory (designed award-winning works from the • Massimo Bartolini. In the back of my by Puig i Cadafalch), jewel of industrial FotoPres ”la Caixa”09 prizes. mind Art nouveau architecture. CaixaForum • Maurice de Vlaminck, a fauve instinct. has become one of the city’s busiest and Paintings from 1900 to 1915 most dynamic cultural spaces.

• The main objective of the programmes of CaixaForum Barcelona is to bring culture closer to society. In 2009, the centre put on an extensive programme of activities for every kind of public, including exhibitions of art from various periods and civilizations and in different categories (painting, architecture, photography...). Around these, CaixaForum organised complementary activities, debates and talks, cycles on literature and thought, films, multimedia activities, courses, workshops, family programmes, guided tours for the general public and tours booked beforehand for groups, prepared visits for people with hearing difficulties, concerts, stage performances and coffee discussions for the elderly. The humanities, music, international CaixaForum Barcelona cooperation, educational and family

Annual Report ”la Caixa” 2009 161 Cultural Programmes

• Mersad Berber. Retrospective • Film cycle • Filmed music • Looking at collection 2. ”la Caixa” • Cinema: city and architecture • The songs of the Soul. Voice and foundation contemporary art song in human expression collection • Poetry cycle • Diverse music from Central Asia • Modernism, modernity. From textile • From poet to poet factory to CaixaForum. Permanent • Music afternoons Space • Recreation of History • The times of Joseph Haydn • Richard Rogers + architects. From the • Baspedas: Prince or Merchant? • Felix Mendelssohn 1809-2009 House to the City Historical-archaeological recreation of • Zabaleta 101. Centenary of Rafael the Iber world • Summer nights Zabaleta • Gospel • Zones of risk. ”la Caixa” Foundation International Cooperation • Celtic Music Contemporary Art Collection • Jazz • Film cycle • Film music Humanities • Fair Trade: a history, a product Family Activities • Cycles of talks • Talk • 70 years on from the Civil War • Globalization and Civil Society • Family concerts • Four days with Dante and the Divine • Family cinema Comedy • Round Table • Street art. And if it’s raining, too! • China, India, Brazil: the case of the • Every minute nine children die of • Dramatic arts emerging countries. The effects of the malnutrition… did you know? • Art in the lab current social and economic situation • Art in play (autonomous activities: • Designing what we will be. Utopias Music CaixaForum back-packs, the Sol for the XXI century LeWitt mural: variations on a theme, • Isaiah Berlin. Freedom and Pluralism • Concerts of Diversons, Music for Crack your Nut at CaixaForum) • The social construction of identity. Integration • Workshops Body, gender and culture • Educational space • Classical myths • Concerts of the CaixaForum Music • Family introductions to exhibitions • Countries in mutation. USA, Russia, Season: 24 concerts with major • Treasure hunts with clues United Kingdom, Italy and Romania performers and groups of Ancient • Concerning the emotions Music, World Music and other styles, Educational Activities including Europa Galante, Giovanna • Cycle of illustrated talks Marini, the London Haydn Quartet, • Plastic arts workshops • Slavic Europe and its Literature Marta Almajano, Soloists from the • Music workshops • Music in the cinema Seville Baroque Orchestra and Gustav • Visits stimulated by a leader to • Letters from universal Journeys Leonhardt exhibitions • Concerts • Lectures • Films

