(2) WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Photo: Gijón Port. www.grupoacs.com.
(3) Activity Report of ACS Group. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 1.
(4) Main Figures of the ACS Group Million of euros and operating data. 2002 (1). 2003 (1). 2004. 2005. 2006. 2007. Turnover Gross operating profit (EBITDA) Net operating profit (EBIT) Profit before tax Attributable net profit. 4,420.2 410.9 305.3 250.4 181.4. 8,825.1 794.8 573.5 283.4 229.5. 10,817.9 981.1 723.9 623.3 452.5. 12,113.9 1,095.5 817.4 804.3 608.7. 14,067.2 1,270.3 971.6 1,553.5 1,250.1. 21,311.7 3,490.5 2,486.5 2,211.8 1,551.1. Cash-flow (*) Dividends paid Total investments Total assets. 312.8 38.4 1,050.7 4,914.5. 505.4 46.1 657.5 11,226.3. 709.7 96.8 1,196.4 12,399.6. 886.8 137.6 4,216.4 17,712.5. 1,548.8 211.7 5,407.1 25,182.7. 2,555.1 441.1 3,403.2 49,593.4. Equity Shareholders’ equity Total net debt Net debt with recourse Non recourse financing Order book Number of employees. 1,003.9 980.4 594.5 383.5 211.0 7,422.5 32,555. 1,895.7 1,796.4 1,230.6 914.4 316.2 22,537.8 97,112. 2,019.2 1,905.4 1,423.9 961.6 462.3 23,928.4 107,748. 2,635.5 2,480.9 4,264.6 1,909.4 2,355.2 26,868.1 113,273. 3,256.4 3,115.7 8,746.3 1,753.4 6,992.9 29,918.3 123,652. 10,441.0 4,653.8 16,574.5 6,933.1 9,641.4 32,321.8 144,919. 2002 (1). 2003 (1). 2004. 2005. 2006. 2007. Earnings Gross dividend Cash-flow Shareholders´ equity. 0.94 0.24 1.63 5.10. 0.76 0.27 1.68 5.05. 1.30 0.39 2.01 5.40. 1.74 0.60 2.51 7.03. 3.58 1.25 4.39 8.83. 4.51 1.75 7.24 13.19. Stock market data. 2002. 2003. 2004. 2005. 2006. 2007. Million of euros. (*) Net profit + Depreciation + Change in provisions. Data per share(2). Listed Shared (2)(3) Market capitalization (million of euros) Year-end closing price (2) Anual revaluation. 192,185,448 355,580,493 352,873,134 352,873,134 352,873,134 352,873,134 1,963.5 4,587.0 5,928.3 9,601.7 15,071.2 14,344.3 10.22 € 12.90 € 16.80 € 27.21 € 42.71 € 40.65 € 11.86% 26.26% 30.23% 61.96% 56.96% -4.82%. Key ratios. 2002 (1). 2003 (1). 2004. 2005. 2006. 2007. Operating margin Net margin ROE Gearing(4) Dividend yield. 6.9% 4.1% 19.2% 54.9% 2.3%. 6.5% 2.6% 16.5% 64.9% 2.1%. 6.7% 4.2% 23.6% 70.5% 2.3%. 6.7% 5.0% 27.5% 161.8% 2.2%. 6.9% 8.9% 45.5% 268.6% 2.9%. 11.7% 7.3% 36.9% 158.7% 4.3%. (1) Under GAAP. From 2004 under IFRSs standards. (2) Adjusted by the 3 x 1 Split of year 2004 (reduction of the nominal value of the shares from €1.50 to €0.50 with the consequent and simultaneous increase in the number of shares in proportion to the stock capital). (3) On June 10th, 2004 there was a reduction in the stock capital by a nominal amount of €1,353,679.5 through the redemption of 902,453 shares of treasury stock. (4) Gearing: Net Debt / (Shareholders´ Equity + Minority interests).. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Euros.
(5) ACS Actividades de Construcción y Servicios, S.A.. Ordinary General Shareholders’ Meeting The Board of Directors of this Company, in a meeting held on 27 March 2008, resolved to call an Ordinary General Shareholders’ Meeting, to be held in Madrid, at the Palacio Municipal de Congresos, Avenida de la Capital de España, Madrid s/n, Campo de las Naciones, at 12:00 p.m. on 25 May 2008 on first call, and on the following day, 26 May 2008, at the same time and in the same place, on second call, with the following:. Agenda 1. Approval of the Company's Individual 2007 Annual Reports, Balance Sheets, Income Statements and Management Reports, and of the consolidated accounts of the group of companies of which ACS, Actividades de Construcción y Servicios, S.A. is the Parent Company. Distribution of results. 2. Acknowledgement of the 2007 Annual Corporate Governance Report, 2007 Corporate Responsibility Report and 2007 Special Report on Article 116 bis of the Spanish Securities Market Law. 3. Approval of the management of the Board of Directors in 2007. 4. Ratification, dismissal and appointment, if applicable, of Board members. 5. Proposed amendment of Articles 3, 4 and 11 and 16 of the Shareholders’ General Meeting By-laws. 6. Report on amendments to the Rules of the Board of Directors.. 8. Appointment of Company and Group Auditors. 9. Resolution to redeem the Company’s Treasury Shares at the date on which the General Shareholders’ Meeting is held and the subsequent amendment of Article 6 of the Company Bylaws. 10. Delegation of powers for the execution and formalisation of resolutions. 11. Reading and approval, if applicable, of the Minutes of the General Meeting.. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 7. Authorisation for the derivative acquisition of Treasury Shares..
(6) Main figures of the ACS Group Turnover. Gross operating profit (EBITDA). Attributable net profit. Millions of euros. Millions of euros. Millions of euros. 25,000. 4,000. 2,000. 21,312. 3,490 1,551. 20,000 3,000. 1,500. 1,250. 14,067. 15,000. 10,818. 10,000. 12,114. 2,000. 1,000. 8,825 5,000. 795. 1,000. 4,420. 1,096. 981. 1,270. 609 181. 411 0. 0. 2002(*) 2003(*). 2004. 2005. 2006. 452. 500. 230. 0. 2007. 2002(*) 2003(*). 2004. 2005. 2006. 2007. 2002(*) 2003(*). 2004. Earnings per share. Dividend per share. Market Capitalization. Euros. Euros. Millions of euros. 5.0. 2.0. 2005. 2006. 2007. 16,000. 4.51. 1.75. 15,071 14,000. 14,344. 4.0 1.5. 12,000. 1.25 1.0. 1.0. 8,000. 1.74. 2.0. 0.94 1.07(1). 0.5. (1). 0.27. 0.39 2,000. 0. 2002(*) 2003(*). 2004. 2005. 2006. 4,587. 4,000. 0.24. 0.76 0. 5,928. 6,000. 0.60. 1.30. 9,602. 10,000. 3.0. 1,963. 0. 2007. 2002(*) 2003(*). 2004. 2005. 2006. 2007. 2002(*) 2003(*). 2004. 2005. 2006. 2007. Exclude extraordinary merger expenses.. 2007 Turnover by business. 2007 Gross operating profit (EBITDA) by business. (%). (%). Internacionalization Millions of euros. 24%. 10,000. 20%. 8,000. 16. 28. 17%. 59 13. 14 11. 17% 16%. 14%. 6,000. 34. 15%. 5,042. 12%. 10%. 4,000. 1,801. 2,000. 25. 520. 2,106 2,281 5%. 1,198. 0. 0%. 2002(*) 2003(*) 2004. Construction. Construction. International Turnover. Industrial Services. Industrial Services. % International over Total. Environment & Logistics. Environment & Logistics. Energy. Energy. (*). Bajo criterios PGC. A partir de 2004 según criterios NIIFs (Normas Internacionales de Información Financiera).. 25%. 2005. 2006. 2007. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 3.58.
(7) Construction 2007. Industrial Services 2007. Environment & Logistics 2007. Energy 2007. Millions of euros. Millions of euros. Millions of euros. Millions of euros. Turnover. 7,353. International. 5.9%. Gross operating profit (EBITDA). 549. Turnover International. Gross operating profit (EBITDA). 5,489 31.1%. 488. Turnover. 2,835. International. 12.0%. Gross operating profit (EBITDA). 381. 5,967. International. Gross operating profit (EBITDA). 2,111. Margin. 7.5%. Margin. 8.9%. Margin. 310. Net profit. 265. Net profit. 132. Net profit. 230. Margin. 4.2%. Margin. 4.8%. Margin. 4.6%. Margin. 3.9%. 12,011 19,212. Order book Employees. 5,854 37,663. Order book Employees. Greece Guatemala Honduras India Ireland. Italy Jordan Kenya Kuwait Libya. 14,458 74,800. Margin. 42.7%. Net profit Order book Employees. 13.5%. Turnover. 35.4%. Order book Employees. n.a. 12,871. International presence Countries in which ACS Group is present Belgium Brazil Canada Chile China. Colombia Costa Rica Dominican Republic Egypt. El Salvador Ecuador Ethiopia France Germany. Mexico Moldavia Morocco Nicaragua Norway. Panamá Peru Poland Portugal Saudi Arabia. South Africa Spain Tunisia United Arabs Emirates. United Kingdom United States Venezuela. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Algeria Andorra Angola Argentina Australia.
