2007 Annual Report

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2007 Annual Report 2007 ANNUAL REPORT GRUPO CEMENTOS PORTLAND VALDERRIVAS Annual Report corresponding to the 2007 financial year, submitted by the Board of Directors of CEMENTOS PORTLAND VALDERRIVAS, S.A. to the Annual General Shareholders’ Meeting called for 28th of May, 2008 CONTENTS I. GOVERNING BODIES OF THE CEMENTOS PORTLAND VALDERRIVAS GROUP 07 II. MAIN GROUP HIGHLIGHTS 15 III. CHAIRMAN’S STATEMENT 23 IV. WORLD AND EUROZONE ECONOMIES 29 V. SPAIN ECONOMY 31 VI. CONSTRUCTION AND CEMENT INDUSTRIES 33 1. Spain / 33 2. USA / 35 3. Tunisia, Argentina, Uruguay and the United Kingdom / 38 VII. GROUP ACTIVITIES IN 2007 40 1. Introduction / 40 2. Cement / 40 3. Concrete / 43 4. Aggregates / 44 5. Dry mortar / 46 6. Transport / 49 7. Investments / 49 8. Industrial development / 51 9. Sustainability, environment and R+D+i / 51 10. Human resources / 53 11. Corporate information system / 54 12. Analysis of financial year results / 56 13. Share performance and shareholder return / 58 VIII. PROPOSALS TO THE GENERAL MEETING 63 IX. RESOLUTIONS TO BE ADOPTED AT THE GENERAL MEETING 67 X. BOARD OF DIRECTORS’ REPORTS 71 1. Directors’ Report on declaration of responsibility in relation to the Annual Accounts / 72 2. Treasury Certificate / 73 3. Report on the modification of the by-laws / 74 4. Report on the appointment and re-election of Directors / 75 5. Report on the appointment of Auditor / 81 6. Report on the modification of the regulations of the Board of Directors / 82 7. Report in relation to the Securities Market Act (Article 116bis) / 108 8. Report on the pay policy of the Board of Directors / 114 9. Report on the classification of the Members of the Board of Directors / 117 XI. ANNUAL REPORT ON CORPORATE GOVERNANCE 123 XII. ANNUAL ACCOUNTS, AUDIT REPORT AND DIRECTORS’ REPORT OF THE CONSOLIDATED GROUP 199 XIII. ANNUAL ACCOUNTS, AUDIT REPORT AND DIRECTORS’ REPORT OF CEMENTOS PORTLAND VALDERRIVAS, S.A. 277 GOVERNING BODIES OF THE CEMENTOS PORTLAND01 VALDERRIVAS GROUP CEMENTOS PORTLAND VALDERRIVAS, S.A. Board of Directors Chairman and Chief Executive Officer José Ignacio Martínez-Ynzenga Cánovas del Castillo ViceChairman Esther Koplowitz Romero de Juseu Voting Members EAC Inversiones Corporativas, S.L., represented by: Alicia Alcocer Koplowitz EAC Medio Ambiente, S.L., represented by: Esther Alcocer Koplowitz Meliloto, S.L., represented by: Carmen Alcocer Koplowitz Fernando Falcó Fernández de Córdova, Marqués de Cubas Feliciano Fuster Jaume Cartera Navarra, S.A., represented by: José María Iturrioz Echamendi Cartera Deva, S.A., represented by: Jaime Llantada Aguinaga Jaime de Marichalar y Sáenz de Tejada, Duque de Lugo Rafael Martínez-Ynzenga Cánovas del Castillo Rafael Montes Sánchez José Manuel Revuelta Lapique Concha Sierra Ordóñez José Ignacio Taberna Ruiz Vicente Ynzenga Martínez-Dabán Non-Voting Secretary José Luis Gómez Cruz ViceSecretary Vicente Ynzenga Martínez-Dabán On 13 June 2007, the General Shareholders’ Meeting ratified the appointment of Meliloto, S.L., represented by Carmen Alcocer Koplowitz, as Voting Member of the Board of Directors, as well as the re-election of EAC Inversiones Corporativas, S.L., represented by Alicia Alcocer Koplowitz, as Director. On 16 April 2008, Ibersuizas Alfa, S.L. presented its resignation as Voting Member of the Board of Directors, and as a consequence, of the Committees of this to which it belonged. 8 Executive Committee Chairman José Ignacio Martínez-Ynzenga Cánovas del Castillo Voting Members EAC Inversiones Corporativas, S.L., represented by: Alicia Alcocer Koplowitz EAC Medio Ambiente, S.L., represented by: Esther Alcocer Koplowitz Fernando Falcó Fernández de Córdova, Marqués de Cubas Jaime de Marichalar y Sáenz de Tejada, Duque de Lugo Rafael Martínez-Ynzenga Cánovas del Castillo Rafael Montes Sánchez José Manuel Revuelta Lapique Non-Voting Secretary José Luis Gómez Cruz Audit and Compliance Committee Chairman Cartera Navarra, S.A., represented by: José María Iturrioz Echamendi Vocales EAC Medio Ambiente, S.L., represented by: Esther Alcocer Koplowitz Fernando Falcó Fernández de Córdova, Marqués de Cubas Concha Sierra Ordóñez Non-Voting Secretary José Luis Gómez Cruz Nomination and Remuneration Committee Chairman José Ignacio Taberna Ruiz Voting Members EAC Inversiones Corporativas, S.L., represented by: Alicia Alcocer Koplowitz EAC Medio Ambiente, S.L., represented by: Esther Alcocer Koplowitz Feliciano Fuster Jaume Vicente Ynzenga Martínez-Dabán Non-Voting Secretary José Luis Gómez Cruz On 26 June 2007, the Board of Directors agreed to the appointment of EAC Medio Ambiente, S.L., represented by Esther Alcocer Koplowitz, as Voting Member of the Audit and Compliance Committee. On 2 October 2007, the Board of Directors adopted the resolution to re-elect EAC Inversiones