2004

Annual The FCC Group • Areas of activity • Social report Corporate governance • Financial Statements Report

Annual Report S.A. FOMENTO DE CONSTRUCCIONES Y CONTRATAS, 2004

MUSAC. Museo de Arte Contemporáneo de Castilla y León www.fcc.es On cover, close-up of the facade Contents

Letter from the Chairman 2 Letter from the Managing Director 4 Governing Bodies 7 Strategy 9 The FCC Group in Figures: Consolidated Figures 11 The FCC Group’s areas of activity 19 Services 21 Construction 41 Cement 71 Real estate 75 Other sectors 81 Social report 83 Corporate governance 97 Financial Statements, Management reports and Auditor’s report 147 Executive personnel 263 Letter from the Chairman Dear shareholders, Committee setupin2005. the Board ofDirectors, alongwiththeStrategy and RemunerationsCommitteewhichreport to and Control Committeeand anAppointments updated andwehavealsocreated anAudit the GeneralMeetingofShareholders havebeen The RegulationsoftheBoard ofDirectors and Financial StatementsandtheAnnualReport. is publishedalongwiththeNotesto the AnnualCorporateGovernanceReportwhich For thesecondyearinarow wehaveprepared competent authorities. governance regulations establishedbythe company intocompliancewiththenewcorporate W more modern,efficient andtransparent company. and internalcodeofconducttomakeFCCa changes toitscorporategovernancestructure the companyhasimplementedsomeprofound financial statementsandbalancesheeteveryyear, continuous improvement ofthecompany’s While employeeshaveworkedtoensure the years. indicator oftheprogress madebyFCCinrecent and ourpublishedannualaccounts,isalsoaclear on thecompanywhichdisplaysourbestwork Annual Reportpresented here, likeashopwindow The NotestotheFinancialStatementsand ith thesedecisions,wehavealsobrought the Chairman Marcelino Oreja Aguirre most sincere gratitudeto them fortheirdedication. main shareholders. Iwouldliketoexpress my by andidentifiedwiththeobjectivesset devote themselveseveryday, highly motivated exciting tasktowhichmore than67,000people which tocontinuebuildingourfuture. Itisan a magnificentreality andidealfoundationupon In short,ourcompanyisuptodate,which or FCCwebsite. to theCNMVandcanbeconsultedon on theimpactofthisadaptationwassubmitted r r on theGroup’s financialstatementshadlittle Standards andwehavenotedthattheirimpact comply withtheInternationalFinancialReporting FCC's accountshavealsobeenadaptedto on thecompany’s website. Market Commissionandare availabletothepublic have beennotifiedtotheNationalSecurities All oftheserules,regulations andcommittees epercussion onourdividendpolicy. Areport elevance, andconsequentlywillnothaveany 3 Letter from the Chairman Dear shareholders,

After a long career spent almost entirely at FCC, I am proud to write my first letter to Letter from you to present these Notes to the Financial Statements and Annual Report, especially since the Managing these documents unequivocally show that the 2004 fiscal year has been fully satisfactory for Director the FCC Group, with considerable progress in all of our economic variables which will enable us to face the future with optimism, which is also the fruit of the Group’s sound shareholder stability.

The consolidated turnover was 6,286 million euros, which represents a 3.9% increase. If we consider that sales in 1998 were 3,303 million euros, the average annual increase rate for the period is 11.3%.

This increase in sales was achieved almost exclusively through the organic growth of the Group’s strategic areas: services, construction and cement.

With regard to the geographical breakdown, domestic sales in Spain rose by 4.3%, while international sales were down, accounting for only 10.2% of turnover when the year before they had accounted for 10.5%. This decline is due, in a large extent, to the depreciation of the dollar with respect to the euro.

4 As a result of the Group's efforts to win new figure over the next three years to between contracts, at the end of the year the construction 10,000 and 12,000 million euros, and to bring and services backlog reached a record amount the gross operating profits (Ebitda) to a total of 16,405 million euros, or 6.2% higher than the of 1,400 to 1,600 million euros. year before. All without significantly impairing the company’s Letter from the Managing Director Letter from The net profit attributable to the parent company financial capacity, which will continue to maintain grew by 25.8% to 388 million euros. This increase one of the sector's lowest leveraging rates. represents an improvement of more than one point of net margin on sales, which was The achievements attained to date and the goals 6.2%, clearly demonstrating the level of efficiency we have set for the future would not be possible achieved by the company. If we compare 2004 without the active commitment of all FCC profits with those recorded in 1998, we see that employees, who are 63,000 strong at this time. they are seven times higher. Employee training is one of the highest priorities the Group’s executives are entrusted with pursuing. Given these excellent results, the Board of Directors will submit to the General Meeting of Shareholders This training is intended to provide employees for its approval a proposal to pay a dividend of with new knowledge and skills, adapt and update 1.36 euros per share, 27.5% higher than the year the skills they already possess and increase job before. In 1998, a dividend of 0.17 euros per safety. During the last fiscal year there were share was paid, which means that over the last 3,313 training activities which were attended by seven years the dividend has increased eightfold. 37,387 employees for a total of 492,230 instructional hours. The dividend for fiscal year 2004 represents a yield of close to 4%, one of the highest percentages among I would like to thank all of the Group’s employees Spanish publicly-traded companies.This high rate from here for their collaboration as well as was achieved despite the fact that over the last two the shareholders for placing their trust in me. years the quoted price of FCC shares has increased by 65.6%.

With the increase in company share value, there Rafael Montes Sánchez has accordingly been an increase in capitalisation, Managing Director which has gone up from 2,426 million euros at the close of fiscal year 2002 to 4,626 million at the close of 2004, a 90% increase. Furthermore, in the last few months of 2005 FCC shares have continued to hit historical highs in a clear show of the market’s confidence in our company.

This fiscal year marks the end of a cycle in the company’s long history in which the company’s growth has basically been organic. A new period is beginning in which we intend to make a qualitative and quantitative leap, backed by the necessary financial resources and management staff. The goal is to duplicate the turnover

5

Governing Bodies Governing Bodies Board of Directors

Marcelino Oreja Aguirre Chairman Nominee Director

Rafael Montes Sánchez Managing Director Francisco Mas Sardá Independent Director Executive Director Casanelles

B 1998, S.L. Representative: Robert Peugeot Nominee Director Esther Koplowitz Romero Cartera Deva, S.A. Representative: de Juseu José Aguinaga Cárdenas Nominee Director Nominee Director Dominum Desga, S.A. Representative: Ibersuizas Alfa, S.L. Representative: Esther Alcocer Koplowitz Luis Chicharro Ortega Nominee Director Nominee Director Dominum Dirección Representative: Ibersuizas Holdings, S.L. Representative: y Gestión, S.A. Alicia Alcocer Koplowitz Pedro Agustín Nominee Director del Castillo Machado EAC Inversiones Representative: Nominee Director Corporativas, S.L. Carmen Alcocer Koplowitz Larranza XXI, S.L. Representative: Nominee Director Lourdes Martínez Zabala Fernando Falcó y Nominee Director Nominee Director Fernández de Córdova Antonio Pérez Colmenero Corporate Human Gonzalo Anes y Álvarez Independent Director Resources Manager de Castrillón Executive Director Juan Castells Masana Nominee Director Francisco Vicent Chuliá Secretary (non-member) Felipe Bernabé García Pérez General Secretary Executive Director

Executive Committee

Chairman Rafael Montes Sánchez Members Dominum Desga, S.A. represented by Esther Alcocer Koplowitz Fernando Falcó y Fernández de Córdova Cartera Deva, S.A. represented by José Aguinaga Cárdenas Juan Castells Masana

Secretary (non-member) José Eugenio Trueba Gutiérrez

7 Audit and Control Committee

Chairman Francisco Mas Sardá Casanelles Members Fernando Falcó y Fernández de Córdova Juan Castells Masana Pedro Agustín del Castillo Machado, on behalf of Ibersuizas Holdings, S.L.

Secretary (non-member) José María Verdú Ramos

Appointments and Retributions Committee

Members Esther Alcocer Koplowitz, of Dominum Desga, S.A. Fernando Falcó y Fernández de Córdova Rafael Montes Sánchez José Aguinaga Cárdenas, on behalf of Cartera Deva, S.A. Robert Peugeot

Strategy Committee

Members Esther Koplowitz Romero de Juseu, on behalf of B 1998, S.L. Esther Alcocer Koplowitz, on behalf of Dominum Desga, S.A. Fernando Falcó y Fernández de Córdova José Aguinaga Cárdenas, on behalf of Cartera Deva, S.A. Luis Chicharro Ortega, on behalf of Ibersuizas Alfa, S.L. Pedro Agustín del Castillo Machado, on behalf of Ibersuizas Holdings, S.L. Lourdes Martínez Zabala on behalf of Larranza XXI, S.L. Robert Peugeot

Steering Committee

Chairman Rafael Montes Sánchez Members Fernando Falcó y Fernández de Córdova Ignacio Bayón Mariné Felipe Bernabé García Pérez (Secretary) José Luis de la Torre Sánchez Antonio Gómez Ciria José Ignacio Martínez-Ynzenga José Mayor Oreja Antonio Pérez Colmenero José Eugenio Trueba Gutiérrez José Luis Vasco Hernando

8 growing Strategy thereby maintainingtheGroup’s financialsolvency. rate of50%andkeepingthe debt/Ebitda ratio-whichiscurrently 0.3-under2.5, The ideaistoachievethisgrowth insalesandprofits withoutexceedingaleveraging the gross operatingresults (Ebitda)tobetween1,400and1,600millioneuros. the pointwhere itaccountsfor35%to40%ofconsolidatedturnoveranddouble of 10,000to12,000millioneuros; toincrease theGroup’s internationalpresence to The objectiveistodoubleturnoverwithinthenextthree years,bringingittoatotal in withitsstrategicobjectives. analyse, negotiateand,ifnecessary, formaliseanyinvestmentalternative thatfits To activities. areas, continuingwiththeprocess ofgraduallyincreasing theweightofservice This corporategrowth policywill focusexclusivelyonacquisitionsinourstrategic leverage of9.3%totalresources. balance sheet,whichshowsnetindebtednessof250millioneuros, orinotherwords, and itsproven administrativeabilities. AnexampleofthisisseenontheGroup’s that ofcorporateoperations.Itisabletodosothanksitsinvestmentpotential FCC’s objectiveatthistimeistocombinethedevelopmentofstrategicareas with in 2004. the netprofits increased byalmost119%,from 177millioneuros in1999to388million hand inhand,inescapably, withprofitability. Consequently, duringthesameperiod of 64%.Butgrowth hasneverbeen anobsessionforFCC;rather, ithasalwaysgone years thenetturnoverhasgonefrom 3.829millioneuros to6.286million,anincrease r In recent years,theGroup’s growth hasbeenalmostexclusivelyorganic, without r a notablepresence inothersectors suchasreal estate,ageneratorofsignificant construction andcement,allofwhichhaveafforded itsolidbusinessstabilityand The FCCGroup currently rests onthree basicstrategicpillars:publicservices, financial healthandtofacethechallengesoffuture withoptimism. This strategyhasenabledtheGroup tocelebrateis100-yearanniversaryinexcellent striking justtherightbalancebetweenconstructionandservices. construction company. Itsstrategyhasalwaysbeentocreate abusinessconsortium Founded in1900,theFCCGroup hasbeen,practicallysinceitsorigins,more thana esorting towide-scalecorporateoperations.However, overthelastfivefiscal esources.

do so,hasalready allocatedtheequipmentandresources neededtoidentify, 9 Strategy

The FCC Group in Figures The FCC Group in Figures

Turnover Breakdown by activity Millions of euros

6,286 6,050 14% Cement 5,497 5,173 4,468

3.9% 6.0% 15.8% 16.7% 49% Construction

37% Services 2000 2001 2002 2003 2004

Gross operating profit (Ebitda) Profits from ordinary activities Millions of euros Millions of euros

851 570 804 521 741 704 469 627 434 392

5.8% 9.4% 6.0% 6.0% 15.8% 15.8% 16.7% 16.7%

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

Net profit attributed to the parent Cash flow company Millions of euros Millions of euros 388 708 715

309 578 273 506 241 474 216 0.9% 25.5% 6.0% 6.0% 15.8% 15.8% 16.7% 16.7%

12

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Consolidated Figures The FCC Group in Figures The FCC Group

Shareholder equity Indebtedness and indebtedness Millions of euros as a % shareholder equity Millions of euros 2,040 649.9 1,845 1,646 546.7

1,291 1,202 10.5% 352.7 6.0% 335.7 29,6 39.5% 15.8% 250.8 27.9% 27.3% 29.6% 16.7% 12.3%

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

Indebtedness as a % shareholder equity

Services and construction work contracted Investments Millions of euros Millions of euros

733 6,252 5,785 624 625 5,330 556 4,803 4,996 474

-14.8% 31.8% 0.1% 17.2% -20.0% 15.7% 17.2% 10.9%

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

Construction and services backlog Millions of euros

16,405 15,229 15,344 13,656 12,198

6.9% 0.7% 11.5% 11,9%

13

2000 2001 2002 2003 2004 Evolution of stock prices

Fomento de Construcciones y Contratas, S.A. stock closed the year at 35.43 € per share, which represents an increase of 21.17% over the year before and a significantly better performance level than the selective Ibex 35 which ended the year up by 17.0%.

2004 Capitalisation

Based on the quoted price at the end of fiscal year 2004, the stock market capitalisation was 4,626 million euros.

Trading

Based on the quoted price at the end of fiscal year 2004, the stock market capitalisation was 4,626 million euros.

Dividends

If the proposal submitted to the General Meeting of Shareholders in the month of June is approved, the total dividend paid against fiscal year 2004 profits will be 1.36 €/share. This amount will be divided into a gross interim dividend of 0.68 € per share paid on 10 January 2005 and a complementary dividend to be paid in the month of July 2005.

The dividend paid on fiscal year 2004 profits represents an increase of 27.5% over the year before an a payout of 48.8% of the net profits earned after deducting extraordinary results and taxes.

Stock market capitalisation Volume traded Dividend per share Millions of euros Average daily shareholders Euros

1.36 4,626 451,828 1.07 3,818 339,924 332,062 294,515 2,792 2,794 27.1% 2,426 32.9% -26.5% 21.1% 0.52 0.55 193,793 0.47 94.5% 36.6% 0.07% -34.1% 75.4% 5.7% 15.0% 10.6% 14 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Treasury stock Grupo FCC en cifras

There were no operations with treasury stock in 2004. Consequently, the number of treasury stock shares continued to be 750,420, equivalent to 0.57% of the company’s stock.

Shareholders

FCC, S.A.’s shares use the book entry system and are listed on the four Spanish stock exchanges.

According to the information filed with the Spanish Stock Exchange Commission, the company’s most relevant shareholders are as follows:

Name Number of shares Percentage B 1998, S.L. 59,871,719 45.855% Acciona, S.A. 19,657,500 15.055% Azate, S.L. 8,654,013 6.628%

As of 31 December 2004, the Board of Directors possessed, directly or indirectly, a total of 68,605,842 shares, which represents 52.54% of the total. Of those, 68,525,732 shares are held by B 1998, .S.L. and its wholly-owned subsidiary, Azate, S.L. and the rest by different board members, none of whom possesses individually more than 0.06% of the shares in circulation.

