Annual report 2007

Transcription

Annual report 2007

ANNUAL REPORT 2007
Index
Letter from the Chairman
4
Board of Directors
6
Corporate Strategy
8
Group Results
10
ACTIVITY REPORT
14
1. Construction
– Sectoral analysis
– Construction
1.1. Civil Engineering
- Railway Work
- Roads and Motorways
- Airports
- Maritime projects
- Hydraulic projects
- Urban developments
1.2. Building
- Residential building
- Non-residential building
2. Concessions
– Concessions
3. Engineering and Services
– Engineering
– Services
4. Renewable Energy
– Renewable energy
5. Real Estate
– Real Estate
CORPORATE RESPONSIBILITY REPORT
The Group and the Corporate Responsibility
Human Resources
Health and safety in the workplace
Quality
Environmental Management
Innovation
Community involvement. Social Action in the Aldesa Group
DIRECTORY
Central office
Aldesa branches
Subsidiaries offices
ECONOMIC AND FINANCIAL REPORT
1. Auditor's Report
2. Consolidated Annual Accounts
3. Notes to the Consolidated Financial Statements for 2007 and Director's Report
15
15
18
21
21
24
28
29
30
31
34
34
34
37
37
37
39
39
42
43
45
45
47
49
49
50
52
53
55
56
58
61
64
66
70
71
71
72
75
77
78
82
Letter from the Chairman
2007 has shown a change of tendency in the development of the construction sector
affected by the deceleration of the real estate market. Nevertheless, the construction industry
remained one of the most dynamic sectors of the Spanish economy, growing by 4% as
compared to 3.8% for the GDP. During 2007 civil engineering maintained the expansive rhythm
of recent times and has become the main motor of the sector.
In this economc scene there has been a revaluation of the growth strategy that Aldesa
implemented four years ago, with diversification of its business and investments towards
activities that are distinct but that have a synergy with the construction business, contributing to
greater added value to the Group and having a significant impact on its results. In this way it was
possible to take solid measures concerning the foreseeable tendency changes that could affect
the structure of demand for construction in Spain, as was the case. Looking forward to 2008,
the objectives are centred on enhancing the investment effort that has already been made.
Aldesa Construcciones and its subsidiary companies closed the 2007 financial year with a total
turnover of EUR 1,172 million and an EBITDA of EUR 80 million, which represents achievement
of the targets set out in the strategic growth plan one year ahead of expectations. Our activity,
therefore, continues the tendancy of growth in recent years, placing Aldesa among the ten
biggest construction groups in Spain. Our portfolio of work gained strength in 2007,
representing EUR 2,470 million, a figure that guarantees growth at very competitive levels
compared to the average for the sector. The process of diversification has been consolidated, as
demonstrated by the development of the portfolio of contract requests not related to
construction, which has increased by nearly 25%. On the other hand, our exposure to the real
estate market has been very limited due to the policy of extreme prudence observed in this
regard in recent years. Also, in 2007 the international development goals have been fulfilled,
with projects in Eastern Europe and Mexico.
Over the coming years it is expected that there will be solid development, increasing the
turnover due, principally, to the results of the diversification business, the procurement already
obtained in the building activity and the business opportunities deriving from the performance
of the Public Works Ministry in the modernisation of the transport infrastructures. Along with
the construction of new sections of High Speed Rail Lines, there were the contracts under the
First Generation Motorway Renewal Plan and the development and execution of the Transport
and Infrastructure Strategic Plan, which will form the basis for growth in civil engineering
production in the coming years, contributing at the same time to maintenance of economic
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ALDESA GROUP
activity in the construction sector. The execution of the work set out in the AGUA Programme
and other investments driven by the Ministry for the Environment will also add to the increase in
this type of demand.
With the entry of new companies to the Group in recent years, five areas of business have been
identified: Construction, Concessions, Engineering and Services, Renewable Energy and Real
Estate. During the financial year 2007 Aldesa formed the company Civesa Ingeniería y
Construcción, S.A., dedicated to construction in the specific geographic area of Eastern
Andalusia. It has also continued to focus on the strategic business of alternative energy, buying
assets to the value of EUR 600 million. The area of engineering was strengthened with the
purchase, through the AMS Group, of 91% of the company Galmet and 90% of EDASA
Ingeniería y Montajes, S.A. In the area of Services, the Aldesa Group, through its subsidiary
Concentra, formalised the purchase of 100% of the companies Técnicas de Administración y
Mantenimiento Inmobiliario (TMI) and San Martín y Martínez. Likewise, it is worthwhile to
emphasize the strong stake of the Group in the Concessions business, growing particularly in
2007 with the operation of infrastructures, mainly in Spain and Mexico. In order to undertake
with solvency this process of organic and inorganic strong growth, Aldesa has implemented
management tool SAP. This fact is allowing accelerate the homogenization process in all Group
companies, have reliable financial information promptly and facilitate an agile integration of any
company that joining the group.
It is also worth noting the continued interest of the Group in developing its activity sustainably,
integrating environmental and social responsibilities in its management model. To this end, in
2007 its commitments to all its stakeholders has been strengthened and extended.
Finally, I would once again like to recognise the great efforts made by everyone working for the
Aldesa Group, whose professionalism and dedication is the key to our growth and prestige.
Likewise, I would like to give my sincere thanks to the financial institutions, insurance
companies, suppliers, subcontractors and, of course, our private clients, whose confidence
motivates us to improve from day to day.
Antonio Fernández Rubio
Chairman
A N N U A L R E P O RT 2 0 0 7
5
Board of Directors
6
ALDESA GROUP
Chairman
José Luis Naveira Naveira
First Vice-Chairman
Matilde Fernández Ruiz
Second Vice-Chairman
Juan Manuel Fernández Rubio
Director
Carlos Gasca Allué
Director
Alejandro Fernández Ruiz
Director
Miguel Ruiz Anguiano
Director
Miguel Torres Paredes
Director
Fernando Manzanedo González
General Secretary
7
Corporate Strategy
8
ALDESA GROUP
OPERATING INCOME
(Figures in thousands of euros)
Construction Business
Year 2005
613,386
Diversification
Year 2006
772,911
5.5%
(33,736)
Year 2007
1,172,122
16.1%
(124,439)
94.5%
(579,650)
22.8%
(267,244)
83.9%
(648,472)
77.2%
(904,878)
Three years ago Aldesa designed a strategic plan whose principal objective was to double
the invoicing of the Group until it reached EUR 1,100 million in the financial year 2008, and to
increase the EBITDA to EUR 63 million. As foreseen last year, because of the acquisitions made
and the results obtained in 2007, the objectives set out for 2008 have been brought forward by
a year, and have even improved. The management carried out in Aldesa was recognised this year
by AT Kearney and the prestigious publication Actualidad Económica, placing the company
among the ten biggest non-financial Spanish companies, evaluating the growth of business,
productivity, efficiency, profitability of investments and the creation of value.
The said plan was based on three strategic lines:
— To continue growth in the area of Construction until turnover is doubled, with special focus
on civil engineering, developing business through organic growth, buying companies with
specialized skills in their sector or with a presence in geographical areas of strategic interest,
as well as the deveope of the Concessions line as a central pillar of construction business in
the future.
— To create new divisions of business to drive the process of diversification of the Group.
— To continue the organic growth and the plan of acquisitions in the area of Engineering,
introducing itself in sectors that have synergy with construction, in order to offer the client a
more complete solution, to obtain greater growth and to ensure our ability to win contracts
with greater added value. The long term maintenance contracts that the division is winning
will generate repeat business in the future.
Moreover, it is worth pointing out that, in spite of the significant investment made in 2007, the
balance sheet of the Aldesa Group remains very healthy, given that it finished the financial year
with a net cash position of EUR 13.5 million.
In addition to this strategic growth plan, the company implemented a group management
model which ensures effective integration of the whole plan of acquisitions that it carried out.
Moreover, this model has incorporated environmental and social responsibilities, in the form of a
series of undertakings with stakeholders, thereby extending them to all companies in the Aldesa
Group.
Looking forward to 2008, the objectives of the Aldesa Group are centred on keeping faith with
this strategic plan and enhancing the investment effort already made, while being attentive to
the business opportunities that arise. At the same time, the new approach to Innovation will be
consolidated this year and shall become one more pillar in the process of cementing the
profitable growth project of the Aldesa Group.
9
Group Results
10
ALDESA GROUP
“The figure achieved in 2007 places Aldesa among the ten
largest construction groups in Spain, and confirms its top
position in the ranking established by ANCI”
“The Aldesa Group targeted most of its investments in 2007 to
reinforce the Renewable Energies, Engineering and Services and
Concessions business lines”
The figure of consolidated operating income obtained by Aldesa Construcciones S.A. and
subsidiaries during the year 2007 has been at EUR 1,172.1 million, implying a 51.7% rise on the
EUR 772.9 million reached the year before.
The figure achieved in 2007 places Aldesa among the ten largest construction groups in Spain,
and confirms its top position in the ranking established by ANCI (National Association of
Independent Constructors), of which it is a founder-member. At year-end the construction
backlog amounted to EUR 2,466 million, a figure that guarantees very competitive growth with
respect to the industry average. By type of project, 73% of the backlog relates to civil
engineering, 12% to residential building construction, 9% to non-residential building
construction, 5% to engineering and services and 1% to other activities.
EBITDA at EUR 79.9 million represented 7% of total revenue, a percentage similar to that of
prior years, which testifies to the Group's excellent management. This result is up 59% on the
figure of EUR 50.4 million obtained in 2006.
The significant growth of Aldesa Construcciones and its subsidiaries –well above that of the
Spanish construction industry as a whole– was due both to organic growth and to the
acquisition and integration of new companies in the Group. The process of diversification into
new lines of business was consolidated in 2007, as evidenced by the more than two-fold growth
in income to over EUR 267 million, obtained from activities other than construction.
In 2007 the Group's activities focused primarily on major civil engineering contracts, which
accounted for approximately 48.0% of the Group's total income, mainly with public agencies;
secondly, on residential and non-residential building construction work performed for both
public- and private-sector customers, which accounted for 29.2% of the total; and last, but not
least, on the increasingly important presence of businesses other than construction in which the
Group has a presence, such as applied engineering, renewable energies, ancillary services and
infrastructure upkeep and operation, which accounted for the remaining 22.8%. Of particular
note is the Group's strong commitment to the concessions division, which expanded
considerably in 2007 with the operation of transport infrastructures in Spain and Mexico.
Net profit stood at EUR 26 million, down EUR 3.5 million from 2006, due mainly to the increases
in the amortisation of goodwill on consolidation and in the operating provisions recognised and
to the decrease in financial profit. It should be noted that the amortisation of goodwill on
consolidation had no impact on cash flow. This goodwill arose as a result of the Group's ability
to generate value in the future from the investments made, mainly in renewable energy projects
financed under a Project Finance arrangement, which were at the construction phase in 2007
and will generate recurrent income from the date of start-up, scheduled to take place in the
second half of 2008. In connection with operating provisions, the trade receivables risk was
analysed rigorously, taking into account the current economic circumstances of the property
11
Rolling-stock shed of Madrid
Underground Line 1
industry and also each customer's specific circumstances, with a view to avoiding the impact on
future years of risks known in 2007.
With these results, Aldesa Construcciones S.A. and its subsidiaries increased their shareholders'
equity to EUR 104.3 million, representing a 25% increase from the 2006 year-end figure of EUR
83.5 million.
Worthy of mention is that four years ago, the Aldesa Group implemented a growth strategy
through the inclusion of new companies in the Group and the diversification of its businesses
and investments towards non-construction and supplementary construction activities.
Consequently, the Group is in a position to successfully address the foreseeable changing
trends which will affect the structure of the demand for construction in Spain in the coming
years.
As part of its investment strategy, therefore, the Aldesa Group invested over EUR 375 million in
2007, most of which was targeted at reinforcing the Renewable Energies, Engineering and
Services and Concessions business lines. Despite this measure, the net cash position with
recourse evolved favourably, ending the year at EUR 13.6 million, which means that the Group
has all its debt with recourse available, and a EUR 122 million decrease compared with 2006
year-end. This is the result of the generation of operating cash flows in all the businesses and of
adequately structured investment financing.
In 2007 the Group continued to demonstrate its firm commitment to the strategic renewable
energies business and purchased assets from the Detea Group valued at EUR 600 million. The
portfolio acquired of projects under development, representing a capacity of 200 MW, belonged
to Becosa, a renewable energy subsidiary of the Detea Group, and included five wind farms, one
biomass plant, four combined heat and power plants, two biomass drying facilities and nine
photovoltaic projects.
The Engineering area was boosted by the purchase, through the AMS Group, of a 91% stake in
Galmet, a company engaging in industrial installation work in the food and pharmaceutical
industries, and a 90% holding in EDASA Ingeniería y Montajes, S.A., which performs projects
and installation work related to process automation, mechanical engineering, combined heat
and power systems, complete industrial facilities, electricity distribution and networks and
communications. In the Services area, the Aldesa Group, through its subsidiary Concentra,
purchased all the share capital of San Martín y Martinez, S.L., a company specialised in the
technical cleaning of buildings and facilities, and all the share capital of Técnicas de
Administración y Mantenimiento Inmobiliario (TMI) from the property group Realia, whose core
business consists of the integral management and overall maintenance of buildings and
properties.
In 2007 the Concessions business line reported substantial growth in its volume of business due
to the operation of transport infrastructures in Spain and Mexico. In this regard, it should be
12
ALDESA GROUP
Widening of the García Carrión wine cellar,
Daimiel (Ciudad Real)
mentioned that Aldesa is the majority shareholder of Concesionaria de Autopistas del Sureste,
which holds the 30-year concession to operate the Mexican toll motorways Tuxtla Gutiérrez-San
Cristóbal and Arriaga-Ocozocoautla and to construct a new section in the latter. It is also a
shareholder of Autopista de La Mancha Concesionaria Española, S.A., a company incorporated
in 2007 to build, operate and maintain the Puerto Lápice-Venta de Cárdenas (Ciudad Real)
section of the A-4 motorway, its functional elements, ancillary services and service areas.
Additionally, Aldesa Marina Salinas is entrusted with the operation of the Torrevieja Marina
Salinas marina (construction of which was completed in 2007). Also noteworthy is the fact that
Aldesa and Pai Construccions continued with the construction of the El Vendrell (Tarragona) and
Manresa (Barcelona) courts, having been awarded the 27-year surface right concession for the
maintenance service.
Lastly, in 2007 Aldesa also incorporated Civesa Ingeniería y Construcción, S.A., for the purpose
of carrying out construction projects specifically in the region of Eastern Andalusia. It can thus
offer its customers new construction and development options that supplement its existing
range of products.
HISTORICAL DEVELOPMENT (Figures in thousands of euros)
Real 2004
Real 2005
Var.
Real 2006
Var.
Group Total Group Total 05 vs 04
Group Total 06 vs 05
Real 2007
Group Total
Var.
07 vs 06
Operating Income
506,786
613,386
21.0%
772,911
26.0%
1,172,122
51.7%
EBITDA
% of income
29,162
5.8%
38,053
6.2%
30.5%
50,426
6.5%
32.5%
79,979
6.8%
58.6%
EBIT
% of income
24,670
4.9%
32,468
5.3%
31.6%
42,236
5.5%
30.1%
59,075
5.0%
39.9%
Shareholders' equity
42,844
58,547
36.7%
83,506
42.6%
104,374
25.0%
Net cash position
98,541
116,030
17.7%
133,783
15.3%
13,570 -89.9%
13
Activity Report
14
ALDESA GROUP
Madrid-Levante High Speed
Rail Line, Requena section
1. CONSTRUCTION
Sectoral analysis
During 2007 the construction industry remained one of the most dynamic sectors in the Spanish
economy, as it grew by 4% (compared to 3.8% GDP) with production reaching EUR 200,190
million, which accounted for 18% of the total GDP of Spain ( 0.1% more in 2006), and
employing nearly 2.7 million people, 6.1% more than the preceding year, which represents
13.3% of the national total. The sector, therefore, is in good health to overcome the slowdown
in economic growth, in spite of the predicted recession in property sales. In Europe the
construction sector has not contracted in any of the last 13 years; however, there have been
periods of stagnation, the last of which was between 2001 and 2003. After this trough, the
sector has experienced a period of recovery, with 2006 seeing the highest level of growth at
3.2%.
The creation of companies in the sector decreased by 5.6% in relation to 2006, with the
formation of 20,729 new companies throughout Spain and the dissolution of 2,036 companies,
so that on 31 December the final number of companies incorporated in the construction sector
in Spain reached 18,963. In the Autonomous Communities, Catalonia headed the list of
company formations with 3,577 new companies, followed by Andalusia with 3,230, Madrid
with 2,552, Valencia with 2,225. Some distance behind stands Galicia, with 1,009 new
companies, although this is the Community that shows the highest growth with regard to the
previous year (8.92% more). On the other hand, Estremadura is the Community that recorded
the sharpest decrease in the formation of companies dedicated to the construction sector, going
from 405 new companies in 2006 to 259 in 2007 (56.37% less).