(8) Activity Report Construction 18 Concessions 30 Environment & Logistics 36 Industrial Services 48 Energy 64 Strategic Investments 74. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Annual Report ACS Group. Letter from the Chairman 04 Management Bodies 06 Corporate Strategy 12.
(9) WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39.
(10) ACS Group consolidated sales. Concessions, Environment and. rose by 54% thanks to solid. Logistics, Industrial Services and. growth in all our activities and to. Energy areas and in the acquisition. Year 2007 was marked by three. the full consolidation of Unión. of a 25.1% stake in the German. events which have enabled us to. Fenosa since January 2007,. construction and infrastructure. consolidate the Company as one. enabling us to reach 21,312 million. development company Hochtief,. of the most important in the world. euros in revenues and placing us. one of the world's major. in the infrastructure sector.. among the top three companies in. companies with an extensive. The magnificent results achieved. the world in our sector.. presence in the European, North. in our traditional activities, the. American and Australian markets.. integration of Unión Fenosa as a. The integration of Unión Fenosa. This high level of investment,. new ACS business unit and the. into our Group as head of the. mainly financed with resources. acquisition of a significant stake in. Energy area and the position we. generated by operations and. the German company Hochtief. hold as the largest shareholder. divestments taking place during. represent the best base for future. in Iberdrola confirm our clear. the year, continues to uphold the. growth for our Group.. commitment to the energy sector. sustainable and profitable growth. in Spain.. strategy in all ACS’s business. In terms of the annual results,. areas which has brought us such. I would like to highlight once again. Aggregates of this scale were. the growth in net profit of 24%. without doubt unthinkable in. to 1,551 million euros, amply. 1997 when ACS, Actividades de. The investment effort has been. exceeding the objectives we set. Construcción y Servicios, emerged. complemented by a substantial. ourselves at the beginning of the. from the merger of OCP. commercial drive in all activity. financial year. Without taking. Construcciones S.A. with Ginés. areas, with the total portfolio. extraordinary results into account,. Navarro Construcciones S.A.. growing by over 12% during 2007.. which include the gains obtained. In these ten years, we have. Worthy of note is the growth in. from the sale of Continental Auto,. managed to multiply our sales by. the international portfolio where. ordinary net profit reached 1,010. 10 and our attributable net profit. the volume of contracts now. million euros, also up 24% on the. by 32, without this having. represents over 25% of the total.. previous year in comparable terms.. diminished our ambition to make. good results to date.. the ACS Group more global and. However, the development of the. more profitable.. capital markets did not favour the share prices of companies related. 04. To this end, the Group has. to the infrastructure sector in. dedicated significant resources to. 2007. In spite of this, ACS’s shares. the different activities in which we. performed significantly better than. operate. Specifically, during 2007. the sector index, which fell by. we invested over 4,650 million. 10%, and closed the financial year. euros in the Construction,. with an annual decrease of 4.8%.. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Letter from the Chairman. Dear shareholders:.
(11) Annual Report 2007 ACS Group. The credit market crisis, extended since last summer, and the expectations of an economic slowdown in the principal western economies had a negative impact on the world's main stock markets over the second half of 2007 and the first months of the current year, and limited the consideration of the excellent financial and operating data obtained by our Group. In terms of corporate responsibility, the Group has continued to reinforce its sustainability strategy by means of various practices related to the economic, social and environmental impacts of our businesses. This has been recognised by Dow Jones on including our shares as a member of the world and European the Board of Directors has recently. try to repay them with the daily. approved the “ACS commitment to. efforts of the nearly 150,000. fight Climate Change” in which the. people who work for the ACS. Group restates its will to continue. Group with the objective of. to allocate resources to reducing. achieving world leadership in the. greenhouse gases in the carrying. infrastructure sector.. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. sustainability indices. In this regard,. out of its activities. I believe, in the last ten years, we have come further than we imagined possible, but we retain the same enthusiasm we have always had for moving forward and generating more value for our shareholders, who I thank for the trust they have placed in us. We will. Florentino Pérez Rodríguez. 05.
(12) Board of Directors. Chairman and CEO. Member of the Board of Directors. Mr. Florentino Pérez Rodríguez Civil Engineer Chairman and CEO of ACS Group since 1993 Member of the Board of Directors of ACS Group since 1989 Vice Chairman of Abertis Infraestructuras Member of the Board of Directors of Sanef. Executive Vice Chairman Mr. Antonio García Ferrer Civil Engineer Member of the Board of Directors of ACS Group since 2003 Member of the Board of Directors of Abertis Infraestructuras Member of the Board of Directors of Unión Fenosa. Vice Chairman Mr. Pablo Vallbona Vadell Naval Engineer and MBA from the IESE Member of the Board of Directors of ACS Group since 1997 Chairman of Iberpistas Executive Vice Chairman of Banca March Vice Chairman of Corporación Financiera Alba Vice Chairman of Abertis Infraestructuras. Mr. José María Loizaga Viguri Economist Member of the Board of Directors of ACS Group since 1989 Chairman of Mercapital, S.L. Chairman of Cartera Hotelera, S.A. Chairman of Bodegas Lan Vice Chairman of Zardoya Otis Member of the Board of Directors of Mecalux Member of the Board of Directors of Unión Fenosa. Mr. José María Aguirre González Doctorate in Civil Engineering Member of the Board of Directors of ACS Group since 1995 Chairman of Banco Guipuzcoano Chairman of Acerinox Member of the Board of Directors of Siemens España. Mr. Agustín Batuecas Torrego Civil Engineer Member of the Board of Directors of ACS Group since 1999 Vice Chairman of Fenebús. Mr. Álvaro Cuervo García Doctorate in Economics Professor of Business Economics-Universidad Complutense de Madrid Chairman of CUNEF (Colegio Universitario de Estudios Financieros) Member of the Board of Directors of ACS Group since 1997 Member of the Advisory Board of Privatisations Member of the Board of Directors of SONAE SGPS, and SONAE INDUSTRIA Member of the Board of Directors of BME. Member of the Executive Committee Member of the Audit Committee Member of the Appointment and Remuneration Committee. 06. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Management Bodies. Órganos de Dirección.
(13) Mr. Santos Martínez-Conde Gutiérrez-Barquín . B.S. in Pharmacy. Lawyer Member of the Board of Directors of ACS Group since 2003 Member of the Board of Directors of Unión Fenosa. Civil Engineer Member of the Board of Directors of ACS Group since 2001 CEO of Corporación Financiera Alba Member of the Board of Directors of Acerinox Member of the Board of Directors of Unión Fenosa Member of Board of Directors of Isofotón. B.A. in Economics Member of the Board of Directors of ACS Group since 2003 Member of the Board of Directors of Telefónica Móviles Mexico Member of the Board of Directors of Telefónica España Member of the Board of Directors of Uralita Member of the Board of Directors of ENCE Member of the Board of Directors of Repsol YPF Member of the Board of Directors of Abertis Infraestructuras. Mr. Isidro Fernández Barreiro Industrial Engineer MBA from the IESE Member of the Board of Directors of ACS Group since 2003 Vice Chairman of Corporación Financiera Alba Member of the Board of Directors of Banca March Member of the Board of Directors of Prosegur. Mr. Joan-David Grimà i Terré Doctorate in Economics and Business Studies Member of the Board of Directors of ACS Group since 2003 General Manager of Santander Central Hispano Member of the Board of Directors of TEKA, S.A.. Mr. Pedro López Jiménez Civil Engineer Member of the Board of Directors of ACS Group since 1989 Chairman of Unión Fenosa Member of the Board of Directors of CEPSA Member of the Board of Directors of Keller Group Plc Member of the Board of Directors of Atlas Copco,SAE Member of the Board of Directors of Indra Sistemas,S.A. Vice Chairman of Dragados. Mr. Javier Monzón de Cáceres B.A. in Economics Member of the Board of Directors of ACS Group since 2003 Chairman of Indra. Mr. Miquel Roca i Junyent Lawyer Member of the Board of Directors of ACS Group since 2003 Secretary of the Board of Directors of Abertis Infraestructuras Secretary of the Board of Directors of Banco de Sabadell. Mr. Julio Sacristán Fidalgo B.S. in Chemistry Member of the Board of Directors of ACS Group since 1998. Mr. Francisco Servando Verdú Pons. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Mr. Javier Echenique Landiríbar . Annual Report 2007 ACS Group. Mr. Manuel Delgado Solís . B.A. in Economics and MBA from the Chicago University Member of the Board of Directors of ACS Group in the period 2002-2003 and re-elected in 2006 CEO of Banca March Member of the Board of Directors of Corporación Financiera Alba. Member and Secretary of the Board of Directors Mr. José Luis del Valle Pérez Lawyer and State Attorney Member of the Board of Directors of ACS Group since 1989. 07.