Multimedia Activities

• Concerts • Films • Lectures

Exhibition: Maurice de Vlaminck, a fauve instinct

Annual Report ”la Caixa” 2009 162 Cultural Programmes

CaixaForum Madrid

• CaixaForum Madrid celebrated its • Architecture was one of the year’s CaixaForum Madrid first birthday in February 2009, already main subjects at CaixaForum Madrid established as a social and cultural through the exhibitions dedicated to Details platform for all publics. In its first full Richard Rogers and Andrea Palladio, Opened in 2008. year, citizens proffered an outstanding two architects intimately committed to 10,000 m2. welcome to the new social and cultural humanity and the improvement of urban 1,419,387 visits in 2009. centre of ”la Caixa” Welfare Projects in life. The centre also hosted a major 1,120,224 visitors in 2009. Madrid, receiving 2,521,696 visitors. retrospective on Vlaminck, one of the key Location fauve artists, and an exhibition of master- Paseo del Prado 36, Madrid. • Through the exhibitions of ancient, pieces of Islamic art from the prestigious Facilities modern and contemporary art it collection of the Aga Khan’s Museum. Two exhibition halls. programmed, and the concerts, literature Auditorium holding 333 people. and poetry cycles, debates on today’s • Among the various activities organised Five educational and/or multi-purpose issues, social, scientific and by CaixaForum Madrid in its first twelve spaces. environmental workshops, educational months, the greatest attendances were and family workshops and activities for seen at the exhibitions, followed by groups of elderly people, CaixaForum educational events, concerts, family Madrid promoted knowledge and activities, the humanities cycles and personal growth in citizens of all ages. Welfare Projects.

CaixaForum Madrid

Annual Report ”la Caixa” 2009 163 Cultural Programmes

Exhibitions Humanities • Cycles of talks • Make someone act • Cambodia, Land of Hope • Cycles of talks • Immigration. Mirror and reflection of • Chasing the Dream. The 8 Goals of • Andrea Palladio, yesterday and today today’s world Millennium Development • Double voices • The Sea of Barceló in the Hall of • Europe’s XXth century and its limits. A • Film cycles Human Rights and of the Alliance of historical analysis • Maternities Civilizations, United Nations building, • On the frontier: dialogues of a • The camera eye Geneva. changing world • Hannah Collins. History in the Making. • Europe: new scenarios, new frontiers. • Poetry cycle Films and photographs ”la Caixa” Chair • From poet to poet • The Yi School: thirty years of Chinese • Isaiah Berlin. Freedom and Pluralism Abstract Art • The social construction of identity. Music • The Worlds of Islam in the collection Body, gender and culture from the Aga Khan Museum • Spanish thinkers of the XIXth century • Concerts of Diversons, music for • Maternities. Photographs by Bru • Religions of the ancient world integration Rovira • Open society, diversity and cohesion. • Maurice de Vlaminck, a fauve instinct. ”la Caixa” Chair • Concerts of the CaixaForum music Paintings from 1900 to 1915 • A challenge for Europe: the future of season • Palladio, the architect (1508-1580) the social welfare system. ”la Caixa” • Etruscan princes. Between East and Chair • Music Courses West • Johann Sebastian Bach • Richard Rogers + architects. From the • Cycles of illustrated talks • A history of jazz House to the City • Slavic Europe and its literature • Areas of risk. ”la Caixa” Foundation • Music in the cinema • Filmed music Contemporary Art Collection • The voices of Allah. The musical dimensions of Islam • Diverse music from Central Asia

Inside staircase at CaixaForum Madrid

Annual Report ”la Caixa” 2009 164 Cultural Programmes

CaixaForum Palma, Lleida, Tarragona and the ”la Caixa” Foundation in Girona

• Humanities: Cycles of lectures: life in Greco-Latin antiquity. Seminars: CaixaForum Palma 70 years on from the Civil War; China, Posters: from Alphonse Mucha to India, Brazil: the case of the emerging postmodernism. Congresses: First Details countries. The effects of the current International Congress 1959 from Opened in 1993. social and economic situation; The Collioure to Formentor. 4,000 m2. world of the muses. How to read • Music: Concerts of Diversons, music 339,612 visits. classical poetry; Great women, great for integration; Concerts of the 325,251 visitors. values; Social intelligence; My brain CaixaForum music season. Filmed Location and I. Get to know yourself. Film music: Diverse music of Central Asia. Plaza Weyler 3, Palma de Mallorca. cycles: Cinema and psychiatry. Souls Music afternoons: Johann Sebastian Facilities of glass; Maternities. Courses: Bach. Courses: Understanding Opera. 5 exhibition halls. VII Humanities Hall Course: Mythology: Music for disabilities workshop: Auditorium holding 163 people. the world of heroes; XIII Course in Listen, discover and create your own 3 educational and/or multi-purpose Classical Culture and Thought: Daily music! spaces.