DEVELOPMENT OF CONSTRUCTION PRODUCTION IN SPAIN
Year
2003
2004
2005
2006
2007
Millions of euros
129,313
144,665
165,157
185,200
200,190
In 2007 public tendering recorded sluggishness, situated at EUR 46,546 million, 0.3% less
than the previous year. This volume is divided between 73% for civil engineering (EUR 34,014
million), which represents an increase of 6.3% in relation to 2006, and 27% for building (EUR
12,532 million), reflecting a decrease of 14.7% compared to the figure recorded in the
previous year.
15
Gantry RPK-40
for changes
The General Government alone increased the amount of activity, launching tenders for
construction projects for EUR 22,026 million, which represents 39.7% more than in 2006. The
Ministry for Public Works ended the financial year with EUR 15,807.88 million of investment,
42% more than the previous year. The Ministry for the Environment, for its part, invested EUR
4,044.09 million, 51.5% more than in 2006. With regard to the Autonomous Communities,
these launched tenders for EUR 13,171 million, which represents 17.9% less than the previous
year, and the municipal councils for EUR 11,349 million, 23.7% less than in 2006. These falls are
due mainly to the elections that took place; in fact, SEOPAN estimates that in election years
public tendering usually decreases by an average of 15%. Growth of production was above
average in Cantabria, Catalonia, Castile-La Mancha, Estremadura, La Rioja and Murcia, while
they were below average in Andalusia, Aragon, the Balearic Islands, the Canary Islands, Castile
and Leon, Madrid, Navarre and the Basque Country.
The division of activity by sub-sector shows percentages very similar to those of 2006. Building
represents 75.3% of the total production at EUR 150,819.9 million, divided between residential
(35.5%), non-residential (16%) and renovation and maintenance (23.8%), with EUR 49,380.6
million, the remaining 24.7%, corresponding to civil engineering.
SUBSECTOR PRODUCTION COMPOSITION
Production (EUR millions)
Building
150,809.9
Residential
71,115.1
Non-residential
32,021.5
Renovation and maintenance
47,673.3
%
75.3
35.5
16.0
23.8
Civil Works
24.7
49,380.6
In relation to the number of new homes started, there was a decrease of 28% compared to the
previous year, the number coming to 620,000; while the number of new homes completed was
643,000, 9.8% more than in 2006. Housing investment accounted for 52% of total investment
in construction, which is very close to the European average.
According to the data of Euroconstruct, the market where is concentrated is residential
construction. Demand has cooled down considerably, as the investor-buyers do not see it as
attractive in the short term. Meanwhile, first-home buyers are postponing their decisions, aware
that for the first time things are working in their favour. The scale of the change in rhythm is
reflected in the visa figures, from which it can be predicted that in 2008 there will be a fall of 8%
in terms of production volume, which would return the sector to the levels of activity that were
recorded in 2004.
In the majority of countries of the Euroconstruct group there is a belief that a residential
market in recesssion is perfectly compatible with a non-residential market in growth, as is the
16
ALDESA GROUP
La Campa Mine,
Folgoso do Courel (Lugo)
Micropiles umbrellas
in Fuentebuena tunnel (Burgos)
case in the United States. For this reason there are moderately optimistic growth predictions
for non-residential building, above the expected GDP: 3.7% for 2008 and 2.3% for 2009.
This prognosis is based on the good moment that is being experienced by the three
submarkets that are crucial in terms of volume: retail sector, offices and industry. In the
Eastern European countries (Poland, Hungary, Czech Republic and Slovakia), a business
destination for many Spanish builders, the predictions differ significantly from the average of
the Euroconstruct zone, as its real estate market seems to enjoy sufficient strength to have
come out of the credit market crisis undamaged. Furthermore, their production forecasts
have been revised up and exceed an average of 7% for 2008 and 2009. Non-residential
construction can also grow at around 6%, but the real driver of the construction sector in
these countries will be civil engineering, where it is expected there will be increases of
around 15%.
In 2007 civil engineering showed the same rate of expansion as in recent years. Civil
infrastructure work continued as the motor of public construction, with projects tendered for
EUR 33,999.30 million, 6% more than in 2006. In this regard, it is worth pointing out the
constant growth of the transport infrastructure markets, which grew in 2007 by 22.4%, to
reach EUR 21,975.97 million, due mainly to the momentum of projects by the Ministry for
Public Works and especially the First Generation Motorways Renovation Plan, that
contemplates an overall investment of around EUR 6,344 million to work on 2,131 km of the
said motorways by 2011. This plan is intended to improve their quality and security by
providing them with the most modern construction. The first generation motorways were
constructed in the middle of the eighties within the context of the first General Highway Plan
and, in the majority of cases, were carried out by duplicating existing routes. The plan takes
place in two phases: the first was carried out in 2007 with the tendering of works in a total
of 1,521 km of these routes, which it is hoped will be concluded in 2009. The second phase
will be launched for tender during 2008, with the intention that they shall be completed in
2011. The companies that participate in this project take on not only the restoration work,
but also collaborate in its financing, given that the plan will be paid for through the shadow
toll system.
The prospects for this activity is further strengthened with the recent approval by the
Government of an EUR 9,025.6 million investment in relation to the financial years up to
2012 to develop, with regard to highways, the Strategic Infrastructure and Transport Plan.
The development and execution of the SITP require coherent and coordinated planning of
the procurement of the work. In this regard, with this authorisation the Government is
anticipating and planning the investment drive in relation to highways which, in addition,
contributes to the maintenance of the economic activity in the construction sector. The
action set out in the SITP 2005-2020, which relies on an estimated investment of around EUR
250,000 million, thus provides the bases of the growth in civil engineering production in the
coming years.
17
Deutsche Bank headquarters,
Sant Cugat del Vallés (Barcelona)
Rolling-stock shed of
Madrid Underground Line 1
According to the experts, civil engineering will become the motor of the construction sector, in
light of the worse performance expected in building construction. In addition to the contracts for
renovation, improvement and maintenance of the motorway network mentioned above, other
elements will contribute in the coming years to increasing the demand for civil engineering as
well as execution of the action set out in the AGUA Programme (Water Management and Use
Initiatives) and other investments driven by the Ministry for the Environment.
Construction
The basic construction activities carried out by the Aldesa Group cover both civil engineering
and building (residential and non-residential). In 2007 Civil Engineering represented 47% of the
construction activity of the Group, residential building amounted to 21% and non-residential
building 7%. The Group carries out this type of activity through its parent company Aldesa
Construcciones, S.A. and other controlled companies that, either individually or as a joint
venture, contribute to providing a substantial added value to the projects developed by the
Group.
Thus, Aldesa complements its general construction activity with the railway speciality of the
company Coalvi, which is based in Saragossa. In 2003 it was completely integrated in the
Aldesa Group, bringing its specialised experience in construction, repair and conservation in
railway works (track, electrification, tunnels, infrastructures). Coalvi is also involved in highways,
hydraulic works and in the private sector. The company is moving forward with programmed
investments to increase and diversify work and clients, with the objective of becoming one of
the biggest companies in Aragon. It has an ample stock of very varied and specific machinery for
different types of work on the track and on the overhead power cables, which are continually
being renewed and extended. It has plans for new acquisitions in an amount exceeding EUR 20
million in the coming years. In 2007 it obtained income of EUR 40.31 million, 30% more than
for the previous financial year.
Proacón, with its headquarters in Seville, is the result of the conversion of the former
Subterranean Works division of Aldesa into a company, due to the strong increase in demand for
this type of work. Since then it has consolidated into a company that is highly specialised in
tunnels and large pipes. It therefore has the accumulated experience of various types of work in
tunnels for High Speed Railway, urban metro, motorways and highways, representing more than
20 km in this specialised area. In the execution of large pipes, sewers and passages, it has
accumulated broad experience of hydraulic works. Likewise, it makes tunnels for mining, notably
in 2007 the work carried out in the La Campa mine in Folgoso do Courel (Lugo) for Utransa.
Proacón has a large stock of machinery that are equipped with the latest technology to carry out
the various types of specialised work required for subterranean projects, such as hydraulic power
units and electro-hydraulic drilling machines, or last generation robots with projection arms.
During the last financial year it exceeded EUR 17 million of invoicing.
18
ALDESA GROUP
Marina Salinas facilities
in Torrevieja (Alicante)
The Ingesa Group has its headquarters in Madrid and was incorporated in the Aldesa Group in
2006. It complements the construction business with specialist foundations (planning and
execution of works) including the civil engineering and building pile activities, micropiles,
anchorage, injections, cut-off walls and special works. Established in 1984, with time it has
developed a highly qualified team that, supported by the most modern means of drilling, has
been able to apply its individual approach to solve complex problems, dealing with the
cost/security factor as a basic premise. In 2007 it exceeded EUR 16 million of invoicing, practically
doubling the 8.14 million of 2006. This growth was due both to the incorporation of new lines
of business (piles, cut-off walls and ground treatments) as well as the incorporation of new
equipment into traditional business (micropiles and anchorage). In addition to the various and
important work carried out for the parent company, such as its participation in the works on the
Cuenca-Olalla section of the Madrid-Levante High Speed Rail Line, mention should be made of
other highlighted projects such as the definitive 150 tonne anchors in the working shaft of the
tunnel from CELA (Barajas) to FCC and AENA, as well as the underpinning with micropiles of the
slab for 96 homes in Portonovo (Pontevedra) for C&C and the foundation with micropiles for the
old Hotel Mindanao of Madrid.
Pai Construccions, a company based in Barcelona with a long history of residential building,
was acquired by the Aldesa Group in 2006. During the past year, the company has experienced a
major shift in strategic focus from being primarily a building construction company to a
predominance of civil engineering. Along these lines it should be stressed works in process for
clients such as ADIF or GISA. Due to its entry into the civil engineering sector in 2006, Pai
obtained in 2007 an invoicing of EUR 122.5 million, which represents 41.9% more than in the
previous year, which places it among the main medium-sized builders of Catalonia.
Aldesa founded in 2005 the company ACEINSA (Aldesa Conservación y Explotación de
Infraestructuras, S.A.), with headquarters in Madrid to perform contracts for the
conservation and operation of infrastructures. Specifically, it carries out conservation of
highways including all the constituent elements of environmental infrastructures (green
zones, parks, forestry services, riverbanks, etc.) and urban infrastructures, such as parking
areas, bus stations, roads, pipes, drainage, etc. In relation to the operation of infrastructures,
Aceinsa manages the property of various authorities such as transport terminals,
interchanges, parking areas, bus stations, water treatment stations, ports, etc. The services
that it carries out include all the activities requested by the user, together with operation to
conserve and maintain the infrastructure in its original state, compliance with the new
regulations and technological advances that arise, collection, cleaning, monitoring and
security of the installations.
Among the relevant facts of the past financial year, it should be pointed out that Aceinsa
was awarded two contracts for comprehensive conservation of highways with Ministry of
Public Works in the provinces of Castellón and Granada. The Castellón contract includes the
19
Maintenance work
in the A-2 in Madrid
Claris Hotel, Barcelona
CS-22, A-7 dual carriageways and the N-340, N-340a and N-225 highways, whereas the
Granada contract includes the A-7 carriageway and the N-340 and N-340a highways. Its
contracts, which include the operations for communications, management of the
permanent tunnel control centre, responding to highway accidents and incidents,
maintenance of road serviceability, monitoring of the highway, carrying out inspections and
reconnaissance of the state of each element, supported the operation and activities of
restoration, repair and improvement of the elements of the highway, maintenance of the
electrical installations, lighting, tunnel security equipment and pumping stations. In 2007
Aceinsa obtained invoicing of nearly EUR 2.5 million. The Ministry of Public Works has set a
target figure for investment in conservation of highways of 2% of the property value of the
Network, so that there is an upward tendency in the tendering of conservation services and
in the budget administered by the Conservation Sub-department, a target client of Aceinsa.
The Group broadened its presence in the Autonomous Community of Andalusia by the
formation in 2007 of Civesa Ingeniería y Construcción, whose activities extend into the
fields of civil engineering and building around the specific geographic area of Eastern
Andalusia. In this way it presents its clients with construction and new development capacity
that complements the existing offer. Civesa has its headquarters in Malaga and seeks to be
responsive to the new demands existing in the specific Andalusian market. Notable among its
projects are the construction of the lecture room in the Caterpillar research centre in Malaga
and the extension and restoration of the municipal library of the Municipal Council of Cenes
de la Vega (Granada).
20
ALDESA GROUP
Miraflores Station, Regional
train line in Saragossa
Madrid-Levante High Speed Rail Line,
Cuenca-Olalla section
1.1. Civil engineering
Railway Work
In 2007 Aldesa, true to its railway tradition, continued to implement the railway infrastructure
for this key national transport, exploiting the synergies between the various Group companies
for achieving optimum results in every project.
Thus, it is worth notting, for the Railways Division of the Ministry of Public Works, the end of the
works in the High Speed Atlantic Axis corresponding to the Portas (Pontevedra) section, which
consisted in a viaduct of 800 metres and a 4 km tunnel with Rheda 2000 track set on concrete
slab, and the Queixas tunnel (Corunna), in a joint venture with OSSA, Tapusa and Dicaminos.
This tunnel, of 2 km along a multi-purpose with Rheda 2000 track set on concrete slab, has
become the first track on concrete slab in the Spanish High Speed system. This project
demonstrates the benefits of diversification and strategic synergies of the Group, by involving
the subsidiaries Proacón and Maquivías, that, prior to the work being carried out, manufactured
four levelling gantries that move hydraulically using remote controlled solenoid valves. In this
same line, it's worthwhile the work in a joint venture with Corsán-Corviam, of the urban section
of 3.45 km in length in Corunna, that runs from the industrial park of Pocomaco to San
Cristóbal station.
During last year financial the Railways Division of the Ministry of Public Works awarded to Aldesa
the Vilaboa (Pontevedra) section in the High Speed Atlantic Axis, a work consisting in the
construction of two viaducts with a movable scaffolding system, two tunnels and 18 km of route
connection. In addition, Aldesa started work on the Riera de Riudecayes-Barranco Les Paisanes
(Tarragona) stretch of the rail connection for the Mediterranean corridor of the MadridBarcelona-French border High Speed Rail Line, thereby improving its performance. The work
includes the construction of 6 km of track formation for this high speed line, eight viaducts, one
arched support structure over the AP-7, three overpasses and three underpasses. This work
involves a significant safety improvement by allowing all the existing level crossing on the present
route to be closed.
In 2007 Aldesa, in a joint venture with Sando, Copasa y Tapusa, finished for ADIF the
construction of San Pedro East tunnel, of 8.5 km in length, in Colmenar Viejo-Soto del Real
(Madrid) strech, corresponding to Madrid-Valladolid High Speed Rail Line. For the drilling of the
tunnel, was used a tunnelling machine that was over 142 metres long and weighing 1,450 tons.
The project also included the digging of 21 services tunnels and four transformation centres
between East and West tunnels, as well as the work of interior lining.
Also it was officially completed the construction work of the sections of Pobla Llarga-Alzira
(Valencia), which is 6.5 km long, and Xátiva-Novelé-Xátiva (Valencia), of 5.3 km in length,
corresponding to the line Madrid-Castile-La Mancha-Valencian Community-Murcia Region; the
21
Atlantic Axis High Speed Rail Line,
Portas section (Pontevedra)
University Station,
Majorca Underground
section Apeadero Los Remedios - Los Prados (Malaga), of 8.3 km in length, in Cordova-Malaga
Line, built in joint venture with Tapusa, and the section of Avinyonet del Penedés-Subirats
(Barcelona) on the Line Madrid-French border, with a total of 17 km in double track platform. For
the construction of the Viaduct Avernó in this stretch, it was used a movable scaffolding system,
which manages to reduce significantly the pace of implementation.
In 2007 ADIF awarded Aldesa two new projects on the Madrid-Saragossa-Barcelona-French
Border High Speed Rail Line: the construction of the track formation in the Montarnés del VallésLa Roca del Vallés (Barcelona) stretch, with a total length of 10.30 km, which includes the
construction of four artificial tunnels with a total length of 1.9 km and five viaducts; and in a
joint venture with Coalvi, the Sarriá de Ter-Sant Julià de Ramis (Gerona) section. This section has
a total length of 5 km and the works include the construction of two tunnels that will be done
by Proacón using the system of mining excavation: in Sarriá, 3.04 km in length, and in
Montagut, 707m in length.
Likewise, Aldesa began the construction of the section between Torrejón de Velasco (Madrid)
and Seseña (Toledo) of the Spanish High Speed Rail Line Madrid-Castile-La Mancha-Valencian
Community-Murcia Region, of 16.14 km in length, which involves the construction of one
arched support structure over the Madrid-Seville High Speed Rail Line, two parallel viaducts and
two false tunnels of 730 and 290 metres. Other works for ADIF in this same line are the
subsection of San Antonio de Requena-Requena (Valencia), of 17.1 km in length, in a joint
venture with Coalvi, and the Cuenca-Olalla section, of 10.86 km in length, which includes the
construction of four viaducts and one tunnel in mine of more than 2 km. This work is a clear
example of the synergies generated by the Group, due to the implication of Aldesa, Proacón,
Areinsa Arquitectos e Ingenieros and Ingesa Group in this relevant work. Ingesa Group has
carried out land treatments by means of compacting injections, as well as the foundation of the
viaducts using large diameter piles.
