Annual Report 2019 1. Letter from the Chairperson _ 02

2. Letter from the CEO _ 04

3. Governing Bodies _ 08

4. Value creation in FCC _ 10

5. FCC, ready to face the future _ 12

6. FCC in 2019 _ 18 7. Corporate Social Responsibility of the FCC Group _ 34

Annual Report 2019 Full version FCC_Executive Summary of the Annual Report_2019 3

At 2019 year-end, the gross operating following the financial crisis. Thanks to It is thanks to them, our customers and all 1 income was €1.03 billion, an increase of their executive work, FCC underwent a of you, that the FCC Group will continue 19.1%. An increase that was supported crucial change to significantly reduce its being a stable, long-lasting project with by the greater income generated in all the debt and the cost of this debt. This new a common spirit and long-term vision, business areas and improved operational situation has enabled us to tackle new thereby redoubling our confidence and efficiency. challenges in optimal financial conditions, optimism for a future we wish to see for including recovery of the dividend. everyone. I am convinced we will achieve On 31st December, the Group’s backlog this by working together. closed at €31.04 billion, an increase of As we address the socio-economic con- 7.1%. In terms of volume of contribu- sequences of a historic pandemic, it is Kind regards, tion, the 86.9% increase of Construction vital to have efficient and committed lead- Esther Alcocer Koplowitz in Spain, due to winning important con- ers and teams. We have them at FCC. Chairperson of the FCC Group tracts, was relevant, as well as the order book increase in the Environment area from new contracts awarded overseas, Letter from the Chairperson primarily in the USA. The consolidated net financial debt closed on 31st December at €3.58 billion, a 33% increase on December 2018.

Dear shareholders, Meanwhile, the Group’s net equity rose to €2.47 billion, an increase of 26.3% on the Together, he global challenges we are facing This Annual Report outlines everything previous year. as a result of the COVID-19 pan- we have done over the last year, a year Throughout 2019, the different business T demic can only be managed and in which we continued the growth and areas have reached significant mile- more than navigated by tapping into our resilience improvement from recent years. By rein- stones, which are detailed within this and adapting to the changes with suffi- forcing our operational elasticity and ca- Report. These milestones were made cient flexibility, transforming difficulties into pacity, and maintaining our strong team possible thanks to the commitment and opportunities and thereby overcoming this spirit, we have managed to continue to effort of the people who make the reality ever. historic period we are going through. set FCC apart in the competitive environ- of FCC possible in every single country ment we operate. Our Group has shared difficult experienc- we operate. es together before, moments of uncertain- In the last year, the FCC Group obtained a This commitment, effort, passion and de- ty that we have always faced together with net income of €339.9 million, 21.5% more termination is what has made it possible a positive spirit, convinced we would con- than the previous year. Meanwhile, the net for the company to celebrate on 3rd July, tinue moving forward through hard work attributable income was €266.7 million, 120 years of providing key services to and determination. And it has worked. an increase of 6% on the previous year. society. In 2019, the net sales rose 4.8% on the An important turning point in the compa- previous year to €6.28 billion. ny’s history took place in 2014 when the Carso Group, headed by engineer Carlos Slim, acquired shares in our company FCC_Executive Summary of the Annual Report_2019 5

In the last five years in the structural Therefore, in the context of an ever- 2 area, the Group has reinforced its profit- changing regulatory framework, the ability and operating cash flow by imple- Group’s commitment to the fight against A consolidated menting strict expense containment and corruption and to the application of good and renovated Group reducing structural and corporate costs practices in the businesses, the FCC to be more agile and competitive. Board of Directors approved a new Code with a solid financial of Ethics in February 2018. This aimed Finally, in the financial area, the Carso to encourage any people related to any structure. Group leadership proved to be essential company in the FCC Group to follow the in carrying out a combined consolidation behavioural guidelines to the letter in their process of the capital structure, with two commitment to complying with the laws, expansions: one in December 2014 and regulations, contracts, procedures and the other in March 2016. These expan- ethical principles. sions increased it to €1.71 billion, which served as a base for a thorough restruc- Letter from the CEO turing and subsequent reduction of the company’s debt. These three areas of action have enabled a complete strengthening and renovation of the FCC Group as it now has a solid To all shareholders, financial structure. would like to start this letter by express- Our company experiences special mo- a solid position in all aspects over the last ing my gratitude to society as a whole, ments every year. This year is a historic five years. Corporate culture: integrity, to the professionals whose essential year as our Group celebrates 120 years professionalism and transparency I In the operational area, FCC managed work and tireless efforts have been ex- of working side by side with citizens and to recover its position as a Group special- FCC Group’s global dimension and vast emplary from the start of the COVID-19 sharing great moments. Our commit- ising in environmental services manage- international presence make it imperative crisis, and to our employees, who have ment, professionalism and continuously ment, end-to-end water management, to have a strong commitment to applying been fundamental to fulfilling our commit- improving service to our customers has and infrastructure development and the highest standards of integrity and eth- ment to ensure citizens have the services defined our whole history. management. It also improved the risk ical and regulatory compliance in its activ- expressly classified as essential. These This year, I would like to mention a set management systems, increased ethical ities and businesses. include collection and treatment, of fundamental actions revolving around commitment in all projects and promot- street cleaning, end-to-end water service operational, structural and financial prin- ed synergies between the business are- and the management and maintenance of ciples implemented in 2015. Since then, as and the corporate brand value of the transport infrastructure, which are all crit- the FCC Group has carried these out Group in order to increase the profitability ical operations to ensure the proper func- along the road to profitability and contin- of operations and customer satisfaction. tioning of cities and citizens’ wellbeing. ues to be an international leader in citizen services. This plan of initiatives, driven by the new FCC shareholder structure, which since then has been led by Carso Group, has enabled our Group to obtain 6 02 | Letter from the CEO FCC_Executive Summary of the Annual Report_2019 7