Share dividend yield FCC share quotations: hight, low and at year’s closing Calculated using the quotation at the close Euros of the fiscal year 40 3.83% 35.52 3.65% 35 29.77 30 29.00 35.43 24.75 25.88 2.57% 25 27.28 2.32% 29.40 2.23% 21.40 20 23.25 20.85 20.20 18.70 18.71 15 15.05 10

5

0 15 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Brief history of financial figures

ASSETS 2004 2003 2002 2001 2000

Millions of euros Due from shareholders for uncalled capital – – – – 1 Fixed and other noncurrent assets 3,192 2,977 2,874 2,488 2,236 Intangible assets 585 585 598 410 313 Tangible fixed assets 1,869 1,731 1,596 1,415 1,266 Financial instruments 715 639 661 625 617 Parent company shares 11 11 3 25 24 Start-up expenses 12 11 16 13 16 Goodwill in consolidation 185 191 255 368 421 Deferred charges 35 39 42 34 18 Current assets 4,219 3,833 3,630 3,254 2,913 Stocks 372 429 429 356 325 Accounts receivable 2,960 2,705 2,481 2,106 1,915 Temporary financial investments 612 391 427 466 402 Short-term parent company shares – – – – 2 Cash 256 293 276 307 252 Prepayments 19 15 17 19 17 TOTAL ASSETS 7,631 7,040 6,801 6,144 5,589

LIABILITIES 2004 2003 2002 2001 2000

Millions of euros Shareholders' equity 2,040 1,846 1,646 1,291 1,202 Share capital 131 131 131 120 120 Issue premium 242 242 242 130 130 Reserves 440 429 384 393 358 Consolidation reserves 999 846 695 434 401 Gains/(losses) on conversion (72) (63) (40) 7 7 Income for the year 388 309 273 241 216 Interim dividend (88) (48) (39) (34) (30) Minority interests 412 388 392 624 574 Negative consolidation differences 36 36 37 37 37 Deferred revenues 58 47 46 41 40 Provisions for contingencies and expenses 314 238 238 245 282 Long-term debt 607 749 757 774 762 Issues of bonds and other negotiable securities 43 46 – – – Payable to financial institutions 326 445 464 581 572 Other payables 196 232 286 189 178 Share disbursements outstanding 42 26 7 4 12 Current liabilities 4,164 3,736 3,685 3,132 2,692 Payable to financial institutions 629 590 770 480 347 Payable to Group and associated companies 38 13 20 28 30 Trade accounts payable 2,600 2,379 2,183 1,848 1,604 Other non-trade payables 798 667 601 637 578 Operating provisions 96 86 110 138 132 Accruals 3 1 1 1 1

16 TOTAL LIABILITIES 7,631 7,040 6,801 6,144 5,589 –P =P – =P + TTMN FICM 04%20 02%20 00% 2000 % 2001 % 2002 % 2003 % 2004 Millions ofeuros STATEMENT OFINCOME Date according to GeneralChartofAccounts rules. = =O + – – – + = – – =G – – =T – + Otherincomeandfixed + oprt noetx19 . 16 . 18 . 10 . 10 3.1 140 2.9 150 2.3 128 2.1 126 2.5 159 Corporate incometax xrodnr noe(os 3 . (5 04 1)(.)3 07 5 1.2 55 0.7 36 (0.2) (14) (0.4) (25) 0.5 33 Extraordinary income/(loss) e rft(os fprn opn 8 62 0 51 7 50 4 47 1 4.8 216 4.7 0.8 241 37 1.4 5.0 2.3 273 61 0.5 103 5.1 28 0.9 1.0 39 309 1.8 0.7 0.0 37 50 4.2 2 9.7 0.4 95 0.8 42 6.2 0.1 66 6 20 1.1 189 434 388 1.1 761.2 1.9 0.1 3 0.1 59 9.2 4.1 5 0.3 107 0.1 4 476 19 210 80.1 Net profit/(loss) ofparent company 1.1 1.7 (0.3) 9.1 4.3 65 105 0.3 0.3 (12) 498 234 28.4 20 18 1.4 1.0 1,269 8.6 (0.5) 2.4 4.4 87 66 519 26.8 0.2 (27) 269 106 1,386 9 8.6 26.8 (0.1) 4.6 2.1 60.2 543 1,475 (6) 287 2,690 111 0.3 holdings 26.9 62.3 1,626 Income from equity-accounted 16 100.0 2.9 (0.1) Goodwill amortisation 3,221 27.3 4,468 (8) provisions 161 62.7 1,715 0.3 100.0 Change infinancialinvestment 3,448 5,173 Financial expenses 21 2.4 0.3 Financial income 100.0 62.4 145 5,497 3,773 Net operatingincome 21 100.0 61.0 6,050 2.2 Change inworkingcapitalprovisions 3,835 and sinkingfund 100.0 136 6,286 Depreciation offixedassets Personnel costs Supplies andotherexpenses work inprogress Change instocks,finishedgoods, asset improvement Net revenues tlpouto au ,0 118 ,0 125 ,6 130 ,1 127 ,8 102.6 4,586 102.7 5,311 103.0 5,664 102.5 6,203 101.8 6,401 otal production value r r r r r ft(os fmnrt neet 6 . 6 10 4 . 7 15 1 2.0 91 1.5 79 1.0 54 1.0 61 0.9 56 ofit/(loss) ofminorityinterests ft(os fe ae 4 71 7 61 2 60 2 62 0 6.9 307 6.2 320 6.0 327 6.1 370 7.1 444 ofit/(loss) aftertaxes ft(os eoetxs63 . 46 . 45 . 40 . 47 10.0 447 9.1 470 8.3 455 8.2 496 9.6 603 ofit/(loss) before taxes s prtn noe81 35 0 1. 71 35 0 1. 67 14.0 627 13.6 704 13.5 741 13.3 804 13.5 851 oss operatingincome iayicm/ls)50 . 51 . 49 . 44 . 32 8.8 392 8.4 434 8.5 469 8.6 521 9.1 570 dinary income/(loss) 17 The FCC Group in Figures

The FCC Group’s areas of activities

Services

The FCC Group, which has been active in the services area since 1911, operates in numerous European, African and American countries. In Spain it operates through the companies Fomento de Construcciones y Contratas, S.A., FCC Medio Ambiente, S.A., Aqualia, S.A., FCC Versia, S.A. and under the Ámbito name, while in Latin America the city sanitation business (street cleaning, trash collection and treatment of solid urban waste) and water management business are handled by Proactiva Medio Ambiente, S.A., a company which is owned equally by FCC and Veolia Environnement, S.A.

At the end of the fiscal year, its services backlog totalled 12,043 million euros, 5% higher Services than the same date the year before.

Turnover Gross operating profit (Ebitda) Millions of euros Millions of euros 2,334 377 2,090 336 1,921 2,003 312 292 1,731 258

12.2% 11.6% 7.6% 4.3% 4.3% 6.8% 11.0% 13.1%

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

Solid waste treatment plant in Zabalgarbi. Vizcaya 21 City sanitation

Analysis of the sector FCC’s activity

Last year, 333 contracts were put Turnover out to bid for the collection and 1,251.6 million euros. treatment of solid urban waste, street cleaning and sewer system The FCC Group is the leader in Spain maintenance, which represents a very and one of the largest operators in considerable increase over the year Latin America in city sanitation, which before (217). This increase was due includes collection of solid urban waste, to the fact that 2003 was an election street cleaning, treatment and/or year, in which the number of contracts elimination of waste, sewer cleaning, put out to bid by municipalities park and garden maintenance, traditionally decreases. The total cleaning of public buildings and other annual consignment in connection complementary services. with these tenders was 470 million euros, which represents more than At this time, companies of the FCC double the annual consignment Group provide city sanitation services for the year before. in 2,619 municipalities in Spain with a combined population of more than The activity in the subsectors of 22 million inhabitants. It is also a building cleaning and maintenance company of references in the UK, and the maintenance and conservation Portugal, Argentina, Venezuela, Mexico, of parks and gardens, where bids Colombia, Chile, Brazil and Egypt. were submitted on contracts valued Altogether, FCC provides services for at 437 million euros annually, was over 44 million inhabitants residing in also much higher than the year before some 3,500 cities and towns. (245), with 429 contracts put out to tender, well above the previous In 2004, in Spain alone the Group year’s figure (367). won 134 new contracts and renewed Street cleaning service 267 existing ones. In all, these contract in Reus. Tarragona The forecasts for 2005 are similar to awards and renewals were valued at last year’s. 982 million euros.

Beach cleaning in Palma de Mallorca

Street cleaning at the recinto Ferial Juan Carlos I. Madrid San Sebastián. The service includes cleaning of the municipal sewer system, minor repairs, video inspection and serving private citizens. Number of inhabitants: 182,644. Network in kilometres: 602.

Granada. 20-year contract to handle debris removal from construction sites. In order to treat the 877,000 of debris generated each year, the Group will build and operate seven plants and City garbage collection in Baruta, Caracas. Venezuela 33 dumps.

The most significant contract awards Bilbao. Two-year contract to clean Gran Canaria. Four-year public were: and maintain the sewer system. The service contract for comprehensive Services city of Bilbao has a population of waste management at the Salto del Albacete. Eight-year contract to 400,000 inhabitants. In connection Negro environmental complex. 80% maintain and conserve parks and with this contract, the Group will use of the island’s waste will be treated gardens. a geographic information system using at this environmental complex which a network behaviour mathematical serves 633,080 inhabitants. Badalona (Barcelona). Public service model. The network is approximately concession to clean the city’s sewer 633 kilometres long. Las Palmas de Gran Canaria. system for eight years. The city has Eight-year contract to provide a population of 214,874. Caracas (Venezuela). Concession for residential solid urban waste collection the provision of city sanitation services services in different areas of the city. Barcelona. Eight-year contract to in the municipality of Bolivariano The trash is collected from containers inspect and clean the city’s sewer Libertador in the capital area. The using side-loading lorries and system and to clean and maintain the contractual term is 10 years but may rear-loading mechanisms for commercial coastline. The city has a population be extended for 5 more. The area in establishments. of 1,582,738. The total length of the question has 686,756 inhabitants who system is 1,508,434.74 ml. As a technical produce 297,000 Tm of trash each year. Madrid. Eight-year street cleaning innovation, the Group will use vehicles contract for new neighbourhoods which operate on compressed natural Derby Dales (United Kingdom). (Carabanchel extension and gas. Street cleaning and park maintenance Montecarmelo). Serving a population in this city of 69,500 inhabitants. of 60,664 inhabitants, a total of Four-year contract renewal. 6,124,592 m2 of street will be cleaned.

Geographic area

Contracts in Spain Contracts abroad

Andalucía 10% País Vasco 9% Venezuela 17% Argentina 11% Comunidad Valenciana 13% Colombia 9% Madrid 20% Aragón 6% Great Britain 41% Mexico 8% Chile 4% Cataluña 22% Rest 20% Others 1% Brazil 4%

23 Portugal 2% Egypt 3% Madrid. Cleaning of the Juan Carlos I Mancomunidad de la Comarca de Montcada I Reixac (Barcelona). Fairgrounds and the events and Pamplona. Seven-year contract for Selective collection and removal of activities organised by the Madrid the collection and transportation of solid urban waste and street cleaning Trade Fair Institution. This is a two-year solid urban waste. The community is services. The main innovation here is contract. The size of the area in question composed of 45 municipalities, with that the containers for the five different is 972,485 m2. a total population of 313,000 people. types of waste (waste, organic matter, glass, paper and containers) will be Mallorca. Two-year contract for Mancomunitat Intermunicipal buried in 106 different locations with the deployment of boats to provide Penedès- Garraf (Barcelona). five containers each. The term of the prevention and cleaning services of Five-year contract for the collection contract is eight years. beaches on the Island of Mallorca. and removal of solid urban waste. The total population is 150,000. Telford&Wrekin (United Kingdom). Recycling. A population of 80,000 Mancomunidad de San Marcos inhabitants will be service and more than (Guipúzcoa). Five-year public service 5,000 tm of recyclable waste will be contract for the collection of waste collected. Contract awarded for seven generated by the users of industrial years. estates, technological parks, and businesses located in the Community Terraquente, Terrafria and Douro (municipalities of Astigarraga, Hernani, Superior (Portugal). Selective collection Lasarte-Oria, Lezo, Oiartzu, Pasajes, at voluntary deposit points, clean points Rentería, San Sebastián, Urnieta y and triage. A total population of Usúrbil). A total of 265,046 will be 170,000 inhabitants will be served during served and a total of 9,500 Tm of waste the seven year term of the contract. will be treated annually. Torrejón de Ardoz (Madrid). Five-year Mancomunidad de San Marcos public service contract for street cleaning (Guipúzcoa). Five-year for street cleaning and solid urban waste collection. and waste collection and removal services for Irún and Hondarribia. Valladolid. Four-year contract for the A total of 43,571 tons of waste will be selective collection of paper and treated annually. cardboard. A total of 6,500 Tm/year will be collected. Mirandela (Portugal). Construction and operation of a lixiviate treatment plant Zaragoza. One-year contract to provide which will treat 10,000 m3 of lixiviates conservation and maintenance services annually. The term of the contract is for parks and gardens. The total surface Park and garden cleaning 2 and maintenance in 13 years. area involved is 3,211,982 m . Las Palmas de Gran Canaria

Breakdown by service type Breakdown by client type

Contracts in Spain Contracts in Spain

Other 20% City Halls 87% Private 6% Street cleaning 36% Collection, treatment Communities and elimination 44% autonomous 2% Other public bodies 5%

24 Technological innovation

New natural gas engine 6.50 m3 wide vehicle reduced to 1.80 metres In keeping with FCC’s commitment to use alternative energies in city The use of these natural gas engines sanitation services, the Group has made entails defining and building on an important technological stride with vehicles of an exceptional width the incorporation of a new natural gas (1.8 and 2 metres) all of the transmission engine. elements, gas infrastructure, tanks, etc., all of which must necessarily offer Up to now, FCC had only a 260 CV the same features as a diesel engine. natural gas engine for heavy vehicles Services and a 115 CV for complementary A great deal of research went into the services. In the intermediate power design of these reduced size vehicles range, i.e., vehicles from 6 to 19 Tm, to ensure the same autonomy as a there were no lorries with natural gas diesel vehicle. By installing special tanks engines. With the development of of compressed gas with very small this engine, it is now possible to devise widths and lengths on chassis structure special collection and by extension it was possible to maintain the street cleaning industries with this fuel exceptional manoeuvrability conditions with very low contaminating emission of these vehicles designed and built levels. exclusively for FCC.

The new 200 CV engine can be fitted By way of example and as a basic to 12 and 18 Tm chassis and used reference to the emission levels attained, to perform all trash collection, street the reduction of emission levels exceed cleaning and even sewer cleaning EEC requirements by between 82% and services using natural gas powered 98%. vehicle.

Natural gas-powered city garbage trucks

25 The reduced size vehicle, which is The new body was designed for a 1.8 wide, makes it possible for this vehicle that runs on natural gas. In gas-powered vehicle to get into the other words, the structure was designed very tight spots which are commonly in such a way as to accommodate found in the centres of Spanish cities. four tanks of compressed gas This vehicle, which is about as wide as compatible with the vehicle's width many private cars, loads and compacts and with the mechanism for lifting almost 4 tm of trash, which is the containers. equivalent of collecting the waste generated by almost 4,000 residents 11 m3 wide vehicle reduced to 2 m on each trip. The width of the other newly designed The volume of the body is 6.50 cubic vehicle has also been reduced (2 m) metres and the chassis is conceived and is equipped with the same 200 CV and approved for a maximum weight natural gas engine. of 12 Tm. This vehicle has a body of 11 m3 and The vehicle transfers its load quickly is approved for a maximum weight of and cleanly, enabling it to service some 18 Tm. Is compacting capacity is very 15,000 in a single days by saving on high and it reaches densities of more the time that would be used to go back than 700 kg/m3, i.e., almost 40% more and forth to the dump. than conventional vehicles, which means that on each trip it can collect the This vehicle has a new body, also waste of almost 8,000 inhabitants. designed by FCC, to obtain the highest chassis performance and improve those FCC has more than 100 units in service, which were put into service five years some of which are being used for ago on a diesel chassis. The degree contracts in South America. It is used of compacting is 600 kg/m3, which on routes that are difficult to access and represents a 20% increase over the manoeuvre in: not only historical city previous version and allows the final size centres but also on narrow streets where of the equipment to be reduced even it is difficult for traditional garbage trucks further. to get through.

Drive axies

26 Its versatility, manoeuvrability, treatment technologies that meet the performance and loading capacity make legal requirements and prolong the it very competitive and facilitate route useful life of existing controlled dumps. planning by reducing manoeuvring times and generally lowering the cost Within this context, FCC has developed of providing the service. a new SUW treatment technology which stabilises the organic fraction of The vehicle has the same autonomy SUW biologically, significantly lowering as a diesel engine vehicle, with six the humidity level and thus reducing bottles of compressed natural gas the volume of waste sent to controlled located on both sides of the chassis, dumps. with a total capacity of almost 500 litres.