(14) 08 8. Management Committee. Mr. Florentino Pérez Rodríguez. Mr. Antonio García Ferrer. Chairman and CEO. Executive Vice Chairman. Born in 1947. Civil Engineer.. Born in 1945. Civil Engineer.. Although Mr. Pérez started his career in the private sector, he held different posts in the Public Administration between 1976 and 1982 when he was Delegate for Sanitation and Environment of the Madrid City Council, General Sub-Director of Promotion of the Centre for the Development of Industrial Technology in the Ministry of Industry and Energy, General Manager of Transport Infrastructures in the Ministry for Transport, as well as Chairman of IRYDA in the Ministry of Agriculture. In 1983, he returned to the private sector as top executive of Construcciones Padrós, S.A., of which he was one of the main shareholders. Since 1993, he has been the Chairman and CEO of the ACS Group, first as the chairman of OCP Construcciones S.A., and since 1997 as the chairman and CEO of the so-called ACS Group. He is also Chairman of ACS Services, Communications and Energy, leading company of the Industrial Services Area.. Mr. García started his career in Dragados y Construcciones, S.A. in 1970. After assuming various positions of responsibility in the construction Company, in 1989 he was appointed Regional Manager for Madrid. Then, in 1998, he was placed at the head of the Building business and in 2001, he became General Manager of the Industrial and Services Divisions. In 2002 Mr. García was appointed as the Chairman of Grupo Dragados, S.A., and in December 2003 he became the Executive Vice Chairman of the ACS Group.. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Management Bodies. Órganos de Dirección.
(15) Annual Report 2007 ACS Group Mr. Marcelino Fernández Verdes. Mr. Eugenio Llorente Gómez. Mr. Ángel García Altozano. Mr. José Luis del Valle Pérez. Chairman of the Construction and Concessions and Services Areas. CEO of the Industrial Services Area. Corporate General Manager. General Secretary. Born in 1955. Civil Engineer.. Born in 1947. Industrial Technical Engineer and MBA, Madrid Budines School.. Born in 1949. Civil Engineer and MBA, University of Dayton.. Born in 1950. Lawyer and State Attorney.. Mr. Llorente started his professional career in Cobra Instalaciones y Servicios, S.A. in 1973. After occupying different positions of responsibility, in 1989 was named director of Downtown, in 1998 he was promoted Corporate General Manager and in 2004 General Manager. Currently, he is General Manager of ACS Services, Communications and Energy and responsible for the Industrial Service Area of the Group.. Mr. García started his professional career in the construction sector. He was General Manager of the Instituto Nacional de Industria (INI) and President of Bankers Trust for Spain and Portugal. In 1997 he joined the ACS Group as Corporate General Manager with responsibility over the economic-financial areas, corporate development and affiliates.. From 1974 until 1983 Mr. del Valle held various positions in the Public Administration and was a member of the Parliament from 1979 to 1982 and Deputy Secretary of the Ministry of Territorial Administration. He has been a member of the Board of Directors of the ACS Group since 1989 and has been the Secretary General to the Board of Directors since 1997.. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Mr. Fernández joined the Group in 1987 and was appointed General Manager in 1994. In 1998 he became the CEO of ACS Proyectos, Obras y Construcciones S.A., and in 2000 was appointed Chairman of the company. He is the Chairman of Dragados and ACS SyC, as were as responsible for the areas of Construction, Concessions, Environment and Logistics.. Chairman Vice Chairman. Construction. Corporate General Manager. General Secretary. ACS Construction, Concessions, Environment & Logistics. ACS Services Comunications & Energy. Concessions. Environment & Logistics. Industrial Services. Energy. 09 9.
(16) Management Team. ACS, Actividades de Construcción y Servicios. Constructión, Environment & Logistics and Concessions. Mr. Florentino Pérez Rodríguez Chairman and CEO. Mr. Marcelino Fernández Verdes Chairman and CEO. Mr. Antonio García Ferrer Executive Vice Chairman. Mr. Luis Nogueira Miguelsanz Secretary General. Mr. Ángel García Altozano Corporate General Manager. Mr. Antonio Alfonso Sánchez Executive Assistant to Environment & Logistics. Mr. José Luis del Valle Pérez Secretary General. Mr. Manuel Pérez Beato Chairman Mr. Gonzalo Gómez Zamalloa CEO Mr. Manuel Alvarez Muñoz Civil Works Manager. Construction. Mr. Ignacio Legorburu Escobar Building Manager. Dragados. Tecsa. Mr. Marcelino Fernández Verdes Chairman and CEO. Mr. José María Aguirre Fernández General Manager. Mr. Juan Ernesto Pérez Moreno Executive Assistant to the Chairman. Drace. Mr. Ignacio Segura Surinach General Manager Mr. Luis Nogueira Miguelsanz Secretary General Mr. Ricardo Martín de Bustamante Civil Works Manager Mr. Juan Luis García-Gelabert Pérez Building Manager Mr. Octavio del Real Sánchez Subsidiary Companies Manager Mr. Maximiliano Navascués Redondo Contracting Manager Mr. Alfonso Costa Cuadrench Technical Services Manager Mr. Antonio Cortés Sánchez Executive Assistant to the International Manager. 10. Vías y Construcciones. Mr. Juan José Sacristán Sacristán General Manager Drace Medio Ambiente Mr. Fernando García Arribas General Manager Drace Servicios Portuarios Mr. Eloy Domínguez-Adame Bozzano General Manager Geocisa Mr. Pedro Sola Casado General Manager Cogesa Mr. Enrique Pérez Rodríguez CEO. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Management Bodies. Órganos de Dirección.
(17) Annual Report 2007 ACS Group. Environment & Logistics. Mr. Florentino Pérez Rodríguez Chairman. Unión Fenosa. Urbaser. Mr. Eugenio Llorente Gómez CEO. Mr. Pedro López Jiménez Chairman. Mr. José Alfonso Nebrera García General Manager. Mr. Honorato López Isla Vice Chairman and CEO. Mr. José Romero de Ávila González-Albo Secretary General. Mr. Elías Velasco García CEO General Manager. Cobra Group. Mr. Ramón Novo Cabrera Secretary General. Mr. Eugenio Llorente Gómez CEO of Cobra. Mr. Juan Luis López Cardenete General Manager of Networks. Mr. Daniel Vega Baladrón CEO of SEMI y MAESSA. Mr. Carlos Martínez de Albornoz Bonet Corporate General Manager. Mr. Juan Agustín Sánchez Bernal Chairman of ETRA and IMESAPI. Mr. José Antonio de Tomás Alonso Business Development General Manager. Mr. José Reis Costa Chairman of CME. Mr. José María Paz Goday Secretary General of Regulation. Mr. Javier Polanco Gómez-Lavín Chairman and CEO Mr. José María López Piñol General Manager Dragados SPL Mr. Juan Carlos Pery Paredes Chairman and CEO Mr. Agustín Batuecas Torrego Vicepresident Mr. Víctor Alberola Ruipérez General Manager Clece Mr. Cristóbal Valderas Alvarado Chairman and CEO. Dragados Industrial. Concessions. Mr. José Alfonso Nebrera García Chairman. Iridium. Mr. Vicente Prados Tejada CEO of CYMI and Masa. Mr. Manuel García Buey Chairman and CEO Mr. Víctor Revuelta García General Manager Mr. Francisco Fernández Lafuente General Manager. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. ACS Services Communications and Energy. Mr. Jesús Verde López General Manager of Telecommunications and Systems Mr. José Luis Zapata Pinar General Manager of Generation. Mr. Pablo García Arenal General Manager of Large Contract Mr. Raúl Llamazares de la Puente CEO of Initec, Intecsa and Makiber Mr. Pedro Ascorbe Trian General Manager of Dragados Offshore Mr. Juan Enrique Ruiz González Chairman of Sice Technology and Systems. 11.