• Exhibitions: Alphonse Mucha (1860- 1939). Seduction, modernity and utopia; Chaplin in images; The art of Tibet. Images for contemplation; The aesthetic of Anglada-Camarasa. Permanent exhibition; Maternities. Photographs by Bru Rovira; Mersad Berber. Retrospective; Feet. Tracks towards evolution; Ramon Llull. History, thought and legend; Salvador Dalí and magazines; Areas of risk. Contemporary Art Collection of ”la Caixa” Welfare Projects.

CaixaForum Palma

Annual Report ”la Caixa” 2009 165 Cultural Programmes

CaixaForum Lleida CaixaForum Tarragona ”la Caixa” Foundation in Girona

Details Details Details Opened 1989. Opened 2001. 32,967 visits. 1,835 m2. 1,429 m2. 31,079 visitors. 85,490 visitors. 103,469 visitors. Location 95,762 visits. 129,581 visits. Santa Clara, 11, 17001 de Girona. Location Location Facilities Avenida Blondel, 3, Lleida. Cristòfor Colom 2, Tarragona. Narcís de Carreras Auditorium, Facilities Facilities ”la Caixa”, Tallers Room. 1 exhibition hall. 1 exhibition hall. Auditorium holding 230 people. Auditorium holding 177 people. 2 educational and/or multi-purpose 3 educational and/or multi-purpose spaces. spaces. • Exhibitions: Chaplin in images; Refugees: lives in transit; Chasing the Dream. The 8 Goals of Millennium Development; Origins. Five landmarks • Exhibitions: Chasing the Dream. The • Exhibitions: Alphonse Mucha (1860- in human evolution. 8 Goals of Millennium Development; 1939). Seduction, modernity and • Educational Activities: Music Chillida. 1980-2000; “Botanic Harmony” utopia; “Botanic Harmony” – Count workshops; Plastic arts workshops; – Count Urgell; Henri Cartier- Urgell; Chasing the Dream. The 8 Educational concerts; Scientific Bresson. Photographer; “Kaüpunke” Goals of Millennium Development; theatre; Theatre in values; Cinema – Fito Conesa; Women. Mirror of Gustav Klimt. Drawings 1879-1918; and young people. cultures. Become a volunteer; “Kaüpunke” • Humanities: Cycles of lectures: • Humanities: Cycles of lectures: – Fito Conesa; The skin of the Let’s rediscover master-pieces. Historical biographies; Chillida: two real. Engravings by Antoni Tàpies. Israel-Palestine: towards the hundred approaches; The journey of foods: Collection of Graphic Art of ”la Caixa” years war?; Classical thought; beliefs, customs and names; George Foundation; Feet. Tracks towards Difficult conversations. Conflict and Friedrich Händel (1685-1759); evolution. the human condition; Georg Friedrich Heroines of fiction; The names of • Humanities: Cycles of lectures: The Händel (1685-1759). happiness; Universal Religions II; journey of foods: beliefs, customs and • Cycles of films: Filmed music: Science Afternoons. names; Between myth and religion; Documentary of the month. • Cycles of illustrated talks: Cartier- The Balkans: old and new keys; The • Music: Concerts of Diversons. Music Bresson and Robert Frank, two names of happiness; Mucha and Art for integration. opposing ways of seeing the world; Nouveau, the flowering of modernity; Jacqueline du Pré. Filmed Music; The Science week. Film and debate cycles: limits of the human. Faces of the D+D: Documentary plus Debate. monster in classical mythology; Past, Cycles of drama, poetry and literature: present and future of the rumba. Literary autumn. Music: Concerts • Film cycles: With one’s own voice; of the CaixaForum Music Season; D+D: Documentary plus Debate; Concerts of Diversons. Terres de Lleida Film Theatre; Cinema Mornings; 13th International Festival of Animation Films in Catalonia (ANIMAC). • Music: Concerts of the CaixaForum musical season; Diversons. • Multimedia • Family Programme