Stabilisation of the biodegradable fraction of solid urban waste

The legal framework relative to the

elimination of solid urban waste (SUW) Services at controlled dumps defines the following objectives: Before 16 July 2006, the total amount (in weight) of biodegradable urban waste sent to dumps will not exceed 75% of the total biodegradable urban waste generated in 1995. By 16 July 2009, the percentage will be 50% and by 16 July 2016 the percentage will be 35%.

Furthermore, the lack of space and social response have made it increasingly difficult to open new controlled dumps. As a result, waste manager must implement new

Solid urban waste treatment process developed by FCC

Indiscrimate waste Biodrying Dry product Metals units 70% 2% 100%

Dump 68%

Evaporation loss 30%

Treatment Atmosphere 27 Water management

Analysis of the sector FCC’s activity

The full-service water management Turnover sector is maturing, but still generates 460.8 million euros. a great deal of demand, as demonstrated by the number of Aqualia, gestión integral del agua, S.A. contracts put out bid each year and is the umbrella company of the which account for a significant portion Group under which all of the partially of the backlog of contracts. This owned companies operating in this tendency is expected to be maintained sector in Spain are grouped. Turnover or to improve in fiscal year 2005. increased by 8% over 2003. Growth was notable, following the prevailing trend Of the different areas in the water of recent years, despite the fact that management sector, the most the water management market is intensive development will take becoming highly concentrated in Spain. place in the fields of desalination, water treatment and water recycling, The Company’s portfolio of clients as which will bring with it a period of of December 2004 was valued at numerous tenders that will entail 5,155 million euros, serving a population investments in and the operation of more than 7.5 million residents in of large hydraulic infrastructures. 735 communities. Also in the industrial sector, greater awareness and legal requirements During the last fiscal year, Aqualia won combined with improvements to contract awards valued at 440.9 million industrial production processes make euros and contract renewals valued at this sector a very interesting growth 166.7 million. option. In 2004 the company developed Drinking water and sanitation in Alcalá de Henares. Madrid and implemented Aqualia Contact, a nation-wide Customer Care Centre (CCC) which required a considerable investment in technology and resources. This constitutes a considerable advance Aqualia Contact offices, in its activities which, in addition to its Customer Service Centre policy of ongoing improvement to processes, positions the company as a leader in its sector thanks to the quality of its customer service.

In its efforts to grow, Aqualia continued with its diversification process and with the incorporation of the company Servicios y Procesos Ambientales, S.A., which was transferred from FCC Construcción, S.A. to Aqualia, thereby placing it in a privileged position in the design, construction and operation of water treatment and processing plants and in the field of desalination. It has also entered the industrial water market with the acquisition of numerous specialised companies which enable Treatment Irrigation it to offer solutions, equipment and maintenance of specific industrial Arahal (Sevilla): Maintenance of Sociedad Estatal de Infraestructuras installations. wastewater treatment plant: 20 years. Agrarias: Modernisation of the Guadalajara: Maintenance of wastewater installations of the Community of The most important contracts awarded treatment plant: two years. Irrigators of las Vegas Alta y Media in 2004 were: Medina del Campo (Valladolid): del Segura. Maintenance of wastewater treatment Sociedad Estatal de Infraestructuras Water management plant: 10 years. Agrarias: Construction Alboraya (Valencia): Maintenance of of the irrigation installations of the Adra (Almería): Distribution of wastewater treatment plant: 2.5 years. Community of Irrigators of the left drinking water and sewers: 25 years. bank of the Segura. Alboraya (Valencia): Distribution of drinking water and sewers: 25 years. Alcalá de Henares, Madrid: Distribution of drinking water and sewers: 25 years.

Calasparra (Murcia): Distribution of Services drinking water and sewers: 20 years. Chipiona (Cádiz): Distribution of drinking water and sewers: 25 years. La Solana (Ciudad Real): Comprehensive management: 35 years. Moaña (Pontevedra): Distribution of drinking water and wastewater treatment: 25 years.

Desalination

Sant Antoni de Portmany (Balearic Islands) : Maintenance and conservation of desalination plant: two years. Santa Eulalia des Rius (Balearic Islands): Maintenance and conservation of desalination plant: 15 years. Wyeth treatment plant, San Sebastián de los Reyes. Madrid

Geographic area Breakdown Breakdown by service type by client type

Contracts in Spain Contracts in Spain Contracts in Spain

Murcia 6% Castilla y León 6% Andalucía 34% Asturias 8% Rest 7% City Halls 63% Private 19%

Extremadura 9% Galicia 10%

Other public Cataluña 16% Castilla-La Mancha 11% Supply 80% Treatment 13% Autonomous communities 3% bodies 15% 29 Industrial waste

Turnover Industrial waste services always include 107 million euros. collection, transport, recycling, energy recovery and treatment. The Group's activities in this sector are related to the treatment of the In 2004, FCC continued to grow and waste generated by basic industry expand in this sector, recording a (primary sector), the transformation 28.7% increase in its turnover compared industry (secondary sector) and the to the year before. consumer industry (tertiary sector). It works with both private clients Ámbito, the brand under which all and public administrations managing of the industrial waste management the following types of waste: activities of the FCC Group are carried hazardous, non-hazardous, treatment out, has all of the installations needed of contaminated soil and industrial for the treatment of this industrial clean-up. waste including transfer plants, inertization centres, energy recovery centres and waste depots, constituting the largest network of installations in this sector in Spain. 910,000 Tm of industrial waste were handled last year, Industrial waste treatment plant in Valdebebas. Madrid which represents a 26% increase over the year before.

FCC also treated a total of 420,000 m3 of contaminated soil last year. Some of the most notable projects in this field included:

• San Juan de Aznalfarache (Sevilla): 60.000 m3.

• Cartagena (Murcia): 150,000 m3.

Industrial dump, Bisbieta. Bilbao

30 Services

Industrial waste treatment plant in Constatí. Tarragona Other points of interest in fiscal 2004 • Sigfito: Collection and treatment of included: contaminated containers in various Autonomous Communities. • Alfus: Industrial cleaning in Bedia (Vizcaya). • Cemex: 8-year contract for the supply of alternative fuel for its factory in • Tedes: Hazardous waste treatment Buñol (Valencia). plant in Astillero (Cantabria).

Geographic area Breakdown Breakdown by service type by client type

Contracts in Spain Contracts in Spain Contracts in Spain

Aragón 4% Rest 2% Hazardous waste 68% Innocuous waste 15% Private 95% City Halls 2% Comunidad Cataluña 35% Valenciana 6% Andalucía 11% Industrial Madrid 14% cleanups 12%

Other public País Vasco 28% Other 5% bodies 3% 31 Versia

FCC Versia, S.A. operates in the following activities: handling, logistics, urban furniture, conservation and systems, parking, technical vehicle inspections and transportation.

Its turnover in 2004 was 514.5 million euros with an increase of 35% compared to the year before. Part of this growth was due to changes in its consolidation perimeter, without which its sales would have increased by 10.4%.

Its gross operating profit was 91.8 million euros with a sales margin of 17.8%.

Airport handling

Turnover in Valencia. In addition to Valencia, it 152 million euros. has bases of operation in Barcelona, Bilbao, Brussels, Lanzarote and Madrid. Flightcare, S.L. is the group company that specialises in airport ramp, After renewing its operating licence in passenger and cargo handling. In Spain, the month of March for the next seven it renders passenger and ramp handling years, Flightcare, S.L. is the undisputed services at the Barcelona, Bilbao, handling leader at the Brussels airport Fuerteventura, Lanzarote, Las Palmas, through its subsidiary BGS. This contract Málaga, Santiago de Compostela, is valued at an estimated 700 million Seville and Valencia airports. euros.

Throughout the fiscal year it continued It was also awarded a contract to provide to developed its cargo handling activity ramp, passenger and cargo handling with the commencement of operations services as the second operator at the Ostende-Brujas airport. Handling services at the airport in Brussels. Belgium During the fiscal year the company provided services to more than 120 airline companies, served 38 million passengers, 175,000 flights and handled more than 205,000 tons of cargo. Logistics

Turnover 109 million euros.

The FCC Group provides logistics services in Spain and Portugal to companies in diverse sectors such as the auto industry, the household item-perfume industry, cosmetics, personal care items, home appliances, pharmaceuticals, and the optical and technological industries. To do so, it has multiple operating centres Services from which it manages the supply chain.

A particularly relevant event was the acquisition of the Grupo Logístico Santos at the beginning of 2005. With this acquisition, the FCC Group is the leader Aitena, S.A. continued the process of Alovera logistics centre. Guadalajara in Spain in operations on the free market expanding, renovating and improving with an estimated turnover for fiscal year its infrastructures. A new logistics 2005 in excess of 300 million euros. platform was implemented in Valladolid (to replace the old one) and the Also in 2004 a corporate reorganisation platforms in Tenerife and Gran Canaria process took place with the merger were enlarged. It will soon inaugurate of the Aitena and Loacsa subsidiaries. a new 30,000 m2 warehouse in Alovera As a result, the automobile sector is now (Guadalajara) for the home appliances serviced by Logística Navarra, S.A. while sector, which will enable it to ratify its • Ufesa: crossdocking distribution the rest of the logistics activity is handled leadership in this segment on the Iberian operations. by Aitena, S.A. Peninsula. • Nivea: factory pickup and distribution to Madrid and Sevilla in crossdocking. The following are noteworthy among The new facilities at the Alovera location • Famosa: storage, order preparation the activities of Logística Navarra in 2004: dedicated to the pharmaceuticals and distribution from warehouses in sectors were inaugurated, with a Madrid and Lisbon. • Start-up of new centres dedicated surface area of 12,000 m2 expandable • Seb Group: storage, order preparation to Nissan Motor Ibérica for its factories to 30,000 m2. These facilities are and distribution from warehouses in in Zona Franca and Montcada in equipped with special temperature Madrid and Lisbon. Barcelona. and humidity controls, refrigeration • Pfizer: storage, order preparation • New contract with General Motors chambers, and special high security and distribution from warehouses in España for the supply of materials and surveillance systems. Aitena was Alovera and Lisbon. and extraction of finished products authorised as a “Marketing laboratory • Sanofi-Aventis: exclusive logistics from the chassis building at the factory and partial drug manufacturer”, provider in Portugal for storage, in Figueruelas (Zaragoza). further establishing itself as the leading order preparation and distribution. • Four-year extension of the contract logistics operator for the pharmaceutical • United Biscuits: storage, order of the Portuguese subsidiary LNP sector in Spain and Portugal. preparation and distribution in Portugal Logística, Lda with General Motors from warehouse in Lisbon. Portugal, after the Portuguese factory In 2004, Aitena reached a historical received an excellent evaluation record in terms of contracts awarded, of its materials management system reaching agreements with the according to General Motor standards. following companies, among others:

33 Urban furniture and advertising

Turnover On the domestic market, the most 81 million euros. important contract awards were:

Cemusa Corporación Europea de • Vitoria: urban furniture tender (bus Mobiliario Urbano, S.A. (Cemusa), stop hoardings, posts, informational is the Group company that stands at supports and time-temperature the centre of the design, manufacture, supports, among others). With this installation and maintenance (with or contract award, Cemusa has intensified without advertising operation services) its presence in the Basque Country, of the widest range of site furniture providing a balanced commercial and outdoor advertising structures, offering which includes the cities of such as hoardings at bus stops, Bilbao, Basauri and Leoia in Vizcaya information panels and columns, and San Sebastián and Hondarribia in bookstalls, time-and-temperature Guipúzcoa. pillars, automatic lavatories, selective refuse collection bins, electronic • Madrid: contract to install panels, super-size panels and indoor 400 clock-thermometers at the city's information pillars. bus stops. This constitutes the incorporation of a new public utility, It has over 104,000 items and advertising in addition to the traditional ones structures installed in over 120 cities in of protection and communication, 11 countries of Europe and America. or other more recent ones such as the installation of battery recycling containers.

• Príncipe Pío Shopping Centre (Madrid): informational posts. With this contract, Cemusa operates the advertising supports for seven shopping centres in Madrid and 18 in Spain, thus enabling it to offer networks for very specialised clients operating in this area.

Time-temperature hoardings and battery recycling container in Madrid On the international front, Cemusa • San Antonio (US): contract award won the following contract awards: for the installation, maintenance and operation of advertising supports at • Boston (USA): tender award for bus the "Rivercenter” shopping centre, stop hoardings in the city of Boston the most prominent shopping centre (Massachusetts) and different parts in the city of San Antonio (Texas). of the greater metropolitan area such as Cambridge, Harvard University • Lisbon (Portugal): contract to replace and others. This city of 3,400,000 the stationary advertising panels with inhabitants, the fifth largest advertising rotating panels in the city of Lisbon. market in the US, is added to the This will enable Cemusa to consolidate Services contracts already secured in Miami its presence in the neighbouring (Florida) and San Antonio (Texas) as country’s capital and notably improve part of Cemusa’s efforts to expand its commercial offering. in North America.

Solar hoardings in Miami. USA

Bus stop in the city of Boston, Massachusetts. USA 35 Conservation and systems

Turnover Most important projects 51 million euros. •Traffic management on the Ruta Conservación y Sistemas, S.A. is a de Pantanos, M-501 and M-511, company dedicated to the maintenance in Madrid. of urban infrastructures and the • Safety and control systems in the development and operation of traffic Brañaviella-Niévares tunnels (Asturias) management systems. Notable events • Urban development and improvement in 2004: work on several streets and roads for the city governments of Madrid, Alcobendas, Boadilla del Monte, Móstoles and San Lorenzo de El Escorial. • Renovation and betterment of the water system for Canal Isabel II in Madrid. • Civil work for Iberdrola and Unión Fenosa.

Most significant contract awards

• Operation of shadow toll system and Perdón tunnel on the Camino dual carriageway (Pamplona-Logroño) in Navarra. • Safety and control system in the Cuatro Caminos tunnel in Madrid. • Control equipment for the Machico-Caniçal dual carriageway in Madeira (Portugal). •Traffic management on various motorways in Madrid: M-100, M-110, M-111 and A-10. • Conservation and maintenance of hydraulic infrastructures for irrigation Traffic control networks in several districts for the centre. Madrid City of Madrid.