(18) Construction. Concessions. Environment & Logistics. Industrial Services. Mission Meeting the needs of our clients. Optimizing the profitability of the resources managed. Improving the society in which we live: encouraging sustainable growth. • Diversifying the Group’s. • Increasing operating. • Acting as an economic driver for. product portfolio, innovating. and financial efficiency and. the creation of stable, decent and. daily to increase the range of. offering attractive profitability. fairly remunerated employment.. services and activities offered,. to our shareholders. • Respecting the economic, social. reducing ACS’s exposure to economic cycles and guaranteeing. • Applying strict investment. and environmental backdrop,. the achievement of our client’s. criteria in line with the company's. innovating in the establishment of. objectives.. strategy of expansion and. company procedures and respecting. growth.. in each of the activities carried out by the Group, the recommendations of. • Continuously improving quality, safety and reliability standards. • Maintaining a solid. the main domestic and international. in the services offered in order to. financial structure which. institutions.. foster stability and to guarantee. facilitates the raising of resources. recurring income.. and the maintenance of a low. • Helping the economy to grow by. cost thereof.. creating wealth through ACS Group's own activities or through the. • Expanding the Group's current client base through a. • Offering an attractive dividend. infrastructure it builds, the energy. permanent commercial effort. policy which is sustainable in the. produced, which guarantee society’s. in new markets.. long-term.. development and the well-being of its citizens.. 12. Energy. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Corporate Strategy. Estrategia Corporativa.
(19) Annual Report 2007 ACS Group. Vision A worldwide reference in construction, services and energy activities. A group which participates in the development of sectors related to infrastructures, which are fundamental for the economy. A company committed to economic and social progress in the countries where it is present.. Values Experience developing. Competitive advantages Technical. quality service which incorporates new technological breakthroughs. Concessions. for its clients. Construction. Profitability as a future. Energy. Service Culture. compensate shareholders for their trust and their investment.. Environment & Logistics. Industrial Services. Availability of Capital. Trust from customers built. Technical knowledge. on a long-term relationship and. The ACS Group, which has over 80 years’ experience and a total of. mutual familiarity.. 9,000 engineers and university graduates, is one of the top companies. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. guarantee, and as a tool to. worldwide in infrastructure development. The Group's ability to. Commitment to sustainable. innovate and the high number of activities it undertakes enable it to. development in order to serve. take on any project relating to infrastructure with guaranteed success.. society in an efficient and ethically responsible manner and to create. Service Culture. value for its suppliers, clients,. Adopted by each of the organisation members, it enables the Group. employees and shareholders.. to maintain a close relationship with its clients so as to offer them products and services adapting to their needs.. These values, which have formed part of the Group's culture since its foundation, have created the main competitive advantages which are the cornerstone of its past and future growth.. Availability of Capital Given ACS Group's track record, reputation, past profitability as well as its proven ability to reinvest gains over the years, financial institutions are willing to make the resources required for continued growth available to the Group.. 13.
(20) Corporate Strategy. Estrategia Corporativa. History. 1983. 1986. 1996. 1997. 1999. 1997. 1992. Construction Concessions. 1988. 1989. Environment & Logistics. Energy. The ACS Group began operating in. company specialised in the. became one of the leading construction. 1983 when a group of engineers. maintenance and installation of. company groups in Spain. A second. acquired Construcciones Padrós, a mid-. electricity lines. This process was. large merger took place in 1997, with. sized construction company with. continued with the purchase of a. the creation of ACS as a result of OCP's. financial problems located in Badalona. majority shareholding in Cobra, one of. merger with Auxini and Gines Navarro.. (Catalonia). After restructuring this. the most renowned companies in the. company, the same strategy was. sector of support services to electricity. At the end of the nineties, the Group. employed with the acquisition of OCISA,. and telecommunications companies,. incorporated most of the companies. a prestigious construction company. and a market leader with over 80 years’. forming its current services area;. which was larger and had already been. experience.. Onyx, a provider of environmental. in operation for over 40 years.. 14. services; Imes, a company dedicated The first of the large company mergers. to public lighting services, integral. At the end of the eighties, a. took place in 1992 with the creation of. maintenance and control services;. diversification process was initiated. OCP, which would be the seed for the. and Vertresa, the largest waste. through the acquisition of SEMI, a. Group structured as it is today. OCP. treatment plant in Madrid.. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Industrial Services.
(21) 2000. 2002-2003. 2003. Annual Report 2007 ACS Group. 2006. 2007. The turn of the century started with. management, was created and the. In 2007, the ACS Group acquired a. the integration of the Dragados Group,. Group has progressively increased its. stake in Hochtief, a world leader in. which positioned the ACS Group as. stake in this company since then.. infrastructure development with a. the indisputable leader in the Spanish. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 2005. powerful presence in the USA, Central. market and as one the most important. Later, in 2005, the Group established. Europe, Australia and Southeast Asia.. companies in the industry on the. the base for its Energy area with its. This operation will provide a platform. European continent.. investment in Unión Fenosa and. for the ACS Group to accelerate its. subsequently strengthened this area. international expansion.. Parallel to this entire integration. with the purchase of a holding in. process, the ACS Group has. Iberdrola in the last quarter of 2006.. established the basis for its future. These investments have enabled ACS. strategy, focusing its activity on relevant. to position itself as a benchmark. sectors of the Spanish and European. industrial company with two of the. economy. In 2003, Abertis, one of the. main energy companies in the. top companies in infrastructure. European market.. 15.
(22) Construction 18 Concessions 30 Environment & Logistics 36 Industrial Services 48 Energy 64 Strategic Investments 74 1.6.1 Abertis 74 1.6.2 Iberdrola 76 1.6.3 Hochtief 78. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Activity Report. 1.1 1.2 1.3 1.4 1.5 1.6.
(23) WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39.
(24) 18. Activity Report. The ACS Group carries out its Construction activities through an. Organizational structure. extensive group of companies. Outstanding among these is Dragados, the lead company in this area. It is and has a long history in carrying out projects throughout Spain and a growing international activity.. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. specialised in all types of infrastructure. Construction. 1.1 Construction. 1.
(25) 100%. Construction of marine and port structures, large-scale civil works prefabrications, special structures and exceptional bridges. 100%. Conventional and modular building, prefabrication of architectural elements in concrete, renovation, “turnkey” handovers, interior decoration, organisation of large events and corporate imaging. Annual Report 2007 ACS Group. 100%. Purification and desalination stations, purifying plants for urban and industrial waste water, waste treatment or transfer stations. Leading general contractor in railway projects. Civil Works and building activities in Venezuela. 98%. Leading general contractor in Spain. 100%. 100%. 63%. Specialised in railway projects. One of the leading companies in this subsector. Also operates as general contractor in the Basque Country, the Autonomous Region where it has its origins. 100%. Construction and operation of roadway concessions in Argentina. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 100%. Dedicated to civil works rehabilitation and construction in the north-western area of the United States. Specialising in dredging, regeneration of beaches, etc. 50%. 100%. Operates in projects involving special foundations, land engineering, structural inspection and diagnosis of structures and restoration. Real-estate management and promotion. 100%. 19.
(26) Activity Report. Activity description. Revenue evolution Million of euros 8,000. 6,750. Construction activity in 2007, with over €7,350 million in revenue,. 5,725. 6,000. 5,230. consolidated the ACS Group as the leader in the sector in Spain, both in. 7,353. 4,000. 4,352. terms of size and profitability. These results represent an 8.9% increase. 2,000. in production, so continuing the positive trend of the last 5 years. 0. 2003*. 2004. 2005. 2006. 2007. which show annual compound growth of 12.9%. The Construction area’s international activity in 2007 accounted for 6% of total activity, and primarily came from countries where the Group is active in transport infrastructure. Internacional revenue evolution Million of euros. Margin %. 1,200. 12%. 9.3%. 1,000. 800. 9.7%. 10%. 7.3%. 8%. concessions.. 6.4% 484. Revenue in Spain by type of client is. 400. concentrated in Public. 200. 5.9%. 555. 600. 431. 333. 433. 6%. 4%. 2%. Administration at 61%, Central Administration outstanding therein.. 0. 0%. 2003*. 2004. The remaining 39% was from private. 20. companies, specifically from large. International Revenue. institutions and concession. % International over Total. operating companies.. Note:* Under Spanish GAAP criteria. 2005. 2006. 2007. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 1.1 Construction. 1.