Annual Report ”la Caixa” 2009 166 Cultural Programmes

New CaixaForum centres in Seville and Saragossa

CaixaForum Seville • Steel and Wood, emblematic materials • The building will be divided into two in the history of navigation, evoked by large and tall geometrical structures that • In September 2009, the Department of the historical function of the Atarazanas, will house the exhibition halls, creating Culture of the Government of Andalusia will be, together with glass, the main a new public space on the ground floor ceded to ”la Caixa” the use for 75 materials employed. Their fusion with that will connect the new El Portillo Park years of the city’s Reales Atarazanas bare brick will highlight the multiple with the city through the bottom of (Royal Dockyards) to install the future colours of the new building. CaixaForum. These two big exhibition CaixaForum Seville in this historic halls will be suspended at different levels, building. The new project will entail • Intended to become a public space so that the visitor can view the city when complete rehabilitation of the building, open to all, the Reales Atarazanas moving from one to the other. which will nevertheless lose none of its complex will be opened out to the city by valuable architectural features. means of a new public square. • As a distinguishing feature, the Saragossa centre will be the first brand- • The architectural project for the • The future CaixaForum of Andalusia’s new building to be used as a CaixaForum conversion into CaixaForum Seville of the capital city will be similar to the centre. old ship-yards that Alfonso X the Wise CaixaForum centres of Madrid and ordered to be built was adjudicated to Barcelona: all kinds of activities explaining • The centre is located within the Milla the architectural studio led by Guillermo science, technology and culture in their Digital (Digital Mile) project, part of the Vázquez Consuegra. broadest senses will be fostered. City of Innovation and Knowledge that the Saragossa City Council is developing, • The future centre will emphasise CaixaForum Saragossa in which businesses, cultural facilities the most relevant historical and and housing will stand side-by-side. The archaeological elements of the Reales • At the end of December 2009, work CaixaForum Saragossa plot covers an Atarazanas complex. The aim is to began on the future CaixaForum area of 4,407 m2. The centre’s total floor- convert the building itself into a Saragossa. The new centre is scheduled space will exceed 6,000 m2. significant part of the contents of the for completion by 2012, the planned CaixaForum, vindicating the historical and opening date. • CaixaForum Saragossa hopes to be a cultural wealth it encloses. Thus, most of living space, at the service of people, in the intervention will affect the upper part • The Catalan architect Carme Pinós is which culture becomes an effective tool of the building, with a view to keeping in charge of the CaixaForum Saragossa for social cohesion and integration. the ground-floor space untouched. The building project. She is seeking to convert project opts for constructing a sustainable ”la Caixa” Welfare Projects’ new social building that respects the environment. and cultural centre into an avant-garde architectural landmark in the city.

CaixaForum Seville. Virtual re-creation. CaixaForum Saragossa. Virtual re-creation Exterior