36 Streetcars inBarcelona T City passengertransport, errassa. Barcelona Passenger transport of these,onethetwolineswhich and SantMartíwithBesòs.Inthelatter avenida DiagonalwithBaixLlobregat of AprilandMay. The systemlinks became operationalinthemonths The newstreetcar systeminBarcelona de ServiciosFerroviarios, S.L). and train(Detren CompañíaGeneral de Transporte, S.A.CTSA)andbytram transport bybus(CorporaciónEspañola to in-cityandintercity passenger of Veolia Environnement, isdedicated FCC Group, andbyConnex,asubsidiary de Transportes, S.A.,acompanyofthe shares byCgtCorporaciónGeneral company whichisownedinequal FCC-Connex Corporación,S.L.,a 25 millioneuros. T urnover kilometres. passengers andtravelledsome27million year transportedmore than45million The fleetconsistsof340buses,whichlast and Churriana. de laTorre, AlhaurínelGrande,Cártama Alhaurín Mijas, RincóndelaVictoria, communities ofMálaga,Benalmádena, 49 vehiclesrunningbetweenthe The integrationaffects the20linesand its lines,vehiclesandinformationsystems. Consortium afteraprocess ofadapting Metropolitan Area Transportation has becomeamemberoftheMálaga on theCostadelSol,company CTSA operatesitstransportationservices Portillo, thetradenumberunderwhich development objectivesofAutomóviles Furthermore, inkeepingwiththe business of 60,000. Real deTras osMontes, withapopulation services inthePortuguesecityofVila started toprovide urban transportation this sectorinPortugal,CTSAlastyear In thecompany’s firstexperiencein of 31kilometres andhave37trams. The twonetworkscombinedcoveranarea forecasts forthefirstmonthsofoperation. transported, slightlyexceedingthe than 7,600,000passengershadbeen As oftheendyear, more underground segmentundertheGranVía. Badalona linewhichincludesan operation andworkcontinuesonthe serviced theForumofCultures isin 37 Services Technical vehicle inspection

Turnover of stations operated by the FCC Group 37.4 million euros. in the community of the Canary Islands to a total of 10. In 2004, more than 1,900,000 inspections were carried out at the 52 vehicle Work commenced this year on the inspection stations operated by the construction of a new station in Liria companies of the FCC Group in Spain (Valencia) and negotiations are underway and Argentina. In both countries, the for the construction of four more in the number of inspections performed rose Community of Aragón which will bring in comparison to 2003. the number of stations in operation to a total of 57. A notable event in this area was the inauguration of a station in Las Palmas de Gran Canaria, bringing the number

Auto inspection stations

38 • • • Regulated on-street parking were: The newcontractsawarded in2004 vehicles in30cities. r 90 cities.Thesecompaniesalsoprovide parking garageslocatedinmore than and 12,000spacesinunderground on-street regulated parkingspaces Group manageapproximately 110,000 The specialisedcompaniesofthe 59 millioneuros. T • • Parking facilities emoval servicesforillegallyparked urnover (2 Expansion oftheLaGuindalera space foraten-yearperiod. V parking spaceforafive-yearperiod. San Sebastián Gros-Atotxa neighbourhoodin contract. Tárrega period. 1,105 parkingspacesforaneight-year Medina delCampo for aten-yearperiod. in Madrid:12,305parkingspaces and NuevaEspañaneighbourhoods ila-seca nd phase), El Viso, Hispanoamérica, phase), ElViso, (Lleida); 322spaces,30-year (Tarragona): 722parking (Guipúzcoa): 2,300 (Valladolid): signed inSpain. This isthefirstcontractofitskind applications developedbyFCC. maintenance ofthecomputer It alsoincludesthesupplyand r of 790portableunitsforelectronically includes thesupplyandmaintenance of Madridforaperiodtwoyears The contractawarded bytheCity of traffic violations Electronic recording andissuing • • • V • • • underground parkingfacilities Construction andoperationof ecording andissuingtraffic violations. ehicle Towing andDepot contract. Almuñecar four-year contract. Pozuelo deAlarcón Burgos for a30-yearperiod. Tárrega for aseven-yearperiod. de Murcia Hospital GeneralUniversitario spaces fora25-yearperiod. Fundación LleidaBasket : two-yearcontract. (Lleida): 191parkingspaces : 1,019parkingspaces (Granada); two-year (Madrid); : 210parking 39 Services

Construction

Analysis of the sector

In 2004 the sector grew by 4%, which represents a 1.4% increase over the evolution of the Gross Domestic Product (GDP). The principal reasons behind this evolution can be found in the considerable number of new housing starts and the progressive use of extra-budget methods in the provision of infrastructures. Construction

10 Annual construction activity 8.5 8 6.5 variation rates 5.7 5.6 6 5.1 4.6 In constant terms 3.9 4.0 4 2.2 2 1.2

0

-2 -0.7

-4

-6

Source: Seopan -8 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

41 A-381 dual carriageway. Jerez-Los Barrios For the seventh year in a row, all subsectors recorded positive growth:

• Residential construction, which accounted for 33% of the total, grew by 5%, maintaining its position as the most important subsector in the construction segment. There were 675,000 new housing starts, which represents a year-on-year increase of 7%.

• Rehabilitation and building maintenance, which accounts for 25% of the total, grew by 2.5%.

• Civil work represented 24% of the total production for the sector, with a year-on-year increase of 6%, down slightly from the growth recorded in 2003.

• Non-residential construction accounted for 18% of the Group's activity, up by 1%.

The tenders awarded by the public administration were valued at 31,778 million euros, an 18.5% over the year before, which constitutes a considerable acceleration in relation to the figures of 2003, due primarily to the efforts of some Autonomous Communities such as Madrid, the Balearic Islands, Asturias, the Basque Country and La Rioja and some local governments. The contracts referred for the most part to work on ports, subway systems and Madrid’s road network.

Evolution of

public tenders 31,778 Millions of euros 26,236 26,807 22,947 18.5% 18,828 18,994 2.1% 17,042 14.3%

11,090 34.6% 9,667 0.8% -10.2% 7,221 69.7% 14.7% Source: Seopan 33.8% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

At the end of the fiscal year 2,014,000 million people were employed in the construction sector, representing 12% of the Spanish workforce, with a 5.6% increase in the number of Social Security registration.

The forecasts for 2005 call for a similar or slightly higher level of growth than in 2004, with a rise in the sector’s overall production of between 3.5% and 4.5%, in constant terms, continuing the expansion cycle which began in 1997.

42 FCC’s activity

All of the construction activity of the FCC Group is channelled through FCC Construcción, S.A., which also leads the group of companies involved in related activities.

During the fiscal year, new contracts amounting to a total of 3,442.9 million euros were awarded (13.9% more than the year before) resulting at the end of the fiscal year in a construction backlog valued at more than 4,351.2 million euros, an increase of 18.9% over the year before.

Turnover rose by 4.7%, a higher than average increase for the sector overall. Construction Turnover Gross operating profit (Ebitda) Millions of euros Millions of euros 159 3,090 2,950 140 2,613 124 2,396 114 2,055 95 13.5% 4.7% 12.9% 12.9% 9.0% 8.7% 16.6% 20.0%

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

Production by geographic areaProduction by job type Production by client type

Rest of autonomous communities 30% Abroad 4%

Civil work and other Madrid 32% activities 56% Homes 17% Private 38% Public 62% Comunidad Valenciana 7%

Andalucía 12% Cataluña 15% Other constructions 27%

Technological innovation

In order to provide its clients with as much added value as possible, FCC Construcción does not hold back on acquiring the most modern and technologically advance production resources or developing new construction systems.

The company, directly and through its subsidiaries, progressively augments the range of proprietary construction and production elements and systems offered to its clients.

43 Here are some examples:

Underground work

FCC Construcción has made a considerable investment in the acquisition of tunnel-boring machinery for its new contracts.

• The world's largest tunnel-boring machine, with a 15 m excavation diameter, for the by-pass of the M-20 Sur in Madrid, in a joint venture with another company. •Two TBM for rock with 10 m excavation diameters, also in a joint venture with another company, for the Pajares tunnels for the high speed train, with an expected excavation length of 15.3 km. •A tunnel-boring machine measuring 9.40 in diameter, in a joint venture with other companies, for the Barcelona Metro (Line 9). •A tunnel-boring machine measuring 9.40 m in diameter, for the extension of line 3 of the Madrid Metro.

The excavation work for the Guadarrama tunnel on the Madrid-Vallodolid high speed train, awarded to FCC Construcción in a joint venture with other companies, was completed during the fiscal year. The total length of the tunnel was 28.4 kilometres and it was dug at a rate of 36.3 metres per day by two tunnel-boring machines.

Bridges and special structures

In order to increase its ability to execute special work using its own resources, FCC Construcción has created the company BBR Pretensados y Técnicas Especiales (BBR PTE) which is dedicated to operating the BBR prestressed systems licence and developing special construction systems.

It used the first of these systems to build a cement silo at the Cementos Portland Valderrivas factory in Alcalá de Guadaira (Sevilla). The silo measures 20 m in diameter and 64 m high. The inside pillars were installed and the roof raised simultaneously with the walls.

False tunnel on the A-381 dual carriageway

Tunnel-boring machine The second system was used to push a 24 wide 53 long caisson at the Soto de Henares development and 26 wide 26 long for the prolongation of the calle Venisquero de la Condesa in Madrid.

FCC Construcción has started work on the Torre Repsol in Madrid. The tower will stand 250 m above ground level and 270 m above its foundations. For this construction project the company has acquired a fixed 1,400 m/ton tower crane, the largest ever used on a construction site in Spain, and two 340 m/ton cranes.

Hydraulic works

The subsidiary Prefabricados Delta has perfected and commenced the production of a of a polyester pipe reinforced with glass fibre on a production line using a continuous mandrel system. It can manufacture pipes with diameters ranging from 300 mm to 2,600 mm with nominal pressures up to 25 bar.

Research and development

The European Construction Technology Platform was created. This is an initiative Construction with more than 300 participating organisations (industries, universities, research centres, European administrations, etc.) whose objectives are to define the 2030 vision and the Strategic Research Agenda for the Sector through the development of macroprojects with mixed public and private financing.

FCC Construcción is a member of the Board of Directors of this platform and a head up, along with another company, the Underground Construction strategic line and also participates on the Buildings and Cities and Sustainable Construction Committees.

A Spanish platform has also been created, which shares the same objectives as its European counterpart but at the national level. It has more than 150 member organisations of the same type as the members of the European platform. FCC Construcción also plays a leading role on this platform.

Some of the most noteworthy activities in the area of internal I+D+I during the fiscal year included the following:

• Low reflection maritime caissons. The Group worked together with Cedex to design low reflections surfaces for both docks and piers. In view of the excellent results, the papers have been filed to patent the invention, the rights to which are already reserved. • The Logro Project. Work continued on optimising construction debris, in collaboration with the Cataluña Technological Institute and a private construction machinery company. • Shotec. Automation of concrete casting techniques and improvements to mixes for casting concrete. • Concrete with fibres for assembled sections used to clad tunnels.

These projects are partially financed with public funding through the Profit programme sponsored by the Ministry of Industry, Tourism and Trade.

At the European level, work commenced on the two construction projects approved by the European Commission as part of the Sixth Framework Programme.

45 Freeways, highways and roads

This continues to be the most active Santa Ana-Río Segundo arterial road. subsector and that with the highest The motorway is 60 km long and the specific weight lf all construction arterial road is 7.5 km long. The term activities, in terms of both the turnover of the concession is 25 years. it generates and the backlog pending completion. • Corregado junction near the Tajo and Lisbon which links the A-1 and A-10 The most noteworthy contracts awarded motorways. Includes the construction were: of a viaduct with prefabricated beams 1,237 m long and two other viaducts • 36-year contract to build and operate to be built on site, measuring a total the Cartagena-Vera (Murcia-Almería) of 2,506 m. toll road. The project consists of 98 km of motorway between these two cities • Section: Reinante-Ribadeo (Lugo) and a 16 km toll-free ring road around of the A-8 autovía del Cantábrico. Cartagena. This is the first section of this Galician motorway put out to tender. It links • Construction and operation of a toll the Cantabrian coast with the Autovía road through the San José-San Ramón del Noroeste. It is 10.6 km long. corridor in Costa Rica, the most heavily-travelled thoroughfare through • New road at the Despeñaperros port: the Central American country which Venta de Cárdenas-Santa Elena provides access to the San José (Ciudad Real-Jaén) section. The road International Airport and the is 8.9 km long with two lanes for south-north traffic.

Gerena-Camas dual carriageway. Sevilla

Viaduct over the Cantábrico dual carriageway, Unquera-Lamadrid section. Cantabria Viaduct over the Escudo River. Construction Cantábrico dual carriageway

Brañaviella tunnel. Barcelona

• 30-year concession (construction and operation) of an underwater tunnel in Coatzacoalcos in the state of Veracruz (México). It is 2,200 m long. Its central and most unique span is composed of six bicellular reinforced concrete caissons 120 m long, each one of the cells with two lanes.

• Section running between Luko (Álava) and the boundary of the province of Guipúzcoa of the A1 motorway between Vitoria and Eibar. It is a 6.7 km long section of motorway involving the construction of two parallel tunnels, one on each side of the road, each 620 m long, as well as three viaducts, four overpasses and five underpasses.

• Southern by-pass on the M-30 ring Last year the La Algaba-Camas subsection road in Madrid, tunnel between of the La Plata motorway and section Santa María de la Cabeza and the IV between Majaplata and La Palmosa N-III. This 4.2 km tunnel will be built of the A-381 Jerez-Los Barrios motorway with a tunnel-boring machine and which runs through the Los Alcornocales prefabricated segments with an Nature Park was opened to traffic. interior diameter of 15 m and three This project won the prestigious Global lanes in each direction. Road Achievement Award given by the International Road Federation in the • Rehabilitation of 30 km of the environmental protection category. It Cluj a Livada road (Romania) for also received the 2004 Quality Award for the Romanian National Highway the Best Construction Work of the year Administration. in the civil work category.

47 Hydraulic works

The most relevant contract awards were as follows:

• Modernisation of the irrigation systems of the Vegas Alta y Media del Segura (Murcia) Irrigation Community in a joint venture with Aqualia.

•Water supply to Santander. Includes 50 km of steel pipes measuring from 600 to 1,000 mm in diameter and several pump. This will enable the water to be carried from the Ebro reservoir to the Besaya reservoir from which Santander is supplied.

• Channelling of water from Navalcarnero to Campo de Pozos de Batres (Madrid). The section consists of 19.2 km of welded steel pipes, most of which are 800 mm in diameter.

• Modernisation of the irrigation system on the left bank of the Najerilla Canal (La Rioja) which covers an area measuring 9,107 Ha. Includes the construction of three pools with capacities ranging between 150 and 260,000 m3 each, a 250 km irrigation network with pipe diameters between 400 and 1,000 mm, and tertiary or plot pipes in PVC measuring between 160 and 200 mm.

Conditioning the Piles River. Gijón

48 Maritime works

The most noteworthy contracts awarded • First phase of the Azucenas wharf were: for the enlargement of the Port of Motril (Granada). Includes the • New accesses to the Port of Sevilla construction of 9 caissons and (Phase I). The work consists of building 330,000 m3 of dredging. a new 434 m long lock with the capacity to house tugged vessels. The gates of • Enlargement of the southern the lock are 42 m wide, 20.3 m high and esplanade of the commercial wharfs six thick and the distance between the at the Port of Palma de Mallorca. inside faces of the doors is 253 m. Consists of prolonging the current wharf by 188 m using reinforced

• Communication channel linking the concrete caissons and the formation Construction interior dock with the ocean and of 68,000 m2 of esplanade. transversal link at the Port of Valencia. Consists of the construction of a • First phase of the cruise ship wharf communication channel measuring at the Port of Rosario (Fuerteventura). 600 m long, 80 m wide and 7 m deep Consists of the construction of a connecting the interior dock with the 300-metre-long wharf for docking ocean. This is one of the first projects cruise liners, with an area of 100,000 m2. undertaken in preparation for the 2007 America Cup.

Cambulloneros Wharf. Tenerife

Arrecife Port in Lanzarote

Front of the Chapela Port in Redondela. Pontevedra

49 Airports

The most noteworthy contract awards and at the Castellón Airport, which last year were: consists of a 2,700 m long landing strip, passenger terminal, control tower and • Complementary land movement service building. project at the Madrid-Barajas Airport. The new terminal at the Madrid-Barajas • Manoeuvres area at the San Javier Airport, the largest construction project (Murcia) air force base. Basically ever undertaken in Europe, with a consists of building a new 2,000 m constructed area of 500,000 m2, will soon long runway parallel to the existing become operational. one with a taxi strip. The new air traffic control centre in Continuation of work on the New Area Gavá, Barcelona, won the 2004 Quality Terminal (NAT) and the Rail Area 2 at the Award for the Best Work of the Year in Barcelona Airport measuring 417,000 m2 the building category.

Terminal building at Barajas Airport. Madrid

Gavá control centre. Barcelona Railroad infrastructures

The activity in this subsector continues • Connection of the Ortuella station to be lively thanks to the plans to extend and the Port of Bilbao through the the high speed train system between 4.8 km long Serantes Tunnel. This will Madrid and Barcelona, Madrid-Asturias free up the left bank of the Ría de and Madrid-Northeast. Bilbao from the cargo-carrying train traffic travelling to and from the port. The following contracts were awarded for high speed and conventional • Renovation of the Villarreal de railways: Huerva-Cariñena (Zaragoza) section of the railway in the Sagunto-Teruel- • Amoeiro-Carballiño section of the Zaragoza tunnel. Consists of the

Orense-Santiago de Compostela construction of a tunnel which will Construction railroad. Conssits of the construction be clad with prefabricated segments. of a 12.1 km long platform, 3,400 m of which are in the form of a viaduct. • Burial of 1,400 m of the Palma-Inca railway. The railway is buried by • High speed line: Puerto de Santa means of a false tunnel made of María (Cádiz) subsection. Duplication cut-off walls with reinforced concrete of the 11 m of tracks to enable trains slabs. to travel at 220 km/h.