In the context of the conventional railway, during the 2007 financial year Aldesa carried out
relevant projects for various Authorities. Deserving of special mention is the project for Andalusia
Railways for the construction of infrastructures and a superstructure for the route of
Metropolitan Line 1 of the Granada Light Rail, in section 0 between the localities of AlboloteMaracena. The said section, which is totally built on the surface, is the first of five that make up
the metropolitan line and consists of 3,444 km of double track on corkelast-treated concrete
slab, doubling the existing carriageway. The works are being carried out in a joint venture with
Coalvi, El Partal and Vialobra, and it is anticipated that it will be completed by 2009. Saragossa
High Speed 2002, S.A. awarded Aldesa and Coalvi another significant project: the construction
of Miraflores Station for the Suburban Line, which also includes covering the RENFE AVE tracks.
It is worth noting the work for the same public company on the Southern Ring Railroad of
Saragossa, which involves the first project in Spain in which circulation of the High Speed Line
Rail is kept at 60km/h during the works. Construction of the infrastructure and superstructure is
22
ALDESA GROUP
Catenary works on the South Ring
railway extension in Saragossa
Madrid-Levante High Speed Rail Line, Torrejón
de Velasco (Madrid) - Seseña (Toledo) section
being carried out: 5.4 km of metric gauge railway banking, one viaduct over the A-2 and two
pushed caissons under the Madrid-Barcelona High Speed Line.
Work has been carried out for the Infrastructures Department of the Valencian Regional
Government, for the permeability and hedging of the railway on the way to the municipal area
of Massanassa (Valencia), in the built up area and in the station itself, as well as the conditioning
and arrangement of the railway frontage. The objective of these actvities is to improve the safety
between platforms of the station and the problem of intercommunication between both sides of
the railway tracks, while providing a communal play space that allows the regeneration of run
down areas close to the railway.
In the Community of Madrid, Transportes Ferroviarios de Madrid awarded to Aldesa the
construction of the new Rivas Futura station and Line 9 of the Madrid Metro, in the locality of
Rivas Vaciamadrid. The project involves the construction of a new station with 120-metre
platforms and a concourse over the platforms, modifying the existing route and constructing a
new cross-over. The new suburban station will be the third in this municipality and will be
located in the new commercial, industrial and leisure development of Rivas Futura.
In a joint venture with two Valencian firms, Coalvi is going to carry out works to extend Line 5 of
the Valencia Metro, the Airport-Ribaroja de Turia section, which consolidates its position within
the railway works sector. Also in Valencia, Aldesa was awarded the work to bring the train
underground in Alboraya, for the Transport Network and Ports Management Authority of the
Regional Government of Valencia, where the Ingesa Group also works with two teams.
The Aldesa-Man joint venture concluded work on Phase III of the first Palma Metropolitan Line,
awarded by the Railway Services of Majorca, for an amount of EUR 33.2 million. This phase
corresponds to the end of the line and has a length of 3.5 km, practically half of the whole
length of the new line. The section runs in a tunnel and on the surface, between the end of
Phase II (700 metres before the station of Son Sardina) and Universidad de llles Balears station.
The project also includes the construction of the Son Sardina station (the only one in the whole
line that is on the surface) and the University station, built on two levels: one corresponding to
tunnel and platforms and another above, where the access courseway is located. Both were the
only stations of the new network that were not affected by the strong rain that fell last
September.
Likewise, the Aldesa and Coalvi joint venture completed the construction of engine sheds in the
Madrid district of Hortaleza for MINTRA (Community of Madrid), intended for the rolling-stock
of Metro Line 1. These new engine sheds can store up to 33 trains of six units each and consist
of a set of 19 tracks, in turn integrated with 12 stationing tracks and seven maintenance tracks,
together with an adjoining building of 4,300 m2 that has auxilliary outbuilding for workshops,
offices and various uses.
23
Western Ring road of Málaga,
Alameda and Barriguillas juctions
Cantabrian Highway,
Ballota-Cadavedo (Asturias) section
Roads and Motorways
In 2007 Aldesa carried out works for a number of official bodies responsible for the construction
and modification of roads and motorways. For example, mention can be made of the NA-132
road works that connects Estella, Tafalla and Sangüesa, specifically the Sada-Variante de Aibar
and Eslava-Sada sections. The NA-132 is included in the Second Core Road Plan and in the
Navarre Road Network Acceleration Plan, developed by agreement between the Government of
Navarre and SPRIN - Public Investment and Infrastructure Company. The works on the SadaVariante de Aibar section consist of the creation of a new road that circles the urban centre of
Aibar. The work on the second section consists of building a new road between the towns of
Eslava and Sada, that runs on a level parallel with the existing NA-132 but that significantly
improves the route.
Aldesa continued work for the Ministry of Public Works on the section of the Cantabrian
Motorway (A-8) between Novellana and Ballota (Asturias), to duplicate the roadway of the
national road N-632 with a view to changing it into a motorway. The said section is located in
the municipality of Cudillero, between mileage points 134 and 138 of the N-632. The length of
the section is 3.3 km. Three viaducts are notable as individual works: the Las Arencias viaduct,
the Candamo viaduct and the San Roque viaduct, of 104, 288 and 127 metres in length,
respectively. Furthermore, three road overpasses were built, one connecting underpass and one
road underpass. It is also intended to modify the Novellana Interchange currently in use, which
will take on the semi-cloverleaf design. Also in Asturias, Aldesa has worked on the construction
of the section Grado (East)-Grado (West) of the A-63 Motorway, Oviedo-La Espina. The project
involves the construction of the river Moutas viaduct, one structure of 744 metres in length,
distributed into 14 spans and made up of two bridge floors of 11.9 metres in width; along with
three structures: one overpass of 30 metres in length in a single span; the pass under the lanes
of the motorway of 15 metres in length, made up of eight panels; and one overpass 79 metres
in length, distributed in three spans, that connects the south with the north of Acebedo.
For the General Roads Department (Ministry of Public Works), Aldesa carried out modification of the
Alameda and Barriguilla interchanges in the Malaga West Ring Road of the Mediterranean
Motorway (A-7), a project that seeks to reduce the serious congestion that occurs upon entry and
departure from Malaga for the A-357, completely changing the layout and functioning of the
central nucleus of accesses to the Malaguenian capital. The works have to be carried out without
affecting the traffic in the area, close to 250,000 vehicles per day. The slip roads have a length of
19.83 km and the structures include three metallic structures, three post-tensioned units, one posttensioned underpass, one reinforced concrete underpass and 12 walls. Also in Andalusia, Aldesa is
carrying out for GIASA the roadway duplication works and conditioning of the A-316 between
Úbeda and Baeza (Jaén), a 3.68 km section with branches connecting to existing roads.
Among the works finished in 2007 it is worth pointing out the duplication of the N-601 roadway as
it passes through the localities of Laguna de Duero and Boecillo (Valladolid), for the Ministry of Public
24
ALDESA GROUP
Cantabrian Highway,
Novellana-Ballota (Asturias) section
Works. During the execution of the works, which began in 2004, it has been possible to keep open
the traffic by using provisional diversions. The Ballota-Cadavedo (Asturias) section of the Cantabrian
Motorway was also inaugurated, two months before the contractual delivery date, also for the
Ministry of Public Works. This section involves four viaducts: Cadavedo, Ferreras, Ribón and the
extension of the Pintor Fierros Viaduct, which is singular in nature, consisting of a concrete arch with
a span of 194 metres, where the traffic was not affected by keeping open a six metre wide
carriageway. The roadway has been enlarged to a total width of 22 metres, which includes four
lanes, verges, interior and central; and one new false tunnel was constructed parallel to the existing
one, plant covered walls and a reinforced surface to obtain the best landscaping result. Its opening
will contribute to improving the quality of life of the inhabitants of the area, an increase in road
safety and a 30% reduction in travel times.
Other notable works completed by Aldesa are the surfacing and improvement of the M-506 road
for the Transport and Infrastructure Department of the Community of Madrid and conditioning
and improvement works on the F-12 road, in the Balsicas interchange section and the intersection
with the A-30 motorway, for the General Department of Transport and Roads of the Murcia
Region. The modification solved the existing traffic problems by broadening the carriageway to six
metres and changing its route in the section that affects the Roldán crossing (Murcia).
Aldesa also completed the Meirama road works in Cerceda (Corunna) for the Regional
Government of Galicia, consisting of the execution of 15 km and various structures, including a
driven underpass for the railway. It should be noted that this work won the first prize in the 5th
Safety Prize Event, awarded by Aldesa in 2007. It is also worth highlighting the singularity of the
work completed, in Galicia, on the Pontearnelas ring road for the Council of Pontevedra, which
includes the construction of a metallic semi-urban arch bridge with a span of 60 metres over the
river Umia.
In Andalusia, mention should be made of the conclusion of the modification work on the new
route of the C-3310, in the municipal area of Almogía (Malaga), for the Ministry of Environment
where, among other activities, hydraulic hammer rock excavation has commenced using
presplitting and blasting, two transversal drainage works and one viaduct 116 metres long and
40 metres high; as well as strengthening the road foundation in the E-15 Motorway, in the Antas
interchange- Almanzora Road Interchange (Almería) section, for the General Roads Department
of the Ministry of Public Works. This strengthening was carried out using coated macadam for
rotation along 13 km on both carriageways, with two or three lanes in each direction depending
on the area.
In 2007 Aldesa was awarded other significant works, such as the construction of the CL-501
Road between Ramacastañas and Candeleda (Ávila) for the Regional Government of Castile and
Leon, which will give continuity to the backbone axis of the Valle del Tiétar. The road passes
through a natural enclave in the Sierra de Gredos. Some structures have been planned that serve
to save the various channels and orographic depressions that exist throughout the route.
25
A-63 Highway,
Grado variant (Asturias)
Tunnel in N-623 variant,
Burgos-Villatoro section
Another important aspect that has been taken into account is to harmonise the project with the
surrounding environment, with fauna overpasses and underpasses, environmental and
landscaping integration and measures to preserve protected species. The activity affects the
Special Bird Protection Zone and the “Valle del Tiétar” site of Community interest, black stork
and imperial eagle areas of importance, which necessarily limits the commencement of works.
In Catalonia, GISA awarded to Aldesa the project to improve the route of the C-17 road, with
work in various sections at La Garriga (Barcelona); and in Galicia the Regional Government,
through the Public Investment Company (SPI), awarded to the joint venture formed by Aldesa
and Arias Hermanos the construction works of the second section of the Third Ring Road of
Corunna, which runs between San Pedro de Visma and the old Arteixo road. Aldesa managed to
cut down the completion period to nine and a half months, as opposed to the 12 established by
the Regional Government.
Amont the projects obtained in Andalucía, it is worth noting the A-334 motorway from Baza to
Huercal-Overa, Albox (Almería) by-pass section, for GIASA, with a completion period of 32 months.
The work consists of completing 8.7 km of by-pass roads arising from three interchanges: the first
to connect the Albox estate, the second to connect the Almanzora road to Albox and the third to
connect the municipality of Arboleas. The section has a total of 16 structures, among them six
overpasses and four viaducts that preserve the main boulevards of the region.
In the Levante area, the Ministry of Public Works awarded to Aldesa the works contract to
convert the N-332 road into a parkway between the end of the La Marina (Guardamar) by-pass
and Torrevieja, in the province of Alicante. This will solve the capacity problems of this road by
doubling the lanes, while facilitating access to the adjacent urban developments and the
pedestrian crossing. Along the route, with a length of 9.3 km, it is planned to establish nine
structures, two foot-bridges and two cut-off walls, among other infrastructures. Moreover, the
Land Transport Infrastructures State Company (SEITT) awarded to Aldesa the work on the stretch
of the MU-31 motorway that will connect the Murcia (MU-30) ring road with the AlbaceteCartagena motorway. Two other interchanges are planned for the motorway: the direct
connection with the A-30, which involves modification of the La Paloma interchange, and the
interchange with the MU-603 regional government road, which shall be carried out by means of
a roundabout diamond interchange. The works include the execution of 15 structures (one
viaduct, six overpasses and eight underpasses), along with other works appropriate for a
motorway with these characteristics.
Coalvi also participated in road and motorway activity in Aragon, notably its work to improve the
intersection of the N-240 and the N-123 in the locality of Barbastro (Huesca) and in the
conservation of various sections of the roadbase of various routes in the province of Saragossa,
such as the A-2, the N-II and the N-232, among others; and the conditioning of the A-1412 at
various mileage points on its way through Mazaleón (Teruel).
26
ALDESA GROUP
South access to Toledo
on the A-42
The new route of the C-3310
roadway in Almogía (Malaga)
During the past financial year, Aldesa commenced various notable projects in Castile and Leon,
such as the construction of the N-623 by-pass from Burgos to Villatoro, for the Ministry of Public
Works. With the construction of this by-pass a tunnel is also being built under the so-called
“Green Belt” of Burgos, formed by the woods that occupy the greater part of the hillsides
around the town centre of the city. The execution of this tunnel, with the involvement of
Proacón, is noteworthy because of its great complexity due to the geological instability of the
land, which are in addition to the complications of the by-pass itself.
Another relevant project in this community was the construction of the stretch of the Plata
Motorway what goes from Sorihuela to the Béjar by-pass (Salamanca), for the Ministry of Public
Works. The work involves the doubling of the carriageway on the N-630 road to become the A66 motorway which will integrate Salamanca within the North-South axis between Gijón and
Seville. The difficulty of the work arises from the complication involved in the necessary removal
of granite material to carry out the work in the Sierra de Béjar, and which requires continuous
blasting. Also notable, in Castile and Leon, is the construction of the A-50 motorway section
between Narrillos de San Leonardo and Peñalba de Ávila (Ávila) for the Ministry of Public Works,
the main objective of which is to facilitate communication between the centre and the west of
the peninsula. As it is located in the Special Protection Area for Birds “Holm Oaks of the rivers
Adaja and Voltoya”, the works in the central third of the project are limited to the five months of
winter. The project includes the construction of three overpasses, one underpass for the railway,
Cantabrian Highway,
Ballota-Cadavedo (Asturias) section
27
Anti-fog system
in the Alvedro Airport (Corunna)
Installation of landing system by
ILS CAT II/III implements
seven underpasses for roads and thirteen transversal drainage works, three of which serve as
passes for fauna.
Another work of great complexity for environmental reasons is the section of the new route of
the A-15 Navarre motorway, between the Soria localities of Almazán and Cubo de la Solana, for
the SEITT, as the construction of the motorway is being carried out in a woodland area of high
ecological and wildlife value. For this reason eight wildlife passes are being built, as well as a
special high fence to prevent the current influx of animals onto the carriageway. The work,
which involves an execution period of 22 months, consists of the construction of 13.3 km of
motorway, which will run parallel to the current N-111.
Airports
Aldesa has been carrying out specialised work in this area for AENA on major projects for many
years, notably the construction of runway 18L-36R and related taxi ways at Madrid's Barajas
Airport.
During the past financial year AENA renewed its confidence in Aldesa with the award of the
extension works to Bay C of Majorca Airport for an amount that exceeds EUR 39 million. The
purpose of these works, that have a completion period of 20 months, is to reconfigure this bay
Majorca Airport
28
ALDESA GROUP
Improvements in the
Rianxo Port (Corunna)
Organizing and remodelling of promenade
in Santiago de la Ribera (Murcia)
in order to optimise the use of its installations to make them fit to accommodate the operations
involved in the traffic hub that allows a major interconnection of flights. With this work, Bay C
will go from having 20 embarkation gates to 33 of them. The project includes the following
activity: adaptation of the layout and traffic of the platform, construction of a new barrier of
some 12,000 m2, four remote pre-embarkation areas, a new embarkation area of 1,500 m2,
remodelling of the existing access hub, an airplane parking platform of approximately 10,500 m2,
extension of the commercial area by nearly 2,150 m2, as well as the execution fo a new building
for remote access, of some 600 m2. The hub traffic will have an open space with much natural
light where the passengers can enjoy some modern and comfortable installations. The
redistribution will reduce by half the average distance between the security control area and the
embarkation gates of Bay C and includes the adoption of measures to minimise the time scale
involved in handling (ground assistance).