Annual Report ”la Caixa” 2009 167 Cultural Programmes

Exhibitions

Exhibitions are one of the most Travelling Exhibitions Art in the Street important cultural activities of ”la Caixa” Welfare Projects and the • The travelling exhibitions of • The Art in the Street programme is one that creates the most ripples. ”la Caixa” Welfare Projects are shown a pioneering initiative from ”la Caixa” The entity’s own centres put on, in halls offered by local institutions Welfare Projects. It started in 2007, in in addition to the permanent and marquees put up in cities all over order to bring art closer to citizens and exhibitions belonging to ”la Caixa” Spain to enable free access of the knock down the barriers that sometimes Welfare Projects’ Contemporary general public to the exhibition. These separated them from contemporary Art Collection, a wide range of are explanatory exhibitions on social creation. exhibitions on diverse themes that questions, art, photography, history, are constantly being changed. environment and science, which are often • The exhibitions are in the street, in In addition, the entity organises accompanied by complementary activities famous spaces given by the city councils, throughout Spain and outside designed for the families and schools to achieve a more direct and enriching the centres themselves travelling of the town where the exhibition is on. connection between the pieces on show exhibitions accessible to every kind In 2009, ”la Caixa” Welfare Projects and the people contemplating them. The of public. travelling exhibitions moved 254 times. project puts works of renowned artists within reach of everyone, with a view to • With them, Welfare Projects contributes creating a dialogue between these works to making society more aware of social and the architecture of the place where questions, encourages knowledge and they are shown. creates spaces for the promotion of culture that become genuine meeting places. • The exhibitions organised in 2009 by Welfare Projects in 11 Spanish cities • In 2009, photography exhibitions within this programme were: were put on in 116 Spanish cities, • Auguste Rodin. Exhibition consisting including Looking for silver. Photographs of seven monumental sculptures of Extremadura in the Mas Archive; from the Rodin Museum of Paris: The Andalusia imagined. Photographs 1910- Thinker and six studies of the six men 1930; Avelino Pi. Sports photography; featured in The Burghers of Calais. Chaplin in images; Fotopres ’07; Henri Cities: Bilbao, Madrid, Valencia and Cartier-Bresson. Photographer; and A Barcelona. century of motorcycling as a sport in • Manolo Valdés. Exhibition of Catalonia. There were also historical 17 sculptures of the Valencian exhibitions around particular themes, such artist living in New York, Manolo as: Europe was a road. The pilgrimage to Valdés. The works (five of them Santiago in the Middle Ages; The Ibers. done expressly for this exhibition) Our civilisation before Rome; Science in represent themes from history and the World of Al-Andalus; The aromas of art recreated freely. Cities: Murcia, Al-Andalus; The castles of Al-Andalus; Málaga, Cáceres, Girona, Santander, or The millares. An age-old civilisation. Donostia and Madrid. Plastic arts exhibitions included: Alphonse Mucha 1860-1939. Seduction, modernity, utopia; Chillida. 1980-2000; Designers for a legend. Homage to Toulouse-Lautrec; Joaquim Mir. Retrospective (1873-1940); Rodin and Symbolist Mythology; and A day in Mongolia. The Holdings of the Welfare Projects Collection were also used for exhibitions, such as Poetic abstraction; The aesthetic of Anglada-Camarasa; The trace of the artist; The skin of the real. Art in the Street. The Thinker by Auguste Rodin Engravings by Antoni Tàpies.

Annual Report ”la Caixa” 2009 168 Cultural Programmes

Music

Sharing the experience of listening Diversons. Music for Integration contest, at the start of their professional to music and taking part in it usually careers. In 2009, 46 concerts by nine has a positive social effect. ”la Caixa” • Welfare Projects runs the programme musical groups were put on in 7 cities. Welfare Projects devotes various Diversons, to make better known programmes to popularising music, the traditional music of the countries Solidarity concert of ”la Caixa” organises participative concerts of origin of many people now volunteers with non-professional singers and living in Spain, with the objective of promotes music seasons, school and developing closer links and cultural • 2009 saw the second year this concert family concerts and specialist courses. exchange between immigrants and took place, on this occasion organised in the autochthonous population. The benefit of the NGO Sonrisas de Bombay Participative Concerts: Händel’s participants, selected through an annual (Bombay Smiles), which works with Messiah contest, are traditional world music the poorest and most vulnerable interpreters. 210 concerts all over Spain, communities of this Indian city. Well- • These concerts are a unique experience attended by 103,626 people, took place known musicians of various nationalities that brings together renowned in 2009. took part in the concert and 10,570 professional musicians with amateur euros were collected. choral singers in a joint interpretation of School concerts one of the most famous and significant works of all times: Händel’s Messiah. • This programme seeks to bring music Starting in Barcelona in 1995, this project into the schools (infants, primary had the dual objective of recognising and secondary) as an activity that is and stimulating the social practice of both educational and playful. School singing and music that takes place in and family concerts offer children choral societies and promoting social the experience and the pleasure of participation in the area of culture. Since attending attractive and stimulating then, over 17,000 individual participants events. They also give teachers the have sung the choral parts of this work opportunity of rounding off their pupils’ and almost 171,000 people have attended musical education with an activity that the concerts. In 2009, 2,476 singers took can be developed both in the class- part and 13 participative concerts took room, with the teaching material that place: two in Madrid, Barcelona, Valencia Welfare Projects makes available before and Donostia, and one in each of Palma the concert, and by attending the de Mallorca, Santa Cruz de Tenerife, school concerts. In 2009 the following Lleida, Girona and Valladolid. For the productions were put on: The Super- second consecutive year, in 2009 Händel’s barber of Seville, Metal and its colours, Messiah was broadcast on television and Cinderella, Sakapatú! A trip through by Internet, in collaboration with TVE (the Andean music, The Moussakis. Music Madrid concert). The overall public for from the Balkans, Within a suitcase and these broadcasts exceeded 100,000. A glass of mint tea. Music from the Maghreb. Participative Concerts: Carmina Burana by Carl Orff Antiqua