(27) Revenue breakdown by type of activity. Domestic Civil Works revenue breakdown by type of proyect. (%). (%). (%). 17. 30. 27. Annual Report 2007 ACS Group. Domestic revenue breakdown by type of client. 29. 39 23. 60. 10. 15. 34. 16. Central Administration. Civil Works. Highways and roads. Autonomous Administration. Non Residential Building. Hydraulic works. Local Administration. Residential Building. Railways Other civil works. Civil Works. ACS’s Construction production is. The ACS Group's focus on clients is a. structured into three differentiated. key factor in the Construction area.. areas of activity: Civil Works,. Public Administration, basically Spain’s. In motorways and roads the following. Non-Residential Building and. Central Administration and particularly. projects carried out in 2007 are noteworthy:. Residential Building.. the Ministry of Development and the. The Civil Works segment takes in all types of projects in the development of infrastructure, such as motorways, marine, hydraulic and airport works.. Ministry of the Environment, as well as. • A number of works were performed on. Regional and Local Administrations,. Calle 30 in Madrid, outstanding among. are of great importance for the. which are:. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Private Clients. development of our activity. For this reason the Group has entered into a. – Underground routing at the Puente del. long-term commitment with them. Rey and Avenida de Portugal junction. enabling it to identify their needs and to. between Puerto del Marqués de Monistrol. continuously and efficiently adjust the. and Puente de Segovia in Madrid.. Group's supply accordingly.. – The left-hand carriageway for the connection from Paseo de Santa María. Civil Works activity is the platform for. de la Cabeza to the A3, corresponding to. international development in the. the Southern Bypass.. Construction area and includes the carrying out of projects under a. • Construction of the A-7 Mediterranean. concession regime and operations. Highway in the Nerja-Almuñecar. outside Spain in specific, highly. (La Herradura) stretch between Granada. technical projects.. and Malaga.. 21.
(28) Activity Report. • Construction of the new access road. Among the works carried out in. • Rehabilitation of the surrounds and. to the Port of Castellón.. hydraulic infrastructures, coasts and. facilities for the Pérez Galdos Theatre in. ports, the following deserve special. Las Palmas de Gran Canarias.. • Construction of Salamanca’s. mention:. south-west ring road in the stretch connecting with the internal southern. • Construction of Sections I and II of. In respect of health centres and. Ronda between the Buenos Aires and. the Southern Breakwater in Barcelona.. hospitals:. • Construction of the sewage. • ACS has participated in several. treatment works for Arroyomiel de. projects in La Rioja:. Montalvos links.. Railways, in which high-speed,. Benalmádena in Malaga. – Expansion and alterations for the. interurban and metropolitan projects are encompassed, the following. • The ACS Group took part in the. deserve special mention:. construction of several dams, such as the Arenoso dam in Cordova and the. • Remodelling of the Barcelona-Sants. Investigación Biomédica (C.I.B.I.R.).. dam on the river Ceguilla in Segovia. • Construction of Phase I of the Juan. railway station.. Building construction. Canalejo-Maritimo de Oza hospital complex in La Coruña.. • Several projects were carried out to improve the Madrid subway railway. Non-Residential Building. network, worthy of mention are:. activity maintains its clear focus on. – Construction of the new subway. Hospital de San Pedro in Logroño. – Construction of the Centro de. Public-Private Partnership projects,. In industrial and office administrative. without failing to attend to demand. buildings:. connection between the Atocha. for commercial buildings, which has. and Chamartín stations in the. been growing extensively as a. • Construction of the Torre de Cristal for. Atocha-Nuevos Ministerios stretch.. consequence of economic growth,. Mutua Madrileña in Madrid.. – Expansion and renovation of the line 3 of Madrid’s subway.. as well as attending to institutional building needs for government entities. In terms of Residential Building, the. – Construction of the new interchange and access to the. The ACS Group is involved in many. ACS Group works with the leading. Renfe Interurban line C-5 station.. public and private projects including:. domestic developers on developments which require a high level of resources. • Construction of the eastern Abdalajis. • Construction of the transport. Tunnel on the high voltage line between. interchange and the public car park. Cordoba and Malaga. at Plaza de Castilla in Madrid.. due to their complexity or size. Construction activity shows high profitability with solid margins on sales as a consequence of the continual. • Construction of the platform for the high-speed railway from Madrid to. In the construction of cultural and. improvements in productivity achieved in. Murcia in the Gabaldón to Villanueva. sports buildings:. the last few years. This process has enabled ACS to become a more. de la Jara stretch in Cuenca.. 22. • Construction of the Auditorium at. competitive company in its bidding. Arroyomolinos in Madrid.. activity. Even in a period with significant. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 1.1 Construction. 1.
(29) Annual Report 2007 ACS Group. growth in production, operating profit margin has remained at 6.3% and net profit margin on sales at 4.2%.. EBIT evolution. Net profit evolution. Million of euros. Margin %. 700. 7%. 6.3%. 6.3%. 6.3%. 6.3%. Million of euros 500. 5%. 6.3%. 600. Margin %. 4.1%. 6%. 4.2%. 4.2%. 4.2%. 4.2%. 400 500. 4%. 5%. 423. 460. 400. 4%. 285. 300. 328. 282. 300. 359 3%. 200. 2%. 100. 1%. 221. 310. 185. 200. 2%. 100. 0. 0%. 2003*. 2004. 2005. 2006. 3%. 239. 1%. 0. 0%. 2007. 2003*. EBIT. Net profit. EBIT margin. Net margin. 2004. 2005. 2006. 2007. This current activity shows solid future. 2007, exceeding €12,000 million and. prospects as growth in the ACS Group’s. guaranteeing the future development of. portfolio was confirmed in December. Construction activity.. Order book evolution. International order book evolution. Million of euros. Million of euros. 14,000. 5,000. %. 18.7%. 20%. 12,011. 12,000. 4,000. 10,661. 16%. 9,369. 10,000 8,000. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Note:* Under Spanish GAAP criteria. 7,888. 8,525. 3,000. 11.4%. 12%. 2,243. 6,000. 7.0%. 2,000. 6.4%. 7.1%. 8%. 4%. 4,000 1,000. 899. 593. 595. 761. 2003*. 2004. 2005. 2006. 2,000 0. 0. 2003*. 2004. Note:* Under Spanish GAAP criteria. 2005. 2006. 2007. 0%. 2007. International Order book % International over Total. 23.
(30) 1.1 Construction. 1. Activity Report. Order book breakdown by type of proyect. Domestic order book breakdown by type of client. (%). (%). 19. 13 7. 15. 33. 38. 16 18. 10. 12. 19. Highways and roads. Central Administration. Hydraulic works. Autonomous Administration. Railways. Local Administration. Other civil works. Private clients. Non-Residential Building Residential Building International. Main contracts awarded in 2007 Main contracts awarded in 2007. Amount. Type of project. 24. Construction of Greece E-65 Highway (Greece). 476. Roads. Construction of the Jonica highway (Greece). 367. Roads. Construction of the bridge over Bay of Cadiz (Spain). 273. Roads. Enlargement of New York's Subway (US). 272. Railways. Conservation and exploitation of A2 highway (L.P. Soria/Calatayud). 163. Roads. Construction of M7/M8 highways (Ireland). 149. Roads. Construction of the highway A-4 between Wielicka and Szarow (Poland). 133. Roads. Construction of a tunnel, maintenance and improvement works for the M-30 in Madrid (Spain). 128. Roads. Construction of railway tunnels and station in Gerona (Spain). 111. Railways. Enlargement of the subway line 11 to Barrio de la Fortuna (Madrid). 105. Railways. Building of the shopping center of Vilella in Alcira (Alicante, Spain). 73. Non-Residential Buliding. Construction, maintenance and exploitation of CV50 in Valencia (Spain). 63. Roads. Construction of a high speed train platform in Durango (Vizcaya, Spain). 53. Railways. Integral regulation and modernisation project for the Canal del Terreu for the Alto de Aragón irrigation system. 53. Hidraulics. Sewage network for Valencia’s metropolitan area by means of the construction of the Favara sewer. 42. Hidraulics. Works on the supply system from the Cenajo dam to the Canales del Taibilla community in Murcia. 33. Hidraulics. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Million of euros.
(31) Annual Report 2007 ACS Group. Business strategy. Construction is a mature and competitive business requiring local. The ACS Group’s dedication to. client management. This means. leadership and its commercial,. planned and structured international. corporate and operating strategy have. expansion, limiting client risk and. enabled it to maintain its undoubted. enabling the application of the. position at the forefront of the sector in. experience gained throughout ACS’s. Spain for another year.. history.. The ACS Group’s strategic objectives in. The Group strategy is based on a. the Construction area are to maximise. series of advantages and objectives:. the profitability of its projects by carrying out large works providing greater value due to the specialisation required.. Competitive Advantages. Strategic Objectives. • A clear focus on clients.. • Maintenance of Spanish market share permitting sustainable. • Renewed and prolonged. development of the company’s. commitment from Spain’s Public. operating profitability.. increase its investments in. • Selective international expansion. infrastructures.. through the development of the. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Administration, which continues to. division’s own concessions and/or • A commercial strategy focused on. one-off projects based on a high. large-scale, highly technical works. degree of specialisation.. which generate high added value. • A policy of cost control, decentralised management and optimisation of working capital.. 25.