In 2007 Aldesa also concluded work to provide Alvedro Airport, in Corunna, with an ILS CAT II/III
instrument landing system, in order to improve the operability of this aerodrome, which is
affected by closures and diversions of flights to other airports provoked by static fogs that
suddenly appear and invade the runway and the surrounding area. The said system, already in
operation, enables landing in adverse weather conditions, as the pilots have guidance on the
horizontal and vertical plane, generated by the signal emitted by the aircraft and reflected by the
antennae that make up the system. The project encountered many additional difficulties, due to
the orography of the area, as the airport is located on a hill at the side of Corunna estuary, and a
large part of it is built on a bank. The end platform and its security distances, which houses the
high precision landing system, end abruptly at a reinforced earth wall and is bounded by traffic
using several roads: the N-550, which joins Corunna to Santiago de Compostela, and the
provincial road that serves as a link between the national road and the Atlantic Motorway.
Likewise, it was necessary to avoid an historic building that was obstructing the installation
works, covering it with a nuclear-type metallic structure, thus avoiding delay to the planned time
limits.
Maritime Projects
In 2007 Aldesa finalised one of its most notable projects in this type of activity: the
construction of Marina Salinas, the third sporting and recreational port within the Port of
Torrevieja (Alicante), for the Council of that city. With an investment of nearly EUR 31 million
euros, this new sporting harbour is becoming one of the most complete and modern in the
Mediterranean, making the Port of Torrevieja the number one berthing port in the Community
of Valencia. With the purpose of offering its users the best services and comforts, Marina
Salinas has 713 new mooring points for lengths of between 8 and 35 metres, which have a
connection turret for electricity, telephone, water and Internet with Wi-Fi technology, the
consumption of which is controlled directly from the central office by means of fibre optic
cable, which allows major savings in time and energy. The installations are complemented by
around 4,000 square metres for the technical area, which includes the Harbour Master's
29
Remodelling of promenade
in Santoña (Cantabria)
Marina in
Torrevieja (Alicante)
Office building, maintenance, cleaning, repair and hibernation areas with the most modern
means for hoisting boats, a fuel supply station, a sailing school, security service with closed
circuit monitoring system, as well as a commercial-social centre and a car park with capacity
for 300 places.
Besides Aldesa completed for the Environment Ministry's Coastal Department the planning and
remodelling of the seafront at Santiago de la Ribera, in the municipal area of San Javier (Murcia),
and the remodelling of the seafront at Santoña (Cantabria), allowing both road and pedestrian
traffic during the work and finishing three months in advance of the agreed date. Another
notable work was the improvement of Rianxo Port (Corunna) for Galicia Ports (Regional
Government of Galicia), obtaining one of the Health and Safety Prizes that this authority
awarded for the first time to acknowledge the work accident prevention work of the companies
that carry out its works.
Among the notable projects in this specialised area awarded in 2007 is one of the most
important maritime projects carried out in Galicia in recent years: the works on Burela Port
(Lugo) for Galicia Ports, due to the complexity of the dredging and the construction of a barrier
with blocks. Also the project for the first phase of the seafront from Unquera to Molleda
(Cantabria), for the Environment Ministry's Coastal Department. The objective of the project is to
provide the Unquera seafront with a new surrounding that constitutes the point of departure for
a seaside walkway that goes as far as Molleda, also by-passing the physical barrier of the railway
with the construction of a pedestrian underpass. This seafront consists of a multipurpose space
in the central seaside area of Unquera and a bathing area in El Lance, situated in the extreme
north of the walkway.
The Ingesa Group also carried out work in this specialised area, notably the work to consolidate
the cliff of Mahón Port (Minorca) for the Consorci de Penyasegats.
Hydraulic projects
During 2007 Aldesa also carried out other hydraulic works of various scale and characteristics.
Among the most important of these was the work on the edging project for the surroundings of
the river Carrión as it passes through Palencia, an initiative that sought to integrate the river with
the city, by implementing a system of irrigation with reused water from the nearby Waste Water
Purification Station.
Other important works that finished during the last financial year were the construction of the
Pareja Dam (Guadalajara) within the vicinity of the Entrepeñas Reservoir, for the Tagus
Hydrographic Confederation, and the channelling of the final section of the Arroyo Alcántara
watercourse in Rota (Cadiz), Guadalquivir Hydrographic Confederation. The work carried out
consisted of the construction of a new channel for the final stretch of the Arroyo Alcántara
30
ALDESA GROUP
Waste Regeneration Station
in Butarque, Madrid
Pareja dam
(Guadalajara)
watercourse so that it runs along a section that is more suitable than the current stretch. This is a
fundamental project as it will allow the expansion of the locality beyond its current limits, while
serving as a preventative measure against the flooding that has occurred in the rain seasons in
the Punta Candor area.
Aldesa also completed for the Environment area of the Madrid Regional Government the work
on the primary treatment of rain water stored in the reservoir near the Butarque Waste Water
Station in Madrid; and for the Júcar Hydrographic Confederation, emergency work for the
general perimeter pipes in the south-south east area of Albacete, the length of which is 22 km.
Of the contracts obtained in 2007 mention should be made of the conservation of five
reservoirs in Guadalajara for the Tagus Hydrographic Confederation: Alcorlo, Beleña,
Pálmaces, Buendía and Entrepeñas; and for Aguas de la Cuenca del Segura the planning and
execution of the supply system from the Cenajo reservoir to the urban district of Los Canales
del Taibilla, in section IV. The work will consist of the construction of a trunk road between the
exit of the Cenajo Drinking Water Treatment Station (ETAP) and the municipal area of
Calasparra (Murcia).
Likewise, for the Department of Environment, Water, Town Planning and Housing of the
Regional Government of Valencia, Aldesa, in a joint venture with Romymar, will carry out the
general piping plan for the reuse of reclaimed waste water to the coastline of La Marina Baixa
(Alicante), an infrastructure that will ensure the irrigation supply throughout the year, regardless
of rainfall. By following the various processes necessary for filtering and purification, a pipe will
be built that, along a route parallel to the Canal Bajo del Algar, will bring the purified water to
the irrigation zones. In total the pipe will have a length of more than 30 metres, and two
branches will come off this that will connect the network with Villajoyosa.
It is also worth noting that the Ebro Hydrographic Confederation awarded to Coalvi the
improvement of the Barluenga supply (Huesca), a project included within the restoration plan for
the Montearagón reservoir, itself integrated in the Environment Ministry's AGUA (Water
Management and Use Initiatives) Programme. The works consist of replacing the whole supply
network and constructing a pipe from the town to the reservoir, together with 40 metres of the
sanitation network.
Urban developments
In relation to urban developments, in 2007 Aldesa continued work on major projects, such as
those for SEPES (public sector body for land development) to extend the Lentiscares industrial
estate in Navarrete, near to Logroño (La Rioja), which occupies a surface of 250,000 square
metres divided into 76 parcels of land, thereby trebling its current capacity; and the Partial
Plan 2 development in Tarragona, contracted with the Council in that city. This project will
31
Urbanization works
in Los Ahijones district, Madrid
Lentiscares industrial estate,
Navarrete (La Rioja)
develop an area of 150,000 m2 in two phases: one of urban development, with residential
accommodation and the future Judicial City of Tarragona, and an area of green space.
Among the urban development works completed in 2007 mention should be made of various of
these situated in the Community of Madrid: in Majadahonda for Levitt-Bosch Aymerich, S.A., La
Pinada in Pozuelo for Boj Inmobiliaria, La Fortuna (Leganés) for the Development Consortium La
Fortuna, the Roza Martín sector in Majadahonda for AFAR-4, and in Yebes (Guadalajara) the
development of Valdeluz Golf for Campo de Golf Valdeluz, S.L.
Pai Construccions, for its part, completed the development works on the square
commemorating the beginning of the Reus-Salou Canal (Tarragona), for AMERSAM; and the
UAx/A57 development works of Can Portabella (Phase I and II partial) and the adjustment of the
development between the streets Compte Borrel, Avenida de Roma and Gran Vía de les Corts
Catalanes, for the Council of Barcelona.
In relation to the awards obtained by Aldesa during the past year, because of its dimensions it is
particularly worth noting the development of the new district of Los Ahijones in the south east
of Madrid, in Vicálvaro, which will have nearly 17,000 residences. The Compensation Board UZP.
2.03 “Ahijones East Development” awarded to Aldesa this development macro-project with a
surface area of 5.7 million square metres. The district will have as its backbone the Gran Vía del
Suroeste, of 100 metres in width, which will have two central boulevards and a large pedestrian
corridor with a 8 km bicycle lane connected to the surrounding developments.
Another relevant project is the development of the second phase of the “Llano de Mazuelos”
sector of the General Urban Development Plan of Alcalá La Real (Jaén) for the public sector
body for land development in Andalusia (EPSA). This project is intended to relieve the urgent
demand for developed industrial land in Alcalá la Real, providing it with an industrial estate
that will have an industrial surface area of 300,247 m2, 44,929 m2 of land for tertiary use,
61,248 m2 of free spaces and 61,915 m2 for equipment intended for public and social interest
services.
During the last financial year works were also commenced such as the development of the
second phase of the Residential Sector Development “Aguas Vivas Extension” in Guadalajara for
SEPES. This sector seeks to develop an area that is ideal for residential development, as it has
excellent communications with major roads and completes another major residential
development, the “Aguas Vivas” project. The proposed structure aims to combine nature and
city harmoniously, finding a balance between green space, facilities and residential areas.
Another unique project in which Aldesa is involved is the construction of the “Campus de la
Justicia” court development in Valdebebas Park in Madrid, with the development of Phase I. This
project, which shall become the largest area dedicated to Law in Europa, has been promoted by
the Community of Madrid. The prestigious architect Norman Foster designed the first two
buildings for the Campus, which will house the High Court of Justice of Madrid and the
32
ALDESA GROUP
Urbanization works
in Justice Campus, Madrid
Roza Martín sector,
Majadahonda (Madrid)
Provincial Court. The project is planned to take 32 months to complete and is being executed on
two plots in a single area. The two plots are joined by a passageway over the main road through
the Campus and by a tunnel that will connect all the buildings in this project. There will also be a
gallery for all the technical facilities that will be built under the tunnel, thus achieving a greater
concentration of land use.
Another relevant project undertaken in 2007 were the works to develop the tourist complex of
the Rincón de la Condesa, located in the vicinity of the city of Béjar and one of the most
important in the province of Salamanca. The works of this macro-development, which is planned
to take 18 months to complete, will be centred on providing the roads and all the services
necessary for the buildings and equipment that will house the tourism complex: 18 hole golf
course, sporting areas, residential nucleus, three and four star hotels, together with various
smaller sized accommodation intended for rural tourism, family residential area, assistance
centres, etc.
In the renewable energy sector, Aldesa has joined the historic growth of the wind power sector
in Andalusia with the construction of two wind farms with 53 MW of installed power. These
concern the works to adapt the Olivillo and Roalabota wind farms in Jerez de La Frontera (Cadiz)
for the subsidiary Aldesa Energías Renovables. Olivillo will consist of 17 generators, while
Roalabota will have 19.
El Saboyal,
San Mateo de Gállego (Saragossa)
33
Multi-family houses blocks
in Sabadell (Barcelona)
Care home in Sanchinarro
district, Madrid
1.2. Building
Residential building
In 2007 Aldesa continued with its residential building activity throughout the peninsula,
carrying out projects of various sizes, complexity and uniqueness. Notable among the works
commenced last year were the 64 homes in Sant Cugat (Barcelona) for the municipal company
Promusa, the construction in Ciudad Real of 38 chalets, a project that achieved one of the
prizes of the 5th Safety Prize Event, awarded by Aldesa in 2007, and the “Soto del Henares”
promotion in Torrejón de Ardoz (Madrid), in which the Ingesa Group is also involved, made up
of 176 homes for renting under public protection, with the option to purchase for young
people.
Furthermore, Aldesa is collaborating in the project to build 4,000 subsidised homes (VPO) in the
Airport Development promoted by the Municipal Housing Company in Seville (EMVISESA),
having won the tender in two housing projects developed in two phases. The first consists of
225 homes in multiple family buildings, garages, storage rooms and commercial sites and a
second phase for 204 high rise homes distributed into two blocks.
Another type of building that Aldesa is involved in is the residential care centre. Thus, it should
be mentioned that Aldesa completed the construction of the residential care home for older
people in the district of Sanchinarro, in Madrid, with capacity for 180 places.
Pai Construccions last year completed various significant works in the province of Barcelona,
such as the construction of 14 buildings for 116 homes, commercial sites and parking spaces in
Gelida; 64 homes and 69 parking places in Vilanova i la Geltrú; and three multi-family blocks
with 94 homes, storage rooms, four commercial sites and parking spaces in Sabadell (Barcelona).
Non-residential building
In relation to industrial, comercial and leisure building Aldesa has distinguished itself in
developing unique complex projects. Thus, in 2007 it completed for J. García Carrión the
construction in Villanueva de los Castillejos (Huelva) the third biggest factory of this group in
Spain, over an area of 27,000 m2. This is a last generation plant for processing citric fruits for
juices, with a capacity for 300 million kg of citric fruit, which is equivalent to 150 million litres of
juice. Also for García Carrión work was completed to extend the cellars in the Daimiel industrial
estate (Ciudad Real), consisting of the internal development of the area, the construction of
production warehouses, reception of grapes, automatic dispatch and storage. The cellar is
located on a 86,000 m2 plot along with 18,000 for the annex.
Among the works awarded during the past year reference is made to the Innovation Services
Building of the TecnoCampus of Mataró (Barcelona) for PUMSA (Promocions Urbanístiques de
34
ALDESA GROUP
Citrus processing plant,
Villanueva de los Castillejos (Huelva)
Building Management building,
Polytechnic University of Valencia
Mataró, S.A.). The TecnoCampus Park Mataró, promoted by the Council, is the technological
space that will include the University, the entrepreneurs, the technological centres and the
knowledge-intensive firms. It will occupy one of the islands that make up the development of
the El Rengle sector. The architectural ensemble, planned by the architect Oriol Bohigas, will
have a developed surface area of 46,940m2, distributed over five spaces, one of which is the
Innovation Building, that will cover 7,000 m2.
Another unique project is the execution of internal development works, construction of the main
building, warehouse, processing centre, accesses and car parks of the Photovoltaic
Concentration Systems Institute (ISFOC) in Puertollano (Ciudad Real), the first photovoltaic
institute that opens in Europe to promote the use of solar energy, created at the initiative of the
Department of Education and Science of the Government of Castile-La Mancha and the Institute
of Solar Energy of the Polytechnic University of Madrid.
In the area of leisure, Pai Construccions carried out the project and is carrying out the execution
of the construction works of the new football stadium of the Gimnástic de Tarragona, a covered
installation that will have a capacity for 18,000 spectators. The project also includes a car park
for 1,500 vehicles and the creation of various training fields. Pai also completed the construction
of the offices building for Renta Corporación in Esplugues de Llobregat (Barcelona).
In 2007 Aldesa also collaborated with various gobvernment bodies for the construction or
renovation of public buildings. Thus, for Gestió d'Infraestructures, S.A. (GISA) it commenced
works on a College in Figueras (Gerona) and the building that will house the Courts of El
Vendrell (Tarragona), which have a built surface of 10,131 m2, this latter together with Pai
Construccions. It also continued in Gandía (Valencia) with the construction works of the Library
and the Documentation Centre of the Polytechnic University of Valencia. This is a unique work of
fair-faced concrete and curtain walling, with a surface area per floor of 2,500 m2. At the same
time it is carrying out the construction of the car park and the extension of the building of the
Advanced School of Building Management. For Suelo y Vivienda de Aragón, S.L., Aldesa and
Coalvi are carrying out the works on the future Bajo Cinca High Resolution Centre (CASAR) in
Fraga (Huesca), which run by the Aragon Health Authority and which will have the capacity to
attend to some 30,000 people. The building will have a built surface of more than 9,000 m2
distributed on three floors.
Pai Construccions, for its part, laid the first stone of the extension works for the Hospital Sant
Joan de Déu in Manresa (Barcelona) and the construction works and subsequent operation of
the new vehicle car park for the Hospital Authority of Catalonia. Once the works are completed,
the new hospital will have a surface area of 60,000 m2.
During the last year Aldesa also concluded work on the Sitges Secondary Education Institute in
Sitges (Barcelona) for GISA, and the Leonardo da Vinci Universitary Centro for the University of
Cordova. This is an avant-garde building for engineering activities at the university campus of
35
The Da Vinci Building,
University of Cordova
Carlos V Santiaguista Convent building,
Calera de León (Badajoz)
Rabanales. The building, of 13,047 m2, has offices for lecturers and seminars, small classes for
60 students, as well as practical and research laboratories, making it one of the biggest
centres of the whole University of Cordova. Likewise, it completed the new headquarters for
the Doñana Biological Station (EBD) and the Microelectronic Institute. This project constitutes
the ensemble of installations belonging to the Advanced Centre of Scientific Research (CSIC)
in the Island of La Cartuja and that will now be known as the Island of La Cartuja Scientific
Research Centre.
