1 OHL Monthly Corporate Newsletter Nº 162

MARCH 2014 mosaico

Atizapán-Atlacomulco concession, express lanes along the In this number Palmetto Expresway and Canal de Navarra

Pre-classification for the Seventh highway in Toronto Light Railway, with a concession of 5,000 Million CAD 2 Mexico and new works

New R&D initiative of OHL Concesiones to monitor in Florida and seismic activity in the OHL Concesiones and OHL Construcción have ended the first quarter of the Northern Urban Toll Road year with valuable awards to the Group. The former has achieved its seventh viaduct 2 highway in Mexico, the Atizapán-Atlacomulco, for a 30-year term and an estimated investment of 540 Million Euros. Francisco Navarrete, Territorial Manager for the In turn, through the Community Asphalt Furthermore, in Spain, OHL Construcción subsidiary, OHL Construcción is leading has been able to take over the largest Basque Country, , a 180.5-Million Euro project in Florida to project tendered by the Government of and , and design and construct express lanes along a over the last few years: a 30-year Alfonso Orantes, Head of total of 21 km. in the Palmetto Expressway concession to construct, manage and Studies and Planning 5 and I-75 interstate. exploit an extension of the irrigable area in the first stage of Canal de Navarra. Juan-Miguel Villar Pages 2 and 3 Mir, rewarded at the VII Forinvest Prizes: Spain, Peru and Mexico, the countries with the highest number “Innovation is necessary of employees for our wellbeing and for Spain’s reindustrialization” 8 OHL generated 3,974 net jobs in 2013 and increased its staff by 20 %

The Group has ended 2013 with a staff of 23,795 persons, generating a net figure of 3,974 jobs and a 20 % increase with respect to the previous year. In line with OHL’s international profile, most of this team -64.5 %- works outside Spain. OHL Construcción, representing 56.5 % of the total staff, was the division with the highest increase in number of employees in absolute terms.

In addition to this staff increase, 2012 registered a 10.1 % increase both in the national market and abroad. In Spain, with a total staff of 8,457 persons, the Mosaico is an OHL Group Monthly Corporate increase represents 1,302 employees: 18.2 %. In turn, employment abroad grew Newsletter by 2,672 persons- 21.1 %- until reaching 15,338. Paseo de la Castellana, 259 D, Torre Espacio 28046 - Madrid Tel.: +34913484100 This increase in Spain is mainly due to the OHL Servicios division, whose staff e-mail: [email protected] grew by 1,458 persons, i.e. 38 % more than in 2012. In turn, 78 % of the increase abroad refers to 2,079 new jobs in Peru, as a result of works executed in Network Management and production: Ippi Comunicación Nº 4 and tranche VII of the Ayacucho-Abancay road. Tel.: +34913148178 Page 4 e-mail: [email protected] 2 Mosaico March 2014

(From the cover) A 540-Million Euro investment, 74 km long Atizapán-Atlacomulco, the seventh highway in Mexico

Through OHL México, OHL Concesiones has been awarded a contract to finance, construct, exploit, preserve and maintain the Atizapán-Atlacomulco toll road, becoming the company’s seventh in the country.

The concession was awarded by the Secretariat of Communications the metropolitan area of Valle de México with the region and Transport of the Mexican Federal Government, for a 30-year of Maravatío, in the state of Michoacán, and the cities of term. The investment foreseen totals 540 Million Euros (9,725 Querétaro and Guadalajara, in the states of Querétaro and Million Mexican Pesos). Jalisco, respectively.

The highway will be 74 km long, with four traffic lanes (two in each The award of this concession will enable valuable synergies direction). The project includes the construction of various tunnels with the highways managed by OHL México in the country and and viaducts. now totals seven toll roads in OHL Concesiones’s portfolio in Mexico (three in the State of Mexico, two in Mexico City and two Located in the State of Mexico, it will significantly improve in the states of Puebla, Tlaxcala and Veracruz), with a network connectivity in one of the most important industrial regions in covering a total of 435.3 km.