(32) Activity Report. Sector environment. Production. 2006. 2007. Var. 07/06. % Of total. Building 140,293 Residential 65,750 Non Residential 30,039 Maintenance and Refurbishment 44,505 Civil Works 45,844. 150,810 71,115 32,022 47,673 49,381. 3.4%. 75.3%. 4.0%. 35.5%. 2.5%. 16.0%. €200,000 million. These figures. Total. 200,191. confirm the industry's great importance. Source: SEOPAN. Millions of euros. Current situation The construction sector in Spain in 2007 experienced growth in real terms of 4% and production exceeded. 186,137. 23.8%. 5.5%. 24.7%. 4.0%. 100.0%. which again this year represented 18% of GDP and over 13% of total employment. Public calls for tender. The construction sector in Spain has. be solid in 2007 and consumption. remained at 2006 levels, affected by. had 11 years of uninterrupted growth. grew. Employment in the sector,. the autonomous community and. and has contributed 27% to the. measured as full-time job equivalents,. municipal elections of May 2007.. country’s economic growth over the. increased by 6.1% to 13.3% against. last 5 years. GDP grew 3.8% during. 12.9% in 2006.. All the sub-sectors grew, in line. 2007, thanks to the strength of internal. with GDP. Outstanding among these. demand and to investment which has. was Civil Works, with interannual. shown strong growth in capital assets.. growth of 5.5%.. Investment in construction was seen to. 2003-2007 Official bidding processes evolution 26,807,443 24.2%. 31,620,026 32.8%. 39,255,907 38.8%. 46,690,230 32.1%. 46,546,000 24.4%. 2003-2007 Official bidding processes evolution 26,807,443 67.0%. 31,620,026. 39,255,907. 46,690,230. 71.0%. 68.0%. 68.8%. 29.0%. 32.0%. 31.2%. 46,546,000 73.1%. 28.3%. 33.5% 34.1%. 33.6% 31.2%. 47.3% 42.3% 33.6%. 2003. 2004. 30.0%. 2005. 33.8%. 2006. 33.0%. 2007. 2003. Local Administration. Civil Works. Regional Administration. Building. Central Administration. Source: SEOPAN. Source: SEOPAN. 26. 3.0%. 2004. 2005. 2006. 26.9%. 2007. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 1.1 Construction. 1.
(33) Evolution of Construction in Spain. 2007, public bidding from Public. 7%. Administration showed average. 6%. annual growth of over 15%. Looking. 5%. at the distribution by type of work, it. 4%. +6.0%. +6.0% +4.0%. +4.0%. +3.9%. Annual Report 2007 ACS Group. During the period from 1995 to. 3%. is worth singling out the 5.9% growth in demand for Civil Works based on. 10%. the boost from transport. In relation. 9%. +8.5% +7.5. 8%. to the distribution by type of client,. 7%. the 39.7% growth from Central. 6%. Administration stands out.. 5%. +7.0% +6.0% +5.0%. +3.4%. 4% 3%. The rhythm of bidding continues at. 2%. the optimum level so as to be able to. 1%. develop existing plans and public. +5.5%. +5.4%. +2.8%. +3.2%. 0. 2003*. 2004. 2005. 2006. 2007. finances allow this level of investment to be maintained.. Building production annual variation Civil works production annual variation Construction production annual variation. Sector prospects. State Involvement in Infrastructure by area. General State Budgets for 2008 again. Million of euros. prioritise investment in infrastructure. Total investments. with a provision of €20,274 million, up. Roads Railways Ports and Marine Security Airports and Air Security. 16.4% from 2007. Looking at the type of infrastructure, investment in railways and roads stands out once again.. Transport Infrastructure Subtotal Hydraulic Environmental Other Total. 2006. 2007. 2008e. Var. 08/07. 3,451 5,704 1,371 1,790. 4,297 5,625 1,288 2,059. 4,903 5,939 1,673 2,573. +14.1%. 12,316. 13,269. 15,088. +13.7%. 3,605. 4,476 508 198. +29.0%. 194. 3,469 492 179. 16,115. 17,409. 20,270. +16.4%. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Source: SEOPAN. +5.6% +29.9% +25.0%. +3.3% +10.6%. Source: Ministry of Economy and Finance, Spain. 27.
(34) 1.1 Construction. 1. Activity Report. Investment in infrastructure by area 2007. Investment in infrastructure by area 2008. (%). (%). 1 3. 1 3. 25. 20. 24. 22. 12. 13 7. 32. 8. Roads. Hydraulic. Railways. Environmental. Ports and Marine Security. Other. 29. Airports and Air Security Source: Ministry of Economy and Finance, Spain. the Strategic Plan for Infrastructures and Transport (PEIT) which is. Central Spanish Administrations investment in infrastructures. Areas. (%). Million of euros. designed to improve Spanish. 15. infrastructure over the period from 2005 to 2020. This continues to be. 9. the reference framework for State. 45. 6. investment, with a planned total of €248,700 million, which represents. 25. Railways. Ports. Roads. Real Estate Developments. Airports Source: Ministry of Economy and Finance, Spain. 28. Railways Roads Airports Ports Real Estate Developments. 108,600 62,700 15,700 23,500 38,200. Total Investment. 248,700. (60% Public. 40% Public-Private). around 1.5% of GDP over this term.. Investment. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. These investments are framed in.
(35) amounts to €56,644 million, hence State investment over these years has. implementation of the PEIT and an. been in accordance with the Plan, and. investment of €18,858 million is. if this rate of investment is maintained. forecast for 2008, which would give an. in the 2009/2020 period, the objectives. accumulated total of over €65,300. set will be exceeded. According to data. million.. supplied by SEOPAN, total investment. Annual Report 2007 ACS Group. A total of €46,504 million have been invested during these initial years of. forecast through PEIT (public and The total investment forecast in the. private) over the 2005/2008 period is. PEIT for the period 2005/2008. 15.4% above that anticipated.. Level of execution of peit in the period 2005/2008. 2005. 2006. Total 2007. 2008. Total. PEIT Forecast 2005/2008. In value. In %. Public Sector Private Sector. 10,692 3,554. 11,204 4,320. 12,230 4,504. 13,325 5,533. 47,451 17,911. 37,500 19,144. 9,951. 26.5%. -1,233. -6.4%. Total. 14,246. 15,524. 16,734. 18,858. 65,362. 56,644. 8,718. 15.4%. Total Investments. Difference. This confirms the Spanish government. This positive evolution in Civil Works. trend for promoting investment by. activity will compensate for the falling. maintaining the current welfare state. trend in the residential building market. and encouraging growth in other key. which is levelling off after the last few. sectors of the economy such as. years of growth. Likewise, Public. tourism and associated services.. Administration continues to invest in. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Millions of euros. public protection housing development These prospects for growth in Civil. as a response to the constant demand. Works are accompanied by a positive. in this area of activity where the Group. outlook for Non-Residential Building.. has proven experience.. Central Administration, Autonomous Communities and Local Bodies continue to show their commitment to making investments, especially with Public-Private Partnership models.. 29.
(36) 1.2 Concessions. 1. Activity Report. Activity Description. Iridium Concesiones de. Iridium manages several contractual. Infraestructuras, S.A., manages. models for Public-Private Partnerships. concessions in a decentralised manner. (PPP), covering the entire value chain. Iridium is the ACS Group company. based on the type of business and/or. of concession business.. that engages in the promotion,. geographic location of the markets. financing, management, operation,. where it operates. By line of business:. In 2007 the company was awarded. administration, maintenance,. international motorways in operation. 6 new concession contracts that are. refurbishment and conditioning of all. are managed through Inversora de. currently in their initial phase, with an. types of administrative concessions of. Infraestructuras, S.L. and international. investment of over 2 billion euros. Its. both transport and public facility. motorways under construction are run. portfolio of future projects contains a. infrastructures.. through Desarrollo de Concesiones. number of them in different. Viarias Dos, S.L; domestic motorways. development stages, the most. By means of the management of 61. are managed through Desarrollo de. outstanding among them are 9 tenders. companies in construction/operation of. Concesiones Viarias Uno, S.L;. awaiting resolution, 37 in presentation. various administrative concessions, it is. subways and railways are concentrated. and tender process and more than. a worldwide leader in the promotion,. through Desarrollo de Concesiones. 40 projects at the pre-qualification. financing, construction and operation. Ferroviarias S.L; and the management. and study phase.. of all types of infrastructures.. and operation of car parks by Iridium Aparcamientos, S.L. Regarding to. The following table summarizes all of. geographical diversification, it currently. the ACS Group’s concessions as of. has subsidiaries in: the United States -. 31 December, 2007.. ACS Infrastructure Development Inc; and Catalonia, Spain - CAT Desenvolupament de Concessions Catalanes, S.L.. 30. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Chile - Concesiones Viarias Chile;.