Corporativas, S.L., represented by Alicia Alcocer Koplowitz, as Voting Member of the Executive Committee, and likewise, to appoint EAC Medio Ambiente, S.L., represented by Esther Alcocer Koplowitz, as Member of the cited Committee. At this same Meeting, the Board agreed to name EAC Inversiones Corporativas, S.L., represented by Alicia Alcocer Koplowitz, as Voting Member of the Nomination and Remuneration Committee. On 24 October 2007, the Audit and Compliance Committee agreed to appoint Cartera Navarra, S.A., represented by José María Iturrioz Echamendi, as Chairman of this Committee, of which this company was already a Member, in substitution of Fernando Falcó Fernández de Córdova, Marquis of Cubas, due to the expiry of the term of his post as Chairman. Mr. Falcó shall continue as Voting Member of this Committee. 9 Management Committee Chairman José Ignacio Martínez-Ynzenga Cánovas del Castillo Voting Members Fernando Dal-Re Compaire José Ignacio Domínguez Hernández Pablo Espeso Martínez José Luis Gómez Cruz Ángel Luis Heras Aguado Manuel Llop Albaladejo Manuel de Melgar y Oliver José Manuel Revuelta Lapique Jaime Úrculo Bareño Secretary Vicente Ynzenga Martínez-Dabán 10 Executive Management Chairman and Chief Executive Officer José Ignacio Martínez-Ynzenga Cánovas del Castillo General Manager Planning and Control and Chairman’s Assistant José Manuel Revuelta Lapique General Secretary Vicente Ynzenga Martínez-Dabán General Manager Administration and Finance Jaime Úrculo Bareño General Manager Legal Department José Luis Gómez Cruz General Manager Internal Audit Department José Ignacio Domínguez Hernández General Manager Cementos Portland Valderrivas España Ángel Luis Heras Aguado General Manager Cementos Portland Valderrivas USA Manuel Llop Albaladejo Corporate and Institutional Relations General Manager Manuel de Melgar y Oliver General Manager Marketing and Sales Ángel Luis Heras Aguado General Manager Human Resources Fernando Dal-Re Compaire General Manager Technical Pablo Espeso Martínez Administration and Finance Manager José Manuel Huertas Montero Manager of Human Resources Administration Cristóbal Moya García Administration and Finance Manager Vicente Belloch Escandell Legislative Industrial Affairs and Contingencies Manager María Francisca Hermida Alberti Legislative International and Corporate Affairs Manager María del Mar Sáez Ibeas Industrial Benchmarking Manager Luis Ángel Herreras López Commercial Manager Spain Antonio Crous Millet Foreign Trade Manager Ángel Faramín Burgos Purchases Manager Juan Manuel Jiménez Valenzuela Communications Manager Javier Hernández Fernández Industrial Development Manager Juan Carlos Urcelay Gordóbil Aggregates Division Manager Manuel Ruigómez Domínguez Concrete Division Manager Antonio Martínez-Avial Ynzenga Mortar Division Manager Gerardo de Lucas Pérez I+D+i Manager Serafín Lizarraga Galarza Engineering Manager Julio Bermúdez Medina 11 Executive Management Marketing Manager Manuel Oreja Arburúa Environment and Sustainability Manager Carlos San Félix García Operations Manager Spain Francisco Zunzunegui Fernández Strategic Planning Manager Víctor Hugo García Brosa Trade Policy Manager Ángel Faramín Burgos Budgets Manager Manuel Doreste Miranda Human Resources Spain and Corporate Employment Relations Manager María Luisa Otero García Institutional Relations Manager José Ramón Bujanda Sáenz Investor Relations Manager Julián García Ureta Security Manager Federico Fontanals Armengol Insurance Manager Santiago de Gomar Roca Information Systems Manager Jaime Ferrer García FACTORY MANAGERS: Alcalá de Guadaira Jesús María Álvarez Laurnaga El Alto Miguel Reche Islán Keystone Steve Hayden Enfidha Abdelhak Gazzah Harleyville Tom Spaits Hontoria Santiago Ruiz de Valbuena Melero Lemona Javier Bilbao Amorrortu Mataporquera Rufino Antonio Requejo Gallego Minas Nelson Marinello Monjos Ramón Lago Pérez Olavarría Juan Carlos Ugalde Olazagutía Ángel Caballero Chacón San Luis Roque Amoroso Thomaston Ray DeGrass Vallcarca Enrique Macarrón Jiménez 12 Group and Associated Companies CEMENTOS ALFA, S.A. General Manager Francisco Zunzunegui Fernández CEMENTOS ARTIGAS, S.A. Chief Executive Officer Jorge Juan Heller CEMENTOS AVELLANEDA, S.A. Chief Executive Officer Jorge Juan Heller CEMENTOS LEMONA, S.A. General Manager Nicolás Gaminde Alix CEMENTOS VILLAVERDE, S.L.U. Joint Managers Antonio Crous Millet David González Díez CORPORACIÓN UNILAND, S.A. General Manager Antonio Crous Millet GIANT CEMENT HOLDING, INC. Chief Executive Officer Manuel Llop Albaladejo SOCIETÉ DE CIMENTS D’ENFIDHA Chairman Tahar Ghenima General Manager Abel Ben Ahmed 13 MAIN02 GROUP HIGHLIGHTS Since its establishment in 1903, Cementos Portland Cementos Portland Valderrivas Group maintains a very Valderrivas has experienced continued development
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