Barcelona streetcar

51 Guadarrama tunnels. Madrid

The following contracts were awarded • 2,8 km long section of the San for metropolitan rail systems: Cristóbal de los Ángeles-Villaverde Alto line. • Garage and depot for the Santa Cruz de Tenerife-La Laguna • Adaptation to regulations and metro for moving stock and offices improved access to stations for for the new line between the two Line 3 of the Barcelona Metro. cities. The work includes improving access for the disabled to 14 stations by • Final section of Line 9 of the installing lifts from ground level, Barcelona Metro. The total length moving toll lines, raised paving for is 3.1 km, of which 2.85 will be built detection by the blind and other using a tunnel-boring machine. general improvements to the facilities.

• Accesses to the rail triangle, • 35-year contract for the construction infrastructures and stations of Line 9 and operation of lines 1 and 2 of of the Barcelona Metro. the Málaga Metro. The length of the lines is 7.2+4.4 Km, with 12+7 •Widening Line 3 platforms at the stations and an estimated initial traffic Puerta del Sol station of the Madrid level of 17 million per year. It is Metro. Consists of extending the expected to become operational length of the station from 60 to 90 m in February 2009. in order to accommodate the larger capacity modern 3,000 series trains. In late December the boring work for Includes a new access to calle the Guadarrama tunnels was completed. Preciados. These tunnels are part of the Soto del Real-Segovia section of the high speed •Prolongation of Line 3 of the Madrid train line. The work consisted of a Metro. Section: Legazpi- San Cristóbal 28.4 km stretch with an interior diameter de los Ángeles. The work consists of 8.5 m. of 5,701 m of underground tracks, five new stations and the adaptation of the Legazpi station, increasing the length and improving the connections with Line 6. 52 Urban development

The most noteworthy contract awards last year were:

• Urbanisation of the Fuente Lucha development in Alcobendas (Madrid). With more than 65 Ha for residential use and 357,000 m2 of developable land, a total of 4,000 homes will be built, 3,000 of which will be subsidised. • Urbanisation of the Vega Baja area in the city of Toledo. More than 40 Ha,

30 on the right bank and 10 on the Construction left bank of the Tajo River, including access roads. Includes one footbridge with a 102 m span and two others with a tilted metallic arch with spans of 14 m. • Urbanisation of the Massanes (Girona) industrial development zone. • Urbanisation of the South Sector in Foios (Valencia). • Parking area for the San Rafael Urbanization of the Costa Teguise hospital in La Coruña. esplanade. Lanzarote

Parque del Oeste. Oviedo

53 Residential

During the past fiscal year, FCC • 216 homes (50 semi-detached homes delivered 5,231 finished homes, a total and 166 flats) for the Dehesa Nova of 810,537 m2 in floor space. development in San Sebastián de los Reyes. Madrid. The contract awards were valued at • 116 homes in Dehesa Vieja de 579 million euros. The most significant San Sebastián de los Reyes. Madrid. contracts awarded during the fiscal • 100 homes in Valdemoro. Madrid. year were for: • 221 semi-detached single-family homes in Las Margas Golf. Sabiñánigo. • 629 homes in Montecarmelo. Madrid. Huesca. • 948 homes in Las Tablas. Madrid. • 208 homes, garages and commercial • 322 apartments on Isla Canela. Huelva. spaces for a eastern residential • 164 flats and apartments in Denia. complex in eastern Parla. Madrid. Alicante. • 402 homes in Fuenlabrada. Madrid. • 120 homes and garages in the Getafe • 263 homes in Parla. Madrid: Norte development in Getafe. Madrid. • 132 apartments in Cerrado del Águila, • 141 tourist apartments in Venta Mijas. Málaga. Melchor in La Línea de la Concepción. Cádiz.

Homes in Sotogrande. Cádiz Homes in Txurdínaga. Bilbao Cedro Azul homes. Mirasierra. Madrid Architecture, Urban Development and Public Works award of the Madrid City Council

54 Non-residential

This section includes the construction consists of a underground parking of different types of buildings: and warehouse level, a ground flour administrative buildings, schools, cultural and four upper floors. buildings, sports complexes, commercial • New municipal offices for the buildings, hotels and industrial buildings. Badalona City Council (Barcelona). The most significant contract awards • Civil work for the Torre Repsol were: located in the former Real Madrid Sport Complex on Paseo de la Government centres and office Castellana de Madrid, designed buildings by the British architect Norman

Foster. It will be 250 m high with Construction • Several phases of the service building a reception area measuring 15.3 m at the City of Communications in high, 35 floors of offices space and Las Tablas (Madrid), which will house 3 floors of installations in three the numerous offices of Telefónica vertical blocks. currently located in Madrid. This is Work continued at a brisk pace a complex composed of 12 buildings, on the City of Justice near Plaza one corporate building, a common Cerdá in the cities of Barcelona service building and three buildings and L'Hospitalet de Llobregat. for social services (clinic, gym and The complex comprises 11 buildings nursery school) occupying an area occupying 280,000 m2. The complex of more than 200,000 m2. was designed by the British architect, • New headquarters of the Castilla y David Chipperfield and by B720 León parliament. The building, with Arquitectura. a constructed area of 28,000 m2,

Mail processing centre in Palma Mallorca Parador Nacional Bernardo de Fresneda. Santo Domingo de la Calzada. La Rioja

55 Teaching centres Hospitals

• Residence hall for students of the • Centre for the handicapped in Llanos Universidad Complutense on calle de Aridane (Isla de La Palma). Ramiro de Maeztu in Madrid. The • Hospital de La Moraleja (Madrid) for work consists of four underground Sanitas. levels and six above-ground levels with 211 rooms and common areas. • Nostra Casa Vall de la Ballestera Residence, donated to the City of •Classrooms and underground Valencia by the Foundation for the parking area with 450 parking spaces Disabled presided over by Esther in Portaceli (Sevilla). The project Koplowitz. The residence occupies consists of the construction of some 4,500 square metres and will 15 primary school classrooms on be used to assist persons with serious two floors. The parking area will mental disabilities and other physical be built using 0.80 m thick cut-off and sensorial disorders. The building walls and reinforced concrete slab can accommodate 60 residents and foundations. 40 non-residents. Valdecilla Hospital. Santander MUSAC. Museo de Arte Contemporáneo • Refurbishment and enlargement de Castilla y León of the Alcázar de San Juan Hospital Fairgrounds. Valencia (Ciudad Real).

Cultural, sports and entertainment centres

• Galicia City of Culture Museum of History in Santiago de Compostela. One of the six buildings forming the City of Culture complex designed by Peter Eisenman. It is a very complex project in terms of the design geometry. The complex, occupying a total of 18,000 m2, blends into the hillside on which it sits, with

56 Construction

Community of Madrid Sports Palace

visible quartzite roofing and Rehabilitation and maintenance of the existing building will be aluminium-magnesium panels which maintained, while the interior will be are alternated on the facade with glass • Renovation of the former V.2 workshop completely remodelled throughout. and stainless steel cladding. building in Sagunto (Valencia). Includes The renovated Palacio de Camposagrado the construction of an auxiliary de Avilés was inaugurated last year. Shopping centres, fairgrounds building to the former workshop This is a beautiful seventeenth century and convention centres building at the Port which is being building which has been completely converted into a theatre. restored. • Construction of the structure of • Renovation of a building in the the new Alameda Shopping Centre Isdabe Complex in Estepona (Málaga). (Málaga) for El Corte Inglés. The size of the area in question is • Structure for building 5 and adjacent 18,000 m2. The structure and siding parking area for the enlargement of the FIRA 2000 fairground on la Gran Vía de L’Hospitalet (Barcelona), including land movement and foundations. •Vila Nova de Gaia Shopping Centre (Portugal) for El Corte Inglés through the subsidiary Ramalho Rosa Cobetar. Inauguration of the new El Corte Inglés shopping centre in Valencia near the City of the Arts. FCC Construcción was responsible for the structure, masonry, flooring, walls and general urbanisation for this project. The total constructed area is 152,000 m2, 40,000 of which are commercial space.

57 Camposagrado Palace. Avilés Water treatment

The most notable contract awards were • San Pantaleón en Santoña wastewater as follows: treatment plant (Cantabria) for the general cleanup of the Santoña •Tertiary treatment at the Baix de marshlands (Cantabria). It serves a Llobregat wastewater treatment plan population of 325,000 inhabitants in El Prat, Barcelona. Consists of with an average flow in summer of the installations needed to reuse the 4,700 m3/hour. The treated water treated water for irrigation purposes is pumped into an underwater outfall. and contribute an ecological flow The digestion biogas will be used to to the Llobregat River The nominal generated energy and the sludge area flow rate is 3.5 m3/s. will be deodorised with active carbon.

Chiclana treatment plant. Cádiz

Depurbaix wastewater 58 treatment plant. Barcelona Electricity

Especialidades Eléctricas, S.,A. (Espelsa) Maintenance is the company of the FCC Group that specialises in designing and • Sogecable building (Madrid). installing electrical wiring, construction • National Library (Madrid). and maintenance of distribution • Reina Sofía Art Museum (Madrid). networks and transformation substations and the engineering of advanced The company also handled the computer systems for command, control construction and maintenance of the and simulation through its specialised distribution systems, substations and divisions. transformer centres of the electrical companies Endesa, Iberdrola, S.A.

Its most noteworthy activities in 2004 and Unión Fenosa, S.A., in Barcelona, Construction included: Madrid and Castilla-La Mancha.

Electrical facility design Advanced computer systems and execution engineering

• New financial campus for SCH. • Mission Planning and Briefing (MPB) (Madrid). for the EFA-2000 Typhoon European • Sports Palace for the Community fighter plane. of Madrid. • Mission planning for the P-3 ORION • San Lorenzo del Escorial Theatre maritime patrol plane. (Madrid). • Mission Planning and Debriefing for • Sanitas Hospital (Madrid). the EF-18 fighter and Mistral portable • Enlargement of the Santiago missile simulator. Bernabeu Stadium (Madrid). • School of Law (Madrid). • City of Communications (Madrid). • Almería Sports Palace. •Arona Courts (Tenerife). • Lighting and affected services on the Radial 3 arterial road (Madrid).

Collserola médium voltage line. Barcelona

59 Lighting of the R-3 arterial road. Madrid Heating and air conditioning

Internacional Tecair, S.A. is the subsidiary During the last fiscal year it won devoted to designing and installing contract awards to provide heating and equipment and systems for heating and air conditioning systems to the following cooling, mechanical equipment and hotels and offices: systems, fire protection equipment and systems and facility management Hotels equipment for all kinds of buildings. •Puerta América, Madrid (*****). •Hilton Diagonal Mar, Barcelona (*****). •Hilton Palacio de Congresos, Valencia (*****). •NH Sorolla Palace, Valencia (*****). •Guadalpin Banus, Málaga (*****).

Offices

•HP2 Bami office complex in Las Rozas, Madrid. •Laboratorios Abbott, Madrid. •Edificio Génova 27, Madrid.

60 Infrastructure conservation r of roads pertainingtotheconventional of dualcarriagewaysand2,500Km Maintenance ofmore than1,000Km Roads andhighways following areas: Infraestructuras, S.A.(Matinsa)inthe through itsaffiliate Mantenimientode The FCCGroup operatesinthissector oad system. four forestry engineers. lightweight fire-fighting assembliesand into 14groups, withfiveheavyandnine to 228inthesummer, broken down Consists of145operatorswhich rises services fortheSierraNortein Madrid. Forest fire prevention andextinguishing V Galicia, MadridandComunidad y León,Castilla-LaMancha,Extremadura, communities ofAndalucía,Castilla forest workintheautonomous by infrastructure workandauxiliary natural environment inareas affected of farmlandsandrestoration ofthe services, forest treatments, forestation The Group provides forest replanting Forestry work the ConfederaciónHidrográfica delSur. hydrological informationsystem for the maintenanceofautomated In 2004,acontractwassignedfor the system. Escalona, BellúsandAlgarreservoirs to Hidrográfica delJúcartoinclude theTous, system fortheConfederación of anautomatedhydrological information W infrastructures Maintenance ofhydraulic • The followingcontractswere awarded: • • last year: The followingcontractswere renewed alenciana. ork isunderwayontheexpansion the province ofBurgos. 168 KmoftheN-120andA-62roads in of Palencia. Cantabria CN-120intheprovince N-611 from PalenciatoL.P. de Albacete. and A-31roads intheprovince of of theMadrid-AlicanteN-301,N-430 More than200Kmofvarioussections 61 Construction Engineering

Proyectos y Servicios, S.A. (Proser) Railways and metros provides engineering studies and designs. The following are among • Bed for the new high-speed Levante the contracts awarded to the company railway access. Madrid-Castilla last year: La Mancha-Comunidad Valenciana- Región de Murcia. Section: Roads and highways La Alcoraya-Alicante. • Bed for the north-north-east high • Access to the port of Málaga speed corridor. Artery: Ourense- (phase 2). Section: N-340 (A) thermal Santiago. Section: Lalín-Santiago. power plant. Subsection: Boqueixón-Santiago. • Public tender for the A41/IC24- Picoto • Modification of local train lines (IC2) motorway/Ermida junction C-3 and C-4 in Madrid at the access (C25), included in the Douro Litoral to the Atocha train station. Concession (Portugal). • Construction of new light metro • Construction of the Medina-Sidonia line Pinar de Chamartín-Sanchinarro- (Cádiz) relief road. Includes a 4.5 m Las Tablas, Sections 1 and 2. long section of road between the • Enlargement of depot for line 4 of the A-381 motorway and the A-390 road Madrid Metro in Hortaleza and new to Chiclana, and a 5.5 km long section depot and workshops for the Pinar of road between the A-390 and the de Chamartín-Sanchinarro-Las Tablas A-393. light metro. • Informational study on the widening •Viability study for the Badalona of the C-17 between Les Masies de Centro-Can Ruti Light Metro in Voltregà (Barcelona) and Ripoll Barcelona. (Girona). •Viability study for the prolongation of Line 1 of the Sevilla Metro to Alcalá de Guadaira.

A-11 Duero dual carriageway. El Burgo de Osma relief road. Viaduct over the Ucero River Hydraulic works •Technical assistance with the direction of the conditioning work on the A-455 •Improvement of the lateral channel road from Constantina to Lora del Río of the AP-2 on the Llobregat River. (Sevilla). • Comprehensive reorganisation of •Technical assistance, supervision and Tomelloso and Argamasilla de Alba control of the design and execution (Ciudad Real). of the work on the drinking water • Reform work on the Albaida (Valencia) treatment plant in Griñón (Madrid) for wastewater treatment plant for a flow a flow rate of 1.20 m3/sec. rate of 5,000 m3/day. •Technical assistance in connection with the construction of a new drainpipe for

Construction management technical the Janda lagoon in Barbate (Cádiz). Construction assistance

• Inspection, control and coordination of occupational health and safety issues for the redesign of the junction of the M-30 and Avda. de América A-2, and for the project to improve the junction between the N-100- O’Donnell and the M-30 in Madrid. • Inspection and supervision of the construction of the infrastructure for the prolongation of Line 7 of the Madrid Metro to Coslada and San Fernando de Henares. Section 3: Coslada-San Fernando de Henares. • Direction of the work on the Palau Solità i Plegamans relief road C-59 road. Section: Santa Perpetua de Mogoda-Palau Solità i Plegamans (Barcelona).

Connection of the M-50 with the A-1 relief road. Algete junction. Madrid

A-11 Duero dual carriageway. Toro-Zamora section. Viaduct over the Adalia Stream 63 Corporate image

The implementation of corporate During the last fiscal year it installed images for large corporations is handled corporate image elements at some by Megaplas, S.A. which operates 900 services stations and auto under the same name in Spain, Portugal, dealerships in the European Union. France, the UK, Greece, Belgium and Holland.