In relation to restoration and renovation, among the works initiated during 2007 mention
should be made of the restoration of the Los Rosales Municipal Centre in Corunna, a work
tendered by the local Council, which will occupy a space of more than 1,800 square metres
divided between the civic centre, library, common spaces and four interior patios; and the
resoration of the old Conventual Santiaguista Carlos V building, built in the 15th century in
Calera de León (Badajoz), for the Ministry of Housing. The building is a significant example of
late gothic architecture and a monument catalogued as cultural heritage of national interest. The
renovation project involves the complete restoration of the old outbuildings of the priory palace
and the restoration of the south gallery, which will serve as a new museum in the locality and an
historical archive. The renovation will provide the building with uses that allow it to recover
functionally and materially after a century of abandonment.
In 2008 Aldesa will continue undertaking various major projects related to public building
due to the works that were awarded in 2007, including the work on the social integration
centre of Algeciras (Cadiz) for the State Penitentiary Infrastructure and Equipment Company;
the construction, in a joint venture with Valcomar Construcciones y Contratas, of the Fray
Ignacio Barrachina Institute in Ibi (Alicante) for Construccions i Infraestructures Educatives of
the Regional Government of Valencia (CIEGSA) and the works onthe new headquarters of
the Local Police of Seville and of the municipal government centre of Seville, in a joint
venture with Detea, for the Town Planning Management of Seville Council. The new building
will be raised on the grounds of the old Ranilla prison, once the work to demolish it have
terminated.
Another relevant project is the construction work on the second phase of the “Virgen del
Castillo” Hospital in Yecla, for the Murcia Health Service, which will affect more than 6,000
m2 of the surface of the centre, which is equivalent to more than half of the installations.
The project includes the construction of a new surgery area, with the complete remodelling
of the Outpatient Major Surgery and Sterilisation areas. The reforms also include the
complete construction of the south communications and remodelling of the Emergency
area. The development work shall involve the reform, extension and architectural unification
of the existing plot, with a total surface area of the additional works covering an extra
1,000 m2.
36
ALDESA GROUP
Maintenance works
in Tuxtla-San Cristóbal section
Mexican Highway,
Tuxtla-San Cristobal section
2. CONCESSIONS
Sectoral Analysis
According to SEOPAN data, in 2007 the government bodies put out a total of 58 concession
tenders of greater than six million euros (Central 14, Regional 17 and Local 27), which
represented a total of EUR 9,273.5 million. Whereas in 2006 the total number of concessions
came to 82 (41% more) the total amount was significantly less, at EUR 4,553 million.
Year
2003
2004
2005
2006
2007
Central Government
Conc. No.
Amount
10
3,501,429,348.00
0
0.00
4
641,305,001.00
8
954,589,119.06
14
5,859,353,495.49
Regional Government
Conc. No.
Amount
20
1,835,277,435.91
18
2,597,266,569.25
42
4,280,612,883.59
26
2,353,136,986.92
17
2,707,516,632.08
Local Government
Conc. No.
Amount
15
356,711,057.97
11
183,614,776.12
55 1,986,281,957.33
48 1,225,297,434.22
27
706,610,906.86
Source: SEOPAN
By type of infrastructure, those corresponding to roads registered the greatest amount, both for
maintenance and operation (EUR 5,689.4 million) and for new infrastructures (EUR 2,314.36
million).
By Autonomous Communities, Galicia recorded the greatest number of tenders of more than six
million euros, with a total of six and a total amount of EUR 382.6 million; although it is the
Community of Valencia that is making the biggest investment with EUR 1,025.72 million, in spite
of only tendering three concessions (the second after Galicia). The local governments made
greater tendering efforts in the communities of Castile-La Mancha, with three concessions for
the amount of EUR 200.66 million, followed by the Community of Valencia with six concessions
that came to EUR 177.1 million, and Madrid, with three concessions valued at EUR 152.48
million.
The intention of the Government in this regard is to facilitate the public works tenders to
guarantee construction activity in a time of recession in residential construction activity.
Concessions
The Aldesa Group is strongly committed to the Concessions activity, growing particularly in
recent years with the operation of transport infrastructures, mainly in Spain and Mexico. In fact,
the group expects an international strong growth, and now is preparing bids for contracts in
Mexico, Brazil and Eastern Europe. Likewise, it is planned to incorporate into this line of business
such new service operation projects that may be obtained.
37
Marina Salinas facilities
in Torrevieja (Alicante)
In 2007 the Department of Communications and Transport (SCT) of the Federal Government
of Mexico declared the joint venture formed by Aldesa and the Agrupación de Constructoras
de Veracruz (Accsa), to be the winning bidder for the concession to operate for 30 years the
Arriaga-Ocozocoautla and Tuxtla Gutiérrez-San Cristóbal toll motorways, that add up to a
length of 139.5 km and pass through the state of Chiapas. The project, which also includes
the construction of a new stretch, will require a total investment that is estimated at EUR 210
million. The first of the motorways consists of two sections: Arriaga-Tierra y Libertad, which
has 20 km already operative, and Tierra y Libertad-Ocozocoautla which, once constructed,
will be 73 km in length. The second motorway, with a operational length of 46.5 km, is
composed only of one section between Tuxtla Gutiérrez, capital of Chiapas, and San
Cristóbal de las Casas.
Aldesa also forms part of Autopista de La Mancha (La Mancha Motorway), a company that,
for 19 years, has been responsible for the construction, operation, maintenance and
conservation of the Puerto Lápice-Venta de Cárdenas (Ciudad Real) section of the A-4
motorway, its functional elements, auxilliary services and service areas. The Ministry of
Public Works awarded to the joint venture formed by Aldesa, Alvac, Azvi Inypsa and
Construcciones Sánchez Domínguez. This stretch is included in the First Generation
Motorway Conditioning Plan, the objective of which is to improve these motorways to
adapt them to the quality and safety requirements of the most modern motorways. The
public works concession agreement will include the preliminary construction works,
renovation, major repairs, simple repairs, conservation and maintenance, as well as the
operation of the infrastructure.
This line of business also incorporates Aldesa Marina Salinas, which has been in charge of
the operation of the Sporting Port of Torrevieja Marina Salinas, one of the most complete
and modern in the Mediterranean, for a period of 30 years and the marketing of its 700
mooring points, on the basis of transfer or hire, thus responding to the high demand for
berths in the Community of Valencia. Likewise, since 2006 Aldesa Construcciones and Pai
have held the Building Right Concession, granted by GISA, for the construction and
conservation service, over a period of 27 years, of the Courts of El Vendrell (Tarragona) and
Manresa (Barcelona).
It is also worth noting Aldesa experience in the car parks of Fonsagrada and Plaza de Ramales,
awarded by the Council of Madrid.
38
ALDESA GROUP
Pont Pla tunnel,
Andorra
Maintenance of Las Rejas Golf
course in Majadahonda (Madrid)
3. ENGINEERING AND SERVICES
Sectoral Analysis
Through this line of business the Aldesa Group is present in the Engineering and Services
sector.
Engineering is a complementary discipline to construction due to is a sector that is highly
involved in research and development of new materials, types of machinery (cranes, excavators,
etc.), as well as other technological aspects that have lead construction techniques to evolve and
have made it possible to apply automation to building, providing more functionality, security and
comfort.
Spanish engineering is at its maximum level, working and competing with the major engineering
centres of the world. In recent years it demonstrated its high technological level and capacity to
respond to the strong development in transport infrastructures and the continuous growth in
the demand for energy in our country. In this regard, in the context of process engineering the
country has major experience in the refining, petrochemical and natural gas sector where
Spanish engineering companies are participating in all the development projects of the major
energy poles in Spain, as well as major projects in South America and Asia.
The engineering sector in Spain is characterised by a mature sector with a high degree of
technical specialisation and qualification, and with a level of quality equivalent to North
American and European engineering. Production reached EUR 7,500 million, with an average
growth in 2007 of 6.5%, compared to 7.6% in 2006. Tecniberia, the Spanish Association of
Engineering, Consultancy and Technological Services Companies, groups together 260
companies of the sector, with 36,000 professionals in its staff.
In the Spanish market four sub-sectors in particular can be identified:
— Building, transport and environment (installations in public and private buildings,
installations for railway, ports, airports and road networks; installation and construction of
purification and waste stations, etc.). It has a market share of 33%. Its potential arises
from the increase in public investment in infrastructures by the Ministries for Public Works
and Environment. In spite of the slow down in building activity, rates of growth have been
maintained.
— Energy (installation of electrical energy –hydroelectrical, thermal, solar, wind power,
combined cycle, cogeneration– and gas). Its market share is 29% and it will be the sector of
greatest growth in Spain in the coming years.
39
Low energy traffic-lights
“Compactled”
The DGT's Control
Room in Granada
— Industry: installations for various clients (chemical, automotive, steel, etc.). It corresponds to
23% of the market. Diversification is taking place, towards the provision of a comprehensive
service from engineering to assembly construction, installation, commissioning, maintenance
and operation.
— Telecommunications (installation of networks for fixed telephone, mobile, optical fibre, cable,
etc.). Its relative weight in the market already comes to 15%. It is estimated that there will be
a moderate growth in demand of around 5%.
The sector of engineering companies in Spain is increasingly prepared, both technically and
in business terms, to take on new challenges. The average size of these companies does not
allow many of them to individually cope with internationalisation plans or advanced training
programmes, as it is necessary to have a series of structural and productive improvements
that they cannot undertake. It is the large companies that are going out into the
international markets in search of new opportunities in light of the possible slow down of
activity in Spain, which allows them to pursue their strategy of growth. These opt for areas of
activity in which there is greater added value, such as the keys in hand projects (EPC's or
energy projects).
In relation to the Services sector, according to the data of the National Statistics Office, its
invoicing increased by 6.7% in 2007 with respect to 2006. All the sectors contributed to this
growth, especially company services, which invoiced 9.5% more. In the said services the most
dynamic activities were research and security, at 12.4%; staff recruitment, 10.2% and industrial
cleaning activities, 10%. This latter is connected to all the economic activities, as they all need
cleaning services, from the most simple tasks to the most technical, such as cleaning for hospital
centres, where it is necessary to obtain perfect higienization of the area, or of industrial
installations, which require specific machinery with the end of achieving complete elimination of
waste.
Levelling gantries for track
set on concrete slab
40
ALDESA GROUP
Industrial assembly
Automatic washer
According to the Professional Cleaning Companies Association (ASPEL), the professional
development of the cleaning sector has grown in parallel with social development throughout
Western Europe, such that the total volume of the European market is worth around EUR
34,000 million. In Spain there are approximately 11,000 companies that invoice around EUR
5,100 million and generate employment in the order of 300,000 persons, of which three
quarters are women. In fact, the industrial cleaning activities registered an increase of
employment of 4.3%, above the average of the company services sector (3.9%).
According to the data from JP-MBA Consultants, the average workforce per company is 27
employees. Thus, it is a very atomised sector in which approximately 70% of the companies do
not exceed 10 workers. The sector is growing slightly above the annual 4%, although the
maintenance subsector reached 20%. The perspectives for growth arise from the increase on the
major penetration of the cleaning service in the less mature sectors of demand. Thus, there is a
good margin for the companies to decide on a greater degree of externalisation of these
services. The improvement in the quality of the services, the qualification of the work force and
guarantee will be the differentiating factors in the framework of strong price competition, which
prevents improvement of the operating result (situated at around 4-5% of the income).
Another variable to be taken into account are the new forms of contracting by the Public
Authorities, such as the framework agreements, under which companies that meet certain
requirements are selected by means of a public tender. They are entered for a period of two
years, renewable for two more years if this is set out in the agreement. Therefore, the prices
deriving from the framework agreement may become a reference for the rest of the sector.
There is currently another tendency, towards business concentration. The top 12 companies in
the sector account for 30% of its invoicing. Processes of take-over and acquisition are
commonplace, although in 2007 there have not been major operations in this regard. At the
same time, it is increasingly common for franchises to appear, that are becoming animated by
the possibilities that are being conjectured for higienisation services, the demand for which will
grow at a constant rhythm in the coming years. The reasons for this are due, in part, to changes
in the family structure (the incorporation of both members of the couple into the workplace has
made cleaning services a basic necessity) and partly because companies have included cleaning
among the factors that improve the image of their installations, establishments and locations.
According to the Franchises and Business Opportunity Guide of Tormo & Associates, there are 11
networks in Spain, three more than in the previous year, which operate through 294
establishments, which is more than one hundred more than those registered in 2006. Of these
11, three are from the United States and one from France, so that Spanish firms can use their
foreign equivalents as a reference or design a range of services with a “national stamp” that
incorporates their more specific “knowledge” of cleaning needs in Spain.
Another of the tendencies in the sector is for the presentation of comprehensive offers, which
are called Facility Services and include auxilliary services for companies, such as maintenance of
41
Receptionist and telephonist
auxiliary services
Automation of processes
installations, safety, gardening, concierges, logistics, messenger service, environment, etc. Facility
Management is a management model for the real estate resources of companies, with the
objective of adapting these to the organisation and human resources of companies at the lowest
cost possible. In this regard, industry has to consider how this sector can play a driving role in
advising and in cost effectiveness, to benefit the users of buildings.
Engineering
The Engineering area of the Aldesa Group includes the various controlled companies that are
highly qualified and specialised.
ACISA (Aeronaval de Construcciones e Instalaciones, S.A.), with offices in Madrid, Barcelona and
Seville, is dedicated to electrical engineering and telecommunications applied to traffic, airports,
public lighting, ports, railways, control and safety systems. It has consolidated in recent years as a
company for wide-ranging, innovative and advanced technological projects, and is the leader in
tunnel engineering and equipment. It has carried out projects for AENA in various Spanish
airports such as Barcelona El Prat Airport, Madrid-Barajas or Jerez Airport, and for the General
Traffic Department, the Servei Català de Trànsit, RENFE, Regional Government of Andalusia,
CSIC, among others.
Among its most important projects is the Compactled, a traffic light that has low consumption,
modernised using LED technology, whose lights have an approximate lifespan of fifteen years
each, and made from polycarbonate, a material that requires little water for cleaning. The
project, a candidate in 2007 for the Delta ADI-FAD prizes for industrial design, started four years
ago with the intention of reducing environmental, economic and maintenance, as the traditional
traffic light has to be repaired every time a bulb blows. The first traffic lights of this type, which
consume 90% less energy than the old ones, were installed in Tarrasa (Barcelona), which was
followed by Badalona, Mataró and locations in Almería, Corunna and Andorra.
In 2007 marketing commenced of the VisioWay® device, a system of real time video
transmission, combined with DSP (Digital Signal Processor) technology that is capable of reading
registration numbers, measuring speed or any other variable necessary for the detection of
incidents and traffic events. Recently the Pont Pla Tunnel, located in Andorra and fitted out by
Acisa, was acknowledged to be the safest tunnel in Europe. Thanks to these and other projects,
Acisa was able to increase its invoicing in 2007 by nearly 41% compared to 2006, recording
income of EUR 74.5 million.
AMS Group, with headquarters in Mairena de Aljarafe (Seville), is a group of companies decated
to applied engineering, electrical and mecanichal installations and assembly of instrumentacion
and control, telecommunications, automisation of processes, operation and maintenanceof
industrial and energy plants. The Group operates under the following brands: Electro Valencia,
Meyvat, Suelin, Edasa, Galmet and the AMS itself, developing its activities in sectors such as
42
ALDESA GROUP
Photovoltaic plant
in Berja (Almeria)
energy (conventional and renewable), automotive, water and environment, feed, pharmacy and
telecommunication, besides tertiary and transport sectors. Its geographical distribution reaches
across the Iberian Peninsula and islands, having also developed numerous projects
internationally.
Among the most notable carried out in in 2007, it is worth highlighting the keys-in-hand
projects for photovoltaic solar plants developed throughout the national territory, and the
automation of the process of preparing wine in the wineries of the Proconsol Group. In 2007
AMS Group increased its sales to EUR 85.5 million, 160% more than the prevous year, and
obtained an EBITDA of EUR 6.6 million, which represents a growth of 88%. It currently responds
to 100% of the demand from the comprehensive services market with its own resource capacity.
This allows it to opt for larger projects that integrate all of the assembly displines, as well as
obtaining customer loyalty.
The company Maquivías, with its headquarters in Alcalá de Henares (Madrid) and 100% owned
by Aldesa, is positioned in Spain as a benchmark in its sector. It carries out activities of design,
manufacture, marketing and maintenance of standard and special machinery for the
construction and maintenance of railways, thereby supporting the railway works developed by
Aldesa Construcciones and Coalvi. In 2007 Maquivías transferred the headquarters of its factory
in Fuenlabrada to Alcalá de Henares, thereby obtaining a greater production capacity and some
modern premises suited to the business of manufacturing machinery. Among the relevant facts
for 2007, it is worth mentioning the contract with the Madrid Metro to manufacture eight
auxilliary vehicles for the maintenance of its lines. Last year Maquivías recorded a very significant
increase in contracting, obtaining EUR 3.5 million in invoicing.
Services
The Aldesa Group is present in the Auxilliary Services market through the subsidiary that
operates under the commercial brand Concentra, combining a series of very specialised
companies that develop activities related to maintenance of installations, comprehensive and
specialised cleaning, auxilliary services, comprehensive services for hospitals and social-health
care services. Its added value resides in allowing clients to concentrate on their principal activity,
as the collaboration increases the effectiveness and efficiency of its processes and allows it to
optimise its own processes.