The Code also includes a new definition es; the continuous search for excellence movements in Water (6.4%) and Cement was the project for closing the ring road in of the values on which the FCC corporate in its activities; strengthening in consoli- (10.8%). In Construction, income rose by Tenerife for another €203 million. FCC is ready to face culture is based. These values translate dated markets and the increase of inter- 3.9% and Environment recorded growth In 2019, the company In Cementos Portland Valderrivas, it is into: the requirement to be recognised for national activity in the strategic areas with of 3.3%. the future, and the worth noting its main activity, manufac- obtained net income honest and integral behaviour, worthy of growth potential where FCC is present; During the year, each of the FCC business turing cement, which accounted for ap- company’s good the trust of collaborators, customers and and of course, as mentioned previously, of €339.9 million. areas led important events: proximately 90% of the subgroup’s total suppliers as leading and long-standing the synergies between business areas income in 2019. The remaining percent- results in 2019 have partners (honesty and respect); improv- and financial discipline to preserve profit- Water consolidated its presence in the age being from the concrete, aggregate ing and achieving goals to make FCC a ability and continue adding value. United Arab Emirates with new contracts led it to focus on and mortar businesses. With regard to its leader in profitability and competitiveness worth €100 million and acquired the end- Meanwhile, sustainable development, geographical diversification, 40% of rev- growth as part (results-oriented); working with exemplary to-end water management company based on the circular economy, transpar- enue came from international markets in behaviour and vocation to the service by Services Publics et Industries Environne- of its strategy. ency and commitment to society are also 2019. The CPV Group’s main objective developing our ability to seek efficient and ment (SPIE) in France. Similarly, in Spain, priorities for the company. Just as it is to is to remain competitive in terms of both innovative solutions (rigour and profes- it bought Agua y Gestión and purchased advance in the digital era, incorporating costs and market share in the markets in sionalism); favouring diversity by encour- a share in Codeur. The combined amount tools that facilitate new ways of working which it operates, retaining its status as aging professional development, and rec- of these acquisitions was €38 million. every day, adjusting to different needs, an industry benchmark in all the countries ognising merit and creativity as a stimulus and applying smart solutions to improve Environment strengthened its presence in which it has a presence. to productivity and progress (loyalty and collaboration, creativity and productivity. in the USA by adding the solid urban commitment); and taking into account the In the corporate area, special mention contract for the cities of value our services provide to society, we must be made of the flexible dividend dis- Net income rose by 21.5% Omaha in Nebraska, and Volusia in Flori- are committed to protecting the natural tribution which the company implement- da. With this fifth contract won in Florida world, and the development and well-be- The Group’s contribution to economic ed for the first time in its history in 2019. and together with the contracts in Orlan- ing of communities (well-being and devel- and social development, the result of the With this transaction, FCC announced the do (Orange County) and Lakeland (Polk opment of communities). work and coordination among the different return to dividend payments, which had County), FCC’s presence in the USA was business areas and in the different coun- been suspended since 2013. In 2019, These values are the most important iden- consolidated. The total volume of FCC’s tries in which it operates, have led to the the company paid €0.40 per share to tifying features of our Group, whose vision portfolio in the country, where it already company obtaining good results in 2019. shareholders who opted to receive the is to be a leading international Group in has 10 contracts in Texas, exceeded company’s flexible dividend in cash or its citizen services, offering global and inno- In 2019, the company obtained net in- €1 billion at year-end and provides service equivalent amount in shares released by vative solutions to efficiently manage re- come of €339.9 million, 21.5% more than to over 8 million citizens. the company. sources and improve infrastructure, con- the previous year. At year-end, Construction reached a port- tributing to improving the quality of life of It is also worth noting that at the end of Meanwhile, the net attributable income folio of projects to be developed of €5.62 we need our teams, a set of profession- citizens, and the sustainable progress of the year, the FCC Campus project was was €266.7 million, an increase of 6% on billion, 24.5% more than the previous als who contribute with their experience society. launched. This is the FCC Group’s corpo- the previous year. This was achieved de- year. In the last quarter, the company was and ability to improving the wellbeing of rate university, which fulfils the company’s FCC is ready to face the future, and the spite the increase in income for minority awarded a two-year contract for the con- people and the cities we live in every day. commitment to promoting people. This is company’s good results in 2019 have led shareholders from €28.2 million in 2018 struction and subsequent maintenance With these teams, we want to continue a virtual learning space where the profes- it to focus on growth as part of its strategy. to €73.2 million in 2019. of a section of the A-9 motorway circling progressing, growing and constructing sionals who are part of the FCC Group are Amsterdam and its airport, worth €845 the future of the FCC Group together. The value creation levers that have con- In 2019, the net sales of the FCC Group trained. million. In Spain, the remodelling of the tributed to the company’s stability have rose 4.8% on the previous year to €6.28 Santiago Bernabéu Stadium for €475 mil- We want to continue being references Pablo Colio Abril been and continue being: efficiency, inno- billion. This increase was reflected in lion euros was added to the portfolio, as in our sectors, and in order to do this CEO of the FCC Group vation; efficient management of resourc- all the business areas, with the biggest FCC_Executive Summary of the Annual Report_2019 9

3 Composition of the Board of Directors and Committees(1)

Appointments and Executive Audit and Control Board Remunerations Committee Committee Committee

Esther Alcocer Koplowitz Chairperson (Proprietary) Esther Koplowitz Romero de Juseu Vice President (Proprietary) Pablo Colio Abril Chief Executive Officer Governing Bodies Alicia Alcocer Koplowitz Proprietary Carmen Alcocer Koplowitz Proprietary The governance of the FCC Group con- In this sense, the General Meeting of sists of five essential bodies that allow the Shareholders is the Company’s overrid- Gerardo Kuri Kaufmann company to work with the utmost efficien- ing decision-making body in matters for Executive cy, carrying out each of the functions and which it is responsible and that are spec- Álvaro Vázquez de Lapuerta P duties assigned to them. ified in the Regulations for the General Independent Meeting of Shareholders. Carlos Slim Helú Proprietary Alejandro Aboumrad González P Proprietary Alfonso Salem Slim With 29% women FCC Board of Directors Proprietary on the Board of Juan Rodríguez Torres Average attendance Proprietary Directors, FCC is Antonio Gómez García above the average at Board meetings Proprietary for IBEX 35 64% Proprietary in 2019 was 97%. Manuel Gil Madrigal Independent P companies, which is 22% Independent Henri Proglio Independent 27% on average. 14% Executive

P: Committee President (1) Shows the members of the Board of Directors at the end of the business year. FCC_Executive Summary of the Annual Report_2019 11

For the members of the company, this 4 Code of Ethics and Conduct is the high- Strengths of the business est standard in the FCC Group’s policies and procedures, enabling it to strengthen a culture of compliance and support the Model of value creation creation of long-term value for its projects. MISSION. What we do FCC Group’s business model is based 2. To have a highly specialised, high- on the specialisation of its synergistic ly committed team, which has their Efficiently and sustainably design, per- business areas in the field of design, in- health and safety among its priorities. form and manage environmental services, frastructure execution and the provision comprehensive water management and 3. To have local roots in the places of services to cities. This value creation large infrastructure construction projects where it operates, enabling it to be- proposal is characterised by four aspects to improve the lives of citizens. come part of the communities and to that are common within the Group and build relationships based on trust. VISION. What we want to be across all the businesses: Value creation Mission, vision 4. To have a solid international position To be an international benchmark group 1. To be an operator with a hundred with broad perspectives for develop- for citizen services with global and innova- years’ experience in these business- ment in markets with big opportunities. and values of tive solutions for efficiently managing re- es, with a differentiated technical spe- in FCC sources and infrastructure improvement, cialisation, able to lead large consortia contributing to improve the quality of life in complex projects. the FCC Group of citizens and the sustainable progress of society as a whole.