Megaplas develops and produces electronic circuits for use in the corporate image sector.

Environmental restoration

Naturaleza, Urbanismo y Medio It has two nurseries of its own occupying Ambiente, S.A. (Naturmas) is a company a total of 11 Ha and the capacity to dedicated to environmental conservation produce up to seven million plants. through forestry services, gardening and landscaping and the restoration of areas The following are among its most notable affected by construction work. projects in 2004:

Forestry work

• 11 contracts for forest fire prevention and extinction in 11 regions for the Castilla y León government. • Reforestation of 168 Ha in Espinosa de los Monteros (Burgos).

Landscaping

• Installation of a watering system for the City of Boecillo (Valladolid). • Construction of gardens for the enlargement of the San Cristóbal Development (Valladolid).

Restoration of areas affected by infrastructures

• Plantations and hydroseeding along the Segovia-Garcillán section of the AVE (high speed train).

64 Pipelines and gas pipelines

Auxiliar de Pipelines, S.A., is a company specialising in the construction and assembly of pipelines for the transport all types of fluid, heating distribution networks, hot water and refrigeration.

APL was the company awarded the bid for the assembly of the primary transport gas pipelines measuring 7.5 Km and Ø 30”, for the connection of the Regasification Plant at Sagunto,

to the main Enagas network. It has Construction also begun work on the gas pipeline Cartagena-Lorca phase II, Totana-Murcia branch, comprising 52.3 Km of 10” Ø steel pipelines.

During the year the following Works contracts have been carried out:

• Enlargement to the heating, hot water, and refrigeration networks of the Forum 2004 ( Barcelona), for Marina Premiá. Two 3.3 Km steel pipelines with diameters of 6” and 12” respectively. • Extension to the civil works at the Forum 2004. An enlargement was carried out on Calle Taulat using four steel pipelines of 460 m long and diameters of 20” and 30”.

65 Precast

In addition to their normal activity of • 5.8 Km of pipeline with a nominal • 8,400 m of different diameters manufacturing concrete pipes with metal diameter of 600 mm and 500 mm for the sewage treatment plant sleeves and prestressed monoblock for the Irrigation Union Groups from at Baix Llobregat. sleepers for railways, during 2004, La Torreta (Valencia). Prefabricados Delta, S.A., have started to 266,000 sleepers have been manufacture at new facilities in Humanes In addition, manufacturing has begun manufactured for various authorities de Madrid, polyester pipes reinforced on a pipeline to improve the irrigation from the public sector: Adif, Renfe with glass fibre. During 2004 this unit has network of the Irrigation Union Groups and The Ministry of development. supplied more than 20 Km of pipeline from Chinchón (Madrid) consisting of a to the following contact works: total of 39 km of pipeline with diameters Ctc-Construcción S.A., a company ranging between 500 and 1,200 mm. in which Prefabricados Delta S.A. • 10 Km of pipeline with a nominal have shareholdings. They are involved diameter of 500 mm to enable With regard to metal sleeved concrete in the prefabrication of structures Irrigation Union Groups to improve pipelines, the following have been for industrial construction and have irrigation in Campo de Níjar (Almería). supplied: doubled their activity this financial • 5.8 Km of pipeline with a nominal year. diameter of 800 mm for the Irrigation • 3,835 m, with an internal diameter Union Groups from Cota 220, in of 1,600 mm for the Laverné dam Castellón. for Aguas de la Cuenca del Ebro.

Humanes factory. Madrid Repairs and reforms

Reparalia, S.A. has established a firm Reparalia has established new reputation as a benchmark in the sector agreements with SegurCaixa, Mutua of repairs and reforms in the home, de Propietarios and Cahispa Seguros. shops, offices and property owners´ associations, with a sizeable increase Agreements have been signed with in the number of new clients and the major companies such as Alcampo and volume of services to regular clients. Iberdrola for breakdown repair. Repairs have also been made to commercial In the insurance sector, in addition to an premises owned by companies who have increase in turnover with clients such as a commercial network throughout Spain. 66 BBVA Seguros, Preventiva and Caser, Infrastructure awards

The FCC group has a stake in the share Autopista Central Gallega Española, S.A. capital of the following companies who This company holds a 75-year are in possession of government concession to build and operate a concessions: 56.8 km stretch of the Santiago de Compostela–Alto de Santo Domingo Accesos de Madrid Concesionaria toll road. The section from Silleda to Española, S.A. Lalín is open to traffic. The average daily Company awarded the construction traffic was 4,436 vehicles. and the operation under a toll regime of the R-3 motorway (M-40-Arganda Autovía del Camino, S.A. del Rey) and the R-5 motorway Company awarded the construction

(M-40- Navalcarnero), as well as the and the operation of the dual- Construction construction and conservation of the carriageway Pamplona-Logroño using M-50 (West stretch), with a total length the shadow toll regime. This stretch is of more than 90 Km, over a period of divided into five completion phases 50 years. The average daily traffic in 2004 with a total of 62.4 Km. Currently was 10,279 vehicles on the R-3 and undergoing execution. In September 7,953 on the R-5. 2004, stretch II corresponding to the Puente La Reina bypass, 5.2 Km long, Concesiones Aeroportuarias, S.A. was opened to traffic. Company awarded the construction and the operation of the Airport at Castellón, Cedinsa which is situated between Benlloch and This concession holder was awarded Villanueva de Alcolea, a privileged place, the construction and operation using the at less than 50 Km from any point of the toll shadow regime on the road between province. Berga and Puig-Reig (Barcelona), as well as the conservation and the maintenance

67 to January 2020. Traffic initiated in 2003 has continued to pick up, after a slight decrease that was felt between 2000 and 2002, mainly due the crisis in Argentina and the consequence of the events of 9/11.

Autopistas del Valle, S. A. FCC Construcción, as part of an international consortium, was awarded a 25-year concession in June 2004 for the construction and operation of the 60 km San José-San Ramón motorway in Costa Rica. Work is scheduled to begin in the second half of 2005 and the road is expected to be opened to traffic in 2008.

Concesionaria Túnel de Coatzacoalcos, S.A. de C.V. An international consortium led by FCC Construcción, awarded in September 2004 the concession for the construction of the stretch S. Fruitós de Bages-Puig- Parque Temático de Madrid, S.A. and operation for 30 years, and under Reig, all of which is part of the C-16 Title holder of the Warner Bros theme the toll regime, the underground tunnel (Llobregat artery). Currently undergoing park at San Martín de la Vega (Madrid), at Coatzacoalcos, in the state of Veracruz execution. inaugurated in 2002, and with a influx (Mexico). This is a 2,200 m tunnel 1,200 m of visitors of 1,028,000 in 2004. of which are submerged, constructed Compañía Concesionaria del Túnel using six shields of prestressed concrete de Sóller, S.A. Port Torredembarra, S.A. manufactured in a dry dock. The works will Three kilometres toll tunnel which Of a total of 820 moorings, 90% were commence during 2005 and it will come crosses the Alfabía mountain range in occupied last year, while the entire into operation in 2009. the Palma de Mallorca to Sóller corridor. 4,000 m2 that make up the commercial During the last year the average daily premises were rented. Terminal Polivalente de Castellón, S.A. traffic was 7,233 vehicles, with an annual Company awarded the construction and increase of 7.1%. This company is responsible for the operation of the 9.5 hectare terminal the construction, conservation and at the Port of Castellón for the handling Concesiones de Madrid, S.A. management-for 25 years-of the of containers and merchandise in general. Company awarded the construction so-called “Reservoir Route” which January 2005 saw the work come to an and the operation of the stretch of dual consists of doubling a 21.8 km section end, investments have been completed carriage ring road around the Madrid of roadway on the M-511 and M-501 on cranes and machinery and the M-45 taking in the O´Donell artery and between the M-40 and the M-522 to operation of the Terminal has begun. the N II, with a total length of 14.1 Km, facilitate access to Madrid from the west. for a period of 25 years, under the The average daily traffic in fiscal 2004 Tramvia Metropolità, S.A. shadow toll regime. The average daily was 33,288 vehicles. Company awarded the construction and use during 2004 was 64,517 vehicles. the operation for 25 years, of a transport Scutvias, Autoestradas da Beira infrastructure that links the south of Marina Port Vell, S.A. Interior, S.A. Barcelona with the population of the Government concession for the 2004 saw the motorway complete its first Baix Llobregat area. It has been in service Barcelona Port Authorities, with capacity year in operation. On 1 January 2005 since April 2004 and has been used by for 413 large ships and 4,800 m2 of the shadow toll regime of the concession 5,733,520 passengers. commercial premises. The port was fully began and will finalise in 2029. occupied this year. Tramvia Metropolità del Besòs, S.A. S.C.L. Terminal Aéreo de Santiago, S.A. This company was awarded a contract Nàutic Tarragona, S.A. Manage the Arturo Merino Benítez for the construction, operation and This marina has 417 moorings, 85% international airport, in Santiago de Chile. maintenance of the tram that links the of which are either rented or sold, 2004 saw a modification of the contact Estación del Norte and the Villa Olímpica plus 8,000 m2 of commercial premises, being approved that enabled the in Barcelona with Sant Adrià del Besòs 68 which are all sold. deadline of the same to be extended and Badalona. It is more than 15 kilometres long. Since going into service Parc Tecnologic World Trade 16 km. stretch of the Cartagena toll free last year it has carried more than 1,825,689 Center Cornellà, S.A. dual carriageway for internal bypass passengers. This company is carrying out the traffic. Currently undergoing execution. execution of a complex consisting of Transportes Ferroviarios de Madrid, S.A. several office buildings, a commercial Metro de Málaga Concession holder for 30 years of the area and a 27 floor aparthotel. Work Concession holder for 35 years for the extension to line 9 of the Madrid Metro, has been carried out on the first phase, Project, construction, rolling material between Vicálvaro and Arganda, consisting of three buildings and a supply and operation of lines 1 and 2 comprising a stretch of 20 km and three constructed area of 37,500 m2, an of the Málaga Metro. Covering a total intermediate stations. During this year underground carpark for 500 vehicles length of 13.5 Km, some 71% of which more than 5,675,820 passengers used and a 10,000 m2 landscaped square. is underground. Nineteen stations will the service meaning an increase of 8.24% be constructed along the route. Work with respect to the previous year. Urbicsa is expected to begin in June 2005. Company awarded the concession Túnel d´Envalira, S.A. for the public Works for the construction, Operates the three kilometre long maintenance, and operation of the tunnel that links Grau Roig, the winter buildings and installations of the Ciudad resort Pas de la Casa, and joins the de la Justicia project in Barcelona and communication network between Andorra Hospitalet de Llobregat. The Project Construction and France on the Barcelona-Toulouse comprises buildings reserved for the use artery. During 2004 the tunnel was used of the Generalitat (210,000 m2) and other by an average of 1,682 vehicles daily. complementary offices and premises (25,000 m2) and a 44,000 m2 car park able World Trade Center Barcelona, S.A. to hold1,750 vehicles. The works are in Has the concession for 50 years to the execution stage. operate the buildings at the World Trade Center, at The Port of Barcelona, Autopista de la Costa Cálida comprising a surface area of 36,000 m2 Company awarded the government of offices and commercial premises, concession for 36 years for the 6,000 m2 of conference space and construction, operation and the meeting rooms and a 280 bed hotel. maintenance of the 98 Km long toll Occupancy rates of over 95%. motorway, Cartagena-Vera and the

69

Cement tons, respectively, withincreases of2.1%and1.2%,overtheyearbefore, respectively. the yearbefore. Importsandexportsofcementclinkerwere 25.10and0.6million In theUnitedStates,domesticconsumptionwas116.7milliontons,upby7.2%over compared totheyearbefore. year-on-year growth ofonly0.5%,whileexports1.5milliontonswere up by 21,8% on therisesince1997.In2004,atotalof8.2milliontonswere imported,witha a record highfortheeighthconsecutiveyear. Cementandclinkerimportshavebeen In theyear2004,domesticconsumptionofcementinSpainwas48milliontons, Analysis ofthesector Cement factoryinLemona.Vizcaya Source: Oficemen Millions oftons in Spain Cement production 2000 38 5.2% 0120 032004 2003 2002 2001 40 5.0% 42 45 7.1% 46 2.2% 71 Cement Cementos Portland Valderrivas, S.A.

The Cementos Portland Valderrivas Group operates a total of nine cement factories, six of which are located in Spain: El Alto (Madrid), Olazagutía (Navarra), Hontoria (Palencia), Alcalá de Guadaira (Sevilla), Mataporquera (Cantabria) and Lemona (Vizcaya). In the United States it has three factories located in Maine, Pennsylvania and South Carolina.

It is present throughout the sector’s entire industrial cycle with 113 concrete plants, 46 aggregate quarries, eight dry mortar plants, two industrial waste treatment plants, eight terrestrial terminals and eight maritime terminals.

In 2004 the Group once again hit a new record high in cement and clinker sales with 10.2 million tons sold, an increase of 2.2% over the year before. Moreover, sales of concrete and aggregates, which were 5.2 million cubic metres and 18.8 million tons, respectively, reflect year-on-year growth of 1.4% and 5.3%, respectively. The figures for dry mortar and transport are positive compared to the year before, at 714,000 tons and 3.4 million tons transported, exceeding the previous year’s figures by 10.2% and 3.4%, respectively.

The Giant factory in Harleyville (South Carolina) and CDN in Thomaston (Maine), both in the United States, have converted their wet clinker manufacturing furnaces into dry furnaces. The first started the implementation process at the end of 2004.

This conversion will have a very significant effect on production costs which will be reflected on the income statements.

In 2004, the Giant cement holding (USA) completed the disinvestment process of its business lines which manufactured and sold “light aggregates” and “concrete blocks”. The proceeds from the sales of the assets of these lines, which were not part of the Group’s core business, totalled 19.9 million dollars and a staff reduction of 149 employees.

Cement factory in Keystone. USA

Turnover Gross operating profit (Ebitda) Millions of euros Millions of euros 866 881 831 277 271 265 791 253 234 660

4.2% 1.7% 5.0% 1.4% -3.9% 19.8% 6.6% 8.9%

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 72 Stock market analysis

During 2004, Cementos Portland Valderrivas, S.A. stock was quoted 246 days out of the Continuous Market’s 250 business days, with trading of 4,708,161 shares which represents 16.9% of the capital in circulation. The quoted price ranged between a low of 42 euros and a high of 52.20 euros in February. On 30 December 2004 the price was 48 euros which means that the stock market capitalisation was 1,336 million euros and a PER of 11.5 times.

Stock market capitalisation Annual high, low and average price of Cementos Portland at 31 december. Millions of euros Valderrivas shares. Euros

1,308 1,336 55 52.20 50 47.57 999 2.1% 48.00 30.9% 45 805 40.50

40 Cement 657 47.00 41.11 24.0% 35 33.15 35.90 22.5% 30 27.00 32.32 28.90 25 28.00 23.60 24.49 20 19.60 15 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

Cement factory in Olazagutía. Navarra

73 Wastewater treatment plant Dry mortar plant in Álcala de Guadaira. Sevilla in South Carolina. USA.

Real estate their secondhomehasslowedsomewhatsince2003. other European countries,seeking locationswithbeachesandsunnyclimatesfor coastal locations.Thelatestreports indicatethattheflowofbuyers,especiallyfrom Such purchases are basedonthequalityandhighlevelofservicesoffered bySpanish companies showedsignsofbeingcontained,althoughtheoutlookisstillgood. According totheBankofSpain, real estatepurchases byforeign individualsand 2004 andwhichhadthree million registered immigrantsattheendoflastyear. and pricesinacountrywhere 2.5 newhouseholdswere created between1995and Heavy immigrationandothersocio-economicfactorscontinuedtobolsterdemand in justthelast10years. T before according toSeopan,theassociationoflarge constructioncompanies. fourth yearinarow, with675,000newhousingunitsbegun,7%more thanthe year Residential constructiondisplayedbriskactivity. In2004hitarecord highforthe for 14%oftheGDPtoproviding 18%. 33% oftheconstructionsectorasawhole,androse from accounting behind economicgrowth. Forexample,residential construction nowaccountsfor segment wasnoticeablydynamicandconsolidateditspositionasthedrivingforce The real estatemarketremained strong andstablelastyear. Theconstruction Analysis ofthesector wenty-one percent ofthe22.5 million existinghomesinSpainhavebeenbuilt Residential complexinMarbella-Estepona.Málaga 75 Real estate The evolution of the office market has run parallel to that of the housing market and remains healthy. One of its primary characteristics has been the execution of large operations, some featuring international companies, in the centre of large Spanish cities and on the outskirts, where businesses are attracted by improved access routes.

Shopping centre construction activity slowed in 2004. In all, 33 new shopping centres opened their doors last year, which represents a decrease of 21.4% in comparison to 2003, when the inauguration of new shopping areas reached a record high for the second year in a row, with a total of 44. The forecasts call for this trend to continue over the next few years as a consequence of a number of moratoria and legal restrictions imposed by some autonomous communities.

A total of 1,900 million euros was invested in the development of the 33 new shopping centres opened in 2004. The amount of the investment in this type of construction project has also risen in recent years due to greater investment in the architectural and aesthetic features of shopping centres.

It is calculated that over the next four years some 65 new projects of this kind will be inaugurated. At the end of 2004, Spain had 460 shopping centres, or 7.7% more than the 427 registered in 2003. All told, they occupied some 9.96 million square metres of space.

New housing starts 675 636 Thousands of units 535 500 520

6.1% 22.3% -6.5% 4.0%

2000 2001 2002 2003 2004 Source: Seopan

Nervión Plaza shopping centre, Sevilla

76 Realia

FCC’s activity the Group has reinforced is plans to expand in Portugal and Poland, Realia Business, S.A., a company which where the company is busy undertaking is co-owned in equal shares by FCC ambitious new projects. and Caja Madrid, put the opportunities offered by the real estate sector in Investment business 2004 to good use, reaching a turnover of 574 million euros, 22% more than The company’s investment activity is in 2003. focused on the operation of office buildings and shopping centres owned Business activity was intense throughout by it. Realia currently has more than

the year in the area of residential sales, 500,000 m2 of property located in the Real estate building rentals and leasing of shopping business areas of leading Spanish cities, centres owned by the company. FCC’s with more than 40 unique buildings, activities are not limited to Spain. In fact, whose occupancy levels exceed 97%.

Turnover Gross operating profit Millions of euros (Ebitda). Millions of euros 574 194

470 410 141 22.1% 37.5% 114 306 14.6% 261 86 23.6% 33.9% 72 32.5% 17.2% 19.4%

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

Los Cubos building. Madrid Last year, it increased its assets with an investment valued at 93 million euros. One of the year’s hallmark acquisitions was the Los Cubos building, whose avant-garde design makes it a must-see spot on the M-30 in Madrid. The company also purchased a number of plots, the most notable of which include 100,000 m2 of industrial land in Agoncillo (Logroño) and 103,000 m2 of land for tertiary use in Murcia, of which 30,000 square metres are zoned for development.

By the end of 2004, the Group’s investment activity generated 82.4 million euros in income, 14% more than the year before. 77 Real estate development locations in Madrid, Sevilla, Ibiza, Almería •Villanueva del Pítamo (Sevilla): and the Costa Brava. 168,700 m2 of land zoned for building. In the real estate development sector, •Garrigoles (Gerona): 61,750 m2 of land Realia works with residential and In keeping with this tendency, the Group zoned for building. commercial properties, offices and has reinforced its presence in Portugal, •Sabadell: 13,007 m2 of land zoned for garages. The management of more a country where it has been operating building. than 100 promotions comprising more since 2000, and where it owns more than •Sant Feliu de Guixols: 32,809 m2 of than 8,000 residences makes this group 85,000 m2 of developable land, making it land zoned for building. the leader in the primary residential one of the leading Spanish real estate •Valdebebas (Madrid): 16,100 m2 of land and residential tourism sector. firms operating in the Portuguese market. zoned for building. •Pinto (Madrid): 11,973 m2 of land zoned Land holdings At the same time, the company has for building. strengthened its plans to expand beyond •Navalcarnero (Madrid): 10,776 m2 of At this time, Realia Business has over our borders with the creation of a company land zoned for building. 10 million square metres of undeveloped in Poland, Realia Polska Investycje (wholly •Castellón: 5,050 m2 of land zoned for land holdings on which more than owned by Realia), to work in residential real building. 30,000 homes and 50,000 complementary estate. •Ibiza: 86,674 m2 of land zoned for products can be built. building. Main land acquisitions in 2004 •Agoncillo (Logroño): 100,000 m2 Last year the company made a hefty of empty industrial land. investment of over 200 million euros •Playa de la Serena, Roquetas de Mar •Murcia: 30,000 m2 of developable land in purchases of new land in strategic (Almería): 16,654 m2 of land zoned for for tertiary use. building.

Homes in Alcalá de Henares. Madrid

Homes in El Campello. Alicante

78 Torre Picasso

Since its inauguration in 1989, Torre Picasso has a constructed area Torre Picasso has become Madrid’s of 121,000 square metres. It is equipped most emblematic building, and its image with the most highly advanced is now a symbol to the 5,000 people installations and equipment, and a strict who go to work there every day, as well maintenance programme is run each as for the rest of the residents of Madrid. year. The building’s average occupancy At 157 metres high, it is one of the rate in 2004 was 94%. Sales rose during tallest buildings in the country. The the fiscal year by 3.9% over the same building design, based on cutting-edge period the year before, for a total of technology, makes Torre Picasso one 21.5 million euros. of the most comfortable, most efficient

and safest smart buildings in Europe. FCC holds 80% of the joint ownership Real estate of Torre Picasso.

Turnover Gross operating profit Millions of euros (Ebitda). Millions of euros 18.7 18.3 18.0 21.5 17.1 20.3 20.7 18.7 14.6 3.8% 15.6 1.9%

8.5% 3.3% -1.6% 3.8% 19.8% 17.1%

FCC holds 80% of the joint ownership of Torre Picasso. 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

79

Other sectors

Mobile telephony

FCC increased its stake in Xfera’s in the licence issued in 2000 to Xfera capital, from 7.47% to 8.26%, due Móviles, S.A. This modification mainly to the pro-rata corresponding to the made the original conditions more Vodafone stake and the departure flexible regarding the network Other sectors of the Vivendi Telecom International deployment and reduced the licensing Group. guarantees.

Late in June 2004, the Ministry of Industry, FCC has provisioned 100% of its Tourism and Commerce authorised the investment in Xfera. modification of the conditions contained

Internet activities

Shopnet Brokers, S.A. comparison, in which Arts Capital held The company's main activity is run 12.49%, for 475 million euros. Following through the Segurosbroker.com web this operation, Arts Capital’s portfolio page, aimed at private clients who is now limited to Portalgolf, S.L. purchase their insurance online. It also markets its technological platform FCC holds 10.83% of Arts Capital, which to financial institutions, brokers, and is merely a financial holding. insurance agents.

Shopnet Brokers, which is 15.54% owned by FCC, runs the information web page milenari.com, a website focussing the insurance sector.

Arts Capital Investment, S.A. This company has a portfolio of holdings in internet companies.

On 25 March 2004, this company reached an agreement with Yahoo, Inc., to sell 100% of the capital in Kelkoo, S.A., the European leader in on-line price

81 Vehicle sales and technical assistance

The subsidiary specialising in this In March the delivery of 18 Piraña business is Sistemas y Vehículos de 8x8 vehicles to the Spanish Naval Alta Tecnología, S.A. (SVAT), which Infantry was completed. Some of also offers after-sales service. these units have already been deployed in Bosnia and Haiti on Last summer, 65 SVAT-owned vessels peace and humanitarian missions. cleaned the coastal waters of Catalonia and the Balearic Islands of floating solids.

Ravo street sweeper

82 Social report Environmental management

Services

The initiatives undertaken over the last the area that is still municipally run, three years to promote and develop in order to establish FCC’s strategic databases through the use of specific guidelines for sustainable development IT applications enabled the company in the medium and long terms. to meet its projected targets for 2004, aimed at giving the company the ideal At the same time, FCC has extended support tools to reinforce its commercial its research and development initiatives capacity and, at the same time, identify to environmental fields that cover an the relevant variables and indicators that ever wider range of priorities in the would allow it to pursue a policy of various areas affected, directly or progress and sustainable management. indirectly, by its activities, such as the reduction of energy and raw material By strengthening and reconciling the consumption, emission control, and possibilities offered by the corporate increased recovery and recycling. Intranet and the internet, FCC has run an exhaustive internal analysis, including The new research projects FCC has an integrated systematic annual update, carried out have received recognition of the Spanish urban sanitation market, from national institutions (the Ministry its distribution in the private sector and of Industry, Tourism and Commerce’s Profit Funds), autonomous communities and the Centre for Industrial Technology Development, which have given their support to FCC by contributing aid in funding.

Furthermore, in a meeting held in June, the European Union’s Eureka Programme Commission lent its seal of approval to the research project “Definition of Environmental Variables and Indicators in the Collective Treatment of Solid Urban Waste”. This certification came in recognition of the originality of the project, the scientific quality of its research programme and the interest it has inspired in Europe as a possible basis for the improvement of understanding in the field of solid urban waste treatment processes.

The work done here focussed on Street cleaning finding indicators and standards of measurement, as well as identifying Emergency cleaning service and describing intangible initiatives. As a whole, these essential elements will constitute the foundations on which FCC Medio Ambiente expects to base its Social and Environmental Responsibility Report.

In line with its policy of establishing management systems for all activities that fall into the environmental field, FCC has put quality and environmental management systems into operation in two new activities:

• Coastal water cleaning. • Fountain cleaning and maintenance.

The follow-up audits carried out by AENOR, on the Environmental Management System in June and on the Quality System in November, Social report were included this year in the process of company certification for both management systems. Beach cleaning

In March 2004 FCC passed the Quality and Environmental Management Certification audits run by Castellana Over the last year, FCC’s Department recommended for approval in the de Servicios, S.A., and was conferred of Quality and Environmental Registry of Companies as complying ER-0554/2004 and CGM-04/133 Management has been engaged with ISO-14001 as of January 2005. certification dated 7 April 2004. in work on the following: Versia is on the road to leadership. In the water management area, • Collaboration in the installation of In November 1995 the subsidiary the documentation for the Quality management systems in new contracts. specialising in handling, Flightcare, S.L., Management System was revised • Internal audits and follow-ups. had its quality management system afresh to include the requirements • Support for zones, offices and certified pursuant to the requirements of UNE-EN ISO/IEC 17025:2000, contracts in external audits. of ISO 9001 and became the first General requirements for the • Collaboration in training activities certified handling agent in Spain. competence of testing and calibration in both management areas. laboratories, in pursuit of having a Flightcare, S.L.’s environmental laboratory certified for each zone. Following an external audit by NQA management system has been certified of the British subsidiary Focsa Services since November 2002 in those areas In May and December of 2004, FCC (UK) LTD., performed in December 2004 of its activity where aspects have passed the corresponding follow-up and January 2005 at the Central Office been identified as having a significant audits of the management systems, and in the Calderdale and Derbyshire environmental impact, pursuant to the conducted by Aenor. Dales contracts, the company was requirements of ISO 14001. 85 This company keeps management Cemusa, the subsidiary that manages is under development, which will programmes and environmental urban furniture advertising operations, allow savings of close to 50% off monitoring plans up to date. It sets regards the sustainable maintenance current electricity consumption. targets and goals for those aspects of the environment to be a fundamental - The finest example of efficient use whose evaluated impact proves part of its business. This environmental of natural energy sources was significant or, if not significant, that awareness covers four areas: featured in the contract for urban are considered indispensable, and furniture in Miami, which included whose control is evidence of the • Designing components to facilitate the installation of solar panels at company’s environmental commitment. waste recycling by the general public. bus stop shelters. This avoided The two leading examples of this are: burdening the city with an additional The major areas of action lie along - The installation and maintenance energy cost. three lines: of battery-recycling containers in the hoardings at Madrid bus stop In 2002 companies operating in 1 Atmospheric emissions, through shelters and advertising boards at car park management decided to take close control of machinery, equipment various locations in Portugal, which the first steps towards certifying their and installation acquisition, as well led to the collection and recycling Environmental Management systems as through preventative maintenance. of 120 tons of batteries in 2004. pursuant to ISO 14001. The conclusion - Categorised recycling containers of the process, culminating with the 2Waste management, both hazardous installed in Genoa (Italy). implementation of all the measures and non-hazardous, after proper thereby entailed, is expected in 2005. sorting and identification, to ensure • Manufacturing components using that the waste is given appropriate mainly 100% recyclable materials Between 2000 and 2002, the FCC Group final treatment by authorised waste (stainless steel, extruded aluminium completed the full refitting of its managers. Specific requirements and glass) of the highest quality, vehicle inspection stations to include regulated in each of the various durability, resistance and, above the necessary facilities and equipment autonomous communities of Spain all, environmental stability, to avoid to meter pollutant emissions from both are also met. any decay during the component’s diesel and petrol vehicles. This is all a useful life. result of the incorporation of different 3 Control over the company’s own European directives on the matter into operating consumption. • Selecting and using the most national legislation. ecological products in daily urban In December 2003, Aenor certified furniture maintenance and sanitation. Vehicle inspection stations in Valencia Logística Navarra’s environmental began checking vehicle noise emissions management system under ISO 14001, • Optimising power consumption in August 2004, a pioneering move in and the 2004 audit revision concluded for component lighting: Spain. This has necessitated a refitting with highly satisfactory results. -A system of new luminescent of the facilities. components and diffusion panels

86 up to30%biodieseland70%dieseloil. oil isused,inaproportion that isnow A mixture ofbiodieselandnormal diesel from vegetableoilsandgreases. Mataró (Barcelona). Thisfuelis obtained fuel intheurbantransportnetworkof has pioneered theuseofbiodiesel which operatesroad Española deTransporte, S.A.(CTSA), Since 1992,thecompanyCorporación under UNE-ENISO9001-2000. issued QualityAssuranceCertificates All Argentinean subsidiarieshavebeen of Spain’s autonomouscommunities. with thegrowing technicaldemands authorisations, guaranteeingcompliance suitability ofacompanytoobtainfuture inspection companies,recognises the accreditation, whichisorientedtowards to ISO9002.Thisnewtechnical the companywascertifiedpursuant under UNE-EN-45004thisyear. Foryears (Entidad NacionaldeAcreditación) issued withaccreditation from ENAC General deServiciosITV, S.A.,was transport services , r The experiencehasledtosignificant in theearlymonthsof2005. audit intimetoreceive thecertification hopes toaskAENORcarryoutthe published lastNovember. Thecompany the newISO14001:2004standard advanced stages,incompliancewith and Trambesos tramsare wellinto management systemoftheTrambaix certification fortheenvironmental Preparations toapplyforISO14001 a less-pollutingfuel. such asrecovered oil,whichresults in r r diversification inthetransportsector, such ascontributingtoenergy There are alsoother, genericadvantages, with normaldieseloil. rate remains practicallythesameas hydrocarbons, whiletheconsumption other substances,suchasCOand (-30%) emissionsandof eusing non-biodegradablewastes, educing dependenceonpetrol, and eductions ofCO 2 (-24%) andSO 2 87 Social report Construction

Environmental management is not an the integration of our Best Practices isolated event within the activities at within our building methods, Best FCC Construcción; in fact, it fits into Practices that address environmental a wider framework of sustainability, factors that are key to our activity, yet because that’s the way it’s got to be within a criterion of overall profitability if sustainability is really going to make (both economic and ecological). sense. Time has taught us that our actions must suit our surroundings, but These Best Practices concern issues that our surroundings are made up of such as water, emissions, noise and the the natural environment and the social quality and use of soil, but they do not environment. stop at natural aspects alone; they also include social aspects and the The environmental policy at FCC relationship between stakeholders. Construcción has searched thoroughly for a balance between the desirable and During 2004 the objective at all the the possible, to attain the maximum sites and centres of FCC Construcción guarantee of permanence in time, with has been to generalise the adoption quality services of interest to society. of Best Practices beyond what might be We have continued to move forward in required in a predetermined measure,