New R&D initiative of OHL Concesiones 5,000 Million CAD for the Eglinton Crosstown LRT Monitoring of Pre-classification seismic activity in the in the Toronto Northern Urban Toll Light Railway Road viaduct Last February, OHL Concesiones began a pilot project to successfully project undertake a new R&D initiative aimed at developing a seismic activity monitoring system along the Northern Urban Toll Road viaduct, which As part of the Crosstown Transit Partners (CTP) crosses a hazardous area of seismic activity. consortium, OHL Concesiones has been pre- classified to develop the Eglinton Crosstown LRT The Northern Urban Toll Road runs between ex-Toreo and the San Antonio project, which will cross the city of Toronto. Fengate Road Interchange, with a 9.6-km raised viaduct, three lanes in each direction, over the Peripheral Ringroad. In addition to this main trunk there Capital Management, Strabag, Bechtel Development is a 6 km raised structure representing the entry and exit interchange to the Company and Obayashi Canada Holding are also main trunk, and a two-tier tunnel 750 m long. members of the consortium. The aim of this initiative, launched by OHL Concesiones along with the The Eglinton Crosstown LRT project will be developed Northern Urban Toll Road and Torroja Ingeniería, is to supervise road along a 19-km corridor. The concession has been granted conduct, to verify mathematical models and to generate action protocols for a 30-year term and the investment foreseen exceeds in the event of seismic movement. Its analysis and results will involve the 5,000 Million CAD. The corridor includes a buried tranche installation of measurement and real-time recording devices of concession longer than 10 km and will have 25 stations, connecting structure behavior. to various bus lines, three subway stations and several railway lines. Thus, due to the complexity of the structure and before drawing up the final project, a pilot project has been started up with a delivery from Madrid of measurement instruments, in order to validate instrumentation technology, operation and installation costs, algorithms for the processing of gathered data and real dynamic behavior of the structure. Mosaico March 2014 3

Design and construction of express lanes along the Palmetto Expressway and I-75 OHL leads a 180.5-Million Euro project in Florida Community Asphalt, OHL Group’s subsidiary in Florida with a 50 % stake in the joint venture between the three companies awarded a contract by the Florida Department of Transportation (FDOT), for 180.5 Million Euros, is leading the design and construction of express lanes for the 826 (Palmetto Expressway) and 93 (I-75), two of the busiest roads in the Miami area.

The express lanes will be constructed Express lanes between the 826 and those foreseen in the tender. The along a total of approximately 20.9 I-75 will be connected with a raised works project was awarded based km. Along the Palmetto Expressway structure. In addition to these works, on technical and economic criteria. a 16.1-Km tranche will be executed, the project contemplates the widening This project directly connects to the with one or two lanes in each direction, and improvement of both roads along 826/836 interchange station, Miami’s depending on the area, from Flagler St. the relevant tranches. To do this, largest, with four levels and up to 32 to 154 NW St. In turn, an express lane in milling, resurfacing, drainage, lighting, m high, which was awarded in 2009 to each direction will be constructed in the signaling, sowing and planting works a joint venture consisting of the same I-75, along a 4.8 km tranche, between will be carried out, as well as installing companies and also led by the OHL the 826 and 170 NW St. In the future, an Intelligent Traffic System (ITS). Group subsidiary. the system will be extended from this street up to the 595 Interstate. The works will be executed over 1,175 days, almost 700 days less than

The largest public works project tendered in Navarre over the last few years OHL is awarded extension works in the first stage of Canal de Navarra The Government of Navarre, through Instituto Navarro de Tecnologías e Infraestructuras Agroalimentarias (INTIA) [Navarre Institute of Agricultural/Food Technologies and Infrastructures] has awarded to the OHL-Agbar joint venture, led by OHL with a 60 % stake, a concession to construct, manage and exploit extension works in the irrigable area in the first stage of Canal de Navarra, over a 30-year term.

This is the largest public works tender Extension of the irrigable land consists • Reducing energy cost in 3,839 launched in Navarra over the last few of 15,275 ha along the banks of the ha of irrigation systems over the years. The OHL-Agbar joint venture Ega and Arga Rivers, supplying 15 last twenty years, thanks to better expects to invest 103.2 Million Euros municipalities. The project covers three pumping. (without VAT) in the concession works types of activity: and will receive an average annual fee In environmental matters, of interest from the Government of Navarre of 8.53 • Updating of traditional irrigation is the better quality of water currently Million Euros. systems on 6,005 ha, which will used in some irrigation systems, given be irrigated with no energy cost that water will be used from Canal de With this contract award, OHL will thanks to the current level of Canal Navarra, flowing from the Pyrenees, participate in a highly profitable de Navarra. instead of the Ega and Arga Rivers, project for the area in question. Upon • Creation of new irrigation systems which provide low-quality water when completion of the irrigable area, in by transforming 5,431 ha of dry the level is low. 2018, annual production levels in the land. 92 % of this surface area primary sector are expected to reach 45 will be irrigated without energy Furthermore the flow in both rivers Million euros, as opposed to the current cost and 8 % through a pumping will increase when current watering 24 Million. As a result, farming profit is system, using existing electricity provisions are removed, thereby expected to increase from 7.12 to 16 lines. improving the quality of circulating Million Euros/year. water. 4 Mosaico March 2014

(From the cover)

Spain, Peru and Mexico, the countries with the highest number of Group employees OHL created 3,974 new jobs in 2013 and increased its staff by 20 % Spain and Peru are precisely the two countries registering the highest number of Group employees at the end of 2013. Internationally, following Peru, the greatest absolute increases have been registered in Chile with 556 new jobs, eventually reaching 1,687; in Colombia the number went from 8 to 195; and in Saudi Arabia, from 19 to 181. On the other hand, a decrease from 654 to 97 employees was registered in Argentina due to the sale of the Ezeiza-Cañuelas Toll Road. By division, OHL Construcción GROUP EMPLOYMENT BY DIVISIONS concentrated 56.5 % of the entire Total 2013 Distribution Change 2013/2012 staff and registered the highest increase in absolute terms, with 2,640 OHL Concesiones 2,246 9.4 % -14.9 % employees, representing a 66.4 % OHL Construcción 13,437 56.5 % 24.4 % increase in the Group’s total staff. However, in percentage terms, the OHL Industrial 902 3.8 % 30.7 % greatest increases were registered OHL Servicios 5,295 22.3 % 38.0 % in OHL Servicios -38 %- and OHL Industrial- 30.7 %. On the other OHL Desarrollos 1,744 7.3 % 5.9 % hand, employment decreased in OHL Corporate 171 0.7 % -18.6 % Concesiones and Corporate Services. Managements TOTAL 23,795 100.0 % 20.0 % The analysis by contract type reflects an increase in both fixed-term and provisional staff, though largely in GROUP STAFF BY PROFESSIONAL CATEGORY AND GENDER the latter. Fixed-term staff -12,772 employees- registered a 12.1 % Employment in 2013 Change Employment 2013/2012 in 2012 increase, representing 53.7 % of the Total Men Women Group’s total at the end of the year. Managers 374 340 34 1.6% 368 In turn, provisional staff- 11,023 people- increased by 30.8 % and now Higher Graduates 2,499 1,829 670 10.0% 2,318 represents 46.3 % of the total. Mid-Level Graduates 2,029 1,609 420 -0.7% 2,044 Employment performance in 2013 Non-graduate 3,145 2,332 813 38.2% 2,275 also evidences further progress in technicians the Group’s female employment rate, Administrative 1,260 600 660 -19.6% 1,568 which increased up to 23.9 % (1,366 Assistants more employees), i.e. 7,081 women, representing 29.7 % of the total staff, Other staff 14,488 10,004 4,484 28.8% 11,248 one point more than last year. In TOTAL 23,795 16,714 7,081 29.0% 19,821 turn, the number of male employees grew by 18.5 % -up to 16,714 men-, 6 % representing 70.3 % of the total. 2013 employment 5 % by country 6 % Spain Peru In addition to this performance in (Total: 23,795 people) 36 % direct employment a 22 % increase in 7 % Mexico employment was registered, induced Czech Rep. by the Group and totaling 18,211 (*) Slovak Republic, Algeria, 8 % Chile people, belonging to 1,924 companies Colombia, Saudi Arabia, Turkey, Qatar Argentina, Bulgaria, Canada, USA subcontracted during the year. Poland, Australia, Kuwait, India, Romania, Brazil, Ecuador and 14 % Others* Luxembourg. 18 % Mosaico March 2014 5

Francisco Navarrete Molina, Territorial Manager for the Basque Country, Cantabria, Asturias and Galicia

Francisco Navarrete Molina has been appointed Territorial Manager for the Basque Country, Cantabria, Asturias and Galicia, Civil Engineering and Construction, reporting to the Area Management Spain. Formerly, he worked in the Department of Civil Works in Madrid, , Castilla y Léon and Castilla-La Mancha, since March 2013.

A Civil Engineer, he specialized in Hydraulics and Energy at the Polytechnic University of Valencia. Upon completion of his studies, in 1991 he joined Huarte and has been part of the Group since then. Between March 2004 and July 2011 he worked as representative for Western and Extremadura and subsequently, until March 2013, was the territorial manager of Civil Engineering in Andalusia and Extremadura.

Directly reporting to the Second Deputy Chairman and CEO Alfonso Orantes joins the Group as Head of Studies and Planning

The Second Deputy Chairman and CEO of the OHL Group has decided to add a new post to the Group’s corporate area, under his direct supervision, to cover the needs related to a general analysis of surroundings and the company’s positioning and capacity, for the OHL Construcción, OHL Industrial and OHL Servicios divisions and general corporate managements.

In order to carry out this task, Alfonso Orantes has been designated Head of Studies and Planning. He is an Industrial Engineer, with a Diploma in Advanced Studies and a Masters in Technical and Economic Management in the Electricity Sector, Universidad Pontificia Comillas and PDD (Programa de Desarrollo Directivo) [Executive Development Program], IESE. Since the year 2000 he worked in the Endesa Group as an Energy trader and manager of Strategic Planning and, since 2007, has been the deputy manager of Corporate Strategy in Latin America. Participation in the Parliamentary Company Program of Círculo de Empresarios The OHL Group has participated in the XXIV Edition of the Parliamentary Company Program (“Programa Empresas Parlamentarios” (PEP)), a project launched by Círculo de Empresarios in 1987 in which OHL first took part in the 2006 parliamentary year. Four parliamentary members have been assigned to the Group in this PEP Edition, all senators.

The OHL program consists of four Piqué, Second Vice Chairman and CEO, technological and human policies; two, to informative days, during which the who welcomed the senators. The General enable a closer view to business executives senators will be explained the Group’s Corporate Manager, Luis García-Linares, of how Parliament and the legislative history including its five operating made a presentation of the OHL Group. process work, including the matters faced divisions: OHL Concesiones, OHL In turn, the operating divisions were by parliamentary members locally, in Construcción, OHL Industrial, OHL Servicios introduced by their leading executives. autonomous communities, at a state level and OHL Desarrollos. It will be possible and within the European Union, when to get to know some of their works and The aim of the PEP program was two-fold: handling business issues. installations with on-site visits. one, to provide parliamentary members with actual knowledge of the company, its The informative days began last 23 principles, objectives, structure, strategies January with a speech made by Josep and modus operandi, including any 6 Mosaico March 2014

Special mention by the Integra Foundation Ingesan, recognized for its effort to include disadvantaged groups in the job market The commitment held by Ingesan, a facilities management subsidiary belonging to the OHL Servicios division, with the incorporation of disadvantaged groups in the job market, has been recognized by the Integra Foundation with the award of the HR Special Mention in March to Alfonso Navarro, a Human Mangrove swamps and water canal in Mayakoba. Resources technician at Ingesan (Andalusia office), which the Foundation has extended to the entire company.

OHL Desarrollos-Mayakoba Volunteers Ingesan’s corporate social policy has adopted the guidelines included in OHL Group’s Social Action Plan, to be pointed out Collaboration in the supporting initiatives aimed at encouraging the social inclusion of vulnerable persons, through employment and activities directed at personal development, as well as the participation in social development alliances with expert organizations in social matters. of Quintana Roo This mention is in addition to the Integra Prize, granted to the OHL Group last November by the same Foundation further to the Employment Integration and CSR (Corporate Social communities Responsibility): transforming values event. With this award, gathered by Luis García-Linares, General Corporate Manager OHL Desarrollos-Mayakoba Volunteers have joined of OHL and Chairman of OHL Servicios, the Group’s work in in the fight against poverty in Quintana Roo (Mexico), employment integration was recognized, which materialized participating in a workshop held in the Vida y Esperanza in the hiring of 150 disabled persons and others at a risk of village, 20 km away from Playa del Carmen. exclusion over the last twelve years.

This initiative, which has also involved our colleagues at the Banyan Tree Hotel, was used to determine the needs of nearly one hundred people who reside in this small village of the Mexican Caribbean, who are poverty-stricken and socially OHL Volunteers collaborates with Jareza vulnerable. Dos During the workshop, the volunteer group helped remodel the village’s only school and carried out educational activities and Clothes collected for entertainment for the children. Furthermore, the more than 30 volunteers who participated in this workshop were able to visit the communities of Santa Cecilia and Rancho Quinta Amor, the poor getting to know the local culture. OHL Volunteers has launched a campaign to collect clothes from amongst the Group’s employees in the Torre Espacio and Arturo The commitment held by OHL Desarrollos-Mayakoba Volunteers Soria offices, in Madrid, for Jareza Dos, a non-profit organization with the local communities is evidenced by its alliance, since in charge of distributing clothes amongst families on the poverty November 2012, with Generación Evolucionaria Social (GES), threshold who lack basic means. an association led by young residents in Playa del Carmen that encourages charity campaigns and community work to favor This is the first time that OHL Volunteers is participating in this local economic and social development. Jareza Dos initiative, the aim of which is to help mitigate the difficulties faced by many Madrid residents. In addition to this campaign, the organization has various aid programs to help groups already or at a risk of social exclusion, and for animal protection. Mosaico March 2014 7

OHL Industrial Mining & Cement purchases Laron brand and technology

OHL Industrial Mining & Cement, a subsidiary of OHL Industrial, has purchased the brand and technology of the Laron company, which for more than 50 years has been manufacturing and selling rock and mineral grinding plants. For OHL Industrial Mining & Cement, capacity, enabling company growth and transaction has completed the company this new technology represents a huge entrance into new markets. and own equipment cycle in the solid competitive advantage, as a key factor material handling sector, which is part of for the award and technical execution The purchase of Laron technology the mining and cement sector. of EPC (Engineering, Procurement and reinforces and consolidates OHL Construction) projects. Furthermore, it Industrial Mining & Cement. Together offers greater technological innovation with the Sthim and Atmos brands, this Atmos formalizes the largest contract in its history Atmos Española, a subsidiary of OHL Industrial belonging to Mining & Cement area, specializing in the manufacturing of machinery for aggregates and mineral processes, has successfully concluded the largest contract in its history: the manufacturing and transport to Antofagasta, Chile, of two apron feeders belonging to the primary grinding unit of the Antucoya mining plant.

These apron feeders will be located under a hopper supplied by 200-ton dumpers, which will download the mineral for its transport to the primary grinders.

In Chile, OHL Industrial Mining & Cement is also developing a copper treatment plant in Mina Ministro Hales, Calama, where it is also in charge of the plant’s operation and maintenance. Apron feeders manufactured by Atmos Española.

European Forum of Science, Technology and Innovation OHL, at the III Edition of Transfiere Forum The OHL Group, represented by Manuel Villén, Head of Innovation and Sustainability, has participated in the III Edition of the European Forum of Science, Technology and Innovation (Transfiere), a multi-sector event in Spanish innovation that intends to bring the business world closer to universities and entrepreneurs.