In addition to its leading position in the dif- erience Honesty and FCC’s vision defines the future sought by 1 Respect ferent businesses, which is key for future 120 years of experience We want to be recognised through the company and provides a purpose for creating value for citizens honest behaviour, deserving of the communities and is the result of its tech- trust placed with us by our its actions. In this way, all its members collaborators, customers and nical and professional capabilities, FCC are for the enironment suppliers as reference partners in 2 share the same culture and are part of the the long term. Oriented has established a number of essential be- Environmental Management Systems nternationaisation towards results same project: a single FCC. havioural guidelines, which are essential certified according to UNE–EN ISO Present in more than 30 5 We actively pursue 14001 in all business areas countries Well-being and improvement and To achieve its vision, FCC develops and for the Group to operate successfully in development achievement of goals to r make FCC Group a manages environmental services, com- a sustainable and responsible manner. It of communities reference in profitability nestment in the and competitiveness. We are aware of the value prehensive water management and large is about values commnit rofessionaism our services bring to society aes and we are committed to infrastructures, maintaining the highest The FCC Group has allocated More than 59,000 protecting the environment These values form part of the FCC a total of €4.8 million to professionals specialised in and the development and standards of operational excellence and well-being of the Group’s new Code of Ethics and Conduct social action, non-profit various areas communities in applying the strictest ethical principles set entities and foundations which we and aim to transmit the principles to all the operate. 3 out in the FCC Group’s Code of Ethics and Rigour company’s employees and instil them. 4 and Professionalism Conduct, in all its regions and activities. Loyalty and We show exemplary behaviour Commitment and a vocation to the service of eath and safet ororate ocia esonsiiit our customers and develop the We favour diversity, we promote ability of our teams to seek Occupational Health and Safety CSR 2020 Master Plan professional development and efficient and innovative Systems certified according to recognise merit and creativity solutions. as a stimulus to productivity the ISO 45001 standard in all ait and progress. business areas Quality Management Systems certified according to UNE-EN ISO 9001 in all business areas 5 FCC_Executive Summary of the Annual Report_2019 13

FCC’s international footprint places the company in more than 30 countries, which are mostly strategic markets due FCC, ready to face the future to their growth potential, both in terms of activity and sophistication of the type of services required. In 2019, FCC billed €6.28 billion, of which 55% came from the domestic market, FCC is ready to face the future and the The strength of the synergies be- Spain, and about 45% from internation- company’s good results in 2019 have led tween the businesses to promote effi- FCC’s strategy: al markets, primarily in Europe (28%), the it to focus on growth as part of its strategy. cient operations and to take advantage Middle East and North Africa (9.16%), Lat- of the high level of specialisation held FCC’s levers to create value are: in America (6.2%) and the USA (1.37%). focus on by the professionals in all areas. Strengthening the company’s pres- FCC Group perspectives Financial discipline, to preserve prof- ence in consolidated markets and in- growth with itability, improve long-term growth and FCC wants to remain a leader in the coun- creasing international activity in mar- management, which has enabled the tries where it operates, maintaining its kets with growth potential where FCC is company to steer towards growth in competitive position in the consolidated profitability present, becoming part of the commu- In this respect, the internationalisation rope (the Netherlands, Nordic countries, recent years, delivering positive results markets by preserving the quality and con- nities for whom it works. plans as a strategy of diversifying regional United Kingdom, Ireland and Romania). in 2019. tinuity of its services. On the other hand, risks are already bearing fruit. This year, Sustainable development, based on the increase in the international portfolio of The Group’s strategic planning process Innovation and the continuous FCC Medio Ambiente and Aqualia have the circular economy and the promo- projects requires an accurate assessment identifies the objectives to achieve in each search for improvement are also our focused their activity in Europe, North tion of transparency and commitment of the potential and risks and synergies of the areas of business activity, based raison d’être and the key to our good Africa and the Middle East, the USA and to society. between the different business areas. on the improvements to be implement- results. In addition to all this is the ded- Latin America. Meanwhile, FCC Con- ed, market opportunities and the level of ication and loyalty of people at FCC, a In the international sector, FCC aspires to strucción has focused on carrying out risk considered acceptable. This process highly qualified and motivated team of be a facilitating company for its custom- large infrastructure projects obtained in serves as a basis for the preparation of professionals capable of providing in- ers, establishing long-term relationships 2017, 2018 and 2019 and also the con- the operating plans which specify the novative solutions, and concerned with with the reliability of a big leading compa- tribution of markets in America (Central goals to be reached each year. improving people’s lives every day. ny, while also remaining local and focused America, Chile, Peru and Colombia), Mid- on each of the regions where it operates. dle East (Saudi Arabia and Qatar) and Eu- 14 05 | FCC, ready to face the future FCC_Executive Summary of the Annual Report_2019 15

International growth opportunities Sustainable development

For all areas of the FCC Group there are America is also a market with a high de- Finally, for the Construction and Con- For FCC, sustainable development is a better take advantage of the opportuni- opportunities of interest in the markets in velopment potential for the area of Envi- cessions areas, the public-private part- vision of its daily operations, which incor- ties in its markets. With this in mind, the which it operates. In the Middle East and ronmental Services thanks to the know- nership system is being shaped as a porates quality in the service, continuous company’s CSR Master Plan has been North Africa (MENA), there are projects how, experience and use of the most concept likely to grow in markets with improvement, the safety of employees as created using the United Nations (UN) of interest of seawater desalination and advanced and efficient technologies in investment difficulties encountered by a priority and environmental care as a dif- 2030 Agenda as a reference. The plan wastewater treatment in the Water area, the provision of services. For the Water public administrations. ferential value that contributes to efficien- considers the latest international trends technologies which are among Aqualia’s area, the obsolescence of the hydraulic cy and to addressing growing demands regarding sustainability and translates This is especially true in emerging mar- specialist areas. infrastructures and the low penetration from customers and regulators. them into different corporate actions and kets and developing economies. As these of private operators in the sector are the initiatives that provide tangible value for countries face increased infrastructure source of the main growth opportunities FCC and its contribution to the SDGs the business, which the different areas of growth needs, in the face of budget con- for the company in certain countries. the Group can all benefit from. straints, it makes public-private partner- As part of the Corporate Social Responsi- In Environment, the export of RDF (refuse ships an effective mechanism for govern- bility Policy, approved by the FCC Board The challenges posed by the Sustainable derived fuels) to Europe is expected to ments to provide, implement and manage of Directors on 28 July 2016, the Group Development Goals are perfectly integrat- continue to decline, although other op- critical infrastructures and public services, has shown that it wants to be part of the ed into the company’s sustainable strat- portunities will still arise for the Group due using the private sector’s resources and solution to the challenge posed by the egy. And one year on, as we have been to its degree of diversification in the pro- expertise. In this sense, FCC’s experience 2030 Agenda for Sustainable Develop- doing for over a decade, we are renewing duction chain. in the entire development of a project, ment and its Goals (SDG), approved by our commitment to the United Nations from the design to the operation of as- the United Nations in 2015, and therefore Global Compact for another year. sets, is undoubtedly an advantage for the future at a national and international level. 16 05 | FCC, ready to face the future FCC_Executive Summary of the Annual Report_2019 17