(37) (1). Waterford Southlink (1) Portlaoise (2) Midlink * (2). Portlaoise - Midlink M7/M8 Scut da Beira Interior - Ramalho A-13, Thames Gateway Platinum (Bakwena) - PT Op.. (1). Bakwena (2) Pt Ops. 50.00% 66.70% 53.30% 50.00% 35.00% 19.70% 85.00% 25.00% 70.00% 95.00% 65.00% 50.00% 48.00% 50.00% 50.00% 46.50% 33.30% 33.30% 33.33% 16.00% 33.33% 16.00% 25.00% 25.00% 25.00% 33.33%. Country. Activity. Phase. Unit. P.E. Global P.E. P.E. P.E. N.C. Global P.E. Global Proporcional Global Proporcional P.E. P.E. P.E. P.E. P.E. P.E. P.E. / N.C.. Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Chile Chile Chile Chile Greece Greece Irland. Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways Motorways. Operation Operation Construction Constr./Operation Operation Operation Construction Operation Construction Construction Construction Operation Operation Operation Construction Operation Constr./Operation Constr./Operation Construction. 124 52 44 147 80 92 10 22 16 93 20 33 62 129 4 29 380 231 24. 2013/18 2033 2041 2040/44 2024 2049 2038 2024 2035 2026 2042 2040 2031 2025 2035 2032 2037 2037 2036. 57 130 96 518 624 1,182 54 96 108 122 107 300 768 359 88 608 1,150 1,508 291. 3 18 14 83 77 106 14 4 14 12 10 100 137 53 11 94 64 44 20. P.E.. Irland. Motorways. Construction. 41. 2037. 334. 26. P.E. P.E. P.E.. Portugal U.K. South Africa. Autopistas Autopistas Autopistas. Operation Operation Operation. 187 22 381. 2029 2030 2031. 839 343 263. 18 9 5. 9,944. 936. 149 24 119 167. 5 2 42 89. 458. 138. 1,085 133 619. 51 3 40. 1,837. 94. 107 72 16 16 1. 10 13 4 4 0. 211. 31. 242 238. 17 23. 480. 40. 159 64 23. 11 9 5. 247. 25. 13,177. 1,264. Total Motorways (km) SCL Aerocali Montego Bay Aeropuertos Mexicanos del Pacífico. 2,223 * * * *. 14.80% 33.00% 74.50% 33.30%. N.C. P.E. Global P.E.. Chile Colombia Jamaica Mexico. Airports Airports Airports Airports. Constr./ Operation Operation Constr./Operation Constr./Operation. Total Airports (n.º of Airports) Figueras Perpignan - TP Ferro Arganda Metro Sevilla Metro. 50.00% 8.10% 31.10%. P.E. N.C. P.E.. Spain - Fr Spain Spain. Railways Railways Railways. Construction Operation Construction. 75.00% 100.00% 100.00% 100.00% 52.20%. Global Global Global Global Global. Spain Spain Spain Spain Spain. Prisons Police Stations Police Stations Police Stations Facilities. Operation Operation Operation Explotación Construction. 2054 2029 2038. 95,182 60,330 8,937 9,269 60,000. 2034 2024 2031 2031 2012/17. 233,718 55.00% 48.00%. Global P.E.. Spain Spain. Hospitals Hospitals. Construction Construction. Public Facilities (n.º of beds) Plaza de Castilla Interchange Príncipe Pío Interchange Avda. América Interchange. 45 18 19 82. Public Facilities (m2) Majadahonda Hospital Son Dureta Hospital. 2018 2020 2033 2014/49. 15. Total Railways (km) Brians Prison Central Police Station (Ribera norte) Del Vallés Police Station (Terrasa) Del Vallés Police Station (Barberá) Green Canal Golf. 1 1 1 12. 749 987. 2035 2038. 1,736 50.00% 70.00% 100.00%. Total Transport Interchanges (m2) TOTAL CONCESSIONS. P.E. NC Global. Spain Spain Spain. Interchanges Interchanges Interchanges. Construction Operation Operation. 74,000 25,000 41,000 140,000. 2040 2039 2050. * Concessions on which a sale agreement has been reached by 31 December 2007 Note: The company Aeropuertos Mexicanos del Pacífico manages 12 airports in Mexico through the group Aeroportuario del Pacifico: Aguascalientes, Bajío; Guadalajara, Hermosillo, La Paz, Los Mochis, Morelia, Mexicali, Puerto Vallarta, San José del Cabo, Tijuana and Manzanillo. (1) (2). ACS Group stake in the Concession Company ACS Group stake in the Operating Company. 31. Annual Report 2007 ACS Group. A8 - Bidelan Guipuzkoako Autobideak La Mancha Highway Los Pinares Highway (Valladolid Cuellar) Alicante Ring Road Henarsa (R2 and M50) Madrid Accesses (R3/R5 and M50) Reus-Alcover Ruta de los Pantanos Santiago Brión AUMECSA (Medinaceli Calatayud Highway) Camp del Turia Highway (CV 50) EMESA (Madrid Calle 30) Central Motorway Rutas del Pacífico San Cristobal Tunnel Vespucio Norte Express Jonica Motorway (NEA ODOS) Central Greece N25 Waterford By Pass- Southlink N25. Stake. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. Concession - Description. Investment Anticipated Expiry Anticipated ACS Date in Proyect Contribution. Consolidation Method.
(38) Activity Report. Activity in 2007. New projects. • In Pennsylvania, ACS Actividades de Construcción y Servicios S.A. is. Iridium takes an active part in the. The ACS Group is also currently. short-listed for the concession process. main worldwide concession markets,. participating in short-listed consortia. for the Pennsylvania Turnpike, one of. focusing its efforts on Spain, the Unites. for the following projects abroad,. the country's main motorways in terms. States, Ireland, Chile, Greece, Canada. among others:. of traffic, historical development and. and Portugal.. importance. This call for tenders is one • In Texas, ACS Infrastructure. of the largest held both in the United. During this financial year ACS. Development, Inc. is short-listed for. States and worldwide. The contract is. Infrastructure Development, a. the calls for bids for concessions for. expected to be awarded in 2008.. subsidiary of Iridium Concesiones de. the IH-635 urban motorway in Dallas. Infraestructuras in the United States,. and the TTC 69. Both projects will be. • In Florida, ACS Infrastructure. has consolidated its presence in the. awarded in 2008 according to the. Development, Inc. has been short-listed. country. It is focusing its activity in. Texas Transportation Department's. for the call for bids for the I-595. those states where infrastructure. latest schedule.. motorway concession in Broward. development, under the Public-Private Partnership model, shows prospects. County in the south of the state, to be – In November 2005, the company. executed on an availability payment. of a sufficiently attractive level of. was short-listed to develop,. consolidation in the next few years.. design, construct, finance, operate. As such it is participating in the main. and maintain part of the ring road. • In Quebec, Iridium is short-listed for. calls for tender in this area in the most. for the city of Dallas (Texas), called. the call for bids for the A-30 motorway. prominent East Coast states. IH635. The contract will be. in Montreal. This is the ring road for the. awarded in 2008.. city and includes two significant. (Pennsylvania, Florida, Virginia and Georgia), as well as in Texas and. – The TTC-69 project consists in. California. It has offices in Miami,. developing the corridor which. Austin and New York.. crosses Texas from north to south. basis.. bridges.. in a line with Houston. The project. It is also monitoring tenders for. provides the possibility of. significant projects in Europe, the. implementing all types of transport. United States, Canada and South. infrastructure. The winning. America.. consortium will advise the State on the most appropriate transportation. In Spain, the ACS Group is awaiting the. projects and will have the right to. adjudication of 3 concessions for. operate a portion thereof.. municipal car parks in Andalusia, Catalonia and Madrid.. 32. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 1.2 Concessions. 1.