Aldesa Servicios y Mantenimiento has, within a few years, become one of the leading
companies in the auxilliary services sector (press distribution, internal message service in
buildings, telephone reception and assistance, access control, information services to the public,
assistance to persons with reduced ability, etc.), offering comprehensive solutions adapted to the
needs of each client. It attends to the growing demand for externalisation of Facility Services by
private companies and public bodies, responding to the current tendency to concentrate to
award of various of these services to the same business group.
43
Levelling gantry
Aldesa Servicios y Mantenimiento is a very young company that is in a period of very strong
growth, as is shown by the fact that in 2007 it grew by more than 220% in sales in comparison
to the previous year. In 2007 it acquired the companies TMI (Técnicas de Administración y
Mantenimiento Inmobiliario) and SMM, which have allowed it to approach new strategic
projects, in this way significantly increasing the position of Aldesa in the sector. During the past
year the systems of both companies were integrated as they ame under the ownership of the
Aldesa Group and they prepared for a significant growth planned in 2008 and subsequent years.
TMI (Técnicas de Administración y Mantenimiento Inmobiliario) was purchased from Grupo
Inmobiliario Realia and provides the services necessary for the comprehensive management and
overall maintenance of buildings and real property resources, achieving the maximum
optimisation of business resources through the control and rationalisation of expenses and
savings in costs. The activity of TMI in the field of integrated maintenance of buildings and
installations goes from preventative maintenance to comprehensive correction, according to the
needs of the building and of the client. TMI offers a preliminary analysis of the maintenance
costs and the preparation of a plan with a costs optimisation figure. It also includes technical
audits of buildings and maintenance of golf courses. The Facility Management concept that TMI
is developing is, in short, a new way of managing buildings, that covers all the themes related to
the technical installations, management of spaces, property management and management of
support services. TMI provides maintenance and cleaning services in iconic buildings, such as the
Torre Picasso or Puerta Europa (formerly Torres KIO) in Madrid.
TMI is a company with a consolidated brand and image within the sector, but the size of which is
still far from some of its competitors, so that the potential for development is enormous. The
sector in which TMI operates still has major potential for development, with market growth of
more than 10% in recent years.
SMM is the company specialised in all types of cleaning, essentially comprehensive cleaning of
buildings and offices, in the health care context (mainly hospitals), in industrial installations and
in the transport sector (airports, stations, trains, aeroplanes, rolling stock…). In this regard, it
should be mentioned that SMM provides a cleaning service in the airports with most traffic in
Spain, such as those of Madrid, Barcelona and Málaga. The sector in which SMM operates has a
very limited growth, given that the sector is already very consolidated with many very small
companies providing services, such that this atomisation has strong repercussions on the
margins. It is for this reason that SMM specialises in cleaning in the transport and health sector,
where the need to apply specific procedures means that it is really important which company is
chosen to supply the services.
44
ALDESA GROUP
The Spanish J-80
Championship
Santa Lucía PV plant,
Aznalcázar (Seville)
4. RENEWABLE ENERGY
Sectoral Analysis
In Spain the sector of renewable energy sector accounts for a thousand companies that directly
employ in their activity 89,000 workers and indirectly generates another 99,000 jobs in other
companies, according to the data of the ISTAS Renewable Energy Reference Centre. This sector
is a productive field of activity that is young and in expansion, with an average company age of
16 years. One third of them have been formed since the year 2000, two in every three have
increased their employment in the last five years and one in every five have done this in a marked
manner.
The Renewable Energy Plan 2005-2010 approved in Spain has provided a challenge to the
sector, as it establishes the need to develop in the coming years the same potential that it has
accumulated over its history. Hydroelectric production in the large reservoirs and wind energy
production thus aspire to cover in the year 2010 nearly 30% of electrical production in Spain.
This plan assigns a special role to wind power energy, by atributing it with a supply capacity
nearly double that established for hydraulic energy, establishing the production objectives at
45.5 Tw/h and 25 Tw/h, respectively, which places it among the large scale generation
technologies. Within the European Union, the problem related to the rise in fuel prices and
security of supply will have a growing influence on the promotion of renewable energy and,
especially, on the development of wind energy generation.
During 2007 the Spanish energy sector has seen a prolific expansion of new energy. Royal
Decree 616/2007 entered into force, which transposes the Directive 2004/8/EC in relation to the
development of cogeneration based on the demand for useful heat in the domestic energy
market. This is the first regulation in Spain dedicated exclusively to the development of
cogeneration. It also approved RD 661/2007, which regulates the activity of electrical energy
production under a special scheme. This regulatory change favoured the increase of installed
power by accelerating the construction of all projects proposed before the approval of the new
regulation.
Another regulation, RD 1028/2007, which regulates electrical energy generation at sea, opened
the way for the development of offshore wind energy in the Spanish coastlines. By collecting all
of the applicable national regulations and consolidating them in a single administrative
procedure, this will facilitate the authorisation procedures for this type of installation, and
especially for wind energy. In July, the Iberian Electricity Market (MIBEL) finally entered into
operation, which contributes to creating a regional market, fulfilling the provisions of the
Directive 2003/54/EC concerning the common regulations for the Internal Electricity Market to
favour exchanges and competition between companies in this sector. It is also worth noting that
there has been a significant acceleration of the procedures by the regional governments and a
facilitation of the network connections that have contributed significantly to this increase.
45
La Valdivia wind farm,
Osuna (Seville)
Currently Spain is a world benchmark country in the development of wind energy due to the
production figures recorded in recent years, which already exceed that from hydroelectric
energy. According to the data of the Wind Energy Business Association (AEE), during 2007
wind energy achieved a new record in its development: 3,522.09 MW were installed, which
raises the total power to 15,145.1 MW. This increase involves a rate of growth of 30%
compared to 15.8% for 2006, and a new record of annual growth in absolute terms. This
growth is significantly greater than that for the year 2004 –until now the most positive– in
which 2.361 MW were installed, comfortably exceeding the figures for 2005 (1,524 MW)
and 2006 (1,587.16 MW). The AEE considers that this growth will allow the objectives of the
Renewable Energy Plan 2005-2010 to be achieved, which provides for 20,155 MW. In
relation to the number of wind farms, this has already reached 672, compared to the 538
existing at the beginning of last year.
By autonomous communities, the list is headed by Castile-La Mancha with 3,131.36 MW and
growth of 37.25%, exceeding Galicia (which had been leading in recent years) which in turn
reached 2,951.69 MW and a growth of 12.37%, followed by Castile and Leon with 2,818.67
MW and an increase of 32.77%. In percentage terms, the biggest increase is in Andalusia with
140.65%, reaching 1,459.71 MW of installed power (which makes this autonomous community
the fifth in this regard after Aragón, which now has 1,723.54 MW) followed by Murcia, with a
growth of 124.91% (152.31 MW in operation).
According to the data of the Daily Balance of Red Eléctrica Española, wind energy generation
reached 26,407 GWh in 2007. With this figure wind energy has become the fourth most
important technology for its contribution to the system, after coal-powered stations, combined
cycle gas powered stations and nuclear energy, exceeding hydroelectrical energy by some tenths.
The data fo the European Wind Energy Association reveal that in the Europe of the 27 8,554
MW of wind energy has been installed during 2007, which involves an increase of 18%. The
accumulated wind energy power in Europa has already reached 56,535 MW. Spain installed
3,522 MW in 2007, the greatest amount that any European country has done to date.
In relation to the photovoltaic industry, this has closed an excelent year according to the data of
the of the National Energy Commission. Photovoltaic energy exceeded 371 MW of installed
power, which was the target for 2010, and which was achieved due to a 500% growth of the
market last year. However, the intention of the Ministry of Industry is to have a new regulation
that proposes a new target of installed power of 1,200 MW for 2010 and a reduction of the
subsidies.
The world photovoltaic market grew in 2007 by 40%, according to the data of the Photovoltaic
Solar Industry Association (ASIF), so that the total accumulated power in the whole world at the
end of 2007 was 9 GWp. Among the first four markets that have most contributed to achieving
this growth are Germany, Japan, USA and Spain, which trebled its rate of annual installation in
46
ALDESA GROUP
Biomass power plant
2007. According to the ASIF, 428 MW was connected to the electrical network, 440% more
than in the previous year. In total, in Spain there is already nearly 600 MW of installed
photovoltaic energy and more than 15,000 people in possession of an installation. The volume
of business generated by photovoltaic technology in Spain came to EUR 7,750 million. In spite of
this very strong growth, photovoltaic energy continues to have less weight in the composition of
Spanish electrical generation, as it contributes only 0.05% of the electricity consumed in the
country. Nevertheless, the sector is one of the main niches of employment associated with
renewable energy, having already generated around 23,000 jobs, between direct and indirect
positions.
Renewable energy
The Aldesa Group carries out its energy business activity through its subsidiary Aldesa
Energías Renovables, which manages all of the business related to alternative energy:
promotion, design, construction and operation of renewable energy projects. Upon closing
the 2007 financial year Aldesa Energías Renovables promoted projects for wind power,
thermosolar and photovoltaic installations throughout the national territory. Aldesa Energías
Renovables is also present in the international context, specifically in Eastern Europe, in the
area of wind power energy and considering new business opportunities in Latin America and
the USA.
This new subsidiary, formed in 2006 and with headquarters in Seville, is integrated in the
diversification strategy initiated in recent years, driving the consolidation of Aldesa in the
renewable energy sector, where new projects are planned for the promotion, purchase and
installation of wind farms and solar installations that increase its position in the said sector.
Alijar wind farm,
Jerez de la Frontera (Cadiz)
47
Photovoltaic plant
in Puente Génave (Jaén)
Upon closing this Report Aldesa Energías Renovables had, in operation or construction, more
than 200 MW of gross wind energy power, 38 MW of nominal photovoltaic power and 24 MW
of biomass and sludge pressing. At the end of 2008 it is expected to have electrical production
of 710 million kWh and more than 600 MW in various states of promotion in Spain and abroad.
Likewise, new projects are being considered in the fields of biofuels, biomass and offshore wind
farms.
Further, various wind farm projects have been presented for more than 350 MW in the
autonomous communities of The Canary Islands, Estremadura, Madrid and Galicia, which are
currently pending administrative authorisation. In the international context, the Group has
various sites for the construction of wind farms in the United States, Mexico, Bulgaria and
Romania. For the second six months of 2008 it is also planned to construct a new wind farm in
Écija, Palomarejo, with 28 MW of power.
The portfolio of Aldesa Energías Renovables began in 2006 with the purchase from Gamesa
Energía of the Tharsis wind farm, situated in the municipal area of Alosno (Huelva), with a
capacity of 4.25 MW. In the same year Aldesa acquired 100% of Promociones Eólicas del
Altiplano (Prealsa). The company has more than five years of activity and holds three
administrative concessions with all of the permits and licences granted, for the construction of
two wind parks in Jumilla (Murcia). This is the future La Tella wind park and the Cerrillares wind
park, with a combined capacity of 86 MW. It is planned that work on the the first wind power
project in La Tella will commence in Autumn 2008 and will continue for more than a year. This
first phase of the project will inject into the electrical network more than 100 million kWh,
sufficient energy for the consumption of a city of 20,000 inhabitants.
Among the relevant facts of the past year, it should be emphasised that the Aldesa Group
formalised with the Detea Group the purchase of assets related to renewable energy for the
amount of EUR 600 million. The portfolio of projects in development that were acquired, which
reached 200 MW of power, formed part of Becosa, a renewable energy subsidiary of the Detea
Group, and included four wind farms, a biomass plant, four cogeneration stations, two biomass
drying installations and nine photovoltaic projects.
At the end of the financial year, Aldesa completed the long term project financing of two wind
farms and nine solar farms in Andalusia. The operation reached an amount of EUR 310 million
and was signed with Banco Santander and Banesto, which acted in their capacity as “Mandated
Lead Arrangers” and co-insurers. The wind parks, which together account for 53.55 MW, are
located in Jerez de la Frontera (Cadiz), whereas the solar parks together account for the nominal
amount of 38,17 MW and are situated in Aznalcázar, Écija, Salteras and La Rinconada (Seville
province), and in Hinojos, Ayamonte and Lepe (Huelva province).
48
ALDESA GROUP
The Diamond Plaza office building,
Krakow (Poland)
5. REAL ESTATE
Sectoral analysis
The real estate market has begun a significant process of change after the spectacular rise in
house prices in recent years. In the last decade there have been few European countries where
the prices have grown as much as in Spain, with the exception of the United Kingdom, the
development of both being very similar. One of the main causes of the real estate boom and the
strong increase of prices in Spain was the great demand for dwellings, stimulated by favourable
mortgage conditions and a situation of very low interest rates.
The annual turnover of real estate developers has maintained a markedly upward tendency in
recent years, with the highest point of the cycle in 2006, when 600,000 homes were sold. It was
logical that a smooth convergence would initiated, so that during 2007 the market already
began to show a clear slow down. In the end the more optimistic hypotheses have been
confirmed in relation to the development of house prices: a smooth landing that confirmed the
deceleration of the real estate sector and establishes the growth in prices in keeping with the
CPI, as opposed to the more radical theses that predicted a violent end to the real estate boom.
We are therefore faced with a change of cycle that is marked by an excess of supply. For this
reason, the increase in the price of housing has stagnated and everything points to a relaxation
of demand. The departure of the developers is, therefore, a notable readjustment in the
production and is creating a major adaptaton to the demand existing in the market. In fact,
strategies are increasingly based on opening up to the international markets. The countries of
the East, in particular Poland, Romania and Bulgaria have provided extraordinary business
oportunities to Spanish developers due to a stock of housing that is aging and deficient.
House prices in 2007 grew by less than 5%. This increase is in keeping with the CPI, which last
year closed with aninter-annual increase of 4.2%. According to the data published by the
Ministry of Housing, the price of private housing in 2007 grew to 2,085.5 euros/m2, 4.8% more
than in 2006 (1,990.5 euros), compared to the increase of 9.1% registered in 2006 in relation to
2005. The dwellings commenced in Spain (new works and restoration) in 2007 were 526,977,
compared to 863,691 in 2006.
According to the analysis of DBK, the majority of real estate companies will continue to promote
property activity. Thus, it is expected that they will strengthen investments in sectors with with
greater potential for growth, such as hotels, logistics parks or residences for the elderly. On the
other hand, there is expected to be increasing activity of developers in the sectors of home
leasing and in the promotion of protected housing. For Morgan Stanley the adjustment that will
take place in the Spanish real estate market over the next three years will be more motivated by
the annual decline in activity thanby any strong fall in prices, as the costs of production and
manufacture are very resistent and the price of land continues to rise.
49
Hotel complex project
in Huatulco (Mexico)
There is a shared opinion that demand will recover when there is renewed confidence in the
development of the economy and the current uncertainties of the market are clarified. At the
same time, a series of measures have been taken to reactivate the real estate sector, such as the
amendment of the Housing Plan 2005-2008 with the allocation of 75 million euros through the
incentive to entrepreneurs in the protected housing market. This facilitates the classification of
originally private housing as subsidised housing. The developers will have greater options to sell
their housing stock either in the private or protected market, as the period for housing
constructed in the private market to be classified as used will be reduced from two years to one
year. Furthermore, if the Autonomous Communities and the Councils accelerate the town
planning and administrative mechanisms to transfer land, the reaction would be immediate. The
developers would be able to commence in one year 200,000 homes, thus responding to the
need for subsidised housing.
Real Estate
In Spain the real estate activity of the Aldesa Group is concentrated in the company Aldesa
Home, formed in 2006 with the aim of operating in the real estate market under a single
brand, combining the shares of the set of development companies related to the Group. It
currently has a promotion of 100 high rise dwellings in Arroyomolinos (Madrid), of which
60% have already sold, and it holds a 40% share in Águilas Residencial, contract awarded by
Renfe Heritage.
Among the relevant events of the past year, mention should be made of the two awards
obtained through the Development Consortium “Móstoles Sur”, for the construction and
Guadarrama residential,
Arroyomolinos (Madrid)
50
ALDESA GROUP
Houses for EMUSVI in Ciudad Real
Las Buganvillas residential,
Aguilas (Murcia)
promotion of 90 rent-controlled dwellings with the option to purchase for young people, and 70
affordable homes, both within the scope of the Housing Department ofthe Community of
Madrid. Further, it should be noted that in September 2007 construction began of the
promotion “Soto del Henares” in Torrejón de Ardoz (Madrid), consisting of 176 rent-controlled
dwellings with the option to purchase for young people; also, in the second quarter of 2008
construction began on the development of 106 subsidised homes in the (Corredera
Implementation Unit) of Ciudad Real for the Municipal Land, Development and Housing
Company of the Ciudad Real Council (EMUSVI).