• As described above, lovers of choral • Through this programme, Welfare music could sing in 2009, for the second Projects promotes Ancient Music year in Barcelona and the first in Madrid, concerts that are held in the open air in the choral parts of Carl Orff’s Carmina well-known spaces in various Spanish Burana. The concerts were held in June, cities. The objective of the project is with 897 singers taking part. to bring to the general public Ancient Music, interpreted with historical criteria and instruments, and to support the Participative concert: Händel’s Messiah musicians, selected through an annual

Annual Report ”la Caixa” 2009 169

2009 Data of ”la Caixa” Welfare Projects

Governing Bodies of ”la Caixa” Welfare Projects Financial Statements of ”la Caixa” Welfare Projects 2009 Data of ”la Caixa” Welfare Projects

Governing Bodies of ”la Caixa” Welfare Projects on 31 December 2009

Welfare Projects Committee

Chairman Isidro Fainé

Committee Members Salvador Gabarró Jordi Mercader Javier Godó Montserrat Cabra Ana María Calvo Juan José López Executive Officers Montserrat López Justo B. Novella President and Chief Executive Officer of ”la Caixa” Secretary (non-member) Juan María Nin Alejandro García-Bragado Executive President of Social Deputy Secretary (non-member) and Cultural Outreach Projects Óscar Calderón Jaime Lanaspa

Board of the ”la Caixa” Foundation

Honorary President José F. de Conrado President and Chief Executive Officer José Vilarasau Javier Godó Jaime Lanaspa Josep Delfín Guàrdia Monika Habsburg Chairman Secretary (non-member) Inmaculada Juan Isidro Fainé Alejandro García-Bragado Jaime Lanaspa Juan José López Deputy Secretary (non-member) Deputy Chairmen Montserrat López Óscar Calderón Ricardo Fornesa (First Deputy Chairman) Dolors Llobet Salvador Gabarró Rosa M. Mora Jordi Mercader Amparo Moraleda Juan María Nin Miquel Noguer Justo B. Novella Board Members Jordi Portabella Victoria Barber Leopoldo Rodés Mª Teresa Bartolomé Luis Rojas Mª Teresa Bassons Nuria Esther Villalba Montserrat Cabra Josep Francesc Zaragozà Ana María Calvo

Annual Report ”la Caixa” 2009 172 2009 Data of ”la Caixa” Welfare Projects

Senior Management of ”la Caixa” Welfare Projects

Chairman Isidro Fainé

Executive President Jaime Lanaspa

Managing Director of Accessible Housing Jaume Cabré

Manager of the Area of Scholarships, Universities and Social Studies Rosa Maria Molins

