Financial and Activity Report Sustainability Report | 2010 Financial and Activity Report Sustainability Report | 2010 Sustainability Report | 2010 Financial and Activity Report 4 / 5 About the Sustainability Report and its structure 7 Index 1. Financial activity 13 1.1. Income and expenditure 14 1.2. Investments 16 1.3. Execution of the Contract-Programme 19 1.4. Special Investment Plans 25 1.5. European Union Funds 26 1.6. Contracts 30 1.7. Adif Shareholdings 32 2. 2010 Annual Accounts and Audit Report 39 2.1. Audit Report drafted by Adif’s Delegated Intervention 39 2.2. Annual accounts for the 2010 financial year 45 3. Key actions to develop the railway model 153 4. Action by activity area 157 4.1. High-Speed Network 157 4.2. Conventional Network 172 4.3. Traffic 174 4.4. Passenger Stations 178 4.5. Logistics Services 179 4.6. Assets and City Planning 180 4.7. Telecommunications and Energy 183 4.8. R&D&i Projects 185 4.9. Safety 187 4.10. Quality 188 APPENDICES I. Index of Tables 192 II. Index of Figures 193 Sustainability Report | 2010 Financial and Activity Report 6 / 7 About the Every year since 2006, Adif 2. Review of the Report, has drawn up its Sustainability prior to its publication by the Report in accordance with the departments and divisions Sustainability guidelines and principles laid to confirm that it accurately down in version G3.1 of the reflects the management of Report and Global Reporting Initiative (GRI) each of them, collating the for Application Level A+. quantitative and qualitative its format data. The Steering Committee The following steps have been also performs its own check to taken in compiling the report: ensure the spirit and corporate values of Adif are mirrored, 1. Capturing information as well as the quality of the on the GRI indicators, using contents. indicator sheets and general figures concerning initiatives In line with the GRI principles, and actions that bring value information on those issues and which have been set up considered material or throughout the year. Each relevant for the business is department has contributed its included, beyond the economic content, previously captured framework, and adapted to and monitored in accordance the particular features as a with the company's information business. The report provides and management systems, accountability within the which are in turn audited by context of sustainability independent third parties. that marks the management Sustainability Report | 2010 focus and vision of responsible performance. The In addition, this report has been carried out according Report attempts to provide a thorough reflection to GRI guidelines achieving A+ application level and of Adif’s global activity in 2010, responding to all in line with regulation AA1000 APS. It has also been indicators required at the application level A and externally verified by KPMG Asesores, S.L. apart from recording the participation that its stakeholders the Environmental Volume. The verification report have had with regard to each figure given. is available in Volume 1 of the Adif’s Sustainability Report 2010: Strategy and Commitments, and The information in this Report is balanced, and includes the scope of work, the criteria employed, the includes achievements as well as future targets. works carried out, as well as the conclusion drawn To assist in making comparisons, we have during the process. tried to include a series of previous years in the quantitative figures, without prejudice to the information supplied in the previous year's report. We have also been guided by the accuracy of the data submitted and which are given in sufficient detail so as to comply with the expectations of the company's stakeholders. Clarity has also been of the utmost importance in drafting the report, avoiding cumbersome or ambiguous explanations. And to ensure reliability, the content of this report has been reviewed by all in-house departments and divisions that are responsible for managing the company's stakeholders. Financial and Activity Report 8 / 9 Structure 5. Transparency and dialogue with stakeholders For the fifth year running, Adif is publishing its Sustainability Report in a comprehensive way. 6. CSR at Adif: Strategies and results A series of four volumes outlines the company's performance from the economic, social and APPENDICES: Table of GRI Indicators, Table of environmental focal points, with accountability contents by stakeholders, Index of tables, Index of for the evolution and ongoing improvement in figures, Glossary of terms and External Auditing of complying with those commitments voluntarily the Report. accepted as well as Adif’s obligations as a public corporation. Volume 2. Financial and Activity Report The full content of this report is as follows: About the Sustainability Report and its structure. Volume 1. Strategy and Commitments 1. Financial activity About the Sustainability Report and its structure. 