In the international context it is worth noting the construction and subsequent operation by
Aldesa Turismo of a tourism complex in the Mexican locality of Huatulco (State of Oaxaca),
located on the Pacific coast. On the 25 March last the president of Mexico, Felipe Calderón,
placed the first stone for this project, which includes a five star hotel, with 951 rooms, and a
residential zone with a hundred high-end villas. The National Tourism Fund of Mexico (FONATUR
- Fondo Nacional de Turismo de Mexico) will carry out a series of investments in transport
infrastructures with the end of positioning the Bahías de Huatulco among the top preferred
destinations for international tourists.
Aldesa Polska is the subsidiary of the group dedicated to the development of real estate
projects in Central and Eastern Europe. The activity of the subsidiary is focused on the
development of homes, offices, commercial centres, hotels and logistics and industrial parks,
with special interest in Poland, Romania and Bulgaria. To this end, it has a team with
headquarters in Krakow, from where it analyses investment opportunities and manages projects
in the main cities of these three countries. Its business plan for the period 2008-2012 provides
for the incorporation of three or four projects per year, in order to have a portfolio of eight to ten
active projects at the end of the period.
Its first project is Diamante Plaza, a Class A office building in Krakow with a rentable area of
10,000 m2, intended to satisfy the growing demand for modern office spaces and well
fitted out by multinational and local companies, on which work began in February 2008
and which will be available for occupancy by long term tenants in the summer of 2009.
With an investment volume of some 20 million euros, Diamante Plaza will be an iconic and
unique building in Krakow both because of its elegant and attractive design, which
combines stone, aluminium and glass, and because of the funcionality and ergonomics of
the interior spaces, demonstrating the latest architectural solutions and an abundance of
natural light.
51
Corporate Responsibility
Report
52
ALDESA GROUP
“The Group's Corporate Responsibility strategy
is based on a range of corporate values which
cover all levels of the organisation and
represent a real commitment to all its
stakeholders”
THE GROUP AND THE CORPORATE
RESPONSIBILITY REPORT
The Aldesa Group has been working for many years to make its economic development
compatible with the integration of environmental and social concerns into its business model.
The growth and diversification experienced by the company in recent years means that it is
necessary to pay ever closer attention to the consequences of its activities having an impact on
society.
The Aldesa Group has set a series of strategic Corporate Responsibility targets, which range from
the application of R+D+I projects on building sustainability and the improvement in quality of life
for disabled people, to investment in renewable energy and waste management to encourage
recycling, and the extension of the safety in the workplace plan to employees of subcontractors
and participation in cooperation projects to make drinking water and sanitation accessible to the
poorest parts of the world.
The Group's Corporate Responsibility strategy, which is contained in its slogan “Building
confidence”, is based on a range of corporate values which cover all levels of the organisation,
and which go beyond mere image, and represent a real commitment to all its stakeholders:
clients, employees, partners, suppliers, subcontractors, users and society in general.
These values are applied through a range of management systems and divisions which are
responsible for the implementation of the corresponding policies and action plans for effective
compliance with all such commitments.
— A commitment to highly qualified technical Human Resources. Aldesa is well aware
that its success has been enabled by the people who work for it. As a result, the inclusion
of new companies into the group has brought with it the ongoing need to hire highly
qualified technical personnel in all business areas. For the development of its employees,
one of the basic pillars of the Human Resources policy is internal promotion and specialist
training.
— High levels of safety in the workplace. Safety is one of Aldesa's key commitments and
underlies every activity in which it is involved, and is understood to be of the same
importance as profitability, quality and production. The Group is seriously committed to
safety and the prevention of risk in the workplace, and has drawn up a series of
commitments and guidelines that take the form of its Health and Safety policy and which
must be complied with by all employees, making them active participants in safety
management.
— Application of sustainability and new technologies. Aldesa has the capacity to use the
most advanced techniques when carrying out its projects, and carefully selects the most
53
appropriate technology. It studies a range of technological options to improve construction
methods, paying particular attention to efficient processes and sustainable building. Likewise,
it works in advanced technological projects related to electrical engineering and
telecommunications.
— Compliance with the strictest quality requirements. For over a decade now, Aldesa
has been certifying its quality management, thus ensuring customer satisfaction and
compliance with their requirements, as well as legislation and regulations on the reduction
of accidents, establishing a framework for continuous improvement in the company's
processes. Aldesa's quality policy includes objectives such as making quality a basic
element of the organisation's culture, and ensuring that all staff identify and sign up to it.
— Strict compliance with agreed delivery deadlines. No detail is omitted in the planning
required for each project, and if the periodic checks on progress detect even the slightest
issue which could cause delay, the company will increase the workforce assigned on the job
and shift patterns. As a result, Aldesa meets agreed handover deadlines in 98% of cases, and
is often months ahead of them, thereby avoiding unnecessary inconvenience to users and
clients.
— Respecting the Environment. Aldesa's environmental policy places particular emphasis on
prevention and continuous improvement in the company's environmental behaviour. Since
2000, Aldesa has held ISO 14001:2004 certification for Environment Management from
AENOR; this certifies compliance with the applicable environmental legislation and together
with the use of processes which reduce and control pollution.
54
ALDESA GROUP
— Supporting initiatives that create value for the community. The social action of
Aldesa is focused on developing projects related to its activity and that create value for the
community by meeting their real needs. The said projects mainly come within two fields of
activity: promotion of the development of infrastructures in the poorest regions of the
world, so that the community can have access to the basic services of infrastructures, and
the social inclusion of less favoured persons in the communities where the Group
operates.
HUMAN RESOURCES
The Aldesa Group makes the management of its Human Resources a commitment of excellence,
teamwork, enthusiasm, integrity, efficiency and respect for people.
The priority of Aldesa is to manage talent, adapting it to the best organisational structure,
defining policies that attract, retain and develop our human capital.
In 2007 the Group increased its staff to 3,284 employees, of whom more than 40% hold
Secondary and Third level education, the remainder being unqualified staff and workers. Of this
figure, 1,544 are employed in controlled companies of the Group and the remaining 1,740 are
employed by the building company, of which 720 hold Secondary and Third Level education,
270 are representatives and foremen, 210 are administrative posts and the remaining 540 are
unskilled workers.
The main initiatives of the Human Resourcs Department during 2007 have been directed at
establishing policies and developing internal management and communication tools to generate
the commitment of staff to our corporate strategy and culture, developing a climate of
participative work that guides them towards the objectives of the Group, particularly workers
assigned abroad who participate in projects in the international area.
Training
During 2007 more than 400 training courses were given, directed at more than 1,000
employees, with the broad theme of health and safety in the workplace, site management,
quality and environmental management, managing teams, legal responsibilities and
subcontracting law, languages, information technology and other specialisation courses,
which have involved an investment of more than 300,000 euros, with a total of 6,413
teaching hours.
Aldesa also maintains a close relationship with various universities to bring professional reality
close to all their students. Aldesa collaborates with the Fundación Empresa Universidad de
55
Navarra (University Business Foundation of Navarre), economically supporting the programme of
Educational Cooperation, which seeks to apply in practice the knowledge accquired by students,
and to provide professional experience and abilities. It also participates in the Civil Engineering
and Environment Week that is organised by the Polytechnic University of Valencia as a training
complement to the study plans. This event is aimed at both students of Road Engineering and of
Public Works Technical Engineering and the degree in Environmental Sciences.
HEALTH AND SAFETY IN THE WORKPLACE
During 2007 Aldesa Construcciones continued to pay special attention to safety at work,
promoting activities aimed at preventing accidents in all of its productive areas, observing and
ensuring observance of the regulations and increasing the human and material resourcs
dedicated to this function. Aldesa draws up a Safety Plan for each site which must be approved
by the Safety Coordinator before the workplace can be opened. In this regard it should be
mentioned that the Health and Safety Committees act also as a channel of communication
between Aldesa and subcontractors, in which actions, time frames and those responsible for
each issue are jointly defined.
In 2007 Aldesa Construcciones and Coalvi obtained AENOR certification for its Health and
Safety at Work Management System, in accordance with OHSAS 18.001 specifications. This
certification reaffirms the commitments and guidelines of Aldesa in relation to health and
safety at work. These commitments are set out in its Health and Safety Policy, which is
developed through the preparation of a Health and Safety Plan for each site, among other
activities. However, reviews of the Management System are being carried out, adapting it to
the new OHSAS 18001:2007 standard, which establishes the requirements that a system of
health and safety at work must observe so that organisations can optimise the performance of
their system, as well as effectively controlling the dangers arising from accidents. Accordingly,
Aldesa is moving ahead with compulsory observance of its 2009 commitments, applying these
standards throughout the organisation with the end of obtaining AENOR certification next
year.
During 2007 the Aldesa Group significantly increased the number of its health and safety staff
who, in their various specialised areas, are dedicated to activities and issues concerning health
and safety at work. Likewise, the foundations were established to continue reducing the
accident rate towards the target of “Zero Accidents”. The accident data for last year reflect a
very considerable reduction in the number of accidents at work, recording a Frequency Index of
20.48 –thereby comfortably exceeding the objectives established for 2007 and reducing by one
half the rate for 2006–, and a Seriousness Index of 0.41, much lower than the average rates for
the construction sector in Spain.
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ALDESA GROUP
The most significant activities carried out during last year were the following:
— In all areas training has continued, through courses, seminars and talks, to ensure that the
productive activities of the company are carried out with the least risk possible.
— Some activities of the Aldesa Group require special attention, as construction is one of the
main challenges in terms of health and safety at work. Last year an extensive prevention
campaign was introduced with the objecttive of reducing the accident rate, based on the
following actions:
- Intensifying the health and safety at work training of representatives, foremen, production
chiefs and direct and indirect labour.
- Increasing communication, through the production line, of the preventative measures set
out in the safety plans, in order to improve their implementation on site.
- Distribution of Safety Bulletins to the whole organisation, specifying specific safety activities,
with the aim of preventing accidents and minimising the risk of them.
In the last quarter of the year a Management System was also developed called "Sysprocess"
which serves as a tool for the management of documents, consultation and communication
regarding Health and Safety at Work, within the Prevention Service of the Aldesa Group.
Safety has always been one of the cenntral concerns of Aldesa Construcciones. The
company involves its staff in preventative safety management, establishing a series of
commitments and guidelines that must be observed. To encourage this participation,
Aldesa Construcciones established the Annual Safety Prizes in the categories of Civil
Engineering and Building. These prizes assess up to ten parameters, such as
documentation, individual and collective protection, organisation, cleanliness, training,
inspections, etc. The sum of all these indicates the interest shown by the whole team in
observing the safety regulations.
Once again, Aldesa wanted to acknowledge and reward those sites that make a daily effort
to apply the Health and Safety policy, thereby protecting its employees with programmmes of
supervision, evaluation, training and research into risks in the workplace. In 2007 the Civil
Engineering First Prize was awarded to the Meirama Road site in Corunna, executed for the
Regional Government of Galicia; the Building First Prize went to the site of its own
development of 90 homes, garages and premises in Águilas (Murcia). The Civil Engineering
Second Prize was awarded to the Partial Plan 2 Development in Tarragona, a project of the
Council of that city, whereas the Building Second Prize went to the site of 38 single family
homes in Ciudad Real.
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In 2007 AMS Group established the Joint Prevention Service and implemented the Health and
Safety at Work Management System in all the companies of the group, which has allowed the
Frequency Rate to be reduced by 25% compared to 2006 and a reduction of 60% in the
Seriousness Rate. Likewise, it promoted an awareness campaign on the subject. Another notable
activity was that of Aceinsa which, throughout last year, provided retraining days concerning
handling machinery and in the operating procedures for the work being carried out, with very
strict observance and use of protective equipment on site. This reduced the Seriousness Index of
accidents to 0.39 in 2007.
QUALITY
Aldesa's quality policy guarantees that the final product is safe and reliable and meets all
applicable specifications, regulations and special codes. Since 1996 Aldesa has held AENOR's
Safety Management Certificate, which is based on the ISO 9001:2000 standard. This ensures
compliance with the requirements and satisfaction of our clients, together with compliance with
legal requirements and regulations for reducing accidents and establishing a framework for
continuous improvement in the company's processes.
The general objectives of this Policy are based on:
— Establishing Quality as a basic element in the company's culture.
— Ensuring that all Aldesa employees identify with and sign up to the Company's Quality Policy.
— Developing participative Quality Management which makes the most of the skills of the entire
workforce.
— Permanently optimising the overall business process in order to apply this Policy and general
objectives.
Quality policy
— To ensure that the products and services supplied to our clients are safe and reliable and
comply with all applicable specifications, regulations and codes.
— To reduce faults.
— To establish actions aimed at prevention, not just at detection.
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ALDESA GROUP
— To supply products and services where the price-quality relationship satisfies the expectations
of our clients.
— To be in permanent contact with our clients and work together to improve our products and
services.
— To instruct, motivate and involve all staff in the management and development of the Quality
System employed.
In 2007 the Company met all its quality objectives for all operating processes in the company
(Studies and Offers, performance of projects, purchases and subcontracting), and this will ensure
the continuous improvement of processes. In addition, Aldesa's certification was renewed for a
further three years.
The clients are highly satisfied with the Group's performance, as can be seen from the
satisfaction surveys distributed at the end of all jobs. This fact is further demonstrated by the
confidence that our clients have in us when awarding their main projects to Aldesa.
Guaranteed quality in every process
Aldesa establishes a Quality Assurance Plan (PAC) for each project. Among other aspects, this
plan contemplates the review of the project regarding areas that are lacking, insufficiently
defined, proposal for improvements etc., as well as control of documents (plans and other works
documentation), and inspections upon receipt of materials and their subsequent traceability. In
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the same way, inspections are carried out at the beginning, during and at the end of execution
of each unit of the project.
The Plan also includes drawing up and executing a plan of trials through principal accredited
laboratories, establishing a control of calibrations and verifications of the various pieces of
measurement equipment used in the works, and there is inspection of the machinery and
auxillary means used in the works, belonging to the Company or to collaborating companies. It
is also ensured that all staff involved in each phase of the work is qualified and skilled in terms of
training and necessary experience, and that a methodology has been established to evaluate the
suppliers and subcontractors. This guarantees that each and every requirement of the project
and the expectations of the clients have been fulfilled.
In order to improve in the coming years, Aldesa is carrying out an ambitious project to introduce
computer applications through the web, so that the quality management system of the
company is managed by this application, included in the Quality Assurance Plans (PAC) for the
works. It is thus intended:
— To manage the quality systems and environment using IT tools via the web.
— To provide in real time information relating to quality and environment for all Aldesa sites and
centres.
— To guarantee storage of the records on an electronic medium, thereby avoiding losses.
— Generation of reports that assist decision-making at all levels and handling of a greater
numbr of indicators.
— Eliminating to a great extent the use of paper.
— Providing a common platform that is applicable in the future for all the companies of the
Aldesa Group, that is easily repeated for new companies of the Group.
— Providing a solid, exportable solution and the possibility for growth of new functions.
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ALDESA GROUP
ENVIRONMENTAL MANAGEMENT
Since 2000 Aldesa has held ISO 14001:2004 certification for Environmental Management from
AENOR; this ensures compliance with applicable environmental legislation and regulations
relating to the environment and the use of processes which avoid, reduce or control pollution,
placing particular emphasis on prevention and ensuring continuous improvement in the
company's environmental performance.
In order to meet the requirements of this standard, Aldesa draws up an Environmental
Management Plan for each job which, in addition to identifying and evaluating the
environmental issues generated by activities on the job (waste, atmospheric emissions, spillages
and noise), identifies the applicable environmental legislation and ensures full compliance with
all such legislation and regulations by the Company itself and its subcontractors, and establishes
an objective for environmental improvement.
Environmental policy
— To comply with applicable environmental legislation and regulations, and all requirements
established by the company to this end.
— To use processes, practices and materials which avoid, reduce and control contamination as
part of a commitment to prevention.
— To continuously intensify environmental management to obtain improvements in the
Company's environmental performance.
— To establish and regularly review environmental objectives and targets in accordance with the
commitments made in this declaration.
— To inform and involve the relevant personnel in the way the environmental management
system is to be developed and applied.
In addition, the Group establishes direct environmental improvement actions for each of
its projects, by setting environmental objectives. The main impact of construction work is
the quantity of inert waste generated (those materials which are not physically, chemically
or biologically transformed in any way), such as the material from excavations or
demolition, rubble, wood and scrap metal. As part of its environmental commitment, the
Company is working to reduce continuously the amount of such waste that is sent to
landfill sites.
The company seeks alternatives, such as recycling on the job itself by looking at other
options to the original plans; or, in the case of excavations, sending the excavated material to
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other projects which require earth, thus avoiding the need for new quarries. Another
alternative to depositing waste in a landfill site is to use excess material for agricultural
improvements. This is useful for properties which, whether because of the topography of the
terrain or because of their use, are not appropriate for farming. In such cases, following
flattening, depositing and conditioning of the layers of material left over from the job, the
land can subsequently be used by its owner for farming purposes. Waste wood and metal is
handed over to authorised bodies for recycling.