Senior Management of the ”la Caixa” Foundation

Chairman Manager of the International Manager of the Department Isidro Fainé Department of Science, Research and the S.A.R. La Infanta Doña Cristina Environment President and Chief Executive Officer Enric Banda Jaime Lanaspa Manager of the Department for Area Action Manager of the Department of Senior Vice-President Rafael Chueca Organisation and General Services Elisa Durán Jordi Cabedo Manager of the Culture Department General Secretary Ignasi Miró Manager of the Social Action Lluís Reverter Department Manager of the Production Xavier Bertolín General Manager Department Esther Planas Enric Sagrera Manager of the Human Resources Department General Manager Manager of the Department of Social Silvia Ciurana Albert Sòria Integration Marc Simón Manager of the Department of Manager of the Department of Centres Communications Science Director Josep Ollé Francisco Javier Zuloaga Jorge Wagensberg Manager of the Department of Social Marketing Daniel Zafra

Annual Report ”la Caixa” 2009 173 2009 Data of ”la Caixa” Welfare Projects

Financial Statements of ”la Caixa” Welfare Projects

Welfare Projects Welfare Projects Expediture in 2008 Budget for 2009

PROGRAmMeS in thousands of EUROS PROGRAmMeS in thousands of EUROS Social programmes 278,543 Social programmes 356,274 Environmental and scientific programmes 63,098 Environmental and scientific programmes 61,633 Cultural programmes 59,576 Cultural programmes 55,384 Educational and research programmes 28,860 Educational and research programmes 26,709 Total 430,077 Total 500,000

Assets and Liabilities of Welfare Projects at 31 December 2008, after expenditure for the year and before allocation of 2008, ”la Caixa” profit, in thousands of euros

Assets Liabilities Current assets 400,259 Current liabilities 257,209 Cash 213 Deferred expenses payable 134,210 Accounts receivable 175 Other accounts payable 145 Other allocations - ”la Caixa” 399,871 ”la Caixa” Foundation 122,854 Investments 82,907 Welfare Projects own funds 592,257 Financial investments 100,250 Welfare Fund 143,050 Security price fluctuation fund (17,343) Welfare Projects reserves 449,207 Non-current assets 366,300 Property, plant and equipment 502,964 Land and buildings 349,582 Furniture and fixtures 153,382 Accumulated depreciation (136,664) Buildings (79,455) Furniture and fixtures (57,209) Total 849,466 Total 849,466

Annual Report ”la Caixa” 2009 174

Photographs David Campos: p. 4. Estudio McGuffin: p. 141. Exit de Disseny: pp. 12, 13, 15, 29, 33, Kike Figaredo: p. 142. 39, 44, 50, 52, 54, 55, 57, 60, 61, 62, UNICEF Giacomo Pirozzi: p. 143. 65, 66, 67, 71, 75, 78, 80, 81, 83, 89, Norman García-Solera: pp. 151, 154. 96, 110, 112, 113, 117, 118, 119, 120, Enric Monté: p. 151. Concept and design 121, 123, 124, 171. Limit 0: p. 152. Exit de disseny Joan Masats: pp. 44, 129, 144, 145. Olga Planas: pp. 153, 164. Roc Herms: pp. 112, 113, 126, 127, 129, CRAM: p. 158. Make-up and printing 130, 131, 132, 134, 135, 137, 149, 156. EFE. Yoan Valet: p. 159. www.cege.es Jordi Nieva: pp. 115, 121, 127, 133, 147, Museo del Prado: p. 159. 151, 155, 157, 162. Oriol Clavera: p. 159. Cover photographies Raimon Solà: p. 116. Alejandro Espadero: p. 160. Exit de disseny, Roc Herms Máximo García: pp. 126, 148, 151, 159, Mónica Reboredo: p. 161. and Máximo García 163, 168, 169, 171. Carme Ortega: p. 165. Antonella Delussu: p. 129. Estudi Carme Pinós: p. 167. D.L.: B. Camilo Alonso: p. 138. H.Caux / ACNUR: p. 171.