Development of the circular economy FCC Medio Ambiente moving towards the competitiveness of its activities in the Financial discipline a circular economy model, enhancing market. FCC is a responsible and committed waste recovery in a waste-to-energy company, with a strong position as a In this field, promoting cooperation be- Preserve profitability and long-term model and thereby reducing greenhouse key player in defining solutions for tack- tween FCC Group’s different business ar- value creation gas emissions. It also uses innovation as ling climate change. Promoting research eas is an essential goal for the company. a lever of change for that transformation, Profitability is a priority for the FCC Group, into processes and solutions that enable The identification of synergies between developing R+D projects focused on im- embodied in a set of actions that improve a strengthening of the circular economy, the different activities and centralising all proving plastic and energy re- the capital structure and use of external the recovery and reuse of resources and the common processes to all the areas covery of waste. resources, the generation of cash and by-products, as well as the monitoring enables the elimination of duplicates and the optimisation of financial costs. The and improvement of feedback from cus- In FCC Construcción, the company is optimises the use of resources that have FCC Group is making steady progress, tomers, stakeholders and society in gen- committed to a circular economy, improv- been underused until now. strengthening its operational capacity and eral, is one of the Group’s strategic lines. ing the efficiency of productive activities, Promote transparency and the economic potential which has en- extending the life and optimising the use Aqualia focuses its research and devel- commitment to society dorsed the company since its formation of the resources we use and minimising opment on improving the end-to-end wa- more than a century ago. the waste we generate. In 2017, FCC FCC has a broad record of incorporating ter management cycle to optimise con- Construcción structured its progress to- compliance at all levels and has the ad- It is worth noting some of the transac- sumption and minimise its environmental wards the circular economy around the vantage of having quality management tions carried out in 2019, such as the impact. The improvement in quality and Ellen MacArthur Foundation’s ReSOLVE systems, occupational risk management issue of simple bonds by FCC Servicios the drive towards intelligent management framework and in 2018 it acceded to the systems and certified environmental sys- Medio Ambiente Holding, S.A.U worth in customer relations are also relevant. Pact for a Circular Economy, promoted by tems in all business areas. €1.1 billion. The main destination of these the Spanish Ministries of Environment and funds was the voluntary early repayment The measures aimed at increasing pro- ported by local development in its highly Our Group’s global dimension and exten- Economy. of all FCC’s syndicated financing, which ductivity have had an impact on reducing qualified and committed teams. sive international presence make it essen- was signed in September 2018 and structural costs by 6.1% compared to the Finally, the FCC Group’s risk management Cementos Portland Valderrivas Group tial to increase our commitment to apply- had a value of €1.2 billion. Meanwhile, previous year. The consolidated net finan- policy and model ensure that they are in- uses the most advanced technologies in ing the highest standards of integrity and in November 2018, FCC S.A. registered cial debt closed in December 2019 with cluded in all areas and at all levels of the all its production processes, seeking to compliance with laws, regulations, con- a promissory note programme worth an increase of 33% on the previous year, organisation, forming part of the values achieve economic optimisation and re- tracts, procedures and ethical principles in €300 million, which was subsequently due primarily to the effect of Cedinsa’s and the culture of the Group. This means spect for the environment, adapting to all our activities, all the regions in which we increased to €600 million in March 2019, change to global consolidation, which ac- that FCC aims to guarantee the achieve- the needs of the surroundings to ensure operate and for all the people connected and in 2019, new financing facilities were counts for €730.2 million and, to a lesser ment of the strategic and financial objec- to any company in the FCC Group. arranged in the form of credit policies and extent, the investments in growth made in tives, effectiveness and efficiency in op- bilateral loans. Environment and Water, and the excep- FCC’s comprehensive behavioural guide erations and transparency and regulatory tional tax payment in May 2019. is the Code of Ethics and Code of Con- These operations have enabled the debt compliance. This means FCC’s risk man- duct, which states the behaviour expect- reduction process and financial organisa- FCC seeks excellence in its activities as agement finally becomes an instrument ed of people who form part of the com- tion to be completed five years after they an instrument for long-term value cre- that supports the company’s profitability pany in their day-to-day activities and started, and have also made it possible ation, one of the aspects that has con- and provides reliability and trust. relationships with third parties. For the to continue with the policy of diversifying tributed to the company’s stability. In this FCC Group, this document represents financing sources. This all contributes to way, the Group is sustained by a selective the highest standard in the set of policies achieving a much more solid and efficient portfolio of projects, portfolio of services and procedures, which also includes the capital structure with financing costs, and collaborating third parties, which en- new company values that form part of the amounts and periods adapted to the na- sures compliance with the Group’s com- culture of compliance. ture of the different business areas. mitments. Similarly, the company is sup- 6 FCC_Executive Summary of the Annual Report_2019 19

Ebitda margin Ebitda 2019 by activity % %

1 1 11 48.0% Environmental FCC in 2019 Services 27.5% Water

9.8% Construction Key figures 8.4% Cement 6.3% Corporate services and others

2017 2018 2019

Revenue Revenue 2019 by activity et financial debt Investments iions of eros % iions of eros iions of eros

2 9 990 0 02 46.4% Environmental Services 291

+25.7%

+4.8% 27.4% Construction +33.0% +3.2%

18.9% Water +30.6% -24.8%

6.6% Cement

0.7% Corporate Services and adjustments

2017 2018 2019 2017 2018 2019 2017 2018 2019 20 06 | FCC in 2019 FCC_Executive Summary of the Annual Report_2019 21

Stock market evolution Evolution of the stock market and share price

The US Nasdaq index led the main glob- During 2019, the trade negotiations be- has been reflected in various consumer Total assets Earnings attributable to the parent al stock markets in terms of earnings in tween the USA and China were the main confidence indices in recent months. At 2019. It was a booming year for the stock driver of the markets, with plenty of to and the close of the year, confidence surveys iions of eros iions of eros markets, where increases were close to fro between both parties and Trump’s im- seemed to have stabilised thanks to this 30% for the S&P 500, the Italian FTSE position of tariffs on certain Chinese prod- first agreement, which led to expecta- MIB and the French CAC. In other indi- ucts arriving in the USA. By the end of the tions of deceleration rather than a global 12 2 22 ces, the increases exceeded 20% during year, both parties had reached an agree- recession in 2020. 10 102 a year marked by interest in the technol- ment called “Phase 1”, which increased With regard to emerging economies, the ogy sector and the weakness of much of optimism among investors. IMF has forecast a growth of 4.4% in +6.1%

+19.5% the financial sector, all set within the con- Nonetheless, the negative effects of this 2020 and 4.6% in 2021, with their esti- +113.2% -0.4% 11 text of persistently low interest rates. The protectionism hit the economy. Growth mation at 4.5% for 2019. In terms of the stock markets lagging behind included forecasts were revised down throughout global economy, the IMF also lowered its the Spanish and British stock markets. 2019, especially due to the weakness of growth forecasts to 3.3% for 2020 and The IBEX recorded 11.8% and the British the industrial sector. This led to a set- 3.4% for 2021. FTSE 100 12.1%. back in productive investment, which

2017 2018 2019 2017 2018 2019

Financial leverage. Net debt / Total assets Equity rice of shares maimm minimm and ear end % iions of eros Eros

au nu ear en 9 2 10 120 10 110 2 1092 199 2 9 +26.3%

99 +108.7%

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 22 06 | FCC in 2019 FCC_Executive Summary of the Annual Report_2019 23