In order to complement environmental improvement initiatives on the sites, Aldesa has
drawn up various good practice manuals which are given to the relevant workers. The
Company also shares its environmental concerns with its suppliers and other companies it
works with, particularly when their activities could have a significant impact on the job,
ensuring that their employees have the appropriate training and environmental awareness to
carry out their tasks.
As a result of all these actions, the Company set itself a target of recycling over 40% of
waste material from excavations and demolitions between 2006 and 2008; by December
2007 it had achieved 47.64%, involving the recycling of around 4,198,000 m3 of waste
material.
Dangerous waste materials –those which, due to their composition and properties are potentially
dangerous for health and the Environment, such as empty spray, paint, resin, foam and silicate
containers, and waste frommachines, such as brake oil, filters, used oil, etc.– are separated and
managed for each job by companies authorised by the competent authorities. To this end,
exclusive areas are set aside on site for the storage of such waste materials, which are signposted
and labelled for each type of “DW” (Dangerous Waste). In addition, in order to ensure that there
is no spillage on site, anti-spill mesures are taken when storing fuels. Inert waste from the
cleaning of cement mixers is stored in specially prepared clean points.
Noise pollution and atmospheric emissions are controlled through control of the machinery used
on site, by preventative maintenance and by use of recently manufactured machinery and
ensuring that all official technical inspections are up-to-date.
As part of its Recycling Policy, the Group's offices ensure systematic colection of waste material
such as paper and toner from printers and photocopiers on a daily basis using authorised
companies, which then recycle and reuse, respectively, the waste.
The consequence of all these activities, which are complemented by an external environmental
legislation services with access to all relevant environmental legislation (European, national,
regional and local) available, is the continuous improvement of the environmental performance
of the Aldesa Group.
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ALDESA GROUP
This improvement includes the project to introduce computer applications through the Web, so
that the environmental management system of Aldesa is managed through the said application.
In this way it will be possible to consult, in real time, information relating to the environment for
all sites and centres of Aldesa, to generate reports that assist decision-making at all levels, and
the handling of a greater number of environmental indicators. At the same time, the use of
paper is greatly reduced, thereby reducing its consumption and with the resulting benefit for
forestry resources.
Finally, it should be noted that in 2007 Aldesa and Coalvi maintained their commitment to the
environment and their concern for water resources through sponsorship of Expo Saragossa
2008. Through collaboration with the bodies involved in the “Friends of the Expo” sponsorship
programme, they want to clearly demonstrate their contribution to the sustainable
development, sharing the objective of this international exhibition: to raise awareness among
the population that water is a universal right, and that it is necessary to ensure that future
generations can enjoy this precious asset which guarantees the life and development of the
planet.
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INNOVATION
Aldesa has the objective of transforming itself into a Group in which the capacity to innovate is
present in all aspects of the company: business and support departments. To this end, in 2007
the Company worked along two parallel lines: the first, to approach a series of acquisitions
–EDASA, Galmet– which bring skills to the Group that it did not previously posses internally.
These incorporations, together with those carried out in 2006, and particularly ACISA, provide
Aldesa with a capacity to innovate that it have not before, and the benefits of which shall be
seen in the short term.
The second is to introduce a system of Innovation throughout the organisation that makes the
capacity to innovate available to all departments, and not just to those persons who work in the
R+D+I departments of the companies. This system seeks Innovation both in new services and
products and in the business model itself. All active projects in the pipeline are subject to a strict
filtering control in order to ensure optimal management of the risk and to invest only in those
that truly add value; this is measured by the capacity to generate positive cash flow in the short
term, a high volume of income and profitability, above the average.
This new way of approaching Innovation is consolidating in 2008 and will become one more
central feature in the project to obtain profitable growth of the Aldesa Group.
In relation to the area of Construction, during 2007 the Company continued working on
projects related to information technology and communications in the context of the home
(application of automation to residential housing) and the construction industry.
In this regard, Aldesa is involved in a range of technological initiatives with prestigious bodies,
such as the Eduardo Torroja Institute, which is part of the High Council for Scientific Research.
Likewise, Aldesa continued working with the select group of companies that take part in the
Institute's INVISO project “Optimisation of the Production of Housing, Industrialisation, Efficiency
and Sustainability”. The aim of this project is to investigate the possibilities of available
technologies for improving construction methods and to enable a more systematic approach to
building tasks, to make the process more industrialised, placing particular emphasis on the
efficiency of the processes and the sustainability of buildings, both from a socio-economic
viewpoint and from the perspective of energy conservation. Aldesa's participation centred on
improvements in functionality and the sustainable use of housing and on implementing and
automating such construction.
In addition, Aldesa is part of the AIVI (Intelligent Environments for Independent Living) project
consortium, which is led by Acciona, and which is developing procedures and technology to
obtain improvements, through ICTs (Information and Communication Technologies), in the
quality of life of disabled people, by considering innovative architectural and construction issues,
with particular emphasis on their application to housing. The project, which is supported by the
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ALDESA GROUP
Industry Ministry, involves several Universities, including the University of Valladolid, the
Polytechnic University of Saragossa and the Polytechnic University of Madrid.
After three years working alongside the Polytechnic University of Madrid, work was successfully
completed on a project to redesign a radio modem circuit integrated in different devices to
ensure communication and remote reading of sensors and actuators in domestic and industrial
environments. This updated circuit will be applicable to the control of ventilation in tunnels,
traffic flow issues where accessibility is difficult, sensor systems for civil engineering structures
and the optimisation of detection and prevention systems for risks in the workplace.
Aldesa has also recently signed an agreement to carry out a project called “Research into new
technologies applicable to civil engineering works” promoted by the School of Roads, Channels
and Ports of the University of Granada, with the involvement also of Andalusia Regional Railways
and Andalusia Infrastructure Management. The centre will play a fundamental role in research
and consultancy on improving the roads of Andalusia and the application of new technology to
civil engineering works.
Furthermore, Aceinsa has in the machinery and vehicles that it has assigned to conservation a
GPS monitoring system that shows their position and the routes they are taking at any moment
on a computer. It also shows data such as the level of fuel in the tank and the most important
parameters for the functioning of the machinery, such as movement of the arm of the
backloaders, position of the blade and flux spread configuration in snow ploughs, among
others. The correct use of the machinery can thus be verified, with a record of the data that is
valid to certify the dates and road sections on which monitoring activities were carried out, along
with treatments to improve winter road serviceability and, in general, all conservation
operations.
The area of Engineering and Services, through ACISA (its main technology company that has
three Development Centres in Barcelona, Seville and Madrid) has focused its development efforts
in projects related to its main business, which is traffic management. The most notable
milestones in 2007 were the following:
— Approval and first installations of the undetectable radar.
— Development of an artificial vision system applied to traffic and transport, which is being
marketed under the name VisioWay® (www.visioway.es). The first installations were intended
to measure traffic data. This project was supported and subsidised by the Regional
Government of Andalusia, within the Andalusia Research and Modernisation Plan, in which
there was cooperation by research groups from Cybernetic Applications of Electronics to
Information Technology (ACETI) and Automation, Control and Robotics Engineering (IACR),
both of the University of Seville, and from the Optics Department of the University of
Granada.
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— Development of a control system for Dangerous Good Transport Vehicles. This is currently
being carried out on roads controlled by the Basque Government, at network entry and exit
points. It is a system that, using automatic registration technology and its own management
software, identifies vehicles that transport this type of goods and follows them throughout
the network.
— Intelligent guidance of vehicles business parks. The main installation was in the Metropolitan
Industrial and Technology Park of Granada.
Also in this line of business, and in relation to EDASA (a company of the AMS Group) mention
should be made of the integrated automation project for the transport and storage of wine in
cellars. This project was developed for two cellars, one in Somontano (Barbastro) and the other
in La Rioja Alavesa (Elciego). The concept of these cellars combines integrated automation
comprehensive (the first and only of its kind), the production of high quality wine and
spectacular architecture.
COMMUNITY INVOLVEMENT.
SOCIAL ACTION IN THE ALDESA GROUP
In the current economic context of sustainability, the company the company has to set goals that
go beyond achieving the maximum profit and establish not only an economic purpose but also a
social purpose. For this reason, the commitments that Aldesa has with its stakeholders are
complemented by its Social Action programme, which confirms the desire of the Group to assign
resources that contribute to reducing social inequalities. The said plan has been designed with a
view to linking the corporate strategy with the social and economic needs of the community.
The social action of Aldesa is focused on developing projects related to its activity that create
value for the community by meeting its real needs. The said projects mainly come within two
fields of activity: promoting the development of infrastructures in the poorest regions of the
world and social inclusion of less favoured persons in the communities where it operates.
The main strategic lines of action in this regard are the following:
— Access to basic infrastructure services for the rural population of countries of the South, such
as the supply of drinking water and sanitation.
— Sustainable management of the natural resources of the territory, with the end of reducing
poverty in the least favoured rural areas of countries of the South.
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ALDESA GROUP
— Development of training initiatives in those countries where the Aldesa Group operates.
— Active participation in the construction of care centres for people with disabilities.
Aldesa also supports cultural and sports development by sponsoring events that take place in the
communities closest to the areas of influence where it carries out its activity.
Social Programme
Human Development
Aldesa works alongside various development cooperation projects with the NGO Engineers
Without Borders (EWB), which focuses on a concept of rights centred on universal access
to basic services, and aims for the eradication of poverty and the construction of a world
of fairness and solidarity, putting technology at the service of Human Development.
Aldesa participates in the development of Phase IV of a Water Sanitation Programme to
improve the access of the population of the Kigoma region (Tanzania) to basic water and
sanitation services. The great majority of the population of this country –with one of the
lowest per capita incomes in the world and a life expectancy at birth of 51 years– have no
access to drinking water to guarantee their most basic needs. The final objective of the
programme is the reduction of morbidity and mortality by reducing the incidence of water
transmitted diseases, such as cholera and typhus. With the execution of this programme,
which will benefit more than 40,000 persons, it is intended to provide the population of
Kigoma with the necessary infrastructures to ensure that their access to drinking water is
continuous and of an acceptable quality.
It also collaborates in the “Water, Energy and Communications Programme for Health” in the
province of Cabo Delgado (Mozambique), which comes within the Millenium Objectives signed
by the United Nations. It has the objectives of improving sanitary conditions to reduce maternalinfant mortality. The conditioning of 15 health centres will allow a considerable improvement in
health care for the population. Furthermore, 20,000 people will have access to drinking water
and basic sanitation, as well as education in hygienic-sanitary practices.
Aldesa also supports the Agricultural Development and Territorial Management Programme that
is being carried out in the least favoured rural areas of, such as the District of Jinotega. It
embraces the whole productive cycle (production, collection, processing and marketing), as well
as the management of land and natural resources, contributing to economic development,
increasing the income of small farmers and creating mechanisms for more equitable
redistribution of these.
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Aldesa agrees with EWB that engineering is an essential tool for universal access to basic services
that are necessary for a decent life. For this reason it has carried out an internal awareness
campaign among its employees, divulging the projects that the NGO carries out in the least
favoured areas in the world.
By purchasing Christmas cards from ActionAid, Aldesa sought to support the “School of life”
project, the main objective of which is to promote economic and social development in 29 highly
marginalised communities in Nexapa, Mexico, through the construction and fitting out of six
“Children's Homes” and the renovation of 18 others already existing, where activities will be
carried out that develop the education of children from 3 to 12 years of age. The special
connection of Aldesa with this country determined the selection of this NGO as the supplier of
Christmas cards.
Aldesa participates in the campaign “Donate your mobile phone”, promoted by the Red Cross
and Entreculturas, placing bag dispensing boxes in its offices that employees use to deposit the
mobile that they are no longer using and that they deliver to any postbox addressed to CMR, the
c o m p a n y i n c h a r g e o f re s t o r i n g o r re c y c l i n g t h i s e q u i p m e n t . T h i s c a m p a i g n
(www.donatumovil.org) pursues to major objectives: on the one hand, social action, as the
income generated from the re-use of the donated mobile phones is destined for humanitarian,
social and educational projects, in favour of less-favoured groups and countries; and on the
other hand, to promote conservation of the environment, by collecting unused mobile phones
and organising their re-use and recycling.
Also Aldesa wanted to join the blood donation campaigns that the Red Cross organises in
companies, encouraging its employees to participate in it and facilitating the travel of a
mobile unit from the Donating Centre to the offices of the central headquarters of the
Group.
Integration
Aldesa works with the Down Syndrome Association of Toledo (Asdownto) in various
initiatives, such as the future construction in this city of the Early Stimulation Centre for
persons affected with Down Syndrome. The company provides financing for this new centre
which will have two floors and a total built area of 1,200 m2. It will have various family care,
therapeutic and evaluation units, together with an external multi-sports track. Aldesa has
also become the sponsor of the charity dinner that this association organises every year,
bringing together families and business people and representatives of the local and regional
governments.
Aldesa participated for the first time in 2007 in the campaign “A smile for Christmas”
organised by the NGO Cooperación Internacional, through the donation by the employees
of the central headquarters of Aldesa and other companies of the Group located there, of
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ALDESA GROUP
new toys that the NGO distributes on Three Kings Day among children of deprived
families.
In Sant Adriá del Besós (Barcelona) Pai Construccions commenced work on the new
headquarters of the Fundació Formació i Treball, an organisation promoted by Cáritas Diocesana
of Barcelona, the main purpose of which is the training and integration into the labour market of
persons with personal, social and professional difficulties. This centre will allow count on 50
employment integration positions and employment skills students. The project forms part of the
set of social responsibility actions that Pai has been carrying out for some years.
Culture and Sport
Once again this year Aldesa sponsored the annual traditional Saint Cecilia Concert, an initiative
of the Madrid Symphonic Orchestra that usually takes place around the time of the celebration
of the Patron Saint of Music. Aldesa has been giving patronage to music for for some years now,
sponsoring the Extraordinary Christmas Concert of the MSO and its Centenary Concert in 2004,
as well as the musical cycles of the Community of Madrid.
In 2007 Aldesa was the official sponsor, along with other companies and institutions, of the 5th
“Ciudad de Béjar” National Tennis Open, the most important championship within the National
Tennis Circuit, organised by the Tennis Club of Béjar, in collaboration with the Salmantine local
authority. This sporting and social project arose with various objectives: to promote tennis in
Béjar andits district, and to provide it with an especially social and charitable nature, as the funds
obtained from the sale of tickets is entirely donated to the social work of the Buen Pastor
Residential Home in Béjar. Aldesa also sponsored the 2nd Portos de Galicia Christmas Indoor
Football Tournament.
Other companies of the Group that supported sporting initiatives were Aldesa Energías
Renovables, which sponsored a boat in the J80 Championship of Spain, and Coalvi, which
supported the Teruel Sporting Club.
Finally, it should be mentioned that Aldesa wanted, as a sponsoring company, to form part of
the Olympic project, joining the efforts that the city of Madrid is making to present a solid
candidacy for its election, on 2 October 2009, as the Host of the 2016 Olympic and Paralimpic
Games.
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Directory
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ALDESA GROUP
CENTRAL OFFICE
C/ Bahía de Pollensa, 13
28042 Madrid
Tel.: +34 91 381 92 20
Fax: +34 91 381 78 03
[email protected]
www.aldesa.es
ALDESA BRANCHES
Western Andalusia and Estremadura
C/ Tajo, 24
41012 Seville
Tel.: +34 954 15 73 40 - Fax: +34 954 15 73 29
[email protected]
Eastern Andalusia - Civil Engineering
Plaza Albert Einstein, 7. Edificio Alameda, 3ºF
18002 Granada
Tel.: +34 958 15 93 45 - Fax: +34 958 15 91 17
[email protected]
Eastern Andalusia - Building
Avenida Severo Ochoa, 16-20.
Parque Tecnológico Andalucía
Edificio Alora. Oficina 6
29590 Campanillas (Málaga)
Tel.: +34 952 39 82 95 - Fax: +34 952 30 66 21
[email protected]
Aragon, Navarre, Basque Country and La Rioja
Parque Empresarial Plaza
C/ Bari, 33 - Edifico 1 - 2ª planta
50197 Saragossa
Tel.: +34 876 26 95 67 - Fax: +34 876 26 92 14
[email protected]
C/ Monasterio de Tulebras, 2 - Oficina 6
31011 Pamplona (Navarre)
Tel.: +34 948 19 99 86 - Fax: +34 948 19 99 87
[email protected]
Asturias
Avenida de Galicia, 6 - 1º izq
33005 Oviedo (Asturias)
Tel.: +34 985 24 64 44 - Fax: +34 985 24 64 64
[email protected]
Balearic Islands
C/ Gremi Barbers i Cirugians, 48
3ª planta - Oficina H
Polígono Son Rossinyol
07009 Palma
Tel.: +34 971 45 93 53 - Fax: +34 971 43 47 44
[email protected]
Castile-La Mancha
Avenida del Ferrocarril, 8
13004 Ciudad Real
Tel.: +34 926 25 43 12 - Fax: +34 926 25 69 81
[email protected]
Castile and Leon and Cