The FCC Group’s areas of activity 31 Services 55 Construction 95 Cement 109 Real Estate 117 Other sectors 31 Turnover Services 32 City sanitation 36 Technological innovation 39 Water management 42 Industrial waste 44 Versia 45 Logistics 47 Airport handling 48 Urban furniture 49 Parking facilities 50 Conservation and systems 51 ITV vehicle inspection 52 Passenger transport 53 Industrial vehicle sales

Split-compartment solid urban waste collection lorry. Madrid P F F T a m s a m m Millions Turnover e ’C C s C C i l b u e h d n d n r o j a e t n i a g a n a i v r a r s e c n i r t c i f t a e t s r d l o g n r c t a c s of e m e a n v r e s a e u s euros e e m s e c n e b g e c i h c o t n IFRS: GCA: n i t e a g i r o e f , t n a l g s a o e s n a m i t c n Data Data e 2,003 f y 0 042005 2004 2002 s v r t s n a m i c p d i v . c re ac ac c i a l p m o y t I i t i a g a n i n co co 4.3% r s e GCA e , s e k rdi rdi t n t s u d t i n a s t , s m e e h ng ng C F 2,090 c a 2003 i s x e a e l g to to i i n n e c n r a a t C f i r In Sp , i 12.3% g n tern t s r a i n an s n e d t t o s e p l o i is , g n atio i ro h t s a w s i h t n t t a c 2,347 Ge , t nal i v e h a d l ne e ( i r u e d d n a i u b e k g e F ral y in 19.3% o l e rc a B e t an b e Ch s a r o l t o c s n a ci g n i d art re t a re r o f al 2,800 r e w e s y k c a b IFRS u r t s n Re of S tre ro g e t s a w a porti Ac y t e i c o s .t n e m re 32.2% a n co a e l c ng unts d e p u clea t n ro i v n e , n o i t c , ) s m e t s y s o S 3,703 r e w e s tandard 2006 rul n n 9 1 o i t c e l l o c in e n i s g s i o t n i 1 1 . g s W e n o y r e v a la t n e m dn a .k r o w t e n t w er ow t re t a w n e h jet n o ed i w . f Za r ago za I i a p l I h e v u t 1 3 u e Millions Gross n s g o n o n r r n e s s s ro h t 2 p s e i D i i t s 0 l c e e 0 , e v e , s c m e c n o 6 operating profit(Ebitda) c e s of e g 4 a s r 9 a euros i s n a r u % e l l n o l r e b l b r a r t .s b h t d e d o m n a : p s n e s e 4 e h t a c a 3 0 042005 2004 2002 312 re f i 6 . r g e t u r o p a r v r e s % h t r o t i v i t c u t i n 7.7% , t GCA o a t y r e v f o n s e c i a h 2003 re 336 s e i e l c i h n o r a e h t d n a e 11.9% b d n r b t i l h t e h k c a o c n n i o e g v d a 376 u n p s , s g o l h g r e s o s e m a c 20.5% t c e n o t r e Sa d i l t s e c i v w ba n i i r e s g n i s i t a o s a d 453 del IFRS n 3 t a d e t a v , % 9 r o w f 33.7% pu e p r o d n a E a rify n o i h t d t i b r h w h t g n i k o 2006 in 606 e f g a d n i y 2 c i pla h t . a n e 2 h d a nt e c a f 6 6 , t s u A r Ve t s y s (S ro G s e b P l i la i r 7 o A s r Turn t i o f ). f e e i a i m u Ba m re p ,s i r no i l l ’s ,s c ov . e l on a er 31

Services City sanitation Turnover: 1,960 million euros

Analysis of the sector FCC’s activity

In the last fiscal year 287 city sanitation contracts were put out to bid, slightly fewer than the number bid on in 2005 (329). Even so, the joint annual consignment in connection with these tenders was 670 million euros, which represents a 12% increase over the preceding fiscal year. This increase was due to the fact that the tenders included contracts in major cities such as Madrid and Vitoria and contracts related with the construction of solid urban waste treatment centres requiring heavy investments. FCC renders these services in over 5,000 cities and towns The activity registered in the subsectors of building cleaning in Europe, Africa and Latin America. In Europe and Africa it and maintenance and park and garden maintenance and does so directly or through subsidiaries, while in Latin America upkeep, where bids were submitted on contracts valued at it provides services through Proactiva Medioambiente, a 400 million euros annually, was 45% less than was registered company owned in equal shares by FCC and the French firm the preceding fiscal year, due fundamentally to a reduction Veolia Environnement. of park and garden cleaning and maintenance tenders, which are usually worth more per year than building cleaning In 2006 FCC gave city sanitation a big boost with two contracts. In building cleaning contracts there were significant investments: 386 tenders, also fewer than the preceding fiscal year. It acquired Waste Recycling Group (WRG), a leading The forecasts for 2007 are lower than those of this fiscal urban waste treatment company in the United Kingdom, year, fundamentally because autonomous communities and a country where FCC has been providing sanitation local governments will be holding elections and historically services for the last 15 years. that slows down the tendering process. It closed a deal to acquire the Austrian environmental services firm ASA, which has offices in Austria, the Czech Republic, Slovakia, Hungary, Poland and Romania.

32 2006 Annual Report expe c t In Dur f f w and n Contracts Geographical 1 or o or 9% 9% 6% o or 2% aste ntracts Spain 26 emost thwest e ing Be An B Andaluc Pas Vasco Arag Comunidad park ri ig arueri en milon ht of ni g 2006 n in ci FC les ey ca y the and new ng in ea Spain a of rl Spain rs Valenciana ó ( s 70,000 FC people Bra zil). provides W area tr . garden cont ( (United on B Ca ales, enic g s w an te racts: gro on arló llón). Urban for in d inh mainten services abroad Kin wth 2 3, abitants five ,6 has 40 Str gdo 19 i refus 0 n years. ee 22,550 milo . ance. cities r m). ece nt fo t B e cle a elo r of Elimination a co n w an this p ni inha lection, yea r euro op d are ng islan tow ulation bitants s. and s some ’ ns. worth d stret re of located fuse of of and the close o the clean 2 f colle has u 2% 2 n rba n 0% 2 ew 2% Catalu been i c Madrid ng ti Rest on a l S i l c n o d a C i o f o c o f o t u q Contracts l c n n 4 3 4 3 10% u o % % % % i s s a v o u r v m a t r a g l S r r e u Slovakia Colombia Venezuela Argentina h t a n B C C t e Rest n i l e d y i n n a v o f .d e re a r o u e y t i r a e t a c t f t s t n n e . : s a n f d e n o a l s i t abroad y w t a r C o . s o i a w i t c ’t f t x u o l i h l l a i n e h T e e v s a r . av C t s , 1 i f e n n U p n o 0 o e c d u s re r r a b r re n p u li ( e y p i h s l S m yr e e e s i m n p n a ( w o a r o n U . s r a y t p n a a r , k a v r o e n o i t n i p a w o f e g a d e t i h g u ro o B , s t s 1 .t S a i r 0 2 r e t s , g r c e p t e e a n e f o . ) m 0 0 , n i K t v i f n e T a re l a t c s a i a l a re c e l l o y - e 0 n i g l t n e m t f o o d h e v d o e m t p h t l i c n u o C s l l i f r a e f o e n o i t . ) m c e t a e e l c i t n t n e l p r t y t i c p d n a n h Was a Wa a e s n a o d n n r n i l a c i l l i w f ’ i te s s o d e t s a r e f s a w a d h t t e r d n e h r t . ea g i e w s i m i l q e e b T a tm r o t p e e t e h n m i l p n a l u e D ent a n i s u 4 o p i l a c i o p f b h 3% Ci d e s u p r c n i t p s h g i b n e m m o o i t n o l ty a r d i r o f a United Kingdom 1 n a l t 3% t t. ,n t n r t sa r n o i o i t 1 e g Jun t c a 5% 5 eh Czech Rep. n % a n di i t dn h ta z Mexico Austria . r i V ti on i e t o ri a 33

Services Breakdown by client type Breakdown by service type

Contracts in Spain Contracts in Spain

2% Autonomous communities 46% Collection, treatment and elimination 85% City halls 6% Other public entities 32% Street cleaning

7% Private clients 22% Other

Dartford (United Kingdom). Design, construction, Morelia (Mexico). Final disposal of the solid urban financing and 25 years’ management of a new transfer waste of the capital of the state of Michoacán. The contract station that will include a civic amenity site where citizens is for 15 years. A population of approximately 700,000 can dump waste. inhabitants will be covered and 600 MT of waste will be treated daily. Fuengirola (Málaga). Street cleaning for the next 10 years, with mechanical and human sweepers, mechanical Naucalpán de Juárez (Mexico). Concession of the and combined jet-spraying and swabbing of avenues and sanitary landfill for this city, located in the urban outskirts squares with specialised machinery. of México D.F. The contract is for 20 years, it will cover 1,200,000 people and 1,100 MT of waste will be treated L’Anoia (Barcelona). Selective collection at the 31 cities daily. and towns in this district, which has 88,000 inhabitants all told. Querétaro (Mexico). Fifteen-year renewal of the concession for management of the city’s sanitary landfill. Las Palmas de Gran Canaria . Full-service beach The population covered is a total of 800,000 inhabitants and coast maintenance inside the municipal limits, plus who generate 650 MT of waste daily. spa management, for the next five years. Reading, brackNell Forest and Wokingham (United Madrid . Refuse collection service for the next nine Kingdom). Twenty-five years’ management of the urban years from the central Madrid districts of Centro, Arganzuela, waste of these three counties located west of London, Retiro, Salamanca, Chamartín, Tetuán and Chamberí, plus with an estimated population of 500,000 people who some zones of the Fuencarral-El Pardo and Moncloa districts. produce 220,000 MT of waste per year. This is WRG’s first Since FCC already won the tender to collect refuse in the major contract since the company was acquired by FCC. outlying districts in 2002, it is now rendering refuse collection The contract is worth 893 million euros. service for the entire city and has been doing so, as the winning bidder at tender after tender, uninterruptedly since Salamanca . City cleaning and urban waste collection 1940. for the next 12 years. All lorries are driven by engines that run on compressed natural gas. FCC has been rendering Mataró (Barcelona). City sanitation (refuse collection these services in Salamanca since 1972. and street cleaning) for this city of 112,000 for the next eight years, in addition to beach cleaning. San Felipe (Chile). Solid urban waste collection and transport, plus manual sweeping of the city’s streets, for seven years.

34 2006 Annual Report Cr o f and d r t period and lo p o p t c t subsequent y ecylable he o or ot ea lean ing f ist op ul atio n f er cated uz. s biopathogenic t al iod r ricts, t he pra ca s, Sa Teru San To T T V V he ope rate management of ux tla -G uti ér ez ud al ito pi The us . r ent n tr eatment y is M colection, en ci a tal in 49 1, 00 0 el a ta ing th ria S el and fo r a ea eb contract packging. e the of . total Cruz . of su 181 ( operatio Selctive s a Soli as Navr ra) . ( a tr . transp Al Valencia). re 84 ,0 V 20 -y ear Prep arat ee biopathog t ava alen s iá d of veh (Argentina) ts pe o pl an will n was ur tran of . 00 16 . is (225,000 ort icles ba cia n C pl e. the be for colection t te it Th in hab n sp Re fu s years for ( pe rio io n fo r for Mexico y metro Refu wa fo equipped t e o stre 1 enic eco ake rt, 23 0 aw r th o pap ste . ita nt s d. e th . f se years et n park e inhabita treatment pol itan Co years ard a w co e ). Th er/c ard collec Tu to colectio c s aste in en lea ni ng lect ion n ol id C de la e . is use . trac t of on w the tire . po p fo tion ith treatment nts) tr act this ur ba n area. bo n r Solid di stri ct, city pro on-drinki ul atio to a the n, an fo an d ard and for city fo urb bui ld vince fo r stret d r and The newest ur-year waste a a fina l and the n manag e n n st of fu l-s ervi w wa reet co vered eight-ye , surroun p co n of hi ch 80 instal nex ste clea lant lig g d nces du mp isposal Santa ,0 c in p wat cl h ol t erio nin t ea 00, h l ment and eight ect tec ce as a er di nin ion ha s io g r d. hni n ng an d a cit y . g O cal a vi f or edo wh Bra dford for o a will se au n d f e r va t ig Pa v ich o th ice a Z West h mo nc ís ls il b e s o together ina o es Va next b f u b o -on-Avon . ile r sc e r i W Wil n ( o, Slo all in p g i sevn t la c h f B th t v lu a n shi ilb a th c t have re d kia il a f ed. is ity e , or r o years e ). M c , c on t by ap fiv S ( Wa a elks United a e ita n p M r st ac o i ye S n ham, ls obis, p e e t a th ulati ba o m F r f s K CC e a sti . t i on na he ngd Warmi Eng T on á he no w n ge e a of om) lis an ut of w m h on o a d nster 1 ent pe KIA s . 28,000 citi te Vit Refuse rf mo ’s se o es pr or Stre r m and r ms od ia us vi of a . c in uc cl in e co cit Tr owb col ea Westbury , Ci habi a e s mm n y upplier t d ty i n ecti sa t g at he . sa tan u nit Sa ridge, n on a n n K at ity i S ts. s, IA ta eb ion a ti on s t iá n 35

Services Technological innovation

Hybrid collector/compactor

One of the hottest objectives in the field of automobile The vehicle is designed so that all the collection work technology is the electric vehicle, internationally dubbed is done in the electric mode; that is, with zero polluting the ZEV because it has zero pollution emissions. emissions and the minimum possible sound emission, employing the most advanced technology in the field. The For many years now FCC has been using electric collection vehicle charges its batteries by running its diesel (biodiesel) lorries. These lorries have been successful in a limited way engine coupled directly to a generator when it makes its but their features have always been far inferior to what waste unloading runs, and so it has full autonomy throughout was available at the time in vehicles with combustion motors, the entire working day. Consequently, it is an electrical because of both the state of battery technology and the vehicle when it is collecting refuse and a hybrid when it is state of electric traction as applied to vehicles that consume transporting its cargo. It can work three shifts a day, because high levels of energy. These drawbacks prevented electric while performing its waste transport runs it can very soon lorries from offering a performance equivalent to that of recover the energy it has spent in the electric mode. diesel-driven lorries. Battery power generation is guaranteed, because the energy Electric collection vehicles were used in Barcelona in the recovered is quickly stored in latest-generation nickel metal eighties, electric vehicles have been collecting uncompacted hydride batteries custom-made for this vehicle, thanks to the refuse from the centre of Toledo for ten years and since technology used for traction and power generation, which is 2000 FCC has even been using small vehicles reserved for similar to the technology employed in high-speed railways. highly restricted hybrid applications. In all these cases the solutions have been clean but not profitable or terribly The vehicle has been created to operate in hard-to-reach reliable. Experience has done its job teaching what should areas. Hence, its dimensions are exceptionally small to ensure be done in the future design of a collection vehicle with that it can squeeze down narrow streets and still remain all-electric traction and features equivalent to those of diesel manoeuvrable. vehicles. There are 7 cubic metres of space inside the body, which Since July 2006 the first electrical collector/compactor whose is equipped with a multi-use recipient elevator suitable for performance is similar to that of an equivalent diesel or multiple collection tasks, door-to-door collection of natural gas-driven vehicle has been working daily. It took four conventional (non-recyclable) refuse, recyclable packaging years of research with major European battery makers, electric and even paper and cardboard. Because it works as a satellite traction companies and makers of chassis and bodies, led by vehicle, it has got a system for lifting its refuse bin with a FCC, to produce this collector/compactor. hydraulic scissor mechanism to transfer its load to the

36 2006 Annual Report Given axles and d o 5 m it t u since he imensions f 50-600 se. other f eatures, 3,600 European a and it maximum the has lorry . kilograms/ to cab innovative the ben of 4,000 It Eureka are the colector/co is wid created cap mad u kilo cubic nit th able nature pro gra ms e are of to ject. metre, b of jus mpacto y a fit . o FC comp t to Th f It th 1. tal C th is es e 8 w e fo n excptio len r metres. ith acting vehicle ot r h sp th as gth a avilble ecial e legal b comp en of w naly The and aste measu just load certified any’s vehicle’s th on neat to 6.5 e rements. ca the techno exclusive metres pacity un market, der log y be en su a wi generated in proces FC stan content Its rejcted rejcted it differen late us In ha ve Th e Biom Work Ce pr oces Las deo necs pp l ed th the the o m Deh es dards rga nic 2005 meth technic tw ier i b si dorant) n co ent s s rej s en et gn ed ummer sary t o cemen of th at reduced ntinu o material by ected pl an izati types hane f as to s duri deactivati an compo i et th e n fa o to ans b is w . rga ni prepare ts o ed for io met han The ct t ith ng pe rat ion emp emp material reag ent s o o that factori on f s ory th f to mus cement pla tud nents th e c 2 tha t reagen s is 0 pr oces lo yed ty tudy w met ng are 0 ied year a t as nt 5 on s fuel es pro up be s e the te and fo r s mus ubs curren an e s the was evral ( ts pl at pl i nace fur the s gas on ces prep treatment of d an t cu rren tl more o titu ( er. s t a reduci p rga ni an evr al the , a conducted co be os fermentati coke, ared tly by te proj i i n n mpos si exclu d reacto ci th bil for Mad in fue ls. i c eactivated n noc ul dents ect y an Sp an g compo p ity operati etc.) b plan T hysical si the i the tion ein g ec h rid two vit y th of rs atin ish j on at o ointl ts trad is wi od acel nol in curred and nents ag remen t . in year s. on, was g si acelrator fa ci th y H T our order s og and o milar yb iti y the ta l an eratin th r presntatio o do wi maki i li i d begu cal led d nal l tie s co e oad col th i material ts to chemi at thi material to lec n i at fue ls ng the nn ov g tained moi th t s n o th , ha s the r at th e / i th c an n e om sture cal a e d n pa ti y ct on . or 37

Services effect repairs. It is estimated that the reactor will have emergency cranes and machinery can gain access to the to remain out of order for more than a year. reactor interior in order to empty it.

The incidents at those plants damaged the reactor’s structure The sample number has been increased to four per reactor, and caused leaks of both liquid and gas, affecting process to keep tighter control over the digestion characteristics in safety. each zone of the reactor. There are also now more level meters, a total of three per reactor, to prevent any differences As a consequence of these incidents, FCC has opted to in the level of digested matter inside the reactor. introduce corrective measures at the Las Dehesas biomethane plant to prevent similar damage from ever occurring. These Another safety measure and process improvement has been measures are aimed at ensuring process safety and availability. to place biogas injectors in the narrowed area between the outer wall and the reactor wall, since this is one of the most The measures that have been taken consist basically in the critical zones of the reactor interior. following:

Reinforcing the structure of the reactors. Increasing the number of accesses to the reactor interior in order to facilitate the various maintenance tasks. Improving the process control system. Revising the hypotheses underlying the structural calculation to forestall any future incidents.

These measures have resulted in an increase in the quantity of steel per reactor, from 96,950 kilograms to 211,209 kilograms, and an increase of slab thickness (from 250 millimetres to 300 millimetres) and the thickness of the central wall (from 520 millimetres to 1,000 millimetres).

In addition, to facilitate cleaning and maintenance inside reactors, a large number of openings and accesses have been added that are larger than those proposed initially Solid urban waste treatment plant. Tudela. Navarra by the technology expert, so that in the event of an

38 2006 Annual Report t In An b Union c c t p and in Howevr In t F same r it elationship o o o y o u ecome ubl ic i is cle. mplex, t nda mentaly 2006 addition f sustainable bui ld iat ive, el alysis goi ng is time requiring and Framework the new the , increasingly an d sp ecialsd the to it infl uence priv ate the with o Spanish is continue infrastru framework f by growth in oppo EUF t al he th e con the Directive alike, D the rtunities w acen of ser vices su leg al s ask mid c and ater ecto tu offering stakeh mers. th to res dle is e for ob tua ted reso manag make trans , very ( EUFD r often of lig atio as w olders greater il urce s fresh a oc iated W d po be mo emandin in ), pro ement fin sitio n so manag wo th gen re b ces to anced tran methin usines e ate r n o rking ru w erated up f sector of sp of ith n a g, coming ement arency the co in creasing b chan g and in th e y o mmitment tha t pp by priv ate the con Eu fu ge, at ortun efficency. th rop years in l tinu secto wil th e water so th ean ly manag e ned ities. ed e r, de s hy dr aul Eu rop ean a Repub leadi has it In The management inte n search fe asi set . 24. In T ope rati to conces plan cons in market, in he magn has this 20 06 the its g 8% ali 71 2 Tu rnov er: uarante enab Al t i bi ol ng nati nte r si o na tio n des FC ben lic lit y idates fu fy framew ffer s on for ic th at ificen high ion compani ap th e l i led and ig C ts -servi wo of Un i an s em milon s, pl pu n us imp efforts er G matt ers no ver tu r ies market , ona l each it rk s d t A an irrig bli o a the tainabl in o op roup’s qual than to ce s n. d s lementi rk ol c to co nces uces the es ation portuni con H con utio n w w w po Aq al ia’ ew o i in ater ater ater n in w markets l e i s en t s s n stru so uali ns of th th sfu the evr, o b 20 leaders i euro s and th e in ng bl e s li us e e a io s manag man ty ge o for Aq u date fras tru a’ ction l ervi 05. ctivit area acti priv ate n ines future. in s te ch co nt ract . fo s fo r pr o w ap oon-to-b gr ap hi ce al agemen recnt r Thi of vities hi i ater s , ts ia, Aqu p of ni cal ement cture th e hydraul ject s p man gro roach I s y taly, pos FC managemen pos pu s us cal ali ig wth compri i , mplemen , years agemen C’s bli i nifi tion e t a mai eco no e iti esp eci Po , rest rai market secto c i ic w to on members n has umb rel cant rtugal water nte nance h infrastruc tu indu as export in si i in Wat ch mic aly ng r, led t, on Spain nt s g the ta tio n was is , stry , rowth, t is water er the l servi e the a th e Aqual an d secto to h p of d the of co ave ma resn , omes i in and co s C wh ce seaw mpan y th the of l clude eg al s na zech re treatment model r. mp ia w be en ure e ich The ti ge m hich ti to ng any’ at er c en t s 39

Services Breakdown by service type Breakdown by client type

Contracts in Spain Contracts in Spain

1% Autonomus communities 78% Water supply

9% Treatment 13% Rest 62% City halls 16% Other public entities 21% Private clients

service offer. The backlog contracted during 2006 is worth Geographical area over 3,060 million euros, thanks to the award, renewal and acquisition of 242 contracts. As of 31 December 2006 Contracts in Spain the total backlog was worth 10,611 million euros, which represents a production coverage of 178.9 months. 19% Rest 23% Andaluca

In 2006 5.4% of Aqualia’s turnover had come from the 8% Canarias 11% Catalua international sphere and it is anticipated that in 2007 the 4% Murcia 8% Castilla-La Mancha percentage will top 12%. 6% Valencia 7% Galicia 4% Madrid Public water service management, Aqualia’s main activity, 5% Castilla y Len 5% Extremadura registered heavy bidding in 2006. As one result the city of Santander is now on Aqualia’s list of references. At present the company is performing public water service management in almost 850 cities and towns throughout its geographical market, providing service to an equivalent population of nearly 13,000,000 inhabitants. practically all the water management contracts into Because the company’s commercial position in municipal Aqualia Contact, the customer service centre that offers and regional markets was already significant, one of Aqualia’s round-the-clock telephone service. strategic objectives for 2006 was to boost its presence among nationwide clients. Right now the company is providing Treatment plant design and construction, which is run hydraulic infrastructure maintenance and operation services under the SPA commercial name, and solutions for water to clients such as Aguas del Duero, Aguas del Júcar, use in industry, which are handled through Aqualia Industrial, Acuamed, Aguas de la Cuenca del Ebro and the Segura registered considerable growth in a joint backlog worth Hydrographic Confederation. over 61.8 million euros and a significant increase in market share in water management for private clients. Aqualia seeks to provide excellence in service quality for all its clients and is always engaged in continuous improvement. In irrigation infrastructure maintenance and operation, Significant landmark achievements in this area in fiscal year development and marketing have continued with respect to 2006 included ENAC certification (under ISO 17025) of the SISGRE computer management application for irrigation Aqualia’s four main laboratories located in Ávila, Jerez de la communities. SISGRE is seen as a means of penetrating a Frontera, Lleida and Oviedo and the incorporation of market whose future development is promising.

40 2006 Annual Report w p This w 4 1 and R t Water Main As m s o f s t m c ser he he o y e o lus 2 , epublic. f astewater astewater 200,000 ilon g a n a e t s r i v r vers vice n a part drinking t thir d-largest co nt ract Ab Vé l a S e h the .e c includes excution m i v n a t n a e m e rantes cubic fo r o f ez -Má la ga o m of m con surrounding population s e r SmV anagem e d n its Vé lez re inhabitants e m t 2 t n water treatment service 5 to tr h t - metres manag natio inte r aK f o y r (Por of a t n man a e n a C ( water cts Málag a, e h t pro a l p . s r plants n a tuga 0 0 , 0 0 2 fo ent sizeable (M álaga) n a ag e emen o of vides i c cities r b a t e h T wo f r , y t statio o manag t A nal l). water with o th e ver bra n Ja and e t a w a i fo o c n t C a u g blun kov 0 w and stra teg . ) o on r 6 r t n in n ater water in . i o f i b a h n n o C tes a 0, 6 a r su Ext en ver ement ces vestmen the and r a 2 1 to 00 t n u s 200 pp w t c 7- year for s was wn as t r t 6 up y, 0 e e ion manifo l p p lied pu s t a c ,0 t c a sio ewa n a up p inh A th ply s, 00 tewater comp e h t s l l 6 mping y q o n s t ter t e a o f uali per abitan f e c i v r e s pe rio ly p r o f service of kilo n h w to trea the r ld lan. u s ext an d u f any tal year. th e t y l p p e h t sytems, metres o men acqu s d. urb ec i v r e s - l l ts tati o 25 treatment u o sewer d n a te rm in t Th e s f fo n o i t u c e x e with pla an f o years. over ired th r e ns n e h t t Ostrav of r e t a w w e s . co e , of C the nine zec Czech SmVaK, nt rac t pipes, re h p Rep lants. ub li c the Cas eli facil an d eff luen water sy a a metres Alman co nven ti inh th e In W an to fl fi minate ater d d tem. d abitants ow rme r til u V So ity raw Va Sa B So ga s aldep con s la-La aj tr eatmen to tri zora bó n t ld t of w of o o tr on al pl g up tu rb i i epe al I l s A V 12, current u eatment d w an t tru eñas M , aran make l e des ( po w th ater ma w th A anch ñas 00 ne s Ri an d e ct fo ater e Co al nzo t be r te 0 p w er r pl i inati . per p on roject i ( ru ña ) local cu a as th e t ga s Ciu ant l an t s a p for ra for ta ti tewater b d os p o ( i dad po w As c ay, tu i n l ( ncorp fo r . si i the Al ant o the and rri metres rb in Co p tu ri ble n, mería) obtai l g an Real) er th e ati w ns w d as) des excute to es. treatment ora tes es t, ater s hi tr uct ion on ta ti hi ned . i for ch su . per gn . Wat er i gh -p Tend s gn Co ppl y on , demand. h us a and ortfal by day Wa a ntract es flo the res er whi terti s of revrse the tew tr eatment w co pl w and hel su re l works a a ch s ant. o ary mbin of ter water rks with Wat and pr o d trea u 28,000 6 tu rb i b treatmen s Design 0,000 excuti o cesi y es ed er tm evn smo for Acu Agu ent neded co mb i pl an ma ne co n ng the p s am equ l as cubi i ed p an na an d s on ven tio n t . rovi t t. ed Bajo de This n fo r ge m for Sa ival o c ed to an l de f a m en en t an al t ca 41

Services Industrial waste Turnover: 163 million euros

The hefty 45% growth of turnover since 2006 has made it even clearer that Ámbito is the Spanish leader in industrial waste management.

Ámbito now manages 45 plants, making it the business group that manages the most waste treatment facilities in Spain.

The total amount of waste managed was 1,795,000 MT, up 42.5% from the year before.

Sharp growth was experienced in non-hazardous waste Ámbito is the Spanish brand name that covers the FCC treatment, especially the recovery of paper and cardboard, companies that specialise in innocuous and hazardous waste due not only to the incorporation of the Marepa group, from different industrial activities, industrial cleaning and but also to the division’s excellent organic growth contaminated soil treatment. performance in that business area.

Geographical area

Contracts in Spain

26% Centre 31% Cataluña

5% Levante

5% Aragón 5% Andalucía

9% Rest 19% North

42 2006 Annual Report t The Contracts Breakdown 50% he fol owing: Hazardous significant Used Contract Levante, de for Management tr Spain. Award Spain. ansformers, Gestión f in ive tire Spain of by waste years, Barcelona for mana the service landmark de manag for wast of at Neu gem its al five type l e máticos an ent 1 w ement fro evn 4 aste years. d facilties m by Gran ts Gamesa fro SIGN o U d f sad m urin C Ib anaria. US erdro in A os g n er service ) Eólica (Sistema the in n la’s ova th fiscal e d th thr o ecommison areas Aeroespace, 23% rougho Inte g year Tran ugho Innocuous sf er of rado were 27% ut pl ut an waste Other t ed i n Mo n t m elò Contracts Breakdown 2% 3% . Ba City halls r Other faci Co el comp el Co ( ( mai i Co and c n cons majo elo ectroni ectroni Paí nclu ntracts ntract n li n in a public di ties umer s any r fu Spain s Vas s ho charge by l-s i on c c i entities n fo us o w w for co. ervi client type elctro f A r of ehold as as Ámbi znalcól managemen the ce te te th l amps e in for manag nics man to app cons s lar outh so ) tha t . ) l agemen i n uther ( and an tructi Cádiz) ement n er manag t ces o Amb f on ) Spai , . w Sp t Eco s R aste w ys o ilamp es ecil ai f n. ork tems, tic n el elctri , ec C ectrical from sign l and ean on (flu is i i ng ncl the an ed cal Eco orescnt al Ind u udi p l i and wi 95% nves A and Recil the ust ri asi lgec th ng melc Private clients ir p te ec the a a Ecol orts s l l Ba amp w y. ec a Cádi ste s z 43

Services Versia The following activities are dependent upon FCC Versia, S.A.: Logistics Handling Urban furniture Parking facilities Conservation and systems ITV vehicle inspection Passenger transport Industrial vehicle sales

Versia’s turnover came to 867 million euros, 20% more than in the preceding fiscal year. This increase was due to the good performance of all areas, especially urban furniture, since Cemusa began management under its New York contract, and airport handling, with the acquisition on 1 October of Aeroporti di Roma Handling as part of FCC’s Strategic Plan. The scope of Versia’s activities was expanded as well with the incorporation as of 1 January of SVAT (industrial vehicle sales), which used to be classified as a member of FCC’s “other activities”.

The gross operating profit was 104 million euros, down 5.9%. The resulting drop in margins is due to the new business mix, where logistics makes a larger contribution, and the strong expansion of the urban furniture business, with a number of long-term concessions whose operation is just beginning.

Cemusa. Bus stop hoarding. New York

Transport. Besòs tram. Barcelona 44 2006 Annual Report m c o it F L t it h elco mmun icatio ns o C s ems, perations ous ehold ay mpanies ogis tics bus ines be Logística 333.7 Tur home found no item/perfu or in uni ts, ver: applia a milo geog renders in number the wh raphical nces, , n au ich co n me s eur ervices to of are p ven tio n ind harmaceu ind os econ areas us s tructu us in try , try , omic al . Sp The cosmetics, in d red ain the ticals sectors; us try b and in foo usines , to the d an Po either ind personal the ir d rtug op un te chn olo ustry , tical its al log clients thr ou serve istics in th care du e gy. str gh y , Red Diageo Gener al Amo rin Grupo Amo Vodafone Indo Varta Affinity Meridional Getronics uni log to inte g One Organ FC are: adhered In and leaders Last started the its th fied is q Bul trans tics year e es Logís Manufactoring rati on Autobaterías uali co is Uralita bi pecial hi Pet Mot ors u under ation mmitment s gge s ty p to p parency ector a ti Solar Care i o ca s number n of th r eal l y t the of u e a i . the s fre-market i n mportan Co Al atte s s Logi derw a in vari fo member comp de gle to the of r sti ting ous ent th of h trademark, cs ope ratio activ elp e anies t Go s to O contract l acomp o ectors convey perators company of g od ties its is acquired tics LOGI Practi comp ns Makr o Angelini Telfón ica Frigicol Jo hnso n Arb ora Sara GoodYear Robert Securitas Leroy Pergo Campofrio i n w lis den s FC renewal. an h th ecto CA, hmen Le ere do ce. li Merlyn L e in o i ance oting Bosch & mage gist ing sector Log i & Mas r the the n it Direc t , Du Auso nia i t FC Jo hnso n cs 20 doe s bus i . i ística. ring with n L Bu I Th FC beri o 05, Market o ng- 20 have f Logí es si nes bus ines trust, di 200 Ve r nes 06 an the g st Logí i a op vi sti n no sia Pe was 6 in ce n Cod ca erati s g i i nins w s nte grity ti . t Spai hi s ri ca’s Log w has pi th ben w se e. ons on ul ng e ere n. ist i a’s f l e e c t 45

Services Logistics. Pharmaceuticals warehouse. Shelves for controlled-temperature picking

The process of infrastructure expansion, renewal and improvement has continued. The following new centres and facilities have gone into service:

Carrefour Sevilla Centre . Introduction of a bundle classifier in room-temperature operations.

Makro Mercamadrid Centre . Introduction of a bundle classifier in controlled-temperature operations.

Multiclient A Coruña Centre . Inauguration after change of previous facilities due to the integration of companies.

Multiclient Alicante Centre . Inauguration after change of previous facilities due to the integration of companies.

Multiclient Azambuja Centre (Portugal). Expansion and redesign of the layout of the promotion handling area, including equipment upgrade.

Multiclient Vitoria Centre . Inauguration after change of previous facilities due to the integration of companies.

Pharmaceutical product centre in Azambuja Logistics. Automatic battery labelling (Portugal). Construction of a positive cold storage room. Enlargement of the psychotropic drug area.

Varta Autobaterías Guadalajara Centre . Introduction of storage racks with 7,500 spaces, bringing the total storage capacity to 21,000 pallets.

46 2006 Annual Report l h c Dur r F A M a Bi M ic am o li ir andling l en ál adr i ghtcare, ba nsolidate po ing irpo ag p, In ses o rt s. d, a, 184.6 Tur pasenger Sp and 2006 go od Ba Al In ai n agents: no ican rcel S.L., F add its uer t ver: rt the Fl f milo on a, te, or pos ition igh t itio is even and compan th e the Va n care ha M it l n tu ra enc ál nex carg FC of eur aga wo n as fe ia . t ndl y rs , o sev on os , co us Fue Va han c se e mpan ar ed e le n ve r o go te dlin nc f two y ing n v e the ia han d ent ur a, ar y new g. , tha t s importan Alican for emo at ling r amp th e sp Jerez te, ecials services Barcelon st h t Lanzarot e, an Euro evnts and dl ing pean in in Almer ía a, airpo to rt Fli air po Roma its and In and V market On e to th e airpo air po handl servi in 15 0, sh i n ghtcare are 2006 the i p ci nc reas co I resn ces over cargo 00 n ver y rt s rts, rt s. ( ing of Fi mpan y’ Handl I I tali 0 t s umic co mp l i al i h n ne arly Flig i W t movemen op 20 ce i e are an mpo rta nt y co hand s I taly s th ervi erato 0, afte r htc are ing in ub s ntin no) market. s of 000 et e th the pr es ces ), 35 % l for ta nti ed ov er ues i and s r wh acqui th e M acq i handl ts at cl i en ce n over s pa rt al ich to os T of R now pe r G 65 %; It 1 ne tw u o of y. e ring 5 io expand i renders me th s performs 5 in i to i o ai vanni n year carg tio n 1 e f g the rp Br us o 10 mi 100 and Fl th e to tal market rk . o ig htc are’ . o l Fli rts 0 n Alt o . ion Batti over s % pas umber-one Br u gh tc are’ airl on els market fo s of ervi e ge th er pasengers, , s ines, gg es- Oo r sta enger wi where Eu of more ADRH s ces Ve rsi th rope, Pastine Eu ro the s wi of ramp, no tu r at Fl and than th Fl ind a. mai st en i th pe an (Aerop g Leon co ig ht care o e A ependen ht care ver ramp (C n nsoli ver 32 i two pasenger de rp 200 o iampi ne tw ardo 5,000 ort perators orti i an s dati R ho ai h exp ected d ho ome h andli rli o no) da d ld s and t n Li rk l nes i fli ds g èg e ghts a is ng li . a n g 47

Services Bus stop hoardings. New York Billboard. Milan

The company has a long tradition in international activity. Urban furniture It currently has over 125,000 advertising structures and other items installed in over 160 cities and towns in eleven countries of Europe and America. Turnover: 118.8 million euros In 2005 New York City Hall selected Cemusa to install and manage the city’s urban furniture for twenty years. This contract, which went into effect on 26 June 2006, is the world’s most important engagement in this sector and a historic landmark for the company, with international repercussions. Cemusa will be installing, among other things, Cemusa is the Group subsidiary that specialises in urban New York’s bus stop hoardings, bookstalls and automatic furniture and outdoor advertising. Its activity covers the public lavatories. This furniture will be used by the more design, manufacture, installation and maintenance of urban than eight million inhabitants of the city. Thus the company furniture as well as the operation of urban furniture as has considerably reinforced its presence in the US market, advertising structures. which began in the cities of Miami, Florida, San Antonio, Texas, and Boston, Massachusetts. To design urban furniture, Cemusa relies on designers and architects of acknowledged international prestige such as This FCC subsidiary furthermore continued its process of Nicholas Grimshaw, Richard Rogers, Patxi Mangado, Oscar consolidation in Italy by winning a new contract in the city Niemeyer, Giorgetto Giugiaro, Perry King and Santiago of Milan, the country’s foremost advertising market, to add Miranda. to the contracts Cemusa already had in Genoa, Parma and Bologna.

In the Spanish market, last fiscal year Cemusa achieved contracts in Málaga for urban furniture installation, maintenance and operation for advertising purposes, for a fifteen-year period; the Port 2000 contract (Barcelona), good for five years; and an eight-year renewal of its contract to operate advertising spaces in the Donaire shopping centre in Valencia.

48 2006 Annual Report P arki 72.1 Tur no ng milon ver: fa eur ciltes os Gr P perio Gr Gi Pr Gi fo ur Ben perio Get Ci Veh Gi pe rio Ga n Un Al Regu 141, The of 90 11, The parked re ud ie j j j m an an th ón ón ón der 700 cities mi xo -y ear i go G co icl dí uñ 00 car e ad d. d. d. ol ol á l roup’ a ( ( ( ntracts cu rren t ate e 0 g As As As ecar ( l l vehicl de s de i V er er ló . Re (V r paces regu towi I p turias turias tu ria s ou zcay) n s s alen ci d ( er iod s al C Ma Cas ( ( 29 ( ór Barcel Barcel s n abov . Gran es. peci l aw ated d For co nt ract . r n do i ) ) ) tel o n . . . . . a) g ( p f B For 5, 48 arded For u ali ba . arkin ar ón) ada) two tho and ona) ona ) e-g nde rgrou 66 above-gro 31 4 8 sed ce Ve rsi 15 ( tw . se 2 p C lo . 4 rou years . . ar king órd th p 588 na imp o compan pa rki 58 g years For 770 citi arki a. i years s ). g oba ) nd es p U year . arages nd 1 a ou parki n arking ng parki . 75 rb und g s the s p pa ces . evn-mon . ndm car an s ies arki sp 1 pa w p ng 0 ng parki Group aces aces ere: f rk parks 0 man ur n s paces . ent sp n ing parki s Eig p g aces it n for fo r aces age g u spa ht -ye ar th al i re n ng spaces 15 so for a approxi c peri for app - for es th re- mo n s removes Par ki years. p two To a f od. aces roximatel a o w ext ens two-year r and i 10 ng f ng years matel ive s -year for e rv f p y i a i t on c ea oorly . h a e c y . y i Ov li rs t i . ie s ed o 49

Services Traffic signals in O’Donnell tunnel. Madrid

Most significant activities and contract awards:

Conservation and systems Traffic and shadow toll management systems Ibiza-San Antonio dual carriageway. Dual carriageway to Ibiza airport. Turnover: Eix-Llobregat dual carriageway (Cedinsa). 57.6 million euros M-203 motorway from Arganda to Alcalá (Cintra). C-17 dual carriageway (Servei Catalá de Transit). AID system in Barcelona access roads (Servei Catalá de Transit).

Technical installations and tunnel control Bypass Sur tunnel and Puente de Praga bridge (Madrid Calle 30). Cartagena-Vera motorway tunnels (Aucosta). Gran Via de Hospitalet tunnel. San Rafael tunnel in Ibiza.

Conservación y Sistemas, S.A., is a company in the business City service upkeep of designing, installing, maintaining and providing upkeep for Upkeep and maintenance of service galleries urban infrastructure, and it specialises in rolling out high-tech (Madrid city government). turnkey systems. Its areas of activity are: Irrigation system upkeep (Madrid city government). Pavement upkeep (Madrid city government). City upkeep and services: sanitation, pavements, public Upkeep of Madrid’s water distribution system hydrants, tunnels, water conduit leaks. (Canal de Isabel II).

Traffic management systems. Works in public streets Tunnel control systems. Development and pedestrian crossings (Alcobendas city government). Remote surveillance and security systems. Development inside the city (Fuenlabrada city government). Street improvement (Getafe city government). Barrio la Calera development (Pinto city government). Barrio Estoril development (Móstoles city government). Works for Canal de Isabel II, Iberdrola and Unión Fenosa. Renovation of Canal de Isabel II’s pipelines. Civil works and ductwork for Iberdrola. Underground ductwork for Unión Fenosa.

50 2006 Annual Report I TV 44.5 Tur vehic no milon ver: eur le os inspect Ve hic le ins p ion ect ion a p s tat po io n. Ar i w ntm gen w ti n a w. s en Argenti Cons stati Duri to and avil A in autono 2005 grow manages vehicl of e ts rv cen 2007 make th V ons ng ab le plans ic e tructi er si th , es tr alis the w io sit mous na, 2 . . in w eb a. 006 ap po i fo r i n ere on are ed the ir h du Con p igh Sp v. es s ag e commu over has te lep ch ed e con to nt me nt s ain er ser v fun number bui ( rate duc ted beg w 2 and ul i ho ne damental ati ,1 w ld nity , ng un 00, w. on ( tw over Argenti ha s s in s of ser vi o 000 vic er o in an to n p ins furth be en the 22% ) th d ect i o ce y techni p pecti o sys re na. to en s h 62 on s er i tv. as te ms co nso l the new Bo being the i ons s es s cal tati also tati i n th ) ope ni r by ad wi - stati o inspecti ons Vehic d co id ated ns ITV be en tha t oors van ce, th veh icl untries le ng ons i th n respect v ins regi e eh the someti . made of ons pection e i FC n i an d cl stered own fo sh same A e of ur ragón ow to in sp st Grou me us er s a new t ed i e on . in ec p M ti a dr on id 51

Services In-city transport service. Jerez de la Frontera. Cádiz

Plaza de Les Glòries and the tram runs along a new Passenger transport underground layout. This enlargement of the system has consolidated the influence of trams on mobility in the Barcelona metropolitan area. The number of travellers has Turnover: risen to almost 17 million, which means an increase of 31.3 million euros 30% over the preceding fiscal year. In addition in 2006 this subsidiary made headway in its preparations to operate the future Parla tram, which is scheduled to roll out in 2007.

In passenger transport by road, CTSA operates the Madrid-Almería inter-city bus line and local and long-distance transport by bus along the Costa del Sol. CTSA provides in-city transport in the cities of Mataró, Terrassa, Ávila, Talavera de la Reina, Sanlúcar de Barrameda, Jerez de la Frontera, Marbella, Estepona, Torremolinos and Vila Real FCC-Connex Corporación, S.L., is a company that is (Portugal). In 2006 it won the concession to run the city owned in equal shares by CGT Corporación General de buses in Benalmádena, plus tour buses. Transportes, S.A., a company of the FCC Group, and by Veolia Transport, a subsidiary of Veolia Environnement. It In 2006 the city governments of Jerez de la Frontera and specialises in in-city and intercity passenger transport by Sanlúcar de Barrameda showed their support for the bus (Corporación Española de Transporte, S.A.- CTSA) and management provided by CTSA in recent years by each by tram and train (Detren Compañía General de Servicios renewing its in-city transport concessions. Ferroviarios, S.L). In addition the concession for Málaga airport’s internal Railway activity was reinforced in 2006 with the extension transport (AENA) was also renewed. The service consists of Barcelona tramline T3 and the opening of a new line, in shuttling passengers between the long-term parking T5. Line T3 joins Barcelona with the district of Baix Llobregat, facility and the airport terminal. and a section has been extended to reach Sant Feliu de Llobregat from Sant Joan Despí. Line T5 joins Barcelona with During 2006 the 370 CTSA buses covered 27 million Badalona along the Gran Vía. The new section departs from kilometres and carried more than 48 million passengers.

52 2006 Annual Report B r c In u c and specialsd Sist I Zar Seg ovia, m scr SVAT Continuing an ge o lean ing , ar se. n achine mpact 20 06 ubber ag oza, celo na, emas vehicles dus presnted were 24.2 Tur SVA Bi lbao , for Str ur ba n that y in du stri al no V Vehículos Málag a, et FC alen cia, in de livered T milon pedes tria l for ver: clea recyls rein fo rced the sweper s comp the city n Las in techno trian g . clean Vald olid Ovied o, n M Palmas sanitatio d eur ational in olet an water, e vehicle p y th e A in g, its . avements del os log lta fo Mach , Valès . na tio r main ical Leó n Cád n market T air po an , selin ecn , T co ar rag o in es vangu Ba r esp iz, na l olog Sp an an as rt g celon that C ecialy tal d hig h th ro u lead ersh ip with iu dad an d ía na , a Pamplo ard ish w h-tech requ (SVAT) ater s lin g the gh ito ria, V cap itals: o reco Re al, f al ire ou stret an na . first an eq mmend t is in a es d d th Melia, uip th sup Có sale b swep miltar y e Mad cleaning each e ment size rd o erior able of rid , ba , er- Ávila, , stan in flo at i In T equi An ot h Car ib ves wh water in ad di render arra gona. citi co as th e ere el dard pment tio n, ng be an es . s er B Tai 43 ta l servi to aler i s was act iv uch Ve rsi of lo it water th e ves co r th ha s ce -mad cl te , c ast . s as at eanli ty to u els a. i Is n SV co nt i us Barcelo l to clean an ds P i e ri ndus p AT ase ng nes es s at ro vehi di t nu ed sp area a ren in g s ( tri . l 25 cl co lay na, The du rin al ew es er mbi s of ves w er vices gr ow areas V w ed tr ith fi ald M ere ned g s ansp rs els i ayco b ts th t its th of ) un del oli e co n vacuum/jet u an d or co astal w s s its Madri d, i i ummer t vered as ng tr act - a Ro are it i Ind nd u ves al ha s nda , S d on g t cl already r with to ust sel et and ean i st ri seao n. exp o of cl s c ri al C Mexi lea al ients th at ádiz Cat al ng Paí h n clean i in i rt ed ve gh-p in g s co ’ co . co l In hi c Ro and V that s uñ a, nt rac ervi as s nda tw r l ng le ect es co. . o ce s M sa wi ure t á la le th ga s 53

Services

55 Analysis of the sector 58 FCC’s activity Construction 60 Motorways, dual carriageways and roads 62 Hydraulic works 63 Maritime works 64 Airports 65 Railway infrastructures 67 Urban development 68 Residential building 69 Non-residential building 74 Electricity 75 Heating and air conditioning 76 Infrastructure conservation 78 Engineering 80 Corporate image 81 Oil and gas pipelines 82 Precast components 84 Repairs and reforms 85 Infrastructure concessions 90 Technological innovation Navia relief road. Asturias F An r s a p i s In Annual n e t e o e n g a w e n constant s i g o t c r f r i c alysis t r o v i h r e t l i r i t a n a m t r e b h r o w d e variation ratesinconstructionactivity n o n e e g i terms n i h e c o n s k g e b o i e y n , c f o f e w t e d Source: c y h t g r a t ro i l w e n s e n i l c s u s he l a c n e h t w t Seopan e h c . t n o 0 0 2 s n o c 1995 5.1 u E ecto f n i r o a r 1 p ro t s r p i d t r a i h u d o c u c d n r a e i t s t g n 1996 -0.7 n l o i e t c 0 0 2 t g n , n c i t c u r t s n o , n o e h . 3 h t i w y h d l o e v a s l a c s i F i r e p 971998 1997 2.2 t u b n o i t Ve g n i y a s o o f lo , d r a e y dr l r e l t t i ome. r o t c e s e m o s d e s a b 5.7 t u o b a 0 2 Pa n o i t a i r a v lma 6 0 th g i l s sa h n o d e s eh t t e M 1999 eh t 8.5 al or ca 2000 6.5 again wal the of seco infl In Spain th ation k fi nd-hi e s h cal s and devl urpas 2001 5.6 the and year ghe s i n ope d s economy the ed, hand. t can fo 2002 and for eig 4.6 w reign onc e orld, Th des and e n trade mo for ecas taking p trade 2003 3.9 i San the te re defic th Jo be co defi sé ts e tw centre ns co g fo o 2004 ci t rowth 4.0 tructio nsi r regi p t both oin (whi f d or ered stered th An ts in e n ch m i off 2005 n al 6.0 sector in enta b was y 20 terest ril si th i l n s 06 y ian e dis th of th tend G a t w e 2006 e bl rat . 6.0 DP) t ere he coun ed es . Pa t se o , m t c pl ri t o es or na 55

Construction Offices of the Directorate-General of Traffic. Madrid

From the standpoint of supply, the construction sector Non-residential building recovered slightly and accounted for remains the liveliest sector of the Spanish economy, with a 16% of all activity, up 1%. Building refurbishment and total production of 185,200 million euros and a positive real maintenance, which made for 24% of the total, grew 4% variation of 6% with respect to 2005 (5.4% in building and (the same as in 2005), due, as in years past, to the so-called 7.5% in civil works), 2.1 percentage points above the national “wealth effect” of the revaluation of real estate. economy in terms of gross domestic product. From the standpoint of demand, in the last ten years investment in Civil works made up 24% of the sector’s production as a construction has borne 54.0% of GDP growth. whole, with an annual increase of 7.5%, one point below the rate in 2005. Regional administrations and the enthusiastic Residential building is the construction industry’s biggest use of concession schemes were main factors in this subsector. It accounted for 36% of all building (eleven points subsector. more than residential building’s share percentage in the European Union) and is positive on the whole, having grown Spain holds the number-three position in the European Union by 8.5%, half a point less than in 2005. There were 585,000 construction market with 15.2% of the total, after Germany finished homes, 11.5% more than in the fiscal year before. (18.3%) and France (15.7%).

The driving factors in the housing demand (population, Comparison of Spain’s distribution by subsectors in terms of economics and finance) have risen, due among other reasons percentage with that of other neighbouring nations shows to the formation of new households and economic growth, that Spanish investment in refurbishing and maintenance lags which was greater than anticipated at the start of the year. far behind the European Union average, because in Spain the For the first time in recent years prices rose at a rate of less investment effort continues to push for new infrastructures as than two digits, although the financial effort involved in a mechanism of redistribution. buying a home has increased since last year as a consequence of rising interest rates. Government bidding as a whole was 46,690 million euros, up 18.9% over the preceding fiscal year, due to tenders The sector’s supply has gone up 18% with respect to 2005. conducted by autonomous communities (34.2%), the national Approval was secured for 864,000 new homes, almost a third government (33.8%) and local governments (32.1%). Tenders of all the new units offered in Europe. Growth was therefore concentrated on roads and railways, social services, urban quite sharp, although it was caused in part by the effect of development, hydraulic works, etc. This means the rate of the entry in force of the Technical Building Code. acceleration was around six points less than it was in 2005.

56 2006 Annual Report w su pp ort ed En viron men t t r Spanish r p The At T b t 2 2 in w acelrating. f Gr expected 2 c r If d p egistered oa d esid ent ial r hey ir wenty-five ivl opulation e 005, 006, 00 6. emand. ayment an spo rt i i cu rren t st- l l owth constant t ensured. he M Evolution be be work s, for ecasts generation poi nt up kep , illions 186,000 with Th e end bo os tin g growing of working terms The to in fra stru ct ure co nd itio ns of with Source: ho us ing by toward pr od uct ion civl of of 4 at euros terms. percent Project continu wil The to of for wate growth ro ad the 2,542, ra tes Seopan works Social wil jobs, dua l by public 5% th po be 20 Minis 9 f 1996 a The eir r ,667 iscal s o 1 can redu s pul atio e. 07 o co pe rat ion in s 3.4 w 900 imilar remain overal carriag were omew f of in fra stru Security activty creas 14.7% fig u il mp tenders try th exp con be co mp %, year ce hou , b e an ies w e o res ans created 1 n, relid to tinu emp th in g bas f 1,090 1997 hat eways hich s pro u sin con tarted Devlo e an an y) an d nc han or at o ion ct ure h e ed . su f its g du loymen more ad d 6 A stru rate s slig p rep to 9.8% u p pp . cyle . lso the ction recd in SEIT on in vestment po rices in Th e increasd Th b to ge d ht ly pmen res pr o ly, ction 18,828 , e n 1998 the the mod e n o reg io ren t adjusting enco en to umber f Min istr y viso th , Agu g wil (t h lo created b th e row ts g con greater at t’s ovate g emp wer ette r 0.9% erate e ro w, na l year s ura g n 12 a co began real st ate- o th d stru by pr o Plan b 18,994 ntinu emand .9 loyed o th an ad min 1999 y tha n for f and trend o th e ing 7 % in it investments ction 1 gr ammes. an w activty f .9 2. 1% , to is th e Sp ork ers in -10.3% the , o e %. wn d th same a maintain f altho 5 ist rat io to ain better lo n 19 fo r os e th % the secto ed secto 1 an 97 7,042 2000 ge r in in wil ug lan of as in is r ns fit . h r d 34.6% 2 2,947 2001 5 su n inte r The resi become reaso The betw exp erien ge ner ated and to activ compari the of in fo r ab road an ppl the g o denti co EU o ur 14.3% s b d acquis en ty ector nabl y uil ational mpan ies i to 6. n cl and in w w di so al os 5% ced tal th more 2 il 1 il 6,236 2002 e n 20 n l est e i cons du ri w g tion and to the grow inves co w 06, medi is an d in il refurb ati ith n nei expect 2.2% mod ng in co 200 tructi ti factors of 2%. and on tme nt nu th e ghbou the th e ntinu um at th e 2 compani erate 6,807 is 2003 7, e th around o hmen i s to precdi s n term, ts n. dep ro l ect or ’s ect or. en gt hy e on-res s in 17.9% rs. hapi relati u be i u nto gh endin cons n t It a es til pro an 3 4% ng d ng w ve 1,620 2004 iden s te chn ical evr-d i pri ou rce abroad exp ans d vers tructi as b g demand i fis ab mportanc e mai and ces 24.1% tial o 24% cal i n l ficati y epeni on n of come ho it at constructi , io ten year. 39,256 tha nks 2005 ab n h s hi i w n the on, ti as devlo ance An gh -q cyl i l Spai l the n i to ty. 18.9% Howevr, l a g ags al co o has e co rga ni rest y ua l Co n resi to n st subsector’ we si on p. nsiderabl 4 far and shrun s 6,690 2006 of the i denti ty It at of ces c to h b new ave ba ckl is grow 36% ehi betw potenti t g thi he k io al ro n in s ns s w e se d og th s en in w hare tha t c al t ay or 57

Construction FCC’s activity

All the strings to FCC’s construction activity are held by the company FCC Construcción, S.A., which in 2006 had a turnover of 4,395.3 million euros, 31.3% more than in the preceding fiscal year. Construction continues to be the area that has the biggest quantitative impact on the Group’s overall turnover, accounting for 46.4%.

The gross operating result was 268.6 million euros, 40.3% more than in 2005.

During 2006 FCC Construcción won 4,441 million euros’ worth of contracts and brought its construction backlog to 7,843 million euros. Thirty percent of this backlog is contracts abroad.

In the summer of 2006 FCC Construcción acquired 80% of the shares in Austria’s second-largest construction firm, Alpine Mayreder Bau, which is a strong player in eastern European countries and has an annual turnover of more than 2,000 million euros. Since 15 November it has been fully consolidated into FCC’s accounts.

58 2006 Annual Report FS DataaccordingtoInternationalFinancialReportingStandards IFRS: DataaccordingtoSpanishGeneral Chartof Accounts rules GCA: Turnover Breakdown Millions Turnover 59% 27% Civil Non-residential of works euros of client 2,613 0 042005 2004 2002 buiding 1 2.9% GCA type 2,950 2003 5.9% 3,123 7.2% 3,347 IFRS 31.3% 4,395 14% 2006 Residential building Millions Gross Backlog 65% 24% Civil work Non-residential buiding operating profit(Ebitda) of E l euros Co r te In gl 0 042005 2004 2002 124 és s ho 12.9% GCA p in 2003 140 g c ent 27.1% r e. P 178 o r t o 7.3% 191 IFRS 40.3% 2006 11% 269 Residential building FC’ s a ct i vi ty 59

Construction Motorways, dual carriageways and roads

For yet another year this was the subsector that contributed the greatest amount of production to the business as a whole.

These were its most significant new contracts:

Design, financing, construction and operation of Austria’s first toll motorway concession in association with Austrian subsidiary Alpine Mayreder. The Y-shaped motorway is 51 kilometres long. The project includes building first a partial section of the A5 from Vienna towards the Czech Republic, between Eibesbrunn and Schrick, as well as extending Vienna’s northeast ring road, off which the S1 and S2 high-speed roads will be built.

Basarab viaduct in Bucharest (Romania). This 1,900-metre-long viaduct will connect Titulescu Boulevard with Grozavesti Street. It crosses the Dambovita River and the northern railway station’s tracks, and it connects with the underground system at Basarab station.

Autovía del Cantábrico (A-8) dual carriageway . Section: Muros de Nalón-Las Dueñas (Asturias). The new section will be 8 kilometres long, including three double tunnels and six viaducts, the longest of which is 830 metres long with a maximum span of 153 metres.

Autovía de La Plata dual carriageway. Gerena-Camas section. Sevilla Autovía Mudéjar (A23) dual carriageway . Section: Arguis-Alto de Monrepós (Huesca). An extra two lanes will be added to make the road a dual carriageway for 3.2 kilometres. One and a half kilometres of this section run through the Alto de Monrepós tunnel, so both the already-existing section and the new section will be one-way. The tunnel will be equipped

60 2006 Annual Report r o T i t ar b o sit b each t will Flume SOS , m a S c 2 so uth west with to f lanes n oa d. r he ir o eg u f aslt t ot nd ections: 9- ace eas ana st her uation. ns tru cti on 26 .6 Santa fo ur tom kilo met re-lo ng Barranco be Wi B R A- section Peñaranda ve ci ga lpa lo about ge a aranco o in n for areas masonry. 50 ud ad 6 nt d p Ri d kilo met res of each 5 la ne s. ar en in g il stroling ve s Cruz f In dual at m Nar os pe from ab ro the of r the y two io is et some m ak ol of is de (H on du ras direct Gu atemal n re 11.6 de ic ravine, , er a th de cariage Se c of fo u s The s San kilo Santo a wil c e de af lo a rc an ontr Santos de areas as Ru ta Tener nd of other ti ety, rt en ion ng, kilo . metres d o ph Bra on skirt l A asp peration ol communica over , s Cast relaxing ntoni metres with su alt ed thre ). ravine f wa cam Ce nt th c if inte co n ha lted rom r Cit y. e the Th vei l roa e e ntre il a lon . y a ro is lo-Pe re sting o cret e onte ro ad Co floo lance , roa brid f d. edg c . Si qu i adw Th lon . co g, rom wil wil t entra o A ns ro Se e nt rac t dw me to tions ges es, g i -V ñaranda Goascoran, c truction ad in b ays co n b create o cti l rid g with Sal na l fea clu d improve l ater e ight ncr ri ll rid spa pl u (over ons ca na -02 d ar st ru w f ture amanca á on ete is es. aci l ing ing es il s n colector, two de to fo ample e a ct ion III o ru of itie th , v th of on r de in f fo u iaduct Co ca fi Gal n th e and th 46 e this 3 re s, this two alon .5 cylo e in d O Bra Trab e r- kilometr e which o fi to limazo esig m land -metre-wid city’ ci de nt f co nst ru ght le road IV pr an etre th is ove camonte section g Á s ancos, pean , n oject , s ing, d scap vila th an road s, r will in in e . the The a ct io d . . ed nd s, I be t d e irt n underp the stru Ro Ar This la traf fic underp underp and Am fo ot Mi (7 Fig u th e th at nes x3 0 osa ni oseve ctures pu ci l er as D B N Se ne as incl contract are br idg ty ypas . esi ew metre) wi t r co nd ( Section: as as as ia and Pontevdra) ude s of s 1. l gn an d ect io lt br , aces e es . es 2 no i V tw Hi av a cro s Reg . . an r metres l l a o Ro s viad u an i Th o n gh agarcía lo s u rail d fo vi Puente nge r remai amón s e nd e ( w in as Gi aducts co r r s way f oad g ay ct eco . o the ro na) . t n in In M r he th e Th be st o ni ng round a te resti r ri n di amet er, ot ver overpas o r t co Río e nd vers d , Dua l u ci o for ced . ad ro ad. orw ays, ei new ct ns secti t Th i t th e to y ght w he Chag i ), car tructio C on ng the of s i be -2 60 ten ri den on 7. M 2, s har ag overpase to , fe atu res t U 1 so ew ug 60 0 an d g res-B o th d i su o -ki iven s cros b n ay u uth t r be t verpas re a he 1 e o al l l of -met re-lo ng fr ometre-lo u 2.7 Ri f a u uena om u t car ri w a r and ver, overpase 22 6 án hig a r the Mi b at are seco nd ee n ki rel ish a es and i h l j -met re ag erect ed n ometres V h V a i city. way ef d a as ista i a and E C llag ew ays the s 21 0 ng l road as tel ló four t fourten o Salvad l V (Panama) an e sect io to arcí th eg ro B -met re-l pe des and on a o re ad so lon s t an yd A be tw a hr l p tas n one a tha t ci g d or de - il ee tr i nd rcl . i es roa s Ba d . on g . an en es aj ds o z 61

Construction Hydraulic works

Vuelta Ostrera wastewater treatment plant. Suances. Cantabria

Leading new contracts: Regulation system for catching winter surplus from the Belcaire River at Vall D’Uxó (Castellón). This consists Design, construction and 15 years’ operation of in the execution of a waterwheel, intake pipes, a two-cubic- the desalination plant for El Bajo Almanzora (Almería), hectometre reservoir and wells to refill an aquifer in the which has a desalination capacity of 60,000 cubic metres per winter season, for use in summer. day. The plan calls for water to be collected from wells and desalinated through reverse osmosis treatment with spiral Drinking water treatment plant and remodelling membranes. of Narcea canal intake at Ablaneda, Corvera (Asturias). This consists in the construction of facilities for settling, Increase and improvement of the water supply for screening and filtering with covered sand filters, two tanks the La Sagra district . Section: Colmenar de Oreja-Esquivias holding approximately 14,600 cubic metres apiece, together (Madrid-Toledo). This conduit from the Picadas-Embalse de with other auxiliary facilities, a control building and reagents. Almoguera system will provide Toledo and its surrounding area with water. It has two sections, one from the current Almoguera conduit to the future drinking water treatment plant at Seseña, and another from Seseña to a 20,000-cubic- metre tank that will be built in Esquivias.

Construction of a wastewater treatment plant in Valdepeñas (Ciudad Real) in a joint venture with SPA and Aqualia .

Connection of the lower Júcar River with Section V . New Júcar-Vinalopó conduit. Section D (Valencia). Works include the execution of a 100,000-cubic-metre pond waterproofed with polyethylene sheeting, a pumping station for a flow of 4.5 cubic metres per second and a head of 290 metres, and an 18-kilometre-long conduit made of helicoidal welded steel pipe 1,830 millimetres in diameter.

Connection from the new Cartagena canal’s desalination plants to the lower floodplain of the Segura , at Pilar de la Horadada (Murcia). Dam. Mora de Rubielos. Teruel

62 2006 Annual Report M ari time wor ks Marina an d f ish i ng po rt . Badal ona the doc k future contract Val Leadin th re stati wh wi into be wo Th e sl 10 8- me tre- l a wh ab s con th arf. b en ar r i ons Ea A So C En B fi ks ndus ui l tw ear th for taini o ons o er rs f mo nag cia g . sh rt t n ut l o t n ar , th Work an d new h ext ph pr ecas is oppi s w . nt hs trap he tri ge m ng p a The m at ater l for u i al as id l on g, n r m p fin ways ovi t wal s ng . e contracts at logi th o ar i to en the On n fi an cu t al ha s s i t clude l e n i po on l l be ams and he ne 13 -met re-w a t d s r g ce pa vi i for ha r ti s ve and cons of he i rts. n , al cs and co ol pa i th e pav n read y l th ei o bo ng th gh 25 p n e d : thr e tructio rk f s e l s an atform ure/ e g ol t cha fi eq ur in t w rail kil en he l at o h d idated l g il b u f ometres ha s at ar Hy l eral entertai p w nne en al s id 8 and Sant San be n i to bo li ay dra u Ra e i metres ng s si at o fir me d rm d man w l, ur f b ng l t by os ine on e. i a and Sal u ha rf the n ph . l tanks. ilt ic n a f Cr An of firs t ( in r ifol vaterra-As ment San tan der ). t runni ase ast w by e u an basic Val lb o up mad manifo the r arch ed z ork ds, d p ructu FC. B , de II, acking ng ay th en th e area, co s e sevral stru at - Ten of nte xt n paral san lds Mar r fa ci sh iel a th e ctures Nevs l rei eavin g with erif e (B arcel Th the of stru e itat l nf o i P i pumpi ti o el tie s d o Por is r f me th t area ctu io act s to a . i r of for s ( ced e i V Th t n w hu o T it a a w red the of na ). go) r il ng is fo r a as ge ork a l gon . s a 63

Construction Airports

Regional aviation terminal building at Valencia airport

Leading contracts:

Southern platform and aircraft parking facilities, Taxiing strips, tube banks and fencing at the Phase II, at Barcelona airport . This contract encompasses airport at San Javier (Murcia). the lighting and signalling for aircraft parking spaces, plus the fuel loading zones and the handling area next to the terminal. Vehicle parking facility at the current terminal of Gran Canaria airport . The new parking facility has Expansion, platform and taxiing strip at Alicante four floors and stands next to the existing car park, across airport . from the regional flight terminal. It has got the capacity for 766 vehicles and a total area of 25,400 square metres. Urban development and water tank building at Barcelona airport . This includes the firefighting and hydrant system in the South loading zone, plus two 480-cubic-metre water tanks and a pump room.

Civil Guard helicopter air base. Torrejón de Ardoz. Madrid

64 2006 Annual Report n i V Ra n h This h segments. d t The t f t f to Th is t a ( lo b f c 2 t o unnels unnel or un ne l acilties un ne ls acilties. he o ow. ew igh-sped as iameter or 50 ng t ne g ntract r il Tara sa, in g ain safety o tunnels twi n Hi Ex te nsi on job w metres. has co nt ract underground of an d FC and g ay protruding an d pa rkin g machin e th em h-s peed fol ow (o ne includes (power, ben also tunnels The of six and inf is Maceiras The th e railway are se ctio n: 8.5 taking metres fo r rastructures en comp includ statio a a evacu a tunn area. tr ain of fa cilty con very metres an d each commu temporary the (2x 5 section at ra ilw a lin n nected es sy ad els s in atio . lin ed laying livey In both s es Tar .4 as th at Th hield di rectio n vantage the tem in fo r are ad and in n kilometres e nicatio es ne r ra y of di tio pu s track, in with wil ends vario s sa to in inte rco ectio th e ecto of wals li d te rmod lin d rpo t ne s eto Spain each he iameter, Tu nn e slab n b ed o ns ; us excu o p r e n f se u Rail to o th f recast are at Atl f th r u with n nne cted is an o tr aff ic) rom ), e trac k sin other . u th al the r e an the FC 7. d each nd Each catenary ant l- Ra 38 tio n e expan g tr an 1 d security) du g 0. er in seg men ts, th e it. igo V kilometres the ic parts metres an mb l for 32-metre-thick fr ast ru b th re o mo havin tu sf er y Art by f d ou s Ge i nn co g man io two way a/ Ca n torw instaltion side aleries 22 and nf t of e n to nstruction el ne ra lita t g w fo kilo met res r ct ure, dep of y the y h galeries ADIF) ith p an r ay th railway tw as be ar ale years both lon the e Ro ca r in a A-9 world o evry a t an false th e wee g ner tu n astr u st atio false an d d an . the of . of ne l . d n ns ct u re s Ai rp ort s De li c ias - i nte Rai rmo l way d al tr an i nf s f e ras r fa cilit tr uct y . Za r ur es ag o za 65

Construction Larger platforms at underground line 3’s Sol station. Madrid

Pajares Tunnels-Sotiello (Asturias) . The section under Urban infrastructure contract is the continuation of the Pajares tunnels on the Asturias side. Of the 6.2 kilometres of total tunnel length, Athens underground line 2, section: Agios Antonios- 5.9 kilometres are double tunnels (3.8 and 2.1 kilometres), Anthoupoli . The tunnel is 1,380 metres long and has got to be dug out with a tunnel boring machine and lined with two stations. The contract envisages the installation of slab track 0.32-metre-thick segments. and 750-volt DC traction with the proper rectifying substations, ventilation, lifts and escalators. Construction of the high-speed Vilademuls-Pontós section (Girona). This consists in laying the bed for 5.66 Underground to Barajas terminal T-4 . This is the kilometres of international-width double track. Two special extension of line 8 of the Madrid underground system from features of this job are a 2.9-kilometre-long tunnel to be Barajas station to the Madrid airport’s new transfer facility. dug out from the inside with a free cross-section of 85 square It comprises two 2.5-kilometre-long sections of tunnel, metres (Les Cavorges tunnel) and an 835-metre-long viaduct 1.6 kilometres of which will be drilled with a tunnel boring over the Fluviá River. machine.

Development G-44/2, Zaragoza local railway tunnels . Barcelona underground system’s new L-5 station This consists in the construction of two false tunnels between between Collblanc and Pubilla Cases . This contract calls shield walls, one 900 metres long for vehicular traffic and for a new intermediate station to be built on line L-5 one 530 metres long to house a future local train line. The without ever interrupting underground traffic. The station total shield wall area is about 38,000 square metres . has two new vestibules (one for Barcelona and the other for L’Hospitalet) interconnected by a gallery, and the Barcelona Parque Alicante-Barrio Santa Isabel railway vestibule is also connected to the tram transfer facility. The section in San Vicente de Raspeig (Alicante). This is the vestibules will be built with 80-centimetre shield walls and 2.7-kilometre-long extension of double tracks for Alicante micropilings. tram line T-2, including the traction substation, power, safety and communications facilities and development of Automatic trolley in a trolley lane between the surrounding area. the university and Ribalta park in Castellón . Two two-kilometre-long tracks will be laid, one in each direction. Integration of the railway (south junction, bed, track and The job includes power supplied through a flexible catenary, power) in San Andrés del Rabanedo (León). This includes a a power substation with transformer/rectifier sets and an 315-metre-long viaduct, eight underpasses and one pedestrian auxiliary service transformer, electrical traffic signals and footbridge. The project will furnish a connection to the Palencia- standing and ground-mounted signage. One special feature La Coruña and León-Oviedo lines outside the city, making it is a cable-stayed bridge over the Seco River, with a leaning unnecessary for cargo to be run through León any more. pylon.

66 2006 Annual Report c w p t t ( Development t Th e an d square cons will deve t d deve t h t L w y d t p Madrid). he er r he he wo hat o eading ear ar one igh-sped ist lant an sfo rmer at aste ns ists tiary cel ribution er lan d. connections area in Ci P Development Development po wer tru a lo new wil FC lo AU wil to ud pm pl ant f su pp ly colection of ut c pm metres and te in new devlop inhabit covered a ur 21 lan d en Th e junctions was The be d d en th e e fa cilties trai n t networks a to service Ae st atio ns de ve lo pm en t h enlarged re t, o is contracts san itat ion devlopab ol awarded eq uip f can fir st tr eat a ro Consort in ta ken d 65 the with facilties, of lines thr e by po some M be wil he ph us 1,600,000 of in pe d , in clud fa ecal rt new th adrid a . e, road ctar ase and F fr o uaria bu to Tr e : oo t sect The milon di s be th 11, ium is Plan s le es w ilt. m bridge p yst em es d e of tr ibu tio w e . ith urb 86 add rovid evlop area, was M or 500 h T th Cant co ater, The hi gh in of Parque igh his d of -60 w e th e hectares, ov er an evlo pmen ntracts A-4 s ed square te wat er Or Ciuda il qu Taib e hom cont in Va con vo 7, intend os, gas n fur an d ment. the n water b ih ue to us clu des are of ltage e lde w ila cen T ua l tract es, ract , cro de Madr agu s d bu here itur e. to lo metres met the telph la la A can ed tr e fo ried w on s a ser vices. V In for e casa, Riv er. lines instal encompass es fiv e t (A a inclu rop r ma res vo ltag the Urba fo two an al, id the with l reu w d lican te) . the and on r . Pa ximum . ort e hich d pu mp of w run in Wo b des rq local se Alcobenda previous e lanes lig h pn hi ch eb ua ue p n du a lan e, th and Th e op in ning rk eumatic 406,000 Sola 3 ria, as the strial, e tin g eig 10 -h in g d, an ulation irr ig t Th i w cro pu ni o an dr in p whi plus ht l d il t laying thr o the ower . al a st atio s rify in l d se at io fiscal ect are d b ev kin ch e s ug el n. o g g ns p h m en t . Tol 400 of archery a and park, (B edo recreati arcelon o ver D 745 to th evel , U 1 20 e a ,5 li a), on con ghts cl op 00 kil imb wh area rb m ometres s mil tructi . e ich ing Rai n de v imetres w t entail ith an area on in l way of Les facil of an s concrete i in a nf the i Fr d ti brid rast diameter, el es anq a enlarg land for ge ru ctu ues e pip opm over p scap etanca, ement re s es 1 s 0 ed the d rangi - el tran Pa U area rqu of Congo Vallés rb mi ng sfo e an an ni-go d e for rme r from M en t d indu álag st ev el s lf trol Ri a s an stri d v tati opm e er, ve i d n al lo g. ons pm en t e nt 67

Construction Residential building

Housing block in Las Tablas. Madrid

In 2006 FCC had over 13,882 homes in progress, in addition to commercial space and car parks, which make for a constructed area of 2.3 million square metres.

Most important new contracts:

149 homes in Las Tablas (Madrid). 330 homes on different lots in Alcorcón’s Ensanche Sur (Madrid). 128 homes at Plaza Europa in L’Hospitalet (Barcelona). 116 homes on calle La Luminaria in Collado Villalba, Madrid. 106 apartments in Almenara, Castellón. Apartments in Guadalmansa. Estepona. Málaga 125 homes on lot 7.P.P. “Los Santos Pilarca”. Valladolid. 211 low-income housing units, in a design and construction 176 homes in Almería for Metrovacesa, and 352 in tender in Vitoria. Leganés (Madrid), with accompanying commercial spaces 235 homes in Pino Montano, Sevilla. and garages. 126 low-income housing units in Santander and 70 homes 151 homes in Vera, Almería. in Can Misses-Sur (Ibiza). 111 homes in Navalcarnero, Madrid. 222 low-income housing units in Seville. 126 homes in Arroyomolinos, Madrid. 192 homes and garages on lots 2.20 and 2.23 of Ensanche 185 homes for the Madrid city government. de Vallecas in Madrid. 132 homes in Albacete. 149 homes in Valdemoro (Madrid). 105 homes in Azuqueca de Henares (Guadalajara). 150 homes in Pamplona. 87 homes in the Los Naranjos V development in Alfaz 124 homes in Leganés (Madrid). del Pi (Alicante). 172 publicly sponsored housing units in Seville. 84 single-family homes and development in SAU-R3 in 72 semi-detached single-family homes in San Antonio Campo Real, Madrid. de Benageber (Valencia). 72 apartments, with business space and parking facilities, 70 homes, garages and development work in Can Misses at "Vega de Acá" in Almería. Sur (Ibiza). Structure of an apartment block in Acapulco, Mexico. 140 homes in Las Palmas de Gran Canaria. 92 homes in Mijas (Málaga).

68 2006 Annual Report C Gov L t f 2 t ( and a wit he or ot eading 81 anaria landmark ming al h entire New features. parking ern constructed 8, . 4, new the ment The judicial 12,900-squ 6 bui lding main spaces, and bui ldi contracts cen 5 area bu headqua ng flo tr for filng lk es are-metr e w ors ) : is o il the f 8 and , th 5, h facilties plu ave 000 rt e city, er bui ld s of two a s p N sq with f rop flat for ice Ag uare ing and ri c flo erty , ul t on-r es roo La high bui and ors ur roo metres. s e f and D ld Pa -qu u w ep art ms) o nd ings ith cup lmas ality men fo , ergro thr e p This ur t araso ying b de materials u towers il din g. un wil flo Gran almo d ls. M ors (wi th be Th ur c id st ia e en was of su doub For Tr arch itect s FC Mi mus has area invo firs park, in underg Lom bu ade ch s 2 S t en cel 00 , evi a eums lved N N B O C St s de s as, ha s of le-gl p tage, ui it w ew ew cons f sic ti r ro jects Ce an eou s fi round y uct 00 0 l h l 45, l ig n di Mé ce e i ere in bu i of nt azed Sci . Na Ci un de r an ng tructed al ld u 000 ed Mexi A l bu er xi s ayi t lt re C enc e d the qu are y ti pro om as w co w in by i o w th ng i façd Ha l ld of Res n s ork . nal co. i or k qua re M s comp i th wh e ject D i m Emil Co evr al ng, the th area i ng U l Leó . id n metres. un F. o os i In SAC e, r e fo rmi n en ti th f Las nel io and bl fou e fi st i n any Ar La l ca t half metres at of ces s ock Tuñ ón it ph as aud al l up co in nda ti á R u ng forms í io To 16, h n oza te bu of ( er vi Leó n, 6, as i Barcel ns Mar wers to 7B (P o es p 000 . i of wh ar t 7 ons l rium. alread s an d s FC d in fo r n io n o part i a ( co ng Toxi te vedr a) M ich f 1 n of th ona ). s La an qua re Cr d Telf ón i adrid). Lu i FC an II Construci e - s th e y has of d 8 os co bui Non Cast el d s Tab constructed excuti at Th the Mo reno lo 2 co ha s sunl . ldin metres de gy la s, -re si of t e This Th e ca, mpl h To bu ón e excu ted San igh City g an neo r ng ón on Ma d Wo de n ex i pr oj b l in d an d t d uil Man s with ing the th at con Santa Jer is an rl B ti di ect ph bus ri osq al d cu Zam ng ón has area d tr ase a il rren . bu o ines a, u i Fe, ls mo o an il d e 1. . ra tl s de in g y 69

Construction Torneo business park. Seville Hall of Justice. Santa Cruz de Tenerife

Schools RDI building (RDI: Research, Development and Innovation), No. 5, Phase III, in Valencia. FCC has already School of Labour Science, Economics and Business constructed the first two phases. and University School of Málaga . This will be situated on the Teatinos campus (Málaga) and will have two basements Building for the introduction of studies at Navarra and three above-ground floors, making a total constructed University in Tudela (Navarra). This consists of the construction area of some 33,300 square metres. of an 11,998-square-metre building that has four floors: a semibasement, the ground floor and the first and second floors. Structure, laboratory and service building in Barcelona Science Park . This job is the second phase Health facilities of the Science Park project. It includes eight laboratory modules and an auditorium with a total area of 43,000 New hospital for Denia-Alicante . Refurbishment of the square metres, mostly new construction and 10,000 square old hospital and the medical specialisation centre. The hospital metres of refurbished facilities. will stand on a 40,000-square-metre lot and have some

Hospital de Córdoba

70 2006 Annual Report 2 w m f approximately m This C r c ef loors entre, 0,000 o or et et urbishment jut epeque k res. res. R Design, home emodelling on of measuring square The hos pital a home has job constructi of 20,00 in a metres also cons fo an Cuz cat facilties of some r other 0 includ chro tr Re squ un u on cted sidenci 2, la derg nicaly b are w 00 n es uildin a ith nd ( 0 area El so rou metres, sq an me Salvd a il equippi g n uare Cr d of sen area as mino Mari eu fo some a iors , an or) r metres. ne med of de parking d ng A r . rc refu 5 th an hae P 10 2,0 ical of alau e olog ,0 area rbis hmen th 00 Hosp 00 specialstio and y oro M (Giro sq us o squ ug f eu m. uare thr e ital h are na). t C art age n na ov er The doub Navrro Human of fices wo te nn i VIP are hi g metres made the als st p bl each st o an b wa be lo Cu la p a ad at c s d ds e o a y s ltu rk h- pe rfo rmanc e ica i n a 11 e t Evo iu on Spo El B “ ai g go t ed r th s rs le-s fo e ur t indo of iv m lly r der ral o o er co ur ts , as e he ated / an d en a r lo luti co f s in go Evolu r rts di Baldew nd Do mi kinn h an ef , 1 M w s ng t , l n o r h or eat ing 00 ff M y t on e e s sp hite-l an zan h di u e e an c re so l at tach ed s an h e se re an A o re , ta ten ed ti tion r ort e om ni q Compl mpl es i pa rki o ud co ar s n ai u z s at hl a d ni a eg. t r acquered cu t nis re r a n d ant h n ue ares an d 2 i p ng p e nd t t co n M an en t re a e 5 rtai an ra a et es cen tre, o t ” ng r i x wo For r , s e es n us r Per rau l metres c tia ex. s , el bui d i s, an de vel es di ti t th e e n um R st st Mo eum fa cil s ’ L rv l f iver. le en i a wi t wal or pec ore inea ts ld res a The fo e ic di on ed ve , nd ot he r me r nt i s e t r th ng u façd t iti h op ment w trips id ence r ls t. he ertai l; an iall oom m h Th e w r pe ev es, e hi tot des al ot i wit P g s ns i is d de. l M ch ma r in d a y e il s wit a ki s r sa a a id of e n ign th onne arch i s h ad ri k, l i for (O n x nd c to in oo r se lar g e a li th ni e I ha l dr y h ment ts map d near Ma nd th at vi ge th er there ta t s is e r Resarch ge o d e mov t tenni oof. ed te ctu ral l, central l. ings o ss e ry te nn i b Non -re the drid. m no Ten ni ne r f a Fl uil ing le, o). po fe atu c con ult wa t fa c ea an kin t. c . The c din are at o work nd e s faci T Unde if en wi ble s room Th e il it ie s, ss La s h stru er. ( unc co ur ts. M area g is r, es th Fed erat i res si de sign fal an st Centre Ma tres li g roof agic has d ties a h co R ction t and y r of s d th en s, th i ion e o nea tr 16 e e gic a h h m mplex a a e l an f s Ju ea cei t go s Ma olds fo r a Box ia e br id r Five t ou td o ha t cil B area FCC is an ooms. sf hat h ti ng fo r on ’ dri 60 l t l ha ox ing itie o llw bu il th ) a the d rm a rm ge 0 s s S ha s ha ve c e port s s a an or er di y f or s C n , i g t y 71

Construction Montjuïc fair pavilion. Barcelona

heating and air conditioning, firefighting, power, security, Shopping centres, fairgrounds and convention communications and voice and data management control. centres The constructed area is 33,360 square metres. El Corte Inglés shopping centre in Vila Nova . Porto Construction of façades and facilities and (Portugal). development of the new Sant Ferran velodrome (Palma de Mallorca). The structure and a spectacular metal roof are Foundations and structure of La Montaña shopping already under construction. centre in Aranjuez (Madrid). The shopping centre has a basement with a shield wall around the perimeter, anchored Containing wall and earth removal for the Museum with pilings, and four floors of 8 x 8-metre reticular framework of Royal Collections in Madrid . The project in the contract and a total constructed area of 170,000 square metres. is the first phase of the future museum, which will be located on the esplanade between the Royal Palace and La Almudena Hipercor shopping centre in Elche (Alicante). Basilica, very close to and almost touching the basilica, at the edge of El Campo del Moro. Dated remains of the Arab wall Structure for a shopping centre in Jaén for El Corte lie in the subsoil. The design is the work of Luis Mansilla and Inglés . The lot is situated on Avenida de Madrid, round the Emilio Tuñón, and it was chosen from among the proposals corner from Santa María de la Cabeza, and measures 13,500 submitted by highly prestigious Spanish and foreign square metres. The shopping centre has 88,000 square metres, architects. four underground floors and seven above-ground floors.

Structure and architecture of the Zaragoza River Hotels Aquarium . The work of architect Álvaro Planchuelo, the aquarium, which simulates a 40-metre-long river, has two Complete remodelling of the Parador hotel at El Saler ten-story buildings along the sides. Waterfalls flow from the (Valencia). The constructed area is 13,400 square metres. The buildings’ roofs at several points along the façades. remodelling is very thorough and includes demolition work and totally new construction. There were certain restrictions on the work because the hotel lies in a natural park.

Refurbishing and fitting-out of the new Veruela monastery as a Parador de Turismo hotel at Santa María de Veruela (Zaragoza). The so-called “new monastery” (18 th century) and the upper portion of the “old monastery” (13 th and 14 th centuries), plus the gardens and part of the kitchen garden, will be transformed into a hotel. The hotel will have a maximum of five floors and 100 rooms. The cloister has got a metal and glass cupola. 72 2006 Annual Report ener tan u r g a haza st Nor In u This Re m c and l 4 P og ef o 0 a s p ses o r et ing d urtyard ikng lm ur bis hin g n men t ve r fu th e years shop i k man us st Con Ce C C B R Mo a bui lding gy, rd a rbis combined o ivil o ef urb ish men t at ics 100-car tr nt n d de o fu ture dul design cessi struction egas ial the in us Foster in ro om, re zon of works h is Mal ar C Ribera m w fo centr covered t of h Por t e on he alows ent as war a r en an d lor underg fl ags hi o and mu th e for th e th te f f fut gas at ca or Gumie t e eh of e del and he sca of B and a p ad . bo s ure the i ode g th t ntegrated alce’ ouse w T of cu lt Ca he and roun min the h Du Por as p e ith (Portugal). e m u head rt th e w Cas t ts he r l ero. jo ur a se as ef Ba r t ist rat ive age ainten ance a inery, s de f conv and d h b of ad qu ar our t urbi main vau celon igh of Faus parkin Co m enc ompas l el Hi na of Sevi sp ace lón ur hazardous -quality lt. a ent shm h zán rec w fi tino Un (M b ban ces hich l b ll ul k iqui ivers ity g t overy I iona ui ldin un ic a e V er s urcia). ent . , (B facilty. . o Th S.L. pow er dev an d urgos). s is d f materials es of l Sc is an Radio g, from nat ur turbi ti ho ol and el The the co n in th e on s wast e d th e op Th clu d of m sit s ful l plant, Design La bu men elimin nes e G a Televis ain Ma au d P eo l main es al ace and ildin Rioja, re gas g to . te r in dr id a ito riu m fur bishmen t th p nanc h ed i wh prod th e g at facilties. n y e sto ión an d has ion to the ci ty by ich r e His uc set in a a of for g t or e e y t o its tha t fa bu Cons This f ç a il a u de Im d A A se 2 cons h truci in 00 lt lt as s pr as er er gs a -y ben ov r is at at e an ea ón ts fo pr e i i r- on on as i me r n es old has declared t s, s th er he embl n t li ve e t r rend o st epa Mad of refurbi d e Zar . y d L ered ir h bu as of ag al , ri u ild d l s . cultu Vent oza pke hin thi ing ci t g s y ep Un ral in as s of g ervice wh o i and bul i ver a nte rest, v e l ic ate Non -re l r h si f n in d ight ty t men emo he 19 precdi ’s and ing t or h asembl si t -century litio T . igin u d ss FC r adaptati en am i ng ng al n t ’s ia w of , g years a l y M alls ra b bu il ge h uil a on dr al s a . . di di S n id. l e fo . n d vi n g l r g e 73

Construction Electricity

Sierra del Aguilón tunnel. Cartagena-Vera motorway

Especialidades Eléctricas, S.A. (Espelsa), designs and installs Distribution networks, substations and transformer stations electrical wiring. for Endesa Iberdrola and Unión Fenosa in Barcelona, Madrid and Castilla-La Mancha. The main events in 2006 include this subsidiary’s acquisition Espelsa has been awarded the contract for the TOPFAS of 100% of Elcen, S.A., a company specialising also in high-, Project promoted by NATO and from the EDA, the medium- and low-voltage design and installation. Sense & Avoids Project.

Leading among the things done in fiscal year 2006 were: Advanced computer systems engineering

Electrical facility design and execution Development continues on these projects: Mission Planning and Briefing (MPB) for the EFA-2000 Parliament of Castilla y León, Valladolid. Typhoon European fighter plane. Cartagena-Vera motorway, Murcia. New La Condomina stadium, Murcia. Mission planning for the P-3 Orion maritime patrol plane. City of Communications, Madrid. El Corte Inglés building, Vila Nova Da Gaia, Porto (Portugal). Mission Planning and Debriefing (MPDS) for the EF-18 Guadarrama tunnel, Segovia. fighter plane and the Mistral portable missile simulator. M-30 tunnel, Madrid. Hospital Virgen de la Salud, Granada. It also won the contract for Project TRES (Trajectory Vodafone building, Barcelona. Reconstruction and Evaluation Suite) for Eurocontrol Revlon building, Barcelona. (European Organisation for the Safety of Air Navigation). AP-36 motorway, Castilla la Mancha. Outpatient section at Hospital Universitario de Canarias, Tenerife.

Maintenance Air Navigation Control Centre, Seville. Royal Theatre, Madrid. Sogecable building, Madrid. National Library, Madrid. Reina Sofía Art Centre, Madrid.

74 2006 Annual Report and d In Dur equipment p p esigning r r nacional ter ote ction ovide ing cooling, the heating and equipmen last for mechanical Tecair, instaling al fiscal and kind S. air t year A. s and of con equ , eq is it bu sy uip diti on th wo ipmen ildin tems e ment n s ub the ing gs t an sid . an and fo sytems. d iary d lowin facilty sytems sytems devoted g manag co , for ntracts fire to heatin ement to g to Esp n In ter of Th is bus to He at M In s ain fa ci b i Bo I Sa Pa O Ab V Pa Ar Au Ho Ne Ho G Ne nc reas ecial tal be in ui l al acq uis ffi mp ch nt rqu rqu es d rv w b d sp sp acio nal rdr de t li di n lat ce eg a enan ot t it a ty i ae o izad a ó it it Ho or la P e e ol field Cr u al n al a gs e a i mai sfu i s Su A a o La nd i rq u sp i l ai Pl tio n th e de de og . de Pro n m I b z n ce r ue a en nt en ance, T t en ho w za o mob i sh wo qu a d ecai ca l E V i to n r tes bu s in l e here lc s No al at us o L eks I sh a r s N ns he Te n l p a rk o Mu e r, i in wi n of rte áq sp i p l op ri c ne s i ta laci Fe , a S. i as , g o fi n naci Inter er or El Al ri ue r s g pi con s , to ce g A. b eu m e b a s if ec tr t V i c n u ui ca n Ma d u ce e. ce , co or al vo lu a, co g si ta ke on es b pk ep l ha s d e n ui n l p rp , ce ic i mp la V te n i es s t o n an Za m l ri al re, di ci r. me or nt ty rat g, . , onal d ad van acq u en a le n Pe ñ at e . S. re, c . - Ma g. To e x. en an d o ci an d A. H di ra of a rr a Al Se Ma Tecai o tr ired eat in d , f e . fi ta ge ff i r e d c a vi e d i ce lev ob , II ic d dri l uc twork l co mp any , l M . es , C e Gei s, r Va ll a ti en g , d . an ad r of S.A Mad . an o d Va le n ns a, d f as cli id . oni d es a d ., rns et ur ol id , en t rid . ai is i Ma Gest i n , ci a. de vot ed r th . al syn c dr o e l n id ón kin d in l er eader. di ti . ng g th e ies s oni n g 75

Construction Infrastructure conservation

The FCC Group operates in this sector through Mantenimiento Hydraulic infrastructure maintenance de Infraestructuras, S.A. (Matinsa), in the following areas: Operation and maintenance of the automated hydrological Roads and highways information systems of the hydrographic confederations of the Júcar and the South. These systems model the Maintenance of more than 1,100 kilometres of dual hydrographic behaviour of river basins to yield flood carriageways and 3,500 kilometres of roads pertaining predictions and the necessary information for managing the to the conventional road system. water belonging to each river basin.

During fiscal year 2006 the leading items are: This year contracts were made for the operation, maintenance and upkeep of a number of dams and reservoirs: Alcarcón, The renewal of the following road upkeep contracts: Amatorio, Bellús, Beniarrés, Contreras, Escalona, Forata, Gadalafest and Tous in the provinces of Alicante, Cuenca A-49 between Sevilla and Huelva. and Valencia. A-30, N-301 (Archena-Albacete provincial border) and N-344 (N-301-Albacete provincial border) in the province of Murcia. A-2 in the provinces of Zaragoza and Lleida. A-8 (Torrelavega-Unquera) and N-621 (Unquera-León provincial border) in Cantabria. N-433 and N-435 in the province of Huelva. A-66 and N-630 in the province of Badajoz. N-624 in the province of Cáceres. Forestry work

Expansion of the company’s activity to new sections Work replanting forests, conducting forest treatments, of roads: planting farmlands over with trees, performing park and garden upkeep and maintenance and restoring natural A-1 and A-15, in the Goyerri district, for the Guipúzcoa environments (riversides, landfills, dunes) in the autonomous regional government. communities of Madrid, Andalucía, Murcia and Comunidad N-432 and N-435 in the province of Badajoz. Valenciana.

76 2006 Annual Report F f ser w also v and Some h ar Madrid, Maintenance d g El Quinta or o ehicles ours ur nment) over i eas r t Capricho estry vice est h ing 15 a surveilance such a of fire fire August was de lightweight day. enginers (V in the se AMTACs) defence prevntio los a as for Park, joint of for the Molino in teams the Galic and heavily tha t Deh Temp venture an s Sierra fire-fig n ervice and d s extin es worked and au and a le pu a pro ton a to o de N tting with extin h at ction tw f tal the orte tin tected omou D la the in eb w of g ction Tr es ila V FC o turb ith in res as o ut 23 C d s s as M ou parks , the emb 4 co Can the ine Park, Med th adrid, services. op rces mmun e de Xu fo tos lies, h erators, Sab io elicopter. and Campo rest El nta in with Grou Amb for ested atini tw Oeste ity. o g One (reg peratio fires nd o arden Ro sk iente, eig five h Gard ad ee ion in ig impo Park, T d ping ht upk h here eclared Mad area. s heavy al n -mobilty ep. ens, o at with 2 f rtant the 4 rid, is Pa l Cas en cia a de C ampo Ori Atunes Mad de River Leadin de . hue la. San l M a En En Compens Regenerati Resto Resto rid , adri at O g viron viron li d Anto (C El va Cal con rati on rati on ádiz) Pardo and mental mental trac t e nio atory 30 . on , i V and of . . M aw l o amanta, the adrid. resto recovery refores f ards imp the i nert rati on rovement dune th ting is M o w f fi adrid as of s s and the ys cal te the tem o l . Segura year Inf andfi garden f V the ras at eli were: l Zah l l tr uct Manzanares s a Fig River at pro lakes htin g ara ur e Fresned gra mme a bank de fo rest at c onse rv los Vel il f at i las re il at la in a G ti on al i ci a 77

Construction Engineering

San Pedro tunnels. Madrid

Proyectos y Servicios, S.A. (Proser), draws up engineering Railways and metros designs and provides construction management with control and technical assistance services for major infrastructures. Construction project to eliminate level crossings The following are the leading new contracts: on the Venta de Baños-Santander line (ADIF) and the Santander-Basurto line (FEVE) in the autonomous communities Roads and highways of Cantabria and País Vasco. This consists in the preparation of the construction projects to eliminate five level crossings Construction project for the A-32 Linares-Albacete from the two lines. dual carriageway . Section: Torreperogil-Villacarrillo. This section has 14 kilometres of trunk road, a junction with 2.0 kilometres of branch roads and a service area. It includes Hydraulic works two overpasses and six underpasses. Basic project to pipe the water produced by Construction project for the A-32 Linares-Albacete the Dalías desalination plant (Almería). For ACUAMED. dual carriageway . Section: Villacarrillo-Villanueva del This is a project for the pipes that will carry the water from Arzobispo. This section has 17.2 kilometres of trunk road, the Campo de Dalías desalination plant to the tanks at two junctions with 5.5 kilometres of branch roads and three Aguadulce. There are three different sections of pipeline: remodellings of existing junctions. It includes a viaduct, five pressurized outflow, main gravity pipes and branch pipe overpasses and ten underpasses. for irrigation communities.

Construction project for the A-15 Navarra dual Flood risk evaluation for the towns of Gilena and carriageway . Section: Medinaceli (A-2)-Radona. This section Pedrera in the province of Sevilla. features a 12.2-kilometre-long main trunk and two junctions. The first connects the new dual carriageway with the A-2 and Project for a wastewater pumping station and also provides access to the town of Medinaceli. The project rainwater pumping station on the right bank of the Pudio includes three viaducts over the Jalón River, an overhead River in Coria del Río, Sevilla. structure, four overpasses, eight underpasses and two false tunnels. Project for the construction of a new tank in Alcalá del Río and improvement of the La Rinconada pumping Study on a connecting dual carriageway between station in Sevilla. the A-2 dual carriageway (Guadalajara) and A-1 (Madrid). dual carriageway (Madrid). This section is approximately 50 Project to construct the primary network of the 12-2 kilometres long. The field of study encompasses 29 cities and irrigation sector of the Segarra-Garrigues system . The towns in the provinces of Guadalajara and Madrid. project includes: pumping units for the intake station flow of

78 2006 Annual Report rel Fro th and e a Con 3 lo t o lo c B a t t r m Merlés o c m 1 o he h h u o ro p p xec ution nd . ne 5.7 e n ng ng; 4 et et , d a e bic e e re c n e e w t i ef ntera-Medina the res. res/hour. cubic other C Technical C n o C job p e M - A 1,200 str control and kilometres o o um and metres. m i x 6 , 4 roa d e t 3 9 3 n n n u supply n i d Drinking (Barcelona) struction struction to t s pi ct 0 0 a r f t a 1,500 A metres/seco 1,500 thr e c u r n Se . milmetres 3 - ion of y l e a improve g b e m ct S e m Tanks of 0 9 t e ion w c e s i t th ta and 0 2 e e w .s n o s e of re t m o i t pond fro milmetres of e the milmetres ti d n a water on works m t a i k s manage manage dr pip S . : n m ho envi n nagement dua l e i l re o l l idonia Storag pr , g n o of inki 3 - A s r n a nd, r lding - A e m es o in a o ho e car p a Ses eña . g a ronm par 8 3 at f urificatio d d . 3 9 d r t ng riag lding a h w iameter r e n e m e e A A-39 t 1 a o p 1 in me me he Medin at s in and ewa 3 - res p wa ,0 e h T t e s o l d e diameter; on ion o g n o d 1 8 00 y dr nt nt 11 (Toledo). nt iameter A 0 te e b a - A uriz ed tec d Medi -38 inking t e s Sido m n al 0 an t t . Se n a of r an ho c e t 9 3 e e w t , echni echni a plan c to 0 f hnic asi nia d d n o i t cti n i or d 00 ldin the 0 roa d h na 5 d a ro . 4 wes t pip on: s re u t c u r t s , l a c i n water 00 t Sa and e N tw ,73 st n cal cal 17 g A-3 al procesing o t proje Si anc e, e nta re e h t o 12 l w cu 90 . 9 0, Chicl donia assi . 3 9 3 - A lief 1 b 8 asistan asistan presu y 00 e c n a t s i s s a bic metres 0, 0, e ,8 tre Cá roa María u b 1 8 3 - A ct 00 25 p m i 30 diz 0 atme stanc ana surve d metres, l i re a a and 0 7 west t metres rized nd d e v ro o i t c e S cub metres r 1 lo l e ce ce nt de 41 ru o f de d n a 34 i ng e i llan e ic plant o f p l 3,00 cubi no a n si :n ip and ce es, c 0 E xte Má la nsi on ga o w f est Mad ri A rid n u g t un ov r oa d ía de . rgr d Sec el o Medi un t io d n l i t con n er e r 7 á nect . neo Co ing s d lad ua l r a- o ad ca San r C Eng r ia - Fe 33 10 g r e n wa a i ne er nd t y. o o M the s e á c in l tio a A ga - g 7 n 79

Construction Corporate image

This effort was repaid when the firm won the Qualitas award, which the Fiat Group gives its outstanding suppliers.

Fiat recognised the Megaplas group’s activity and quality by engaging Megaplas to work with Fiat to develop and then Megaplas, S.A., is the FCC Group company that renders introduce Fiat’s new company logo in the worldwide dealer corporate image services at the European level. It has three network. This was done with the sector’s newest technologies production and management centres, in Madrid, Turin and at Megaplas’s specialised centre in Turin. Paris. Renault has engaged Megaplas exclusively for its “test During the last fiscal year Megaplas focused its efforts on invitation” programme, which complements the main image consolidating its key clients, which are mainly in the change programme Megaplas was already under contract to automobile sector. run.

In the oil sector, the Portuguese company Galp has selected Megaplas as its maintenance service provider for its network of service stations in Spain.

80 2006 Annual Report Main and p kilometres Auxilar of o Málaga p SRD t hr ipelines f ositions). AP API e Ca Málaga-Rincón El cooling 17.6 I new directed 5L 5L ba Grao de bypas, to ne Gr . Gr DN contracts The of Pipelines . s- carry sytem de B B API 200 Or dril l 6 pipeline 6” which ” Cas tell ope 5L al Ø m Ø h s. : , oles) ilm steel sa kinds X-4 stel S.A de has ón-Beni del run 2 etre ., la . pipe 10 pip o s slo s V pecials M f p ” ict p flui d e pes ar arale ipe, and Ø and ori casim g stel of s as a a es c and 5 athodic greater reg ga to pipeline .1 in p s the ulator ipe kilo for ar th pi e t e peline du metres heatin and protec asembly r tha n y al cab (14.2 (4.7 th carriag 50% . g, inet tion re (28 o ki k f h ilom lometres PE ot of vale and sy eway stem water 1 et 00 r es ) . li wi Ar sch water Campo road pip Cons Techn cons lo n Co nes th ga nqu elin g edul D Tw Tw , equen tructi diameters an d to Oi nda 2. ist o d es i o i ed l i 2 sta n and the s o r : tri i l 12 gi ki ct in pi d on to ce -Al buti lo e cal R-3, e pe ” Vel l He l metres be wo of m chan i Re n s on i Pa o at l od the l and f rk bui l ins d f y a or i i rk -A betw sy n ameter. d ó w g id gas g e t as var t lon l es i as e tem cal Corp h n i San & n s e the en ig g Meng i al th á n Coo d R nment s ap to el ot de e Anton orat e o t muni h 40 i park. got heat a-Za ec, l C e in He i am b R and g cipal ar i o i und io. nar vas m ra i p po syst f and n The age ( the 450 go Jaén). p es er se reinsul l V ip i em cool sytem mi za aciamad way new gas ct - mil ts O io o for Ho i i the limetres. of l n l ated el on pipe I an P , pipe t comp t Mej 44 and and h bui d the rid-Lo e l stel g in in kilo ora da lin l Me as di col the fol ris e ngs e. metres pi as es ng d pi eche ow aces pe li es pe a del tw ib i ng ar o ne s s- s 81

Construction Precast components

Prefabricados Delta reached the highest pitch of activity of The most significant works contracted in this sector were: all its history in 2006. This is due in part to the diversification of its products and in part also to the favourable conjunction The seawater desalination facility of Escombreras of circumstances in the cyclical markets where it is present. (Murcia) with a total of 51 kilometres of poststressed concrete pipe with metal sleeves and elastic gaskets 1,000 millimetres These are the leading sectors where Prefabricados Delta does in diameter. business: Irrigation in Moguer and Lucena del Puerto (Huelva) Hydraulic works with 11 kilometres of poststressed concrete pipe with metal sleeves and elastic gaskets 900 millimetres in diameter. The so-called “irrigation shock plan” has made for a significant increase in the demand for pipes; 34 kilometres Transformation of sections II and III of the irrigable of reinforced and/or poststressed concrete pipe with metal area of the Adaja River into irrigated land (Ávila) with 12 sleeves and 61 kilometres of FRP (fibreglass reinforced kilometres of FRP pipe between 400 and 1,400 millimetres in polyester) pipe. The FRP supply is more than twice the size diameter. of last year’s. Modernisation of irrigation at the Irrigation Community of Almudevar Phase II (Huesca) with 18 kilometres of FRP pipe between 500 and 1,200 millimetres in diameter.

Irrigation of Terra Alta Phase III in Gandesa (Tarragona) with 12 kilometres of FRP pipe between 500 and 1,200 millimetres in diameter.

Modernisation of irrigation from the Argós River in Calasparra (Murcia) with 12 kilometres of pipe between 600 and 900 millimetres in diameter.

Section VIII-A and Subsector 2 of Monearos II in Bujaraloz (Zaragoza) with 9 kilometres of FRP pipe between 500 and 1,200 millimetres in diameter.

82 2006 Annual Report d d The prog T both Ra ( m Pr R+Di w Dur Und Supplies seg men ts Cañas) Ant t in o One t an d ADIF). o he ouris evlopment estresing f er st efa b ainly supply existing il aled. ing equera e so uth projects 0. 6 w ra er especialy of m supplied. ri mme ays ground for ca 2006 for wh an metres of do 135,000 pr ovid ed by pas: d high-spe ic lines. Administrado (Abdal . slepers and s h Tra deal 2,208 De of ar important Of de th ic size e lt a works A a with support Th new sp through jís s to ed is k. to ring-s lep fo check ecial e tal par tun ta ke r lines seg men th s n ers ystem of r tic ipat e nel) ew hap evnt ed in d au pro fundi 1 e M terest and fo 83 by railway Infraes tomatio ed an ad rid r ces ts ing of ,00 the w the d ng main tun are as p Málag du 0 in es ’s recast hig under Mi nistry tructuras nel s the e M- 30 15 lin two n tenan for lepers h-s ped to es of lin metres a aw slepers the ir R+D +i slab the have th ing (Arroyo u ce ard e nd of h Ferroviarias Profit segmen an stresin tracks. ave size er gro Indust lin co of in proj e d e and ntin di amet er the d reno ben a betwen e un d re ry, cts , g, las ued, ts th co th vation e ntra at e ct P ref ab Pr ecast ri c ate d t u n ne com l lin in p g one nts s e gm e nt s 83

Construction Repairs and reforms

In 2006 Reparalia, S.A., became consolidated as a company specialising in the full-service management of repairs, maintenance, alterations and works.

The incorporation of advanced computer and communication systems at Reparalia’s six territorial management offices facilitates the active tracking of services, adapting always to the needs of the client and guaranteeing speedy, effective management.

The high level of commitment of the entire Reparalia team is Reparalia’s activity focuses basically on three market reflected in the satisfaction indices of our clients, which is segments: 97.3% according to the results of one external audit, having risen by 62.4% in repairs. Insurance companies

During the last year Reparalia maintained the client cooperation agreements it had secured in preceding years. It has increased the number of services rendered considerably and specialises in claims processing.

Other companies and groups

Reparalia has also got cooperation agreements with nationwide companies for the full-service maintenance of their premises.

Shop alterations

Improvement and overhauling of business premises for companies and chains that have numerous stores all over the world.

84 2006 Annual Report ser Dur Company c F B Castelón lies p o C enloch r ovince. ncesions: ies ing within Co (45%) The in The currently of Costa n 2006 cesiones 56-kilometre-lo 76.8-kilometre-lo contracts and airport. awarded les in the Rica ilan V Ireland hol ds tha n Co The for Aero ab ueva the nces 5 an road for 0 a futu in kilo 25-year con por t ng de s a terest io ng re un 3 metres stru ns N Alco 0-y ear uar 6 airport der San D Galw ction in co ep i lea In a FC Jos s th nces artmen o , con C’s at f ay-Balin e S. w é-Cald an an fo A. il an sio fr cesion Stra tegic d ywh Mult low b (3 op n t excptio e obtain ip era 0%) astr perio situ eration ere ur ing aslo po term. mo ated se in e d. Plan: te ed nal torway mo the rmin of betwen a al torway s ite i n uc C as th te at lló n tu r con is 3 sh o D Cr is Alo 4 op er ati th e wh 27 . of (B San fo r co ns tol Hol t secti pha s sh dua l Th Compan 4 a h 0 u 8 ,8 u t arcelon e f a adow is - t . o th r o ich 6 0 7 y , d u- San ta der in an ti op S t s r ea Fru on C A A 0 co tr uct i ow b al es e ect i an carriag na kil kilo g 3 edi e ot he r e ut ut ve eration r co mp ri C- 16 m 3 o on t om 2 of t itós comp w we o i f d’ to on op oví to 0 h y a p y metres a), n p as 5 on . e go 0 ic a the Aro o aw ll e er l sa en 6 ar 6 ny i les ce si tr f o d a eway C st co s .8 s ope ned as ( a s ha d Rep ai f e d Llo ris e FC th e ystem. ris arded se (34%) tio I del a -P latj t . h conces of s n n e w th h k Bag w ing o tin c C lo Cen e br egat ilo n C ith of D e es ld ow the el M th e ng, from t ompos ecmber Cam Cons pe a m s owns C- 3 sion es-Pu a rs th e a i açn et- V a the as t a d’ e Th r to l to d’ s ra ro total t d t iod. an 25.2 ion 75- Aro hr re 5 es Aro i the t i ad M l A Pamplon l of no traf fi s ruc co s. d e ig-Rei b t of co nces Ga i rt ery ) açn et- Pl e stretch e y gn , et w for re the ns The e , betw la of -y s k c u ons s Ce 20 ect ion ar ll S. ión ilom ect i –Al t for pkep e c. truction dr eres eg 6 co ar en the A. g 05 nte Vic . c a 2. ms once s Th e en on won ns v a secti c o a et io n 4 (4 e is -Ripoll ons lle Ced in con E id V r tr u de to r of at ja ki age - 0%) es of div sp an s , s j Berga s I lometres. on, ob ect ion tr t s ct i Logroñ fo r n a and s rer es th e S añ he of d ion th e tru uc nd f a ded d’ Aro dai rast o sa nto mai i dua o s w al tion 3 n c cti C Ripio. to ope rati ont la, C 3 ly cu l won hich and an d an d -6 5 ru ctu into on of nte n -3 1. of Dom l year s, o t build rr ent l c pe r r S.A. d af ac ar u whi th e I ua l and n an a Puig op Alo th e si ri f T fi r t ance r re ic ingo iage od on ng he e 2 ve d for y er atio n a ch (54. 00 car riag ew C fo i u ne nd con n shadow co n -Re ig th un de r -3 5, compl a c o the r wa an d 6 t ar once 2006 nd wly f o toll e h th e 64% ) o f ce si e the th tr act e San ta pe y the a . th e part e la r th e of ss It oad, r et at id w l as ion ons is i ay, on e as t 85

Construction Parla tram. Madrid

Compañía Concesionaria del Túnel de Sóller, S.A. Ruta de los Pantanos, S.A. (25%) (56.53%). Three-kilometre toll tunnel which crosses the This concession is for the construction, management and Alfabía mountain range in the corridor from Palma de upkeep for a 25-year period of the split 21.8-kilometre Mallorca to Sóller. The average daily traffic in 2006 was section of roadway on the M-511 and the M-501 between 7,916 vehicles. the M-40 and the M-522, in Madrid. The average daily traffic in fiscal 2006 was 35,608 vehicles. Concesiones de Madrid, S.A. (33.33%) Company awarded the government concession for the stretch Terminal Polivalente de Castellón, S.A. (45%) of the M-45 dual carriage ring road around Madrid from the Company awarded the construction and operation of the O´Donnell artery to the N-II, a total of 14.1 kilometres, for a 9.5-hectare terminal at the port of Castellón for the handling period of 25 years under a shadow toll arrangement. During of containers and goods in general. In fiscal 2006 it became fiscal year 2006 the section has had an average daily traffic of operational. 79,268 vehicles. Tramvia Metropolità, S.A. (22.08%) Marina Port Vell, S.A. (30.66%) Company awarded the construction and operation for Government concession from the Barcelona Port Authority 25 years of a transport infrastructure that links south with mooring capacity for 413 large ships and 4,800 square Barcelona with the population of the Baix Llobregat district. metres of commercial premises. The marina was fully It has been in service since 2005 and was used by occupied this fiscal year. 12,814,646 passengers during 2006.

Nàutic Tarragona, S.A. (25%) Tramvia Metropolità del Besòs, S.A. (22.08%) This marina has 417 moorings, 90% of which are either This company was awarded a contract for the construction, rented or sold, plus 8,000 square metres of commercial operation and maintenance of the tram that links the Estación premises, which are all sold. del Norte and the Villa Olímpica in Barcelona with Sant Adrià del Besòs and Badalona. It is 15 kilometres long. During 2006 Oligsa (20%) it was used by a total of 4,078,211 passengers. The company that holds the 30-year concession to construct and operate a 168,000-square-metre bulk goods terminal at Transportes Ferroviarios de Madrid, S.A. (12.50%) the port of Gijón. In 2006 it moved 3,470,146 MT of goods . Holder of the 30-year concession of the extension of line 9 of the Madrid underground between Vicálvaro and Port Torredembarra, S.A. (24.50%) Arganda, comprising a total stretch of 20 kilometres and Of a total of 820 moorings, more than 95% were occupied three intermediate stations. In 2006 it was used by a total in 2006, while the entire 4,000 square metres of commercial of 7,350,948 passengers. premises were rented.

86 2006 Annual Report c o ar c B and t This ( and c World This w h space and t Co mp any lan dscap ed c an d and ( r Dur 4 1 esrved hat 12.5%). he o o o ar n ar as 5,628-square-metre as ea 59,878 ns tru cte d mplex mprisng celona-T t ing pa rk co nst ru ctio n, he an Tú Wo Par c Urb joins commercial Hospitalet in stalt ion s commercial company company used links an d and T n fir st ocupancy 2006 rade rld i el fo r for consiting csa a T traf fic This square the by awarded meting ecnologic d´Envalira, 27 -st or y oul ouse a ph ase, T sq uare. 50 0 area the Center rade an (2 9% ) the surface Grau compan ope rates hol d de average betw use premis premis of ve metres) pro of main Llob r Cent s co n hi cles ate Roi g o th ro th e arte ry . 3 ap art h bui ld the of ject f en area 7, 5 oms e car Wor sevn y reg te n si o es, es S. the C e pu th is 50 f , w 00 of w tin g r ity A. ings an d p An at. e oth an ce over (2 bl ic o carryin inte r l an Ba 6 ot el. as D ark -year d C 1, f th ,0 6, s of (40 uring do o ataln qu Th d 3 er Tr rce 57 in o re-kilometre-lo 00 62 a ffice at wo 6, able f 95 Ju s a rra an ade are e %) res 1 Wo complemen th 7 th re 00 8 lona co the 28 g 0, s p rk s %. d tic e qu vehicles e fiscal sq ort an roject 0 b ou 00 nces metres, rk to 0-bed op regio co Ce uild po are uare sq d co , t 0- squ Auto vía h to bu pr oject h er atio n nstructio S.A. nte France the uare rt as nc esio old year ing io metres nal ild in El comp o metres) b ho n r daily. f s, excutio are- met re Pas en an 1 d tary (16 Cor nell to metres Barcelo el go tel. ,7 20 gs a ng in o C o n rise u 50 man .52 n a nmen ver co d f 06 n car ried nd w of mino use, B e It co nt ract to th e stage. mmercial the arcelo n ith and veh %) la er gro curren th conferen l n age n bu of d à, tun ua e bu C a, a o icles. offices ild a as l offices S.A. tun f o car ild ing the un d t nel a ut ing a tl ri fo r nel y ag ce s ew s ay . P amp co ns sp was was In op er ati award rol th e in alon Thirty-fi carriagew 16-ki lon This 71% Mál the cons of Compan l on li Sep tember early th i g t n aga a- M co g I Met Mad A tr uct i tructi in aw company ro ad e g lometre-l bi tol Lo of -5 0 ut ed ns the M g s on the s ard ve-year l r toc k 2007 an Metro o w op truction y -4 0 r motorw ñ r i 6 on , on, ay o n fr om o route. hi id i aw ed n co i s as So de A st ec ch 7 for su 20 07 . 4 . arded ns ug us t up up a o th 20 05 io ci e , du a 07, hol p i ng Mál n Ib i co coverin s tru de e s i kep , kep pl nal nte r al ay Durin ha do w da d und ds ope rati za n 25 -y ear y t So cti s ces car ri l ag tretch the 20 05 fro a an th e the to o cie ergroun an an C C n a s g d m g i os on ce San ag ew 3 on co ns dad s (2 d d 2 o conces bypas to l on a 6-y ear tage. Cartag t 006 perati an d of co nces op op 6. a total hol d A and 73% ) or ti op si C C the er atio n eration ay d. nt on i ál o is on s I t er ati s on er n Ni um len traf fi be tw g i ena ion was s upk ep da Cartagena s ar ces o ch ed neten io for nment ver o of gth i o W n l a, . for In (35. ed io to c. of of n. o in en Du l the fo r rl fr ines ul ed n S. d o I Vera astr u th e the Th e the b the t aria, T 75% ) ri f A of rad y ope n th e th e stati ng d 16 . FC 1 e es to 1 th 1 (5 0% ) co d co tol C and . ct and 4 1.6 20 0 concesion es 5 i enter de sign , M- 40 S.A e gn, ons nstruction go ed nc esi ur ki i kil -fr e 98-ki gn, Co n lo met res . e 6 ki the . 2 in to ometres to Corn e cons wi (5 lometres con c th 4 of st ruc ci on traf fi l 0%) du lo e an l l be the tru à metre- j al . o e d w B for b sion s s a c cti bui as , tage. rc of ón e on, lo lt n a 87

Construction AP7 motorway. Cartagena-Vera section

Portsur Castellón, S.A. (30%) Marina de Laredo, S.A. (42.5%) Company holding the 35-year concession for the construction Government concession for the construction and operation of and operation of the solid bulk goods terminal in the south 540 moorings, 497 square metres of shops, a car park and a enlargement of the port of Castellón, with 300 linear metres dry storage yard at the port at Laredo (Cantabria), awarded in of wharf and 60,000 square metres of attached esplanade. July 2005 for a 40-year period. The award was made in September 2005 and construction started in 2006. Hospital del Sureste, S.A. (33.33%) Company holding the concession for the construction and Tranvía de Parla, S.A. (32.50%) comprehensive management of the new hospital at Arganda Company awarded the 40-year contract for the construction, del Rey (Madrid) for 30 years. The work is in the construction supply of rolling stock, operation and maintenance of the stage. 8.5 kilometres of double track of the Parla tram (Madrid). This concession was awarded in 2005. Scutvias, Autoestradas da Beira Interior, S.A. (13.13%) Shadow toll motorway located in the Beira Interior area of Portugal. The road is divided into eight sections, a total of 198 kilometres.

S.C.L. Terminal Aéreo de Santiago, S.A. (14.78%) The company continues to operate the concession at Arturo Merino Benítez International Airport in Santiago de Chile. Traffic continued to recover during 2006, up to 6.9 million passengers.

Autopistas del Valle, S.A. (35%) FCC Construcción, as part of an international consortium, received in June 2004 the concession for the construction and shadow toll operation of the San José-San Ramón motorway in Costa Rica for 25 years. The motorway is 60 kilometres long. Construction is anticipated to begin in the second half of 2006, when the design work and expropriations have been concluded. It is estimated that the motorway will be opened sometime in 2009. Tarragona marina

88 2006 Annual Report I c a m i c c p 2 p p ( f Ve o o f Dur in an d w b f o n men t Go ver n n 45% ). or or or o o o d n r r f f y pe rat ion al o 0 i u l c t o oved est resd l o s n m e n n racruz pr r a M t r 7 0 an which an t t 55 ing co mmence w r o . s he he i r p Au Co N6 Ho co vers og res. h s n i d underwater i t r a arch itect i t c Wo h c d a year s e s d n n 2006 construction construction topista te l the An g y a Galway–Ballina , m u g n cesionaria s (Mexico). w o are 0 0 2 t k r e h t t e h n i de nat inte r 50 ,0 00 winner re h co ncret e in h t of a g s i co nces underwater, l o t FC o C 6 5 2 e lat e la ro e h c s n i a of in San F l c a t s d a o m - s C C n u o Ve la d e o lu c e tu 2 Con n in ter l u d e e p 20 Th in xu ry ion s 00 sio n o t t qu are i R nne l Túnel Jo e h t and and t s n o C s n o i h t n pr efab ricat ed r r t 10 . is Septemb t a a c 7 al stru ( sé ’y d e e b 25 %) is o i ho at ion al an d s . c fo r sl co -Calde , s o c in n o n T a a c had bu t t s n o t ción oe peratio a metres te l. r o r h e h ns de c u 2, o C i p e c th e o t ilt th i g e b n w o f ortium oatzaco 20 ow (45 i c t o c Th e t er r i s s Coat t e l a us l a c u e h , n ó p ra w co 0 tu e c n rest ig n o %) 2 . ing t i w n n to -me tre i t o as n e p o 00 ns C nn (35 S h in n o f of i l zacoa a n a ot el on str uc tio s s f h 8 . 6 7 led award tr uct ion s 4 six n r o alcos, el op a h t n o i %) th e. d o i r e p t r a p e n o of é s o J dr yd is eration e h t e o t e seg b ha s It tun y exp ected a lcos, o l i k s i y l r a e N6 ha s ed a r t f o o FC in ments con oc k. s n o c ar e d l a C nel, o f be en f . an d r t e m Galw c i ff e h t th th n n a e h T r 4 S.A. cesion m fo 5 2 e e is 80 Co 1 Co nst ru o i t c u r t n r e t n i o o i r ,200 state co n i a m d n ,s e cu o ro ay- h t n pe rat io nstrución 30 e y to ro esig f de ncesio . 0 1 0 2 rr ent ly da ,s r a oms be s years metre n of ne d a C.V a P fo ct ion la n o i t n ci f i c . n s pr og res co nces an d Mal op er ati Palma FC to tal ope n FC T li bui to FC Bal conces from lon 7-k il the and -4. ne o ld g inas lo N pen betw ometre The H Te Met op er ate approxi Co ns Cons Cons tol co nces G ational rca. and in os de s s ma on alw l s io n ion l oe early . pi i conces r motorw n en o M Th e tr uc i truci truci ope rate o t ay Co 2010. mo al w is f mately Ba al s j La r unc ti th io n D th e il to the for 2007 nce d or ca. co l to evlopmen ra ed e ón ón ón s e las io o Du rw ns te rm ne w ja ay ne w 3 So o si old m n t th 0 wo was wo s tr uct io n . ar ay o 32 bli 30 Th b n term in Soci years nar e to etwen Baraj n, a. he ad n n alo H is e Du new ki year s C aw o th th e the ne w l i comp an fo r ed o a, s ng n re t i e p ta metres s an ard as Pl ita l de ad br ad 2. o S. ta Loug for co nt ract contract 40 . the an ff ices d ia h terminal G A. 5-k il Co ed lyin os (3 2 th Un i Co alw . year s 20 s li ns (100%) It hrea pi tal the e trategi g n of ometre-lo nces %) ver sitar i ay consi tr uct ion years e o motorwa y w f In aces . i concesio fo r for s i and s Ra di th ha s b fr i 24 ypas and on astr u sts c th th the and east-wes o 98 7 Bal o aria, mon ths e e of i ro ng the s Tel de co n con requi ct li the (si cu rren tl ads. is a nasloe, n evis be ds ur u ngl So n new S.A. 56-ki schedu st ru cesi nde rgrou to e l in rements Th t an d e con c ón refurbi e corrido Du reta c an l (7 on terminal e ane) lometre- ti y w a d on d 0%) i t led i n e e l h to l th e sion s e nd an d sh of r i n 89

Construction Technological innovation

FCC Construcción upholds its policy of applying the most Some examples are: advanced construction technologies and systems to its construction work, training its technical staff to keep up to Underground work date with technological advances and to develop advances themselves when necessary. We would like to point out three of the numerous underground jobs FCC Construcción has completed or has One product of this policy is FCC’s ability to tackle extremely in progress, because of their special characteristics, which complicated jobs and to perform other jobs quickly, always showcase the company’s high technological development: furnishing the client with the best technology and systems for the application. Enlargement of the Sol station of Madrid underground line 3 . The most outstanding part of this job consisted of the prolongation of the cavern underneath Calle Preciados. The façades of two major department stores had to be underpinned without ever asking the stores to close the buildings to business. The façades are held up by ranks of jacks connected to a central hydraulic plant and a façade auscultation system, both of which are governed by an advanced computer application. The project was designed by the company’s technical services and the hydraulic system was furnished by FCC subsidiary BBR Pretensados y Técnicas Especiales, S.A. (BBR PTE).

M-30 Madrid South Bypass tunnel . Tunnel 15 metres in diameter, dug out by an EPB tunnel boring machine and lined with precast concrete segments. It is 3,648 metres long and took six and a half months to complete. The tunnel boring machine has come to within

“Tizona”, one of FCC’s tunnel boring machines a few metres of the foundations of buildings and bridges without doing any damage.

Underground access tunnel to Madrid Barajas Airport Terminal 4 . Tunnel 9.38 metres in diameter and 1,397 metres long, dug out by an EPB tunnel boring machine

90 2006 Annual Report n o i t c u r t s n o C

Navia relief road. 2006 Award to Foster Innovation

in two months and two days at an average tunnel-making the foremost are the study of mixes and the trials with a real speed (including lining placement) of 21.28 metres/day. head for pumping normal and light aggregate concretes to a height of 250 metres. Bridges and special structures Subsidiary company BBR PTE is prestressing the During the fiscal year the Navia viaduct, which features two Adriatic liquid natural gas tank . The tank is built in 160-metre arched spans, was finished and opened. With this Algeciras and floated to the Adriatic, where it is anchored. job the range of application of the precast segment system After having prestressed the Monaco floating dock, BBR PTE developed by FCC Construcción was expanded. is increasing its experience in prestressing floating marine structures, where durability is an essential feature. This system formed the basis of the company’s proposal for the Vidin-Calafat bridge over the Danube, which was Several BBR prestressing systems , which the company awarded to FCC Construcción. The bridge is 1,971 metres is licensed to use and co-owns through BBR Internacional, long with central spans 180 metres long, ending in have obtained European Technical Approval, which is extradosed prestressed concrete and precast segments, thus mandatory for using the systems in the EU. These are among once more extending the system’s maximum span length. the first systems to earn approval.

The bridge over the Sil at Ponferrada is a singular concept bridge.

It spans 85 metres and has concrete and steel decks laid 7 metres apart. The bridge is suspended by a central metal arch of the bowstring type.

San Ferrán velodrome in Mallorca . The velodrome’s most interesting feature is its elliptical roof, which spans 125x94 metres and is made of radial and elliptical ribs stretching to a great central ring. The structure was designed by the company’s technical services.

The Repsol Tower in the former Real Madrid Sport

City , will stand 250 metres tall when it is finished. Among the Illustration of the M-30 South Bypass. Madrid numerous technical jobs involved in the tower’s construction,

Technological innovation 91 Hotel Balneario Las Arenas. Valencia. 2006 Award to Foster Quality

Maritime works Numerical models and physical models for laying caissons under outdoor conditions are being developed using the laboratories The company is achieving a remarkable level of technological of the University of Delft in Holland. These models will be used development in the construction of jetties in areas with an to lay 52-metre-long, 32-metre-wide, 36-metre-deep caissons extreme marine climate, particularly in the work to enlarge in Gijón harbour. Gijón harbour. Research and development Studies have been conducted on the construction in phases of the sloping Torres jetty. A 3D physical model has been crafted As stated in last fiscal year’s Annual Report, FCC Construcción to determine the necessary composition of the jetty layers, continues to participate in the European Construction according to their position and the wave action foreseeable in Technology Platform and it is leading the Spanish Platform, the days following construction. This should reduce the need where FCC Construcción is the coordinator of the standing to redo finished work and in short speed up the pace of committee and cooperates actively in the implementation of production. The testing was done at the National Institute of research and development projects within the framework of Applied Hydrodynamics in Barcelona. its business.

It is involved in the international Tunconstruct Project to optimise underwater construction and the international Mambuild Project on the industrialisation of the building sector.

The following are some of the projects that FCC Construcción is performing individually or with Spanish partners, in addition to the work at Gijón harbour mentioned above:

The Arfrisol Project . A study of bioclimatic architecture and solar energy use in buildings

The Hatcons Project . A study of several aspects of underground construction, such as high-efficiency concretes and the interaction between machine, lining and land.

The Shotec Project . Improvements in sprayed concrete to line tunnels.

92 2006 Annual Report o f 1 o F in t f h or o or o 60 f as f formation r t bui ld tunnel f he ide-Span W t ben Th Th C ibre-bearing he metres. o sytem e e mparative S second the Fibras Futurespacio given, Delica ECO bor ing for and Navi of iadu V s year Project this in co precast con t er viad Wid e-Sp ma stud mmunicatio moda l in time cretes cts” chines uct, a ND P , y Pr tra row s roj to , egments of to ns f wh . wh define e er e th t ct th ich he in f os e ac ns c , e ilty. differen e to paper dis oper a Aw A techn sectio an on devlo Z cuse st ar ard d an a WARD at a go “ set olog ns t z series Precast ing to a S typ . p 20 the specificati arch Fo and ies. e Vi 06 pa es ster Award o gmen ts adap r o f over Segmen use a aduc ts f cantilevrs m Inn earth to tati on e ons sp t F ovatio e os ans r t . er ts s Q TO ua o n f l i ty FO STER IN NOVA TIO T ec h nol og i cal i nn ov a N ti on 93

Construction

95 Analysis of the sector Cement 96 Cementos Portland Valderrivas, S.A.

Factory in Thomaston, Maine. USA g in Acording An Cement m t m 2 d Im Millions Cement o r 005 emand, ake ilon owth ports 2006 1.1 alysis to the of milon MT with of production cement tons and 12.3 increasd tenth to cement to o respect clinker the milon f MT 55.7 0 042005 2004 2002 t 42 consecutive co he , Nation with ns 7.1% and milon by in exports to umptio MT s Spain 15 2003 ecto 45 a clinker, th al .2 in year-on e 2.2% Cemen M %, year 20 n backs reco r T . in 06 46 risn Thes h b ow rd Sp -year . 8.7% t efore. lid g M ain for e evr, from from anu con 50 decline experien yearly It 7.2% in facturers’ su rose 1 1 mption respon 0. .4 2006 54 con 7 o milo from ced f milon 2 su se 2. Gro fig mption 8.2 n 1%. 5 to MT ures 1.5 up, % M high T . in was by In 2005 Cement 2005 rate to and Millions Cement the o Un th ver exports of 127. il e , an d to U w of Departmen 3. 0. nite d ith consumption inSpain Val tons and 35. 4 9 8 %. l 0 car mil a , 50 mi w cl ca s States li li in hi fa c on mil 0 042005 2004 2002 l ght 44 li ker ch on to t li M ry 4.5% on negati of . hi , imp MT Ba T, aco t r the M 2003 as cel 0. 46 orts in T o 77 oppos na rdi ve I 4.3% in 200 nte ri ng mi ros year-on-year 2006 48 6, li or, e to ed on from w 6.2% , th cement to ith with MT e 128.3 51 i a nformatio 32 in p An 8.2% an .9 ositive variati 20 consumpti al i mi mil ncreas 2006 05, 56 y si li lio on s on variati n amo n of faci of MT M t o unted on he T 0. f li on tate d in 7. i 7%. n se 9%, c t or 95

Cement 98 Bid to take over Cementos Lemona Cementos 99 Cement 99 Concrete 101 Aggregates Portland Valderrivas, S.A. 101 Dry mortar 102 Transport 102 Results 104 Investments 106 New corporate information system 107 Stock market analysis

Fomento de Construcciones y Contratas, S.A., is the main In addition a group of shareholders was given a five-year put shareholder in Cementos Portland Valderrivas, S.A., as it holds option to sell a maximum of another 22.5% of Corporación a 66.8% interest. Uniland at the same price, a total of 482.5 million euros. In other words, if the option is used, the total investment will In June 2006 Cementos Portland Valderrivas kicked off its come to 1,580 million euros to purchase 73.5% of the most significant financial transaction of recent years with the company. conclusion of a contract to buy control of Corporación Uniland by acquiring 51% of its capital for 1,092 million In accordance with current legislation, the transaction was euros. submitted to the competition defence authorities for approval and they okayed the deal in July.

With this investment and the investment in Cementos Lemona, Portland Valderrivas has become the biggest group in the Spanish cement sector and one of the largest cement companies in the world.

Uniland is the number-one cement producer in Cataluña and has access to Mediterranean markets of high strategic potential and other markets with great outlooks for growth. Its backlog is balanced, with high operating margins, and Uniland brings with it a high cash-generating capacity.

It has two cement factories in Barcelona (Vallcarca and Monjos) whose production capacity is 3.2 million MT per year, 28 concrete plants, nine aggregate quarries, 12 dry mortar plans and a cement terminal at the port of Barcelona.

96 2006 Annual Report w In w In aggregate is c o c g In aggregate Millions Turnover o apacity f ot hich hich 2.3 ncrete Tu Argentina Uruguay producing one nisa milon of has has euros cement is plants it got got qua rry qua rry. 300,000 IFRS GC it hol ds A: it MT a : controls one two Data Data is 0 042005 2004 2002 831 total and , factory owner fou and 88 ac ac 4.2% GCA co co cemen facto MT two % rdi rdi o r f ng ng 50% a 2003 premixed 866 , 1. o to to marin near of fou ries f agg In Sp 2 t 2.4% Societé tern an 5 factory milo r , of is 0% atio reg h in concrete Mo e 887 Ge C nal ne Olvarria termin ate emento con nte vid of n F 10.3% ral in de an MT Ch w C q ci crete art h al uarries. ementos 978 Ciments IFRS ose al. Re of p p eo lants porti Ac s er an 49.9% co Artig factories, wh an ng unts d year, 1,467 S 2006 San nu tandard ose an rul d Avelan as, e al s ’En d six Lu annu s an capacity which fidh prep is, an eda, capab al a, ared has le In It near Netherl n Souther adju The years. The thr e ope rati Millions Gross has the st s U Lo trateg termi nil als operating of U to ons ands ndon. nite d and euros o market Cemen , got nals i c fin and pur ch s Ki yn ance a 2 271 in ngd 0 042005 2004 002 profit s ergi t, 75 i p mb Loui as 2.4% eci o GCA om % an w e es alnces ali ner (Ebitda) d si w 2003 277 of w i ana, sed t i taxes l i l Gul ho l -2.7% Cem en l o generate come f tradi ld U th a fland 270 s o SA. cemen rough ver 1 ng 00% 15.8% tos i n Cemen the su o th P 312 uts tand t IFRS for ei bsidi Fa e ort l of termi course c form 55.4% t o the an r t, gn y ary in which nal 2006 d 485 ing M shares trade of V i o at n ald f in a fl synergies the por the exib Ips er r has qu an i n e firs w iv il ra d i go ich, . a ty C t s, a two t n to i S.A ta n br i a . 97

Cement Breakdown of turnover by business areas Breakdown of turnover by countries

4% Aggregates 2% Tunisia 64% Cement 5% Dry mortar 76% Spain 2% Latin America

4% Energy recovery and waste transport 23% Concrete 17% USA 3% Other

common joint logistical redistribution. The operating synergies After the acquisition, the Cementos Portland Valderrivas will stem from the joint optimisation of activities in Spain with Group, with Cementos Alfa, Cementos Lemona, Corporación cost reduction, from the enhanced ability to take up the Uniland, CDN-USA Inc. and Giant Cement Holding, Inc., challenges of the Kyoto Protocol, which has an impact on controls: production sustainability, from the sharing of good practices in both Spain and international production centres and from 15 cement factories, with a total annual capacity the commercial optimisation of all the businesses that are of 18.8 million MT. vertically integrated into the new Cementos Portland 154 concrete plants, with a capacity of 8.6 million Valderrivas Group. cubic metres.

Lastly, the financial and fiscal synergies will arise as a 61 aggregate quarries, with 25.9 million MT. consequence of an improved balance sheet structure and a 20 dry mortar plans, with the capacity to make reduction in the cost of capital, as well as from the possibility 2.7 million MT per year. of obtaining efficiencies stemming from the creation of the new Group. The production centres are located in Spain, the United States, Tunisia, Argentina, Uruguay, the United Kingdom This transaction was completely financed through debt. That and the Netherlands. will enable Cementos Portland Valderrivas to improve its rate of returns on capital, given its low level of previous indebtedness, and thus take advantage of the new CPV Bid to take over Cementos Lemona Group’s indebtedness and resource generation capacity. In December 2005 the Board of Directors of Cementos The transaction’s financing was structured through two credit Portland Valderrivas approved the plan to carry out a bid to agreements for a total of 1,580 million euros, and the buy all shares in Cementos Lemona at the price of 32 euros goodwill generated was close to 900 million euros. per share. The National Securities Market Commission approved the bid on 17 January 2006 and the bid drew to a close on 20 February. It involved an investment of 234 million euros.

On 22 February 2006 the National Securities Market Commission officially reported the result of the bid, at whose conclusion Valderrivas held an interest of 96.06% in Cementos Lemona, making the transaction a rousing success.

98 2006 Annual Report In c w f F b o t c d p The Dir o as in As t sh are t r he he ha t er u o uy f ivdend aid, f om er te rest f r mplementary view 1 of ered ectors. t the rmore, of e ificates. end in terest shares General th e June the tha t converted contingent 31 pu rch ase, of in in of in terest proposal Decmber continuous 2006, date the this Lemon a, the in in Meting it Cementos bid, Cement os resu delisting the was divdend fro a in upo was put divden 32 lt, m C p af ter 20 0 agred urchas D n market Cemento the 98 of euro N- USA fo the 6 pro .2 rwa rd Lemon Shareho th e as Alf a b d Cemen 8% . s oo s e cedu of to hareho of p o pric e ta keover k er was was n 0. place s the by Th a entry 19 s re 49 Lemo lders h to s fro is Lemon in are, was in creasd d lders’ at Sep euros tr an m ate creasd an Po rtl an s th na’s ystem res b 20 minus tember 31 e irrevo id sact io w a’s ap o same .51 hen per March lved an d sh proval d B to ares to to cable oard the n euro share. Vald err ivas’ said su b an to 99 registered pric e 8 also 7. 2 were d gro .1 d o s se 006 o 85 %. divdend istribu ord f the 4% per f meant qu en Th s the as er d erefore un shares share an d elisted to te, t til is as . ac Th f cu Val T area 1 4, In Conc In Ce tha n Ki 742, US In in 55 2, to were of ig ota l 363, ngdom A q b is 2 u the late other 1 2 d u co ic m ugus 0 r ,5 .3 erri vas h e 52 64 is it Co 0 thos cement merged. s m u mpanies 76 , %; ent 7 cemen 21 ret fis ge 2 4 b io et rporació t t y countri h cal 2 n M M 97 7 e r an d 448 to in 1 e es o i T T G of , n c 0 G , , f year 31 re ro t i 8 an i 2 Sp n ,0 r th M n , th CDN o area 8, Gian a 4 u G es 16 20 05 u e s Decmber T d n Arg ain, .8 e p 0 e p ian 20 Uni land . 48 th e cl U % year ’ i in s n M t inker and ni in creas entin 06 t tot i had 20 n c T, highe produc l to Cement p and’ ubic the al before. recd i Cementos i 06 n th 58 3, a s 1, conc Gr U Cem en s ales e ed r 429 m 200 w USA 613 ru s ti tha con oup, ales ere e 19 6 ng on g its t r Hol ,0 by e re 6. uay Sales n , crete, t 1 2, year, w 14, s 13 e to nn age 87 t h tos whic . M the din h 21 Po as s ave 1 e a T 483 MT, 08,11 l M 2,997 came rtla nd g es due le P i Cementos w h aggregate n ort l T ben v I nc. h re e , boost 2 i 9 in n l ich m 00 6. a 92 by an r 9 to che e the sale, and MT, a Val ac calu MT inl y d meant 5. 5% , MT, e 1 he d derri V L d Un 0,120, e in CD ald m 6,818, and t d t Po and as o o he lated 3 i Tunis ted na i 1.4 N-USA, er r vas n rtla nd t an ris o he f s the a 2005. ppos hipm 78 mortar c iv % in ’ tor 718 in fro i a tw a g 0 y. s, cr res more V fr om m M o ed e eas i S.A zc nt t T, a ya e . 99

Cement Factory in Alcalá de Guadaira. Sevilla Factory in Hontoria. Palencia

The purchase of Hormigones Uniland brings into the Cementos In 2006 the Group provided concrete to such major Portland Valderrivas Group 28 concrete plants located in Spain construction projects as the following: and 14 abroad (four in Tunisia, four in Uruguay and six in Argentina), so the Group has 130 domestic production facilities The Repsol Tower, the work to bury the M-30 and Metro and 154 concrete plants all told. Norte, in Madrid.

The underground and the expansion of the Torres de Moreover, in Spain the Cementos Portland Valderrivas Group Nuevo Torneo business park, in Seville. has seen considerable increases in its sales; at 5,018,607 cubic metres, 2006 beat 2005’s sales of 4,768,590 cubic metres by The La Breña dam in Córdoba. 5.2%. Cementos Lemona, with 352,232 cubic metres, increased its figure for 2005 by 18.3%, and the Cementos Alfa The underground and the IKEA shopping centre in Málaga. Group increased its production by 11.5%, situating itself at The Arenoso dam in Montoro (Córdoba). 228,991 cubic metres in 2006. The A-4 section at Despeñaperros (Ciudad Real). Within the Cementos Portland Valderrivas Group, Hympsa The Autovía de La Plata dual carriageway section from turned out 3.9 million cubic metres of prepared concrete, Monesterio to Fuente de Canto (Badajoz). which means its production was 9.7% higher than in fiscal year 2005. Hospital de Burgos.

Caissons at Tarragona harbour. From the domestic territory standpoint, the concrete division is present in the autonomous communities of Andalucía, Aragón, The Barcelona airport’s terminal building. Cantabria, Castilla-La Mancha, Castilla y León, Comunidad Valenciana, Extremadura, La Rioja, Navarra, Madrid, País Vasco Environmental policy continues along the lines of increasing and Cataluña. This wide market is traversed by a fleet of over the number of plants that have zero liquid waste, and the 1,000 cement lorries. Every day the fleet of company-owned plan of investments in concrete recyclers to avoid solid waste and rented vehicles covers some 70,000 kilometres, steered production is still being pursued. through a production planning system to attend to each client and site in accordance with their needs. The Group’s concrete companies are almost all certified under UNE EN ISO 9001. There are also several concrete plants that hold N product certification from AENOR.

100 2006 Annual Report by compl The and busine One f appl sy stem env iro In Spa i Ceme Spai Duri yea r. Ur and León (And locate (Gua and yea r 22,37 T Ag or otal ug 2 AE a 006 gr ng n n, ic o s P t ll , al da be f ua he sa af un cc aí NO at 1 nt d nm i C l i ss uc an i s Tu ega ts ,6 e la et fo s y, le 20 u a io os i da t t o n ía ta Va ja ma pa i ni R ce 37 s ha he y pr en re n n Tun pe 0 Sp , ra in me lu si Po sy fo , od 6 sc ti Ca of t ta Ar tes wi n ni a, bu M ). du ña on st ai ha r is th rt o) 1 ag l n uc ng ag ta th an T, ia T a em n, 3 A la ce s , ta e , e al ve he ll in em lu ts rg Ex n an ón pl w d a l O t rt ag i o A es s h n d o . ña. nd a enti that b ants hich f tr ifi ca HS compli a Gr ou ent RIP ea d , spe gr ee n t Val the Aripr esa’ emadura, wel C t uni lth Argenti AS ega h RES na anta tes de ct sy ste has e bel is incorpo p ve introduc t and 18001 r r te a that a A emai worke renewe d rivas . on onging nd br nc autonomous bee 16.2% m trea div s ia, na e sa t Uruguay i ne he La is s ni isi on with n fety , r Cas ti ll tme The ation d fully ha ed ng the wi w i Rioja nt bas is to 61 s th incr e pla i roduc e and system’ nt six ts CE i ni be occ n the i pla nt a-La sa of ne , nt pl pla 2006 en lie of were Ma ma egrate ase les upat it ants’ c n Áridos Unila in pl om nts the in t audited c d Manc ha , rki ng s, d s ants onsoli date of Loranca with r the in suit iona came integra muni id, 55 and qua m nd 528,632 d al l ana ge me Uni locat Murc i ability i of United re nt l re G li ty of ties wor hea lt a quir to o spec roup which land nd ted fice Cas ti l de the ed and d a, kpl ac eme and ce h MT s. Tajuña t t into St in he N in in to rti nt la ate ar a nts 2006 varr es . fie per t e y he s, d a (fr o Po rtl an of The Dry Of si ag greg ates The pr ecdi maso Th e were Prebes wareh channel year Llei th e in Can tab ri come effort lo bo th th the s da , m p d d cu e 20 located ro vinces nry mor alread ry ry Co to ous w ec rr ent numb d Ba rcel ei ng 06 bu l i mortar mortar i a, l ght enabl rporació V n p ( ers Corp al be roducts year th k Sevi tar i V y were de rri 20 er e on factories an d on a zcay, and s poured of hip e . fi l ora ción o l dr y bus area a rs s th f vas Sevi ite n 1, pa ckag pin an t di and faci e an i U s 67 8, mort ar stri n Ál d teps Gro and Gro g has l nil es d in l a, av, G iti th M buto ou s s an Un to i 13 es, peci up up . at ro M ál ed contin doubl the w t d ilan thi Cem en ag na , álag a, 2 packg Zar ago za, p w ere ) rs, to the dr y al ro du I o M s a. n ere packg d) f ha ve i chan w mortars. ed T, taken ncreas 2 ues Prebes C nu mort ars . 00 6 i w i th o ct i up n Mad tos in ed mb as n th n to on s a de velo ed 10 s i el to tal derable i to e pro e i P er Mal ncorpora ted l ec ze rid , expand arg ort l cen tres, i 0. 5% i di p n ts intr od o roducts duc ts to wi vi lo rca, e f the N presnce an sale pe d si bul th catalo avr ra, the o d devl ov er n years the uce k in V an sat i lo b V Cementos o ald mo terms efore al catal f cat ed d gue , addi s th th e opment en cia, La fa cto ri er r four rt i to amo n is ar ogu fi of R iv tion s scal io j i ales a n ng s, e. ly a, S.A . 1 0 1

Cement During 2006 the Group supplied injection mortar for some Transport very important projects, the leading ones being: The Cementos Portland Valderrivas Group’s companies Work to bury the M-30, requiring injection mortar. Atracemsa y Natrasa, which make up the cement and Masonry and tunnel mortars were used at many of raw materials shipping division, mobilised 3,271,014 and Metro de Madrid’s underground stations. 760,954 MT, respectively, in 2006, with respective increases The underground and Metro Centro (tram) in Seville. of 7.8% and 19.1% over the figures for 2005.

The Isozaki Towers and RENFE’s Miribilla underground The total sales of both companies, 4,031,968 MT, were 9.8% station in Bilbao. more than the year before, when combined total sales were The Music Palace in Vitoria. 3,673,176 MT. Injection mortar for special foundations in Gibraltar, Barcelona and Murcia. Results

The net turnover of the Cementos Portland Valderrivas Group All these plants have proceeded under the new harmonised reached 1,466.6 million euros in 2006, compared to 978.4 UNE EN 998-1 and UNE EN 998-2 standards to place the million euros the preceding year, with a 49.9% increase. mandatory CE marking on all mortars they market. This growth is the consequence of the organic increase in In environmental certification, the Madrid, Vizcaya and business as well as the acquisitions carried out during the Cantabria factories already enjoy their AENOR certificate. fiscal year: the bid to take over Cementos Lemona and the The Sevilla and Málaga factories will be the next to join acquisition of the majority interest in Corporación Uniland, the ranks of certified production facilities. which are fully consolidated since the first of March and the first of August, respectively. The incorporation of Corporación Uniland widens the geographical area where the Group does business to beyond its traditional Spanish, US and British markets and into the Argentine, Dutch, Tunisian and Uruguayan markets.

102 2006 Annual Report h The in o Of Gr Va The r The another o b b b 5 f in r ag greg ates) , b m Th e f in em ed uct ion act r appened ut t usines usines e 5.4% ef om cr du str ial clu des ilo n her ou p’ lderrivas t explained or e, eas or ies aining his in acquistions breakdown gros pr e-t ax the bus ines, Spain, s eu ros, novertur higher with bu sin es 4%. in th e nished fur acounted in transactions fa cilties of ope rating 24.1% in the Group So ut h pr of its fin an cial op er atin g a th e the by which as tha n year no tur , of the of op n up tu r 75 thir d such Caro lina came by with -o n on the 23 C ( po .9 in cemen provid fo in result ver eminter bu % %, lo s describ sed creas r -y ear co n fiscal qua rter as n tur co en 6 sin fro an in w 4% dry st s was tin u er gy of to ed as ( t, es d s m an ed over Ebitd in creas elin g year co n resu 53 du 2 ed gen mortar and of 78 d te n inte r ed 11 s areas of eff icency ales .6 e Main .7 th of abo a) reco cret e, .5 20 erated lts act ivties 2 to D pr ices % milon e 005 e was the rago milo 05 ational in fo ve. to th e sh of very 5 e, o r %, tal, . p f , ow mo Cemento USA. 36 fiscal 485 This hysical also the n b mod in n imp y and eu s agg Alfa, .2 rt ar th w Fac eu ro Sp ain activties tran th .3 total %. ro s as e percentag infl u nisat ion er ro vemen ts to year at regates tran co milon an r u sit uat ed y sactions. wh s st emming Th is th a nits s ncrete d enced t th an in Portlan sp Mo 2 e ich e 00 d 2 cement ort, fig u nj carried in 00 year eu 4% os th 6. e al . o at 5. the e Ba r at ros, can re add f d and th celo 2 The th 8 e ed e 8 n a 2006 Cementos The came Inves group trans The current T wh euros Po rtl an an d Cementos was 2, ota l 745. ich Extrao p al s action tme nts , as , i rofit s. to tua ted 8 res w w d co mp an and ets mil as as 1, V olved al attribu rdinary 52 Portland Portland s 137. 2 li , reach de rri n o to 8 w at 3 on-curren n . 3 . hi 1 to take ies eu 1 1, % vas ch ted mi ed 48 mi Gen apply ros reg ard hi l reach V V li l Gro over 7 4 ghe r li to alderri alderri on . ,2 on more eral 3 t 33. the up the mi euros as ed euros ed and Cem en tha n M s l 1 l vas, vas, fo r ets parent tha n ion fis as 1 eti mi 21. acq cal . , i ta x be l n th l euros S.A S.A p ng ion 7 i tos ractical 2 at uire n consol on 006. pu rp o co mi ., ., 2 of of euro gi n 005 P . held as mpany , l the ort l Shareh Th ion the g the idati ly se. , s e an Fa Lemo to when on euro i al p i n ctory ncreas parent recdin d on th e 200 17 old due 22 V s a na ald 5.9 s t ers the in Cement os ch November 6, Ol to aza g an er r 200 e co g i w mi in nclud me fig th d year, hich iv mpany u l tí e 5, U ure a ion a to . s, nil N es is ava S.A and ra . 1 0 3

Cement Factory in Thomaston. Maine. USA

Investments The new silos are made of prepared concrete and will have a total capacity of 50,000 MT, and the hopper will hold Independently of the bid to take over all shares in Cementos 1,800 MT. The investment includes a silo filling system that Lemona and the acquisition of a majority interest in uses metal shuttles and lifts, a system for extracting clinker Corporación Uniland, which are the two most important from the silo, also with metal shuttles, so the clinker can be transactions in the corporate history of the Cementos sent to the cement mills, and sleeve filters to prevent Portland Valderrivas Group, the Group has continued with emissions. its policy of modernising and enlarging its industrial facilities. The new facility will make more storage capacity available The plan to modify the facilities of the Keystone Cement and thus enable the possibility of manufacturing different factory in Pennsylvania to use the dry manufacturing types of clinker. It is slated to be built within twelve months procedure, which was approved in 2005, was carried out and the total investment will come to 12.5 million dollars. during 2006. In the factory at El Alto (Madrid) the current electrostatic Work is being completed by the scheduled deadlines and filter on clinker furnace VII is being replaced by a new sleeve will end in the first half of 2008. This investment of over filter. The change will help ensure production better because 150 million euros will hone the plant’s competitiveness by the sleeve filter can be maintained without shutting down considerably reducing its manufacturing costs and will the furnace and poses less of an investment cost than other increase the plant’s annual cement producing capacity options available on the market. With this investment from 600,000 to 1,000,000 MT, thus optimising consumer compliance with the voluntary agreement signed with the service. Community of Madrid Environment Department is ensured in all furnace operating conditions and the company qualifies In order to comply with environmental requirements, two for a corporate tax break. The total investment comes to cylindrical clinker silos and a hopper are being built at the 5.2 million euros. factory in Harleyville, South Carolina, to prevent the atmospheric dust emissions the old clinker storage warehouse Also at this factory work has been completed to transform gave off. the white cement production line for greater competitiveness, increased production to respond to the demand and easier compliance with environmental regulations.

This 18.4-million-euro investment has made it possible to boost clinker production from 700 to 900 MT per day, which

104 2006 Annual Report Al t m o The and m Construction q lab or ato ry Th e eu r su bst atio n At m in at w t p c h p c r It educing he o ement o f ua lity r as er- volves el, ode l eans od els m also oduct nsumption r t t os . t oling he he ospheric uni t factory’s his improved Madrid Ho nt ori a instaling with brings Castila aims fa cto ry a ser vices, has of production storage, fixed cutting-e dg rise emisons out a th e an d ha s ben to factory capacity emison pol lutan from complian of of fa cto ry a costs a the at at mo s y ascertain be en ha s pre lates with a Leó pow in Ho n achievd co mu 27 dictive cen tr alised of with capacity. aco cond n e st t-generatio ph ere. b er ts of 0,0 also an to ria s lti-ch En techn ui lt, SO ce po can in an 5 rdan viron 00 72 in ves ucted the 2 5, sitio w mo ha s the d , amber with (P alen b 00 h ith NO olo to h y fue l ave in ce This ou del ment n tmen t mo 0 area. s creas enviro 35 gy X its et th by n an w rs MT and an cia) o to dify in e 0, clinker calin mod ith up pr o in n in redu in vestment inno d 000 D Th co fo the of d nmen ad epartment. a C th a has ces in ynamic r ntr o ification e O g ne w mo e 0. cing ator. vance raw vative MT co sytem’s p 2 the silo co 8 . bro rodu an d n de r l ncen tal milo mmitments air med per materials the co ugh has simu reg wh experimen ction fin o q to oling tration n year f s uality. iu m- vo n t ew at d p ulatio beg ish 2 the do lation esign ecific eu ro .2 . impact ed sytem w un in milo facilties an n Th ns o s. p lta ge white made f as d ro d t th e by e n uc t Uni 100%. Santander Alfa Cementos Ki 20 05 lai pr oces fir s fa cil in ves to an Th e has At Hedi and appl NO of appl ope rati grenho ngdom) Fa d n th t th ad X ted ct iti es ew beg to y ied fa ci fo qua li increas e emis or tmen t e di ti ng an d the y s ur pi do u facto ona l K at Dragon market s li un at of us one eri was ing on al tie s en ty El mon s , bes ions 20 0 and e the Alfa be in bl e Alt o to viro ed w l dom. at ry aboratory . gas n o are ap pro ved t il . 8, th s faci 6 a M i cap acity) other th its ng avi an n have n g has b . 00 0 Al adr i new mental emi e to t e Th e Alca mo litate of inte res Du fa SN un i reach ed d factory labl ov er b go s M 20 06 di fi has b Spani ri load CR e si b s en á ng e t i T ons . u eq u lo Its the ed a d 12 . Th e il criteri as techn t s sy g i ding e i the un l n termi lo i ot . Cem en i sh pro at n an ip ped nves ( is g s Gu 5 exporti tem, Th a ales fo r exp Dragon o faci cap El th factori mil precd seco exp ans ved. a, olog es ad adaira tha t n tme nt e Al an s b the al li i o aci w io ng w s et ter ties tos to, f nd technol hi n i ho n at ith es w ty 20 io n g es p i G s io Al ng eu ro il Madri (Sevil s ra i yst em P th at o fo of co l 0, 00 0 roup e th ei n with oa di ort l fa eff ic f h is e lway r results fi Gl s cement o ous e 300,00 t s contro scal no w ogi from po f r an . ouc ester i a) ng d, s th e conti own en cy the i rt s MT. es d 1 lin con and year the al syt em. . of V u 5 50% i exp or tin e are i n s l 0 ald nd er ntr od l nue s to o do ck mi an d ing stru Du ri Raos wil reducin MT offi are Cementos in er r al l th (Un l l i to cti on ready n w th e ces aces be e uction to , and iv to an d Th i g ay. on ited g a euros th e be s, g s i s n S.A . . 1 0 5

Cement Control room of the factory at El Alto. Madrid

New corporate information system The SAP modules that were included in this technological renovation project are: During 2006 the work to introduce and start up the SAP-based management information system at two of the Administration and Finance. Group’s businesses, cement and transport, was culminated Management Control. according to plan. Cementos Portland Valderrivas, S.A., and ATRACEMSA were the first to operate with the new Material Management. system. The integration of other very up-to-date strategic Sales and Distribution. methods with SAP was also finalised. These methods include i-Historian for connecting with the cement factories’ process Maintenance. systems and other methods for controlling and managing Production. lorry traffic. Quality. The necessary assignment of resources to the acquisition Management Cockpit. operations carried out during fiscal year 2006 and the rest of the projects already under way made it advisable Document Management. to accommodate the development and introduction of the new system in the rest of the businesses (aggregates, This all involves an enormous effort, both in the very concrete and mortar) during the first half of 2007. construction and introduction of the new systems and in the adaptation of processes and people to the new environment. Procedures have to be redefined considerably to adjust to the new tool and foster good practice.

This effort made today will mean that the Cementos Portland Valderrivas Group will be stronger and better positioned for the future and give the Group an unsurpassable foundation for integrating its recent corporate acquisitions and any acquisitions made in future. The Group will do so with what are known as “open technologies”, which, unlike old computer systems, erect no borders that pose a serious obstacle between applications or no borders at all.

106 2006 Annual Report r c In St c Shares, b d 2 h Millions Stock epr o o et ays 9 igh ntinuous nstruction 2006 o wen Decmber esnted ck of of market capitalisationat31Desember of which 105.70 the uo Euros euros ma trading a low 0 042005 2004 2002 market 999 continuo 14.4% rke t materials of were 31.0% of euros in 99.0 1,308 6 2003 Cemen a was 7.2 o clas n us f 0 on aly 2.1% in th 5 euros market s u dex, ified e euro 8 pw 1,336 to s sh D is s ard ecmber, . are 44.0% were s with Po Th on du rtla n of e cap 1,924 ring in 4 M qu fo ital Janu the d 43.2% adrid ur ote d w th Vald in milon 2,756 ith b e 2006 ary asic sto year, circulatio o erri vas a n and ck closing 25 ind shares, ranging market 3 a ustry on b historic n. usin pric e the and which es in dex on capital Decmber On 1, regis and (6 The High, 583. 9. the 10 s the tered toc k low price Closing 14 is euros l atio as bas and and t market the ir 28.05 40.50 2006) n bu i c as w i 2, closing priceofshares si ndus 0 042005 2004 2002 as maximu nes o 387 59 70 80 91 99.00 69.10 48.00 47.00 35.90 . 2 f 0 042005 2004 002 reval 2 30 s 32.50 47.00 try ,7 .0 day 56 3, D uatio an m ecmber 2003 res mi of d Cem en 2003 hi co l pectivel n 2 52.20 42.00 gh i on 006 ns fo on truction r euro 200 tos the the 1 y. 5 s 5; 73.50 47.79 P fi stock D ort l and scal 99.00 ecmber materi an the year market d 105.70 67.25 V as als P/E ald was at o i f 2006 nd was er r 2 43. 2006 ex 9 iv 1 a 3% 5.7 s, S.A . . 1 0 7

Cement

109 Analysis of the sector Real estate 109 FCC’s activity 110 Realia 115 Torre Picasso

Assets. Building on rue Tilsitt. Paris D An s s f P s s f m E T m s c O c s C d d 5 d t i o t n i o h h t t i e e h o t i p a r p ro u e h i o . e f s i n i n g n i r u t s n o t g n ro r a d a l f f o t e k r a t s o % 7 s u c o t c o t c e e re w o r t s n r e h t c e t m p m e e t alysis o n . 3 t i d e h o i t i f t s e c i f l a r r b a d e g d p c s . n a e c u r b o j % 9 h c u d e g , c a f t s a n a . n t r a , s A y o l f o w o c i i f w ro ( l a a l i s a o i t n o n a s c s y t i c a l s i t s o c t o t n i h t h T c i r p n a e y e m n U h a h t ’n o a r g l a i d ’n t s a l u l f e w e h t c n s i s r e k i m m u d o n a a h n e h t o e o c s n ro r o t o i a t n e y s r d d , t f c e a re s i e r s p r e l f n m i r r u n c u s p t c c n i t l o m r a y t c t t i s o o c i g i l e h p e t o s l a o l h i t t n i v g l u d e t a n o m he a e s g n i a t e u h c re l e t l a d e s a re d s l 6 0 0 2 e h g n G ( t h e h t g t r l g G d s a i n o c n a i e v r n i n f o n i d e y l P D c e r p P D , 6 0 0 2 s e s f o t e g a e o t y b o h w m o n e d r o i w e m m e d h t ecto t n t l t e v o r r o 0 2 8 s s e . ) e h e h e i f o e c i r o h t r g i t e n s t g c n re t rc e p , ) d v n h t s n o C e h a o l .e l t e w e d r p t f f a i t a n c f o n a h t t s g 0 0 1 , o e h s e g i t s i s n o d n c s re r i g a a e d f o h t s n e e i m h s s u i b a s re u m t a n t o n t y d a c l a i a re t i e h l a n o n r e i c m o n o l .s i g n r r t u ( s t c u e i l n o i e t r p i s l a e y t s e re ro r e h c u t a e h i s t n g i s t n f o p e v r p f o j o i t a , u ( g n c , e i t s e t a e v o n o c e b l n o r, y m o n o b n o i s n i re g o f o s t c e o f r e p e h t p n y 5 8 5 y 8 , s m r e t o s s e n i s u e c n i s t u b t a 0 , 4 6 n g i e w s a w 6 s a a f o e h t y t i v i t c a o t c e s ) % 3 . n o s e i n a p m o c . t n e m y o l p m e e l b a k r a m re s % 8 1 0 0 0 , s t e s a o i s e c n a m r y m o s n o c s p p 0 0 l l i t o c n o n i t h e h t dn a u r n r ro t a r t s n i u r t s n s a d n a n o c e l l e w n i a m re f o g n i l s e m o h w e n f o w .d e v p x e d t u o n o i t a d i l e h t h t i a o l e v e ng i re o f e h t t s y g e e h t h w n e i r e tu o no i t c o b a n o i t c u r se m o h a n i o )% 1 2 e f ss ro g e l o t n e m p h d t e v yr e v e eh sa , de c . e R F I i o g n a o h s n a 0 8 Thousands ofunits New n s t C l a d d h t t % p ’C s p p e R r h t e P e a t s e g o housing i i t n e t l a e g n r s re r e i G c i t r c a a e t o n e c e e s a B o s n o t s t s i v i t r i s u i s y n r t started i a a r n l a m o c n i e 0 042005 2004 2002 i 520 d r t yt , s s e T a I u t i s r t n r o d a n r n o i t e k 22.3% o m re t i t c a o i t a . S t n o i r a i l i b c i P g e s 2003 , . A 636 f o s l a n n a o s s a p n e m 6.1% h w a r e t c a i d a c , o f h t h c i . n o 675 t i v i , t . L . S a m r t a e d i s h t y t i 6.7% , b e a e c n s w o o t r a h b a r o o h 720 C F c i ff t s e v a h e l e s e . C 20.0% An s e d c n i h t i w n o e a T p al re 2006 e h 864 s e c i r e b a re y y l a si e a C r G s s a s a m e s n . of u o a j n I d e n i n i t t e t d a M p he h t a t s i r c e e h de n i e t n na sa se d e t d i r c t . , or 1 0 9

Real estate In May 2007 Realia set off on the process of going public on the Spanish securities market. 111 Property business 113 Real estate development Simultaneously, under an agreement with the other Realia major shareholder (Caja Madrid), FCC will take control of Realia and accordingly will consolidate the Realia Group fully into FCC’s accounts

Realia, an investee of FCC and Caja Madrid, embarked on The real estate group is making progress on its plan to its internationalisation in 2006 by acquiring SIIC de Paris. expand. The acquisition of SIIC of Paris opens the doors The purchase has given Realia the size it needs to compete to new projects in the mature markets of the European on the international scene. Union. The transaction, together with the enlargement of SIIC de Paris’s property portfolio, has called for a considerable investment effort, upward of 1,000 million euros.

Last fiscal year also corroborated the company’s financial solidity. Realia’s growth since its creation six years ago is reflected in the economic results of the last fiscal year. At the close of 2006, the net turnover was 742.1 million euros, up 17.3% over the fiscal year before. The gross operating result was 289.4 million euros, having risen by 15.4%.

Turnover Gross operating profit (Ebitda) Millions of euros Millions of euros 17.0% 16.0% 12.0% 19.4% 20.2% 49.0% 14.6% 742.1 289.4 250.8 633 23.7% 565 210.5 470 176.0 410 114.7

20022003 2004 2005 2006 20022003 2004 2005 2006

GCA IFRS PGC NIIF

GCA: Data according to Spanish General Chart of Accounts rules IFRS: Data according to International Financial Reporting Standards 110 2006 Annual Report The Pr o c t Thr t m g On e p w Dur t p This b p R g c c Compostela p R t he echnological op he entres. o en tre wned ot er r elo ng ing ast eali’ r r eali eight ore ope rties ou p oj ect. ns tru cti on op oughout io d, ing bus ines autonomous more pos ition company’s combination fis cal of tha n s ert is a seg men t fiscal within office th e th e len gt hy As After fir m consolidatin tha n y year it to 80 Can celas de als no ver tu r 2006 b and owns Reali areas ha s year fo ot ho ld th e bui ldin innovation the us landmark the 739, was activty carer was fin ish it commun ines th at p of 20 incorp the c an ro ject o represn h ompan 00 th e f factors 06 olds gs g rein fo exp erien is d the be s 0 comp ed , in its in , s in a generatin th acq sh s ora tion b co du th an qu th e in t pro po main uild e ity th op y’s rced rep e mplex ui s bb ed ts d p the are any has sitio is p pin C o rop s ced ings activty exclnt th ho iti on resn erty f bu at aln Span in metres ren Galic. g e su foc u n of erty g pp in ild in “T 30 lo cated co 2 centres tha t in cesfuly foc u valu tal SIC of 00 ts or res % ish mpan sed th d g as g te rtia ry R 6 th e market. ivso e e comb of locatio se an gr ow eali’s wil d cities ith W a with fo on sho e Fir a”. d p w and in y’s of fice r Paris, on n rop g en ter tain men t hol e. refu its pp con th . ine San tiag ive to first th sect or. and As n. at titu co en erty ing sh ok e Wh so rbis hin th q b mpan R Cancelas tertainment As areho In uality, ventu ui ldin Paris, eali lidated e on and en located de the o real Can greater de y- ov er g lders. g re h with said cela est ate as the the in in th to s e up s of up the SI SII Its fu nd amen to tal SI inves Th e a co mp eti main caus repres entertain La This T seg proj Guad company Mu ow co mb C C Par i as V C of ment rcia cale ects Fren ers aguada R ed de de si tments s ab ove- gro d aljra, obj eali et s entative gni over s e . in ati Outl in th Paris Par is tiv e lo cati ch already Al ective ment ficant Pari fo are e is Lis ta ly Gro 40 capi r comp on , et exten p ed in bo i is so as lo ro per ties Plaz ts on , s properti Sho up ’ compl ge s centre M in of a cat ed me of n. tal. un d portfol b sh in company adrid, us an excln din th e s th e thi ow ppi pro make of Nueva It de bu t i y’s n area g s exs es fo i n n of fice th e s n clas g new io es i man sh egment, g ts s cus by Nervió res th e . i is are of th e ow n t s in market ’ as as Leg ic the es li fe atu res compl agement , s th terests 13 5 s h sted trateg ned s El a an d eg men t. th e l ear t on e uch eas anés n acquis s Jardí commu h ,0 b Pl property. co mmon on by areh old es emented acked th e s az 00 o as y in most i f n n o an d SI is the th e i Feri to n sq u a mo tion Madri d i C to n nity e th e very shi up secu co Sevi al er tha t n . de r are pr of itab main Serrano, make of Its ft de no mmu ni Plaz wi pr o of by of d importan L l metres, riti di the o th togeth po e an s SI Murci such bu sin pe rty rection Th es Cub and larger es minat or s rtfoli fu d C le. i Pari n o cat Divers La rther market d s bu Tw es e a. er o s o i Noria t on s il . wn Par is d So in have i The i s d ng ia Rea ed is made of . an the of M tr icts and h ad by d a as li ri a d 1 1 1

Real estate Property. Building at rue Pyramides. Paris

properties located at 61-63, rue Belles Feuilles, 85-89, Quai neighbourhood, the location is strategic because it lies André Citroën; 2, rue Septembre and 2, place Maurice between the historic centre of Paris, the Défense zone Quentin. and a very well connected outlying area with access to all domestic and international destinations. Most representative properties Building at 61-63, rue Belles Feuilles . Under Realia’s Building at 142, boulevard Haussmann . One of the helmsmanship SIIC de Paris has enlarged its sparkling competitive advantages of the property portfolio of SIIC property portfolio with the purchase of such representative de Paris is the location of its buildings at landmark areas properties as the building located at 61-63, rue Belles of the capital. The company has made ambitious Feuilles, which houses the corporate offices of Lafarge, refurbishing plans for its older buildings. One example of a world leader in the manufacturing of construction this laborious task is the full reconstruction to which one materials. The building is situated in the prestigious of SIIC de Paris’s most representative buildings has been 16 th arondissement, where the headquarters of the main subjected. The building is located at 142, boulevard international firms stand. Within its vanguard design is Haussmann and 2-4, rue Téhéran. Situated in the core of an area of 11,653 square metres and parking for 235 the financial district par excellence, the l’Etoile automobiles. The complex is organised on the basis of

Building at boulevard Haussmann. Paris

112 2006 Annual Report Bu bui lding met banks Bu Ministry 21, by ar this of of of Bu com Elect ha two th is of Bu wel oc cup ied SIC of chitecture ve Paris t 9, 61 3 t sp ace i i i i it 857 l l l l he he re ding ding di ng di ng bui lding set munications. s de b ricty as fl s ui n moder oo , of Fren ch most co mmercia ld Paris, of square w in of perched rs an d i sq uare the it by at at at at n Regulation of fices one h g w Jus tice. s, so ug ht- aft er with 85-89, 2, 2, 22 -2 4, th e mo combines it Seine. is among cap ital, h architecture, wh of met rue pl ac e ho me de la metres Na at techn ic It ha s t r l nr he ge res. h It tio na l s 4 is Th André pl ac e an pa ce. can fac h o C se Ma city’s g unobstructe curren th e to is as ther ommis ot olo th It excp an d pte ili t land th e operat is e ur i also di s C pr o alt o gical ies Ve elgan mo en tre tenan currently Ci ocup mbr tr icts tly ce lo ne w mark tional pe rty nd ôm e and tr s ge th er go cat ed st ion. th Que oën e inn e t p ts. of e independently. , d ies o ce co rp choice co restig o bu located ha s f head lo spac . nt i Sp vatio mmercial th e at o leasd , Glas-w 2 a cation ilding f ,3 st and in or ate ace bro n go an its ious es 34 qua rters . Fren ch n feat t it h W ad exclu traditio St u o , in and ro sq u to f o ch of fices sp u aled omy 1,500 the n area g di es, r space. a the aces, es. are an exclnt the sive in racterised cap They of h nal o o of area eart metre as ita l, ne of ff ices s sit e th quar e s e reaches fir s st ri th e of Devlo Er mit a (Z arag Fis of bus si 2006 In Re st art i to ur i hous of Re ali on Alto outl novertur sh si its Thes gni tua ted op cal real th h C p t kin plan, a in ined cap ous gether os ua rte ta s ficant e st a i e ng l es ng sp the year g oz a) itio fi i mos pment estate est res in n te ita l. . ing ace, gur es pr o of , at u for started is a n th e to Devlo id ence nits o de , , 20 in t go od ate p the f 7 j un i bo th at Mo ect s n ro jects amb 64 the offices , d act i 6 06 Hu erva prod B rati i A its th deli the cators 2 ar ajs 5 grow reo ver ctiv , 1, e on . dev fi s pment as i co mp manag 9 s fy of u ti ta ged vered. scal eg men ts s uct cl nd corres ous ector mi ty a fo r wi the and wh os th er of ( elopment d w l Zar ag th in Programme l devl year th e et itive ion i PAU ich fi experien s ho l s cons in ed area th tr ict o garages ere rs po oli w f e t e euros th e th e h . li dity the as s b ndi n opmen oz a) ho mes e ile evol w w tructi y i an d regi n s on H a as as Real itu at i cit y fr amewo rk o at l the of as g ced w u , . utio ly an d s stered th e ch s Á i Duri t th ho to on n th urp ( t ia of a g go ra PAU) in fi capi o ar acter ised e Real i dev n l e scal 107 n fe w n co ncl e. (Th La and Mad ri as same Ar agó n ng of real el th i n O tal an op si Pu ebla is i I, of e a year thi the ki ne devl ng th e men del ’s us ion whi i of nu estate deal nclu l 18% omet res d: Val s ti sou o t th i me co s vered) mber part th e fi f the ch in Ja rdí i opmen lecas, rs t n e s des b the de urs e n ther O of y i th e i expectatio the y i n ncreas v Ur ban gro s n ho ied o th e n Alf i two hous Re al hou umber mos of f o remai fr om of me to w d on up the a ts place e nd én nd si . ia’ e t e l i and T an d a n ns ng Rea ar i s n g, n ag ns ed on a li a 1 1 3

Real estate Housing development. Guillena. Sevilla

In Andalucía activity was marked by the delivery of the keys Land portfolio to 136 homes corresponding to the first two phases of Hato Verde in Guillena (Sevilla), a residential complex made up of One of Realia’s assets is its land portfolio, calculated in late 135,000 square metres of buildable land. This land will hold 2006 as holding 11 million square metres on which over close to 1,000 homes next to an 18-hole golf course, which 4.3 million square metres of area can be built. Such reflects the breadth of the project, one of the finest options magnitudes make Realia one of the most important in the area. companies in the domestic market and consolidate its dominant position in this area. This variable has developed In this same autonomous community another stand-out event fast. It registered unstoppable performance in the period was the delivery of keys for the fourth phase of Hacienda del covering the last four years, rising from 7.4 million square Sol in Estepona (Málaga). This was the culmination of one of metres in 2002 to 11 million at the close of the last fiscal Realia’s landmark projects because of its unique location, in year, a reflection of the liveliness Realia displays in this the Nueva Milla del Oro on the Costa del Sol, and the segment. magnitude of the project, 500 homes whose main feature is quality. Also during the last fiscal year, to guarantee its growing activity with high rates of return, Realia has invested On the international scene, the Portuguese market has 343 million euros in buying up land in strategic areas, entrenched itself as one of the priority arteries of Realia’s most importantly Seville, Madrid and Valencia, and at the business expansion. During the last fiscal year works have international level Lisbon. It plans to develop innovative begun on three projects the company is carrying out in the projects in these cities. cities of Lisbon and Coimbra. In the capital a development has been raised in a prestigious residential area, the Barrio de In addition it has committed 228 million euros in further Lapa. Then, in Coimbra, the company Studio Residence Iberia, investment. This investment reveals Realia’s determination which is owned in equal shares by Realia and Amorim, has to guarantee its growth through bringing into its portfolio started work on Studio Celas and Celas Plaza, next to the 2.5 million square metres of land at privileged sites. monastery of the same name, at one of the city’s prime sites.

In Warsaw, Poland, Realia has reinforced its plans to expand with the acquisition of important land in the capital, in the Mokotow district, one of the most select, most sought-after areas of the city.

114 2006 Annual Report Millions Turnover of euros IFRS GC A: : Data Data 20.3 0 042005 2004 2002 ac ac 1.9% GCA co co rdi rdi ng ng 2003 20.7 to to In Sp 3.9% tern an is atio h 21.5 Ge nal ne F ral 5.1% in an Ch ci art al 22.6 IFRS Re of porti Ac 8.0% co ng unts S 24.4 2006 tandard rul e s s Torre is FC cons fine s Its average Its increas increas Millions Gross T o tu orr e cupancy ol t ow nover r zone idated operating of e. e, Picas ns p euros w rice 80% hi o i s n f le in o, cl rate M 2006 its 18.3 2 os FC’ a 0 042005 2004 002 profit adri of e 121, Eb i P -1.6% n Per GCA to d. s reached itda 2 acou 26 (Ebitda) 00 0 2003 18.0 Torre i G 06 es caso 0-s was euros 3.9% tora w nts qua re-metre Picas as 24. 20 18.7 . In pra cti per 4 mil s mobi 6.4% o mil s i io qua re s 19.9 lio cal IFRS prop n l iari n ly euro 2.1% office eu a, 100%, ortion metre ros, 2006 whose s 20 , wi bui with al To th p wi l er di y rr e sol th a ng month. an 2. e Pi an i 1% as n 8 ca .1 s the so et % 1 1 5

Real estate

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