It was held between 12-13 February under The Forum events include Manuel Villén’s any technical construction or aesthetic the honorary chairmanship of His Royal participation in a working breakfast improvements would be an asset, Highness the Prince Felipe de Borbón, arranged by the economic newspaper for which the Málaga Port Authority who granted the organizing committee an Expansión and the City Council of Málaga. was rewarded with the 2011 National audience. OHL Group’s Head of Innovation OHL Group’s Head of Innovation and Innovation Prize, when using the Cubipod and Sustainability also attended the Sustainability referred to how public in these works, a new component for the reception. purchasing in innovation may encourage construction of sloping dikes developed R&D&I in the construction sector. by Sato, a OHL Group subsidiary The Forum involved 1,800 R&D&I agents, specializing in port infrastructures. 375 companies and institutions from As an example, he referred to the works Spain, Portugal, United Kingdom, Finland executed in the outside platform and and Latin America and 253 research shelter in San Andrés (Málaga), whose groups in 52 universities. terms and conditions indicated that Mosaico8Mosaico | | MarchJunio 2011 2014

Juan-Miguel Villar Mir, rewarded at the VII Forinvest Prizes “Innovation is necessary to improve our wellbeing and to reindustrialize Spain” Last 11 March, Juan-Miguel Villar Mir received one of the VII Forinvest Prizes from the hands of the President of the Regional Government of Valencia, Alberto Fabra. These prizes reward the professional merits of relevant personalities in the world of economics and finance. The act took place at the Events Center salaries, 25 % more than the average in of Feria de Valencia, in the so-called other sectors”, he said. “Finance Night”, a gala that marks the official start-up of the contest, which Furthermore, he vouched involved nearly 400 personalities in the for reindustrialization and world of finance, business, politics and internationalization in order to achieve economics. a more competitive and successful market activity in a global economy In addition to this reward, the Chairman such as the present one. In his opinion, of the Villar Mir Group and OHL accepted “it is not enough today to just do Forinvest’s invitation to give the well locally; one has to be good and traditional master conference of the competitive globally, because the rest contest, on the topic Innovation and of the world will also be better in your Internationalization as leverage: the Villar territory”. Mir Group case. The Feria de Valencia event also helped In his speech, Juan-Miguel Villar Mir Juan-Miguel Villar Mir remember that manifested that innovation “is the only he had inaugurated the fair premises way to improve Spain’s wellbeing” and back in 1976, as Vice President of the is essential “for the country’s necessary Government and Minister of Finance. Juan-Miguel Villar Mir, after collecting the prize from reindustrialization”. In this regard, he Alberto Fabra. He pointed out that the Regional indicated that the number of innovating Community of Valencia is expected companies has been reduced to half to lead Spain’s recovery, “given that during the crisis and that, over the last “This loss is very serious and must be exports have increased by 12.9 % and twelve years, a third of the industry recovered, given that industry is the tourism by 11.4 % in 2013, twice as has been lost due to the crisis and sector that generates the most R&D&I, much as in Spain”. inadequate policy in energy matters. income and wealth, paying the highest

The Group reinforces its commitment to sports Collaboration agreement with Mireia Belmonte, an Olympic swimmer Further to its commitment with sports and as part of its sponsorship and patronage policy, OHL has signed a collaboration agreement with the swimmer Mireia Belmonte, winner of two silver medals at the 2012 London Olympic Games. The agreement was signed at the Group’s head office in Torre Espacio with the presence of its Chairman, Juan-Miguel Villar Mir.

With this collaboration, OHL is reinforcing 2012. In 2013 she became the first its commitment with the values inherent Spanish national selected for Duel to sports: self-achievement, sacrifice, in the Pool and was proclaimed healthy competition, a passion for work the competition’s most valuable and honesty. professional (MVP), the swimming equivalent of the Golf Ryder Cup Mireia Belmonte is a reference in between Europe and the U.S. Spanish swimming. She is a World and European champion, and twice an Mireia Belmonte has received important Olympic silver medal. She competes rewards, such as the Royal Order of in butterfly and crawl styles and has Sports Merit and the Sports Excellence Juan-Miguel Villar Mir and Mireia Belmonte (middle) participated in two Olympic Games: Prize, in 2013. when signing the agreement. Peking 2008, at age 17, and London