2. Auditors’ report and annual accounts 2010 1. Message from the Chairman 3. Basic actions to develop the railway model 2. Adif’s profile and operating framework 4. Action by activity area 3. CSR and sustainability at Adif APPENDICES: Index of Tables, Index of Figures. 4. Management integrity and extension of CSR Sustainability Report | 2010 Volume 3. Environmental Report Volume 4. Social Memory About the Sustainability Report and its structure. About the Sustainability Report and its structure. 1. Presentation of the environmental report 1. Commitment to rail system safety 2. Adif’s commitment to the environment 2. Increased sense of pride of belonging to Adif 3. Environmental Balance 3. Bringing value to society and local 4. Environmental management communities: cohesion, development and well-being 5. Environmental Performance APPENDICES: Index of Tables, Index of Figures 6. Environmental expenditures and investments 7. Adif’s contribution to environmental sustainability of transport APPENDICES: Profile of the report and scope limitations, Index of GRI content, Index of Tables, Index of Figures, list of sources used, Glossary of Terms, Declaration of Verification and Questionnaire to suggest improvements. Financial and Activity Report 10 / 11 The Report is available online at the Adif corporate adif.es). For any additional information, inquiry, website (www.adif.es) and on the in-house suggestions for improvement or comments, you may corporate communications portal Inicia (http://inicia. contact: Volumes 1,2 and 4 Volume 3 Corporate Reputation and Brand Department Quality Assurance and Environment Department C/ Sor Ángela de la Cruz, 3 – 1ª planta Paseo del Rey, 30 28020 Madrid (Spain) 28008 Madrid (Spain) Telephone: 00 34 91 774 44 89 Telephone: 00 34 91 540 38 00 e-mail: [email protected] e-mail: [email protected] Sustainability Report | 2010 Financial and Activity Report 12 / 13 Firstly, in terms of financial growth and competitiveness. performance, Adif’s primary Furthermore, rail transport responsibility is management saves indirect economic efficiency and transparency in costs for society: pollution, accountability, regarding citizens greenhouse gas emissions, and and administrations, even more accident rate, etc. 1 so given its special nature. Therefore, Adif’s activity In that sense, one of our strategic focuses on achieving maximum Financial goals is to strike economic reliability, availability and balance and fully cover operating safety in rail infrastructure Activity costs. This economic and financial with maximum quality, sustainability is the foundation environmental respect and to guarantee the profit that our economic efficiency. activity entails, because our contribution to the country’s The following information economic and social development shows Adif’s economic data is our second most important highlighting the 2009-2010 responsibility from an economic trend. point of view. Clearly, improving a country’s transport infrastructure has an effect on its economic Sustainability Report | 2010 1.1. Income and expenditure The attached table shows the Profit and Loss Account for the year and its comparison with the previous year: Table 1: 2010 Profit and Loss Account 2010 2009 Variation Variation Item (millions €) (millions €) (millions €) (%) Net business turnover 1,999.8 1,963.0 36.8 1.9 Work executed implemented by the company for its 24.2 21.6 2.6 12.0 fixed assets Other Operating Income 604,9 573,8 31,1 5.4 Exceptional Results 194.0 69.8 124.2 177.9 Operating income 2,869.6 2,717.1 152.5 5.6 Raw materials and other supplies -157.2 -145.3 -11.9 8.2 Staff costs -710.5 -674.5 -36.0 5.3 Net provisions for fixed asset depreciation -217.1 -202.9 -14.2 7.0 Variation in traffic provision 6.6 4.9 1.7 34.7 Other operating expenditure -1,608.8 -1,624.2 15,3 -0.9 Operating expenditure -2,687.0 -2,642.0 -45.0 1.7 Operating result 182.6 75.1 107.5 143.1 Financial income 79.1 102.4 -23.3 -22.7 Financial expenditure -116.2 -111.3 -4.9 -4.4 Financial results -42.2 -7.4 -34.8 470.3 Results from ordinary activities 140.4 67.7 72.7 107.2 Corporate tax 0.4 0.4 0.0 0.0 Result for the year 140.8 68.1 72.7 106.8 Financial and Activity Report 14 / 15 As well as the railway tariffs regulated by the under the other operating income heading. Also, the O.M.FOM/898/2005 and the passenger railway exceptional results figure stands out owing to the transport safety fee, the net turnover heading application of the ruling in the National High Court includes income from the Government’s network on non-deductible Input VAT by RENFE (2001 to administration and from investment for renewal 2004) and GIF (2001). and improvements of this network, from economic contributions from the Spanish Government, which In 2009, staff costs have increased, partly owing appear in the Contract-Programme signed with to the amortisation of future commitments arising Adif.