Annual evolution Trading Dividends Treasury Stock At 31 December 2019, of the IBEX 35 Total trading volume in 2019 was over The company’s board of directors agreed At 31 December 2019, the FCC Group and FCC’s share price 11.7 million securities, with a daily aver- to carry out a flexible dividend distribution directly and indirectly holds a total of the FCC Group directly age of 46,163 shares; 46% less than in agreement (scrip dividend) adopted by 1,250,837 FCC, S.A. shares, with which With regard to the market performance of the previous year. That is why, the bro- the FCC General Shareholders’ Meeting the treasury stock position is 0.319% of and indirectly holds FCC’s shares in 2019, the price decreased kered volume is conditioned by the 13% on 8 May 2019. the share capital. a total of 1,250,837 3.4%, closing at €10.92 per share. The free float and by the type of long-term The main milestones of the flexible divi- maximum price was €13.20 per share on investors, reflecting the profile of the ma- FCC, S.A. shares, with dend in 2019 were: Shareholders 25 January and the minimum was €10.36 jority shareholder and, therefore, having a which the treasury stock per share on 3 October, the year ending very low turnover ratio. The rights subscribed from 14 to 28 FCC, S.A.’s shares use the book entry with a capitalisation of €4.28 billion. May inclusive. system and are listed on the four Spanish position is 0.319% stock exchanges (Madrid, Barcelona, Va- On 30 May, the payment of €0.40 gross lencia and Bilbao). According to the infor- of the share capital. per share was made to shareholders mation on file in Spanish National Securi- who requested it. ties Market Commission (CNMV) records, nna eotion of the B and s share rice On 12 June, the capital increase of on the closing date of the year the main 13,439,320 shares was recorded in the shareholders in the company were: Barcelona Mercantile Registry, raising Variation Volume (shares) the capital stock of the company to 392,264,826 shares. 20.0% 450,000 Over 99% of the shareholders opted to Main Shareholders % of Share Capital 400,000 receive new shares. It is the first time that Inversora Carso, S.A. de C.V. 61.12% 15.0% the FCC Group strategy has implemented Esther Koplowitz 20.01% 350,000 this type of flexible dividend. William H. Gates III 5.73% 10.0% 300,000

250,000 5.0% aret caitaisation 200,000 iions of eros 0.0% 150,000 2 2 100,000 -5.0% 2

50,000 -3.3% +35.6%

-10.0% 0 January February March April May June July August Sept. Oct. Nov. Dec. 2019

% Chg. FCC 10.4% 0.6% -10.5% -6.2% 6.0% 1.2% -1.9% -1.7% -6.9% 3.2% 0.9% -0.4% -3.4%

% Chg. IBEX 35 6.1% 2.4% -0.4% 3.6% -5.9% 2.2% -2.5% -1.8% 4.9% 0.1% 1.0% 2.1% 11.8% 2017 2018 2019 24 06 | FCC in 2019 FCC_Executive Summary of the Annual Report_2019 25

18 19 13 FCC in the world 3 7 10 12 6 5 9 4 8 11 14

15 16 17

FCC, with 2 ears of 20

eperience, is a eadin 21 internationa coman 1. Spain 19. Norway speciaising in enironmenta 22 2. Portugal 20. USA 3. France 21. Mexico serices, endtoend water 23 2 1 29 30 31 32 34 33 35 4. Germany 22. Dominican Republic 24 manaement, infrastrctre 5. United Kingdom 23. Nicaragua 25 an the rodction of 6. Ireland 24. Panama 26 7. Italy 25. Colombia associated materias 8. Austria 26. Ecuador 27 9. Belgium 27. Peru 10. Czech Republic 28. Chile 11. Poland 29. Algeria 12. Slovakia 30. Tunisia 28 13. Hungary 31. Egypt 14. Romania 32. Saudi Arabia 15. Serbia 33. United Arab Emirates 16. Montenegro 34. Qatar 17. Bulgaria 35. Oman 18. Netherlands 26 06 | FCC in 2019 FCC_Executive Summary of the Annual Report_2019 27

2. Portugal 4. Spain South East Area - Leganés (Madrid) Pneumatic collection network maintenance, Activity in the Environment area FCC Environment Portugal eo Aente street cleansing and pest control. 17.1 million euro. Vila Real Jerez de la Frontera (Cadiz) Waste collection. Waste collection and street cleansing. Las Palmas (Gran Canaria, Canary Islands) 1.6 million euro. 186.9 million euro. Schools cleaning. 17.0 million euro. FCC Ámbito Almuñecar (Granada) Waste collection, street cleansing and beach Madrid Martinhal maintenance. Renovation of the La Gavia park. Soil decontamination 46.4 million euro. 14.1 million euro. for ECODEAL. Barberá del Vallés (Barcelona) Txingudi (Guipúzcoa) Waste collection and street cleansing. Waste collection and street cleansing. 13.7 million euro. 42.8 million euro. San Sebastián (Guipúzcoa) 3 Tarragonés (Tarragona) Cleaning of municipal buildings. 6 Waste collection, street cleansing and recycling 13.1 million euro. centre. 42.7 million euro. to 5 ericios edio miente Gomecello (Salamanca) San Fernando, Cadiz, Puerto Real and Rota Recycling and treatment plant. (Cadiz) is the largest firm in Spain and 29.8 million euro. Management of hazardous and non-hazardous 1 2 4 waste from Navantia. Fuengirola (Málaga) 3.3 million euro. among the seen most imortant Waste collection and street cleansing. 22.8 million euro. La Muñoza (Madrid) Operation of recycling centres and comanies in the word. Every year, Teruel (Aragón) physical-chemical and biological treatment Domestic waste collection for the Association plants for IBERIA. Agrupación Nº8 - Teruel. it manages about 2 miion tonnes Arganda de Rey (Madrid) 17.2 million euro. Completion of extraction works of the of waste and rodces arond pumpable phase at the acid tar lagoons for miion tonnes of secondar TRAGSA. raw materias and 3. United Kingdom 5. Austria 6. Czech Republic nronent nte no nronent nronent refsederied fe D, Lostock (England) Vienna, Lower Austria, Carinthia, Styria České Budejovice Development of an energy-from-waste facility. at railway stations Classification, loading and transport providing municipal and endtoend 570.0 million euro investment. for ÖBB/Austrian Railways. of old waste. 20.0 million euro. 14.7 million euro. 1. USA Bedfordshire (England) waste management services to Waste collection and street cleansing. Kitzbühel Ostrava FCC Environmental Services 92.0 million euro. Railway transport and waste . Decontamination and recovery of thixotropic almost miion eoe in around Omaha (Nebraska) 6.0 million euro. lagoon. Suffolk (England) 9.9 million euro. Waste collection. Management and Operation of Recycling towns in 2 contries 220.0 million euro. Centres. Nosovice Palm Beach (Florida) 43.0 million euro. Waste collection, treatment and removal, Waste collection. and dangerous . Hertfordshire (England) 2.7 million euro. 196.0 million euro. Management of transfer and transport Volusia County (Florida) operations and waste treatment. Waste collection. 27.0 million euro. 75.0 million euro. East Lothian (Scotland) Houston (Texas) USW thermal treatment. Biosolid waste management. 30.5 million euro. 27.0 million euro. 28 06 | FCC in 2019 FCC_Executive Summary of the Annual Report_2019 29

Activity in the Water area 7. United Arab Emirates Granada Operation and maintenance of the East Area End-to-end water management in the town (Al Ain) sanitation system, including water of Huéscar (12 years). treatment, awarded by Abu Dhabi Sewerage 7.7 million euros. Services Company (7 years). 60.2 million euros. Pontevedra Operation and maintenance of the Abu Dhabi Management of the Vigo municipal indoor Island Area sanitation system for Abu Dhabi swimming pools (2 years). Sewerage Services Company (7 years). 5.6 million euros. aia is the forth 39.5 million euros. Design, construction and implementation of the water treatment plant argest water compan of the Spanish company Algas Marinas, S.A. 6 in Porriño. in Erope in terms of 2.2 million euros. 5 popation serve, is Murcia Renovation of the drinking water and sewerage among the argest 8 network in San Pedro Pinatar. 5 million euros. water companies in Ciudad Real Design, construction and implementation the wor an provies of the industrial waste water treatment plant 7 in the town of Argamasilla de Calatrava. service to over 2 miion 1 3.5 million euros. sers in towns in Alicante Management of the Mutxamel desalination contries plant and its distribution network for Acuamed 2 5. France 8. Spain (Aguas de las Cuencas Mediterráneas, S.M.E., S.A.) (2 years) Acquisition of the company SPIE (Services Madrid 2.6 million euros. 3 Publics et Industries Environnement): manages 1. Mexico Córdoba 4 several contracts in the Île de France area, Canal de Isabel II - Operation and maintenance services of the sanitation networks in the close to Paris (average contract length of 8 Cleaning and inspection services of the Executive project, through Public-Private towns of Guadarrama, Torrelaguna, years). sewerage networks, scuppers and installations Partnership, for the construction, equipping, Paracuellos de Jarama and Santillana (4 years). implementation, operation and maintenance 67 million euros. of EMACSA (Empresa Municipal de Aguas de 43.5 million euros. of a seawater desalination plant in Guaymas Córdoba) (2 years). and Empalme (20 years). 3. Colombia Design and construction of the El Endrinal 1.5 million euros. 6. Czech Republic 76.6 million euros. waste water purification plant in Collado Badajoz End-to-end water management in the city Villalba (3.7 years). of Villa del Rosario (14 years). Mosnov (Moravia) Concession of the purification service in End-to-end water management in the industrial 11.3 million euros. 87.2 million euros. the towns of Guadiana del Caudillo and area of Mosnov (5 years). 2. Panama Cantabria Pueblonuevo del Guadiana (15 years). 2.3 million euros. Assistance and technical advice to the National Operation and maintenance services of the 1.7 million euros. Institute of Aqueducts and Sewerage Systems 4. Ecuador San Román de la Llanilla WWTP in Santander, Salamanca (IDAAN) for operational and commercial and the associated header tank sanitation management in the Metropolitan Area of WWTP (Waste Water Treatment Plant) facilities, for the company Medio Ambiente, Assignment of the header tank supply contract Panama and the management and execution in Ambato: Main Contract, Supplementary Agua, Residuos y Energía de Cantabria, S.A. to the Aguas Santa Teresa Association (1) According to the Global Water Intelligence of high impact activities (5 years). Contract and O&M. (5 years). (8 years). ranking of August 2019. 51.6 million euros. 30.4 million euros. 12.9 million euros. 1.1 million euros. 30 06 | FCC in 2019 FCC_Executive Summary of the Annual Report_2019 31

5 Colombia 8 Ireland 11 Belgium Activity in the Infrastructure area Toyo tunnel. Buildings of the higher education centre 366.7 million euros. Dublin Institute of Technology (DIT) at the Haren prison. Grangegorman campus (Dublin, Ireland). 322 million euros. “El Salitre” wastewater treatment plant. 220 million euros. 398 million euros. New “North Runway” at Dublin airport. 12 Norway 130 million euros. 12 E6 Ulsberg-Vindasliene motorway. Remodelling of airport and fire hydrant 263 million euros. system in Dublin Airport. 41.5 million euros. 13 Romania onstrccin is a goba 1 8 9 9 The Netherlands Bucharest Metro line 5. eaer in impementing transport 470 million euros. 11 13 Section of the Badhoevedorp- Holendrecht an rban infrastrctre, as we A9 motorway. Railway lines in Transylvania and new railway 845 million euros. awards. 2 as resientia an nonresientia 7 10 1,480 million euros. constrction. It is crrent the Design and construction of the wastewater treatment plant and sludge incinerator in fortharest constrction Glina, Bucharest. 113 million euros. 14 15 coman in ain an in the top 3 Modernising the take-off and landing runway at Bacau airport. in the wor. 30 million euros.

4 14 Egypt 6 Peru Abu Rawash wastewater treatment plant 5 Line 2 and Line 4 branch of the metro in Cairo. in Lima. 281 million euros. 3,900 million euros. 1 Canada 10 6 7 Portugal Spain Maintenance of 195 kilometres of 15 Saudi Arabia Trans-Canadian motorway. Remodelling of Santiago Bernabéu Gouvães dam. Additional stations on Line 4 of Riyadh 205 million euros (30 years). Stadium, in Madrid. 17.6 million euros. Metro. Park and Ride on Line 4. Science Comprehensive remodelling of Plaza Park on Line 5. Tâmega and Oura bridges. de España in Madrid. Civil Engineering 2 USA 612 million euros. 4 Panama 11.3 million euros. 62 million euros. Industrial Gerald Desmont Bridge in Los Angeles. Lines 4, 5 and 6 of the Riyadh metro. Expansion of Section 1 and 2 of the Modernisation of the railway between Club de Mar Palma de Mallorca, Non-residential construction 739 million euros. 7,528 million euros. Inter-American Highway to six lanes. Covilhã and Guarda. in Mallorca, Balearic Islands. Hydraulics 912 million euros. 61.4 million euros. Closure of the circular road in Tenerife, Maintenance 3 Mexico the Canary Islands. Line 2 branch of Panama metro to Tocumen Extension of the A4 motorway in Aguas In progress Samalayuca–Sásabe gas pipeline. Airport. Santas. 240.4 million euros. New contracts awarded 225 million euros. 81.8 million euros. 13.4 million euros. Mediterranean Corridor sections (Levante). 32 06 | FCC in 2019 FCC_Executive Summary of the Annual Report_2019 33

Industrial facilities of Cementos Portland Valderrivas

41 42

11 9 he ementos ortand 3 4 5 16 24 aderrias ro is a 10 20 18 2 31 30 United Kingdom 34 39 15 26 33 38 mtinationa compan 7 40 22 23 28 35 14 29 Cement distribution plant 8 19 27 36 12 6 37 47 13 32 46 present on three 17 41 Dragon Alfa Cement (Sharpness) 1 45 44 continents an the 43 42 Dragon Portland (Portland)

21 eaing cement grop in 25 Tunisia pain. Its proction Spain Cement production plant capacit ecees 43 Sté Ciment Enfida Cement production plant Aggregate production plant Cement terminal miion tonnes 17 El Alto (Madrid) 28 Olérdola (Barcelona) 44 Gabes Terminal of cement per ear. 18 Olazagutía (Navarra) 29 Vallcarca (Barcelona) USA* 19 Hontoria (Palencia) 30 Tiebas (Navarra) Concrete production plant Cement production plant Aggregate production plant 20 Mataporquera (Cantabria) 31 Villallano (Cantabria) 45 Sousse

1 Harleyville (Giant Cement Company) 10 Bath (Keystone Cement Company) 46 Bouficha 21 Alcalá de Guadaíra (Sevilla) Mortar production plant Bath (Keystone Cement Company)** 11 Thomaston (Dragon Products Company) 2 22 Monjos (Barcelona) 47 Ben Arous 32 El Alto (Madrid) 3 Thomaston (Dragon Products Company) Recycling 23 Vallcarca (Barcelona) 33 Esparraguera (Barcelona) Cement terminal 12 Attalla Cement terminal 34 Dericem (Cantabria) 4 Newington 13 Harleyville Grr 24 Puerto de Raos terminal (Cantabria) 35 El Papiol (Barcelona) 5 Boston 14 Sumter Cement production plant 25 Puerto de Sevilla terminal (Seville) 36 Monjos (Barcelona) Cement terminal and cement 6 Durham 15 Arvonia * The Cementos Portland Valderrivas Group has a 37 Vallcarca (Barcelona) distribution plant presence in America through Giant Cement Holding, Concrete production plant where is owns 45% of the company. 7 Charlotte 16 Bath (Grr-Keystone) Concrete production plant 26 Zona Franca (Barcelona) 38 Ulla (Gerona) ** In September 2019, the sale of the Keystone cement Aggregate production plant 8 Doraville-Atlanta factory and aggregate plant (Bath) was announced, 27 39 Olazagutía (Navarra) Mortar production plant and it was being analysed by the competition regulator Amposta (Tarragona) Thomaston on the date of this report. 9 40 Zaragoza Recycling FCC_Executive Summary of the Annual Report_2019 35

7 Safeguarding Ethics and Integrity in FCC

The FCC Group has a Code of Ethics Human Rights Policy: The FCC Group and Code of Conduct, which are the hereby expressly undertakes to comply bases of the Group’s Compliance Model with the principles of: freedom of associa- In 2019, FCC and reflect the company’s commitment tion and collective bargaining, decent and approved three to strictly complying with applicable laws paid employment, forced labour and child and preventing fraud, corruption, money labour, health and safety, data privacy and new policies. Two laundering and payment irregularities, the respect for communities. regarding the fight use and protection of assets, the manip- 2019 was characterised by a notable ulation of information, the management effort in the dissemination and training against corruption of possible conflicts of interest, and the chapter of the Compliance Model, both in management of sponsorships, patronag- and bribery, and Corporate Social Responsibility Spain and internationally. es and collaborations, among others. a third for human The communication plan was carried out In 2019, FCC approved two new policies through different means, both physical rights. regarding the fight against corruption and and electronic, such as signage, bro- of the FCC Group bribery, which are included in the regula- chures, internal newsletters and emails, tory section of its Compliance Model, and and in other ways, such as in the lifts, the Group’s Human Rights Policy: information totems, videos, tutorials, etc. Agents Policy: establishes a series of In 2019, with regard to Social Responsi- In 2019, the Group led several environ- In terms of training, it is worth noting the available to workers and other related general principles which must govern the bility, a series of social and environmen- mental, social and good governance development and execution of an online groups, so they may inform of any poten- FCC Group’s relationship with any other tal issues were identified as materials for (ESG) projects which have contributed to course about the Code of Ethics and tial breaches. agent or business developer, as well as the internal and external audiences of the improving people’s quality of life while also Code of Conduct in 2019, which was the basic elements of the selection, ne- In 2019, 83 notifications were received in FCC Group. promoting sustainable economic growth 22 provided to the group with access to the gotiation and control procedures of these the FCC Group’s Ethics Channel, which in cities, therefore highlighting FCC’s network in Spain and certain internation- In all the businesses of the Group, pro- operators’ activities. were processed and resolved in accord- commitment to its stakeholders. al subsidiaries. 5,712 employees took tection of scarce natural resources is one ance with the approved Procedure of the Gift Policy: establishes principles relat- the course in Spain, meaning a success of the most relevant issues, as well as All actions regarding Social Responsibil- onnected Ethics Channel. ing to the giving or receiving of gifts and rate of 97%. Internationally, this training the policies to curb the effects of climate ity are outlined in the Group’s Corporate FCC is a catalyst for citizens to hospitality on behalf of the FCC Group in was carried out in Portugal, Qatar, Saudi The number of resolved notifications as of change. In terms of occupation, health Social Responsibility Policy and the CSR play a leading role in a order to guarantee that the gifts are al- Arabia, the United Kingdom, Colombia, 31 December 2019 was 71, representing and well-being of people in the Group and Master Plan. sustainable city. ways received or given transparently and Ecuador, Mexico, Panama and the Neth- 85.5% of the total number of notifications contractors, as well as the professional occasionally, therefore avoiding any situa- erlands. received. growth of employees, are identified as 2 mart erices tion in which doubts may arise regarding especially important aspects. Meanwhile, FCC is a leader in designing To ensure compliance with the Code of the impartiality, objectivity or legality of the local development, customer experience, the sustainable cities of the future. Ethics and Code of Conduct, and the FCC Group’s or its employees’ behaviour. promotion of respect for human rights regulations that derive from these, effec- thics and systems to prevent and mitigate cor- tive claims mechanisms must be made ruption have also been recorded as being FCC is an example of authenticity in its commitment. of interest for internal audiences. 36 07 | Corporate Social Responsibility of the FCC Group FCC_Executive Summary of the Annual Report_2019 37

To develop this commitment, the com- to 1,280 in Spain, 145 more people than demanding standards and the evolving Our people pany is supported by specialised entities in 2018, and a figure that has continued business models. In 2019, the accident such as Fundación Incorpora (La Caixa), to rise over the last three years. frequency index was at 23.98, indicating Fundación Integra and the Red Cross, for a slight reduction on the previous year. In 2019, FCC took part in the 2nd diag- The FCC Group’s staff is composed of al- mitment to this issue, aimed at ensuring dissemination and awareness raising, as nosis on accessibility led by the Regional Over the course of the year, FCC renewed most 60,000 professionals, which is 1.9% the dignity, integrity and equal treatment well as for the labour integration of female Health and Safety Institute of the Region and approved, from the framework of its more than in 2018. of all people. victims of gender violence. of Madrid, improving accessibility at its Code of Ethics and Code of Conduct, its The Group’s Human Over 42,000 workers in the Group have As a result of the FCC Group’s conviction FCC maintains and reinforces its commit- corporate offices in Madrid (Las Tablas). health, safety and well-being policy as an indefinite contract, which is 71.4% of to promoting women, at the end of 2019 ment to people with disabilities by mov- part of its business strategy and its re- Rights Policy FCC works on consolidating a culture the workforce, 0.6% more than in 2018. in Spain, the percentage of women hold- ing forwards in its commitment to being sponsibility as a social agent. Its bases aimed at creating and maintaining work The FCC’s Board of Directors ap- ing management positions was 13.92% a more diverse and socially responsible were the following: The Group continues with its commitment environments free of health risks for the proved the Human Rights Policy in of all these types of positions, increasing company, promoting actions and projects to a high level of training for its employ- people working in them. Health, safety 2019. Through this policy, which is by two percentage points (11.68%) on that encourage inclusion, accessibility ees. As such, in 2019, about 400,000 and wellbeing are unquestionable values aligned with the guiding principles 2018. and equality through employment. Evi- hours of training were carried out in Spain, and commitments for the organisation, for companies and human rights ap- dence of this is the higher number of peo- at different operational levels of the organ- The FCC Group develops and takes part which is why it is constantly improving proved by the United Nations Human ple with a recognised disability working in Rights Council (2011), and the Glob- isation. in training programmes aimed at creating and developing, adapting to the most an enriching work environment, free from the FCC Group strategy, which amounted al Compact, which FCC subscribed For FCC the principle of equal opportuni- discrimination and which favours diversity. to in 2006, the Group declares its ties is a commitment to action that cannot Among the actions carried out, it is worth commitment to respecting the hu- be waived, as set out in its Code of Eth- commenting on three training and devel- man rights set forth in the United Na- ics and Code of Conduct, which reflects opment initiatives for women in leadership tions Universal Declaration of Human FCC’s responsibility in this area. Rights, and other rights included in positions. With regard to gender, FCC has nine both the International Labour Organi- An essential principle of the Code of Eth- Equality Plans drawn up and implement- sation (ILO) Declaration regarding the ics and Code of Conduct is the Group’s Real integration of risk prevention in all Maintenance of a continuous ed with the main trade unions. These fundamental labour rights and princi- commitment to an enriching work envi- processes and with all stakeholders improvement cycle based on Equality Plans apply to the entire work- ples, and the eight fundamental con- ronment, free of any type of discrimina- participation force in Spain as they extend their scope ventions of the ILO. The FCC Group tion, while specifically promoting diversity. believes that human rights must be of application to companies with fewer protected and ensured for all states, than 250 workers. In addition, up to four FCC maintains a public and ongoing and considers it to be essential that companies in the Group have the Equality commitment against gender violence that the company itself, within its sphere in Business Badge, a mark of excellence is based on two fundamental principles, of influence, and in accordance with granted by the Ministry for Equality. zero tolerance and support for the social Promotion of the health and healthy Adaptation, followup and certification and professional integration of the vic- the legal framework of every country, In addition to the Code of Ethics and work environment as an individual and of standards tims. The company maintains collabora- respect and promote them. Code of Conduct, the Group also has a collective value, from both a physical tion with the network of “Enterprises for Protocol to Prevent and Eradicate Har- and a emotional perspective a Society Free of Gender Violence” in its assment, which aims to prevent, resolve work, spreading and raising awareness, and punish any cases of occupational, as well as supporting the job placement sexual or gender harassment that may of the women who are subject to this. occur. This mandatory protocol includes Control and guarantee of legal the principles of the FCC Group’s com- compliance and with internal regularion 38 07 | Corporate Social Responsibility of the FCC Group FCC_Executive Summary of the Annual Report_2019 39

Managing impacts, Creating value in society

working on new opportunities FCC continues contributing to the Social inclusion and access to services. and support for the social and profession- well-being of the communities in which it al integration of the victims. operates, assigning a total of €4.8 million Creating value in communities. On the other hand, FCC maintains and FCC’s environmental management sys- ronment, therefore seeking new business In terms of biodiversity, the Group pro- to social action through non-profit organi- Assessment of the social and environ- reinforces its commitment to people tems remain certified by the UNE-EN ISO paths and opportunities. Another of the tected 1,120 hectares of sensitive areas sations and foundations. mental impact of operations. with disabilities by moving forwards in its 14001 standard in all its business areas, pillars to which the Group is committed and restored around 600 hectares of af- The four main axes on which the FCC commitment to being a more diverse and with an overall coverage of 87% of its ac- in this respect is improving the efficiency fected areas. Cooperation in educating and raising Group centres its community projects are: socially responsible company, promoting tivity. of its processes, especially those related awareness. With respect to climate change, the actions and projects that encourage in- to managing raw materials and reusing The environmental impacts of the FCC Group’s Climate Change Strategy was The Group also maintains constant com- clusion, accessibility and equality through waste water and waste. Group strategy are diverse due to the established in 2019. It includes measures mitment throughout the company against employment. nature of its operations and the activity The activities of Construcción and Ce- for mitigating and adapting to this global gender violence, which is based on two carried out in each of its companies. In mento are the most intensive in the Group challenge from the different activities, with fundamental principles, zero tolerance 2019, to prevent potential environmental with regard to consumption of materials a 2050 horizon. risks and reduce possible damage, the and waste generation. In 2019, across For the FCC Group, adapting to the cli- Group assigned a budgetary amount of the whole Group, a total of 25,786,930 mate change challenge entails developing €30.6 million to this. tonnes of raw materials were consumed the capacity to innovate in all the activities and 5,459,332 tonnes of waste were Bearing in mind its environmental im- and processes. Innovation that enables generated, representing an increase on pacts, the FCC Group is committed to the company to be a leader in the design- the previous year, primarily due to start- the circular economy model, providing ing of sustainable cities and a strategic ing new projects and a greater scope of a new alternative that is responsible for ally for its customers. information. Social inclusion Creating value Assessment of the social Cooperation and respects the natural and urban envi- FCC invests in innovation projects applied and access to services in communities and environmental impact in educating and raising In 2019, energy consumption rose to to its different business lines. This is the of operations awareness 48,431,483 GJ. There was a noteworthy The FCC Group provides ac- The FCC Group contributes to case for projects such as the Deep Pur- cess to basic services, such as creating value through the ser- increase in the consumption of renewable The company assesses its con- In line with the FCC Group’s ple project in Aqualia, which generates electricity, drinking water and vices and infrastructure it pro- tribution to the communities and social responsibility regarding energy, with 22% more than in 2018. With bioproducts from water treatment; the sanitation, encouraging eco- vides, having a positive impact their surroundings and analyses education and awareness, FCC regard to greenhouse gas emissions, di- METHAmorphosis project in FCC Medio nomic development and im- on socio-economic develop- the impacts of carrying out its works together with different ed- rect emissions of 7,870,743 tonnes of Ambiente and Aqualia, which aims to proving the municipal services ment by creating jobs, growth activity. ucational institutions, particularly CO2 equivalent and indirect emissions of of the communities in which it and prosperity in its surround- in the area of cooperation, to treat effluents and obtain biomethane; Within the framework of the 731,600 tonnes of CO equivalent were operates. It also undertakes to ings given the local subcon- promote protection of the envi- 2 and the BICISENDAS project in FCC CSR Master Plan 2020, con- recorded. participate actively in solidarity tracter and supplier contracting ronment and contribute to the Construcción and with participation from sideration is being given to de- actions, especially those related processes performed within the social, cultural and sustainable veloping methods to measure Water consumption rose to 13,848,749 FCC Medio Ambiente, which develops to sanitation, improving health community. development of cities. m3 across the whole Group in 2019. This new structural materials from industrial and access to resources and the environmental, social and was 6% more than the previous year, with by-products and waste. services in the most vulnerable economic impact of all FCC’s FCC Medio Ambiente being the main places and those with the great- projects. consumer due to the type of activity it est needs. performs.