Environmental sphere Sites with Best Practices introduced in the diferent 99% 99% 96% environmental spheres 86% 87% % of sites 64%

48%

23%

Society Atmospheric Noise Water Soil occupation, Use of Waste Land emissions and dumping pollution and loss natural creation organisation vibrations resources

Fish faro in Camariñas. La Coruña 88 Environmental restoration and in accordance with assessment society. Our system for identifying and Control of potentially polluting criteria defined in advance according evaluating environmental aspects activities to the importance and difficulty of the precludes possible omissions in the action. consideration of significant elements, In search of more effective control over but it also introduces economics and construction-related factors that may Best Practices have been established society (or highest acceptability) as influence the environment, FCC within the following spheres: criteria in the planning process, through Construcción has made a stronger the Best Practice selection mechanism effort in areas such as controlling water • Society (training/behaviour of people, that is associated with it. discharge, the generation of noise and communication and recognition). vibration, and atmospheric emissions, • Atmospheric emissions. This approach more seriously improving its results, and increasing the Social report • Generation of noise and vibration. underscores the importance of necessary implementation of Best Practices •Water discharge. training, to enable the company’s regarding these issues. This is a classic • Soil use, pollution and loss. personnel to do their job more case of the heaviest impacts associated • Natural resource use. effectively while maintaining maximum with construction, with the exception of •Waste generation. respect for the environment. Discussion resource use and waste generation, • Land planning (biological diversity, with stakeholders has been strongly which is why initiatives are being applied urban environment). encouraged, through mechanisms for that help optimise the management of spreading information about all the the risks associated with these activities. The set of Best Practices and their facets of our business and the associated indicators moreover constitute application of new computer modules Water a valuable source of environmental providing access to this information Construction calls for water information, and of sustainability in and its interpretation. A stronger consumption, water discharge, general, that the company makes emphasis has been put on incorporating the rerouting of riverbeds, the alteration available to all of society through its subcontractors into the dynamics of of hydrological systems, the occupation Environmental Communications and environmental protection, giving them of embankments and other Sustainability Reports. responsibilities, training them modifications. It is on these impacts (subcontractors have been included on that the Best Practices are centred: Social aspects a widespread basis in on-site training) on treating the effluents generated by and making them aware of the role construction and minimising how water Leading among the main social aspects they can and should play. Currently, quality is affected by discharges, striving are those on which a large construction the company is involved in an exhaustive for greater sensitisation at the site company has a direct influence, yet there training process for all site supervisors and more efficient ecological practice are also many aspects that in one way or that is almost completed and will be in the management of water and another have a direct influence on finished during the present year. construction-related discharges.

89 Generation of Noise and Vibration of the practices mentioned are not are therefore applied in varying degrees Efforts centre on the development of applicable at many types of sites in the immense majority of projects. practices that indirectly lead to lower (geotextiles on blasting surfaces in The foremost practice, because it is sound levels or indirectly result in less building sites, for example). so widespread, is the restoration of areas inconvenience for those affected, affected by provisional construction factoring in timetables, other nearby Intensity in resource use installations. activities, and the habits and customs of the affected area. Best Practices of Correct resource use is a commitment Natural resource use and waste this sort are often very difficult to apply, that FCC Construcción has made to management as well as bearing a high economic cost, society and systematically integrated although numerous steps are being taken on a widespread basis in its performance Construction generates and consumes in this area. Some of the ways being guidelines, with a trend towards an extraordinary volume of inert used to reduce the inevitable noise ever-increasing implementation. Soil materials that are used on site and produced by construction work include pollution and loss, natural resource use, can carry a very significant impact if carefully choosing the sites for the waste generation and land planning the right measures are not taken. noisiest activities, scheduling work issues with respect to the protection FCC Construcción has decided to take considerately, planning in terms of time of biological diversity or urban a step beyond the strict exigencies and space, using less-noisy construction environments are all areas influenced already in place and establish techniques, and fitting machinery with by this approach, which involves a new, minimisation objectives for both silencers whenever possible. more respectful way of building, where resource use and waste generation. environmental protection is desirable. Atmospheric emissions Because waste generation is closely In the foremost of the Best Practices Environmental soil management related with the use of inert materials, in the process of being generalised it forms one of the key points in in this field, practically 80% of all Soil is an element with which a number reduction. This is why FCC Construcción FCC Construcción sites practice road of environmental quality indicators are has incorporated among its objectives watering and have collection sites associated. Animal diversity, the the reduction of waste at its centres for the reduction of dust released landscape, vegetation and biodiversity and sites, a move that will have the into the Atmosphere due to machinery are often expressed in terms of soil double effect of minimising the dump transit or works on the site itself. quality. And construction is an area that volume needed and reducing final needs has an immediate, direct impact on this in terms of resource use. A strong effort has been made to resource in a very primary, intense way. generalise the implementation of Best This is why we must centre our attention It is an effort to hold a single, consistent Practices, even though we do sometimes on our behaviour in this field and focus on waste and resource come across low application rates, which undertake actions to protect, preserve management, but it is an effort that can be explained by the fact that many and develop soil. All proposed practices offers very good results. The flow from one category to another is a desirable in digging reservoirs to form the body deserve to be emphasized. They are solution both economically and of dams. These measures are all good “Waste Management Optimisation in ecologically (ecoefficiency), and this examples of sustainability, in the balance the Construction Industry” (in the is where FCC Construcción sites have between economic profitability, the building area) and “Reduction of the intensified their efforts. search for environmental solutions and Effects Construction Sites Have on the

the satisfaction of society’s demands. Land” (in civil construction). These are Social report Considerable achievements have been pioneering experiences that aim to made in reducing the amount of soil that Furthermore, it is worth noting that, define waste management processes goes to dumps. The soil actually lost to at FCC Construcción, proper hazardous that will lead to minimum generation dumps was 30% less than anticipated waste management is standard practice as well as maximum benefits from the as it has been used at the site itself or at at all sites. The company has completely waste that is generated. other sites near by, thanks to good waste consolidated its procedures for and resource management. identifying, labelling and classifying the Construction and land kinds of wastes commonly handled in A number of Best Practices have been Closely related to the previous point, construction, in order to avoid possible established under the heading of land there has been a remarkable increase mishandling due to ignorance. A planning that are linked with biodiversity in earth taken from other sites or shifted handbook has been developed, the or the problems that affect neighbouring at its original site so as to avoid having “Basic Guide to Waste Management”, communities. Inconvenience to to dig borrowing pits. This has reduced where the guidelines to follow in the pedestrians, the cleanliness of streets the amount of earth that has had to be management of hazardous waste are and factors that may alter the borrowed by over three million square explained, and these guidelines are used population’s normal activity are taken into metres. on-site as orientation. Waste is classified account in defining these Best Practices. according to international codes, These figures have been successfully separated into the proper fractions and Some more unusual activities are also attained as a result of different dealt with according to current laws, envisaged and included in the planning procedures, such as using lime to through authorised shippers and guidelines for our sites, such as stabilise clay soil that would otherwise administrators. protection of certain valuable species, have to be dumped so that additional the transplanting of tree species and earth need not be borrowed, changing Among some of the innovative projects the moving of nests, burrows, or valuable gradients for a higher compensation of in which the company participates, or endangered individuals. materials, and use of materials excavated there are a couple in this area that 91 Sustainability as a path In its dedication to transparency and its ties with society, FCC Construcción In 1997 FCC Construcción, S.A., has already prepared three introduced its Environmental Management Environmental Communications System (certified by Aenor in 1998) as containing full, specific information the company’s first step down the path on its waste management, the that would later lead it further in its implementation of Best Environmental commitment to society and its dedication Practices at its sites, and the to remaining at the head of the sector as accomplishment of its environmental the natural leader. objectives.

Since then, the system has kept growing FCC Construcción has published its and getting stronger, extending its first Sustainability Report in its desire sphere to a wider concept than that of to provide regular information on its the environment alone, taking its action social, environmental and economic deeper, making larger commitments engagement, in line with the indicators and improving the quality of what it set by the Global Reporting Initiative does for its own satisfaction and the (GRI). It has also subscribed to the satisfaction of the community around principles of the Global Compact. it. Envisioning persistence in terms of sustainability. Adding its strength to the This report throws a new focus ranks of those who believe that growth on how the company communicates must be achieved through sustainable the challenges it is facing, as well as development. Development is a process the specific policies and actions it through which an organisation can has implemented to respond properly release its potential and eventually to those challenges. reach its full natural form, its maturity. Development is, then, not a state; it This is the construction sector’s first is a process. Making the journey is the Sustainability Report in accordance entire point. And FCC Construcción with GRI’s criteria, both for Spain is on its way. and internationally.

92 Cement

All the activities carried out by The commitment of Cementos Portland In a display of its natural leadership, Cementos Portland Valderrivas at its Valderrivas to the environment and the Cementos Portland Valderrivas has cement factories are supported by application of continuous improvement complied early with the requirements for management systems, which are in its activities requires that the company mandatory adaptation to Law 16/2002, effective tools for achieving industrial must continue forward in the application known as IPPC. It has got an early start efficiency in the cement-making industry. of increasingly stringent regulations at its cement factories and begun its This vision started to take hold in the intended to guarantee environmental application for Integrated Environmental nineties. It was in 1996 when work protection and contribute to sustainable Authorisation by submitting the began on the definition, development, development. Cementos Portland necessary documents for the Alcalá and implementation of a system of Valderrivas is therefore planning to de Guadaira factory to the Department environmental management for cement comply with Regulation 761/2001 of the of the Environment at the Junta de factories. European Parliament and of the Council, Andalucía in December 2004. It is known as the Eco-management and expected that the application for the After that, the company began to plan Audit Scheme, which is accepted by all rest of the factories will be submitted for certification by an ENAC-accredited as the quintessential guarantee of good in the first quarter of 2005. The company agency. The process began by obtaining environmental conduct. is therefore moving the application environmental management certification process up two years ahead of the legal for the Palencia factory in 2001, followed In addition, these efforts to improve deadline. by Madrid and Navarra in 2002 and are supplemented and consolidated 2003, culminating with the most recent with voluntary agreements and The Council of Ministers definitively certification of the Environmental sector-specific agreements establishing approved the National Carbon Dioxide Management System at the factory in clear environmental objectives, such as Assignment Plan for the 2005-2007 Alcalá de Guadaira (Sevilla) in July 2004. preventing, reducing, and controlling period, assigning to all the factories the pollution caused by cement-making of Cementos Portland Valderrivas,

activities and the use of alternative fuels CO2 emission rights for 2005 that were to partly replace conventional fossil fuels. 8% lower than originally requested. Social report Based on the Group’s own estimates, In this regard, a voluntary agreement the possible effect on the 2005 income was signed with the Community of statement will be practically nil in view Madrid in 2003, followed by voluntary of the efficiency of the Group's agreements with the Comunidad Foral installations. Navarra and the Junta de Andalucía, signed in January and February 2004, respectively, to prevent, reduce, and control the pollution caused by the cement factories in Olazagutía (Navarra) and Alcalá de Guadaira (Sevilla).

93 Personnel

As of 31st December of last year, there Accident rates in the construction were 63,602 employees on the FCC sector Group’s payroll, which means there has been a net workforce increase of 1,812, In this regard, the following is worth or 2.93%. The Group’s personnel is noting: distributed as follows: • In the Construction area, and continuing By function what had been started the year before, Office and business personnel: 3,193 safety workshops were held in Santa Production personnel: 60,409 Cruz de Tenerife and attended by more than 100 company technicians By category and technicians from collaborating Executive, technical companies that work in the and clerical: 11,173 Autonomous Community of the Canary Foremen and supervisors: 4,223 Islands. The workshops were closed Other personnel: 48,206 by the Director General of Labour of By employer/employee relationship the Canary Island Government and Permanent payroll: 11,191 by the Deputy Corporate Manager of Temporary: 8,026 FCC Construcción, S.A. Furthermore, Subcontracted: 44,385 the internal regulations on prevention were revised and updated. To facilitate The number of Group employees the dissemination of these rules, a page holding university degrees rose to devoted to occupational risk prevention 3,983 last year, which represents an has been set up on the company's annual increase of 6.07%. Intranet where the rules can be consulted. Efforts have also been made The FCC Group is particularly to facilitate collaboration between the concerned with safety in the workplace safety officers of the different and considers prevention one of the companies that work with the Group. most important activities in all of its production areas. Each year it increases • In the Services area, the Occupational the human and material resources Risk Prevention System has been dedicated to this function. adapted, updated and improved.

Staff 61,790 63,602 Data as at 31 December 54,881 50,042 51,996

2.93% 12.58% 5.54% 3.90%

2000 2001 2002 2003 2004

94 Construction sector Seopan companies FCC

Frequency rate 97.4 39.21 27.51

Seriousness 2.18 1.05 0.72

Frequency rate: No. of accidents with leave x 1,000,000 hours worked. Seriousness: No. of workdays lost due to accident x 1,000 hours worked

Separate prevention guides and With regard to labour relations, • Courses for Construction technicians. manuals have been drafted and 302 collective agreements were • Courses for Environmental technicians. published on waste collection, negotiated and signed regulating the •Technical and professional treatment plants, street cleaning, park working conditions of 37,520 employees, specialisation in urban services. and garden maintenance, etc., for and there was also active participation • Hydraulic engineering and water distribution to the employees in an in the negotiation of other provincial treatment. effort to create safe working habits. and nationwide agreements and accords. • Quality assurance. • Urban and industrial waste treatment • The Group has continued its In fiscal 2004 the Group maintained techniques. educational efforts in all of these areas a lively interest in employee training, • Airport handling techniques. through courses, seminars and talks especially aimed at acquiring new skills • Languages. designed to minimise as far as possible and techniques, adjusting and updating • Computers. the risks involved in the company's present skills, and improving accident • Communications. production activities. prevention and occupational safety. In this regard, 3,313 training activities were The Group continued working with

Continuing its magnificent therapeutic held, attended by 37,387 employees, universities whose students aspire to Social report and preventive work with the Group’s with a total of 492,230 instructional professions related with the Group’s staff, the Medical Services attended hours. These activities, which touched businesses, so that, through scholarships 36,652 times, conducted 17,202 medical on all areas of the Group, focused and the Group’s sponsorship of courses check-ups, performed 32,251 clinical fundamentally on: and seminars, students can gain a analyses and gave 23,482 hearing and better grasp of how companies work other tests. • Occupational risk prevention and thus facilitate their incorporation and occupational safety courses. as employees later on.

95 Social and cultural activities

The FCC Group's sponsorship and The social and cultural activities FCC patronage activities have always engages in may be grouped as follows: been part of the idea known today as corporate social responsibility. 78.8% Culture. 17.7% Sports. We will attempt to give no quantitative 1.4% Social development. estimate of the volume of the 1.3% Sickness, disabilities, health care. contributions made by the Group until 0.8% Rehabilitation. the concepts, often overlapping and therefore impossible to itemise, are Some examples of cultural sponsorship clarified. in 2004 include the sponsorship of the Prince of Asturias Foundation, the In Europe there is no standardised Festival de Peralada, the Palau de la legislation applicable to EU countries, Música Catalana de Barcelona and the not even in the terminology used. Teatro Real de Madrid.

There were numerous sponsorships of sport-related events and teams: Copa del Rey in handball, Alcalá de Guadaira (Sevilla) football team, Pórtland San Antonio (Pamplona) handball team, Fuenlabrada (Madrid) Basketball Club, Fundación Madrid 2012, etc, and numerous smaller teams located in different parts of the country.

Other noteworthy sponsorship and patronage activities included the Programa Catalunya Hoy and the Spanish Federation of Municipalities and Provinces, which held a conference in Vitoria to celebrate the 25th anniversary of democratic city councils. The Group sponsored a wide variety of other activities that are not itemised here.

96