(39) Annual Report 2007 ACS Group. Relevant facts. Other noteworthy events which took place during the year include the. Over the course of 2007, the following. following:. concessions were opened to traffic or were commissioned:. • On February 6, construction work started on the new Hospital in Son. • The Brians-2 Penitentiary Centre. Dureta in Palma de Mallorca with a. was commissioned on April 30, being. capacity of over 800 beds.. this the second penitentiary centre in Spain to be financed through the. • On April 2007 the Chilean Ministry. PPP formula.. of Public Works (MOP) authorized the Final Start-up of Autopista Central. • On May 8, the Principe Pío. motorway (Santiago de Chile). The end. Transport Interchange was opened. of the first construction stage and the. in Madrid (Spain) with the presence. fulfillment of a series of financial. of the President of the Autonomous. requirements permitted to reach the. Community and the Mayor of Madrid.. “Completion” in May 2007 and then begin with the operation, both required. • In the first four months of the year all. by the financial insurer.. put into service. This is a project in. • On August 2007 the Chilean Ministry. which the ACS Group participates as. of Public Works (MOP) authorized the. a Private Partner of the Madrid City. Final Start-up of Vespucio Norte. Council (Spain) and is responsible for. Express motorway (Santiago de Chile).. infrastructure maintenance.. The end of the first construction stage. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. the sections of Madrid Calle 30 were. and the fulfillment of a series of financial • On December 10, the toll ring road. requirements permitted to reach the. for Alicante in Spain was opened with. “Completion” in December 2007 and. the presence of the Secretary of State. then begin with the operation, both. for International Cooperation and the. required by the financial insurer, MBIA. subdelegate of the Government in. Insurance Corporation.. Alicante. • On May 9 the sale of Dragados • Operation and construction of the. Dundalk (Ireland) and Dragados A1. Jonica Motorway (Greece) started on. (United Kingdom) to Secondary Market. December 14.. Infrastructure Fund Ltd. was formalized.. 33.
(40) Activity Report. Contracts awarded in 2007. • 20-year concession for the A-2. • Central Greece: total financing of. highway, being the 93 km long. 1,474 million euros. 300 million euros is. In 2007, the ACS Group was awarded. Soria/Calatayud provincial limit stretch. structured in a Bridge Financing section. the following contracts:. (first generation motorways). Investment. of Government payments; 892.5 million. amounts to 122 million euros.. euros as a State Term Loan Facility. • 5-year concession project for the. allocated for financing the Government’s. sports facilities management and. • A 35-year concession for the CV-50. payments during the operation period,. operation at the Canal de Isabel II third. motorway, Valencia’s outer ring road, on. with expiry at 29 years; 250 million euros. reservoir in Madrid, extendable to ten. a shadow toll basis. The Project starts at. as a Project Facility (Senior Debt) expiring. years.. the Chiva interchange on the A-3. in 26 years and a 31 million euros VAT. Madrid-Valencia highway and ends at. credit .. • 30-year concession for the. the Vilamarxant interchange for the. construction and operation of 368-. connection with the CV-35 at the. • Portlaoise (Ireland): 329 million euros. space car park in Benidorm (Alicante). Benaguasil interchange. The total. maturing in 2034. 70 million euros. and 40 years concession for the. motorway length is 22 km with four. corresponds to shareholders. construction and operation of 643-. interchanges, outstanding among which. subordinated debt bridging finance. space car park in Reus (Tarragona).. is the interchange with the A-3 Madrid-. maturing at the end of the construction. Valencia highway, one of Spain’s most. period; 117 million euros of EIB debt; 117. • 30-year concession for the Central. important roads. The estimated. million euros of senior debt; 10 million. Greece toll road. This project includes. investment in the project is 100 million. euros of subordinated bank debt and the. the 174 km long “Central Greece (E65)”. euros.. rest as contingent line (Stand By senior debt facility).. motorway, which connects the “PATHE” motorway in Lamia to the Egnatia Odos. Financing • Seville Metro (Spain): 250 million euros. motorway in Grevena, and the section of the “PATHE” motorway between Skarfia. The Company also demonstrated high. of EIB debt maturing in 2027 allocated. and Raches, which is 57 km long and. efficiency and innovation in the. for financing the modified project for. under construction by the State. The. management of project finance without. Metro de Sevilla S. A.. estimated investment in the project. recourse to shareholders (Project. amounts to 1,508 billion euros.. Finance).. • Financing contracts for a total of 26 million euros and an approximate period. • 30-year concession for the M7/M8. During 2006, several finance. of 25 years for 10 Police Stations in. motorways (Ireland). The concession. operations without recourse to. Catalonia.. project consists of the construction and. shareholders were arranged,. maintenance of the M7/M8 motorways. noteworthy of which were the following:. with a total length of 40 kilometers with an estimated investment of 364 million euros.. 34. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 1.2 Concessions. 1.
(41) In addition, the Portuguese. Canada also offers noteworthy political. government has published a Business. and economic stability, sufficient legal. Model for the Implementation of a. security and a developed financial. Throughout 2007, Spanish local. High-Speed Railway Network in the. system. The infrastructure level is. administrations, especially. country, with an anticipated investment. inferior to the country's economic. municipalities and regional. of approximately 8,000 million euros.. level, and short- and medium-term. governments, have shown an. opportunities are foreseen with. increasing interest in using the PPP. Tender activity continues in Chile for. respect to transport and hospital. model. In line with this, over the past. roads and public service buildings. infrastructures. The level of maturity of. year, public work concession contracts. and the revision of the Concessions. projects under the PPP structure varies. were applied to a greater variety of. Law is awaited along with its definitive. from province to province with British. transport and public facility. enactment.. Columbia and Quebec being the most. infrastructure projects and to a broader. advanced.. range of investment volumes, although. The development of activity in the. municipal and autonomous community. North American market is one of the. The Irish market continues to be. electoral processes slowed bidding. Company’s main strategic objectives. attractive, and Iridium's presence in. activity during the year.. given the countless business. the Republic of Ireland is stable and. opportunities it offers in the. consolidated.. In Portugal, the government has. Annual Report 2007 ACS Group. Sector prospects. short/medium term.. under Estradas de Portugal as the. The US transport infrastructure market. General Concessionaire. This strategy. under the Public-Private Partnership. has produced the launch of a program. formula continues to consolidate itself,. of 7 concession projects which. although work is becoming necessary. translate to a total of 3,000 million. aimed at US public administration. euros and 1,400 km of roads.. departments to explain the possibilities. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. reorganized the administration of roads. offered by the various forms, as well as adaptation of European formats to the needs and the legislative and financial situations in the different States there.. 35.
(42) 36. Activity Report. The ACS Group engages in its activities in the Environment and Logistics area. Organizational structure. through three companies with extensive experience which are leaders in their. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. respective sectors in Spain.. Environment and Logistics. 1.3 Environment and Logistics. 1.
(43) 100%. 100%. Annual Report 2007 ACS Group. Company specialized in the services necessary for the optimum running of public or private use properties (facility management, cleaning or ancillary services), green-market-related activities (gardening, reforestation and environmental recovery), care services for social collectives in situations of dependence, airport services, and the management of advertising spaces in large installations and transport systems. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 100%. Company specializing in waste management and treatment. Its activity encompasses street cleaning; the collection of solid urban waste and its subsequent treatment through the construction and operation of dumps and energy recovery plants; the management of renewable energies and cogeneration, the integrated management of special waste (industrial and hospital waste), integrated water cycle management and the management of urban gardening. Integrated operator of the logistics chain covering all its associated activities: port handling, including the management of container terminals (multiuse and specialised), maritime agency, transit, ancillary port services, dry-dock management, combined transport, auto logistics and railway transport. Leader in Spain in container handling. 37.
(44) Activity Report. Activity description In 2007, the ACS Group achieved a net sales of €2,835 million in the. Revenue evolution Million of euros. 2,835. 3,000. 2,459. 2,500. 2,151. 2,217. 2004. 2005. 2,000. area of Environment and Logistics. This represents growth of 15.3% for the year. The annual compound rate of growth over the last five years is. 1,500. 1,484. 1,000. 500. 17.6%, reasserting ACS’s leadership 0. in Spain and consolidating the Group as a reference company in the. 2003*. 2007. Note:* Under Spanish GAAP criteria. European market. Environment and Logistics activity is grouped around three business lines: Environmental Services, Facility Management and Port and Logistic Services.. International revenue evolution Million of euros. Margin %. 700. 14%. 12.0%. 600. 10.9%. 10.6%. 10.2%. 12%. 10.9%. 500. 10%. 400. 8%. 340 269. 300. 227. 200. 6%. 226. 4%. 162 100. 2%. 0. 0%. 2003*. 2004. International Revenue % International over Total Note:* Under Spanish GAAP criteria. 38. 2006. 2005. 2006. 2007. WorldReginfo - cbeb9894-dea1-4332-ba71-eea719f0ff39. 1.3 Environment and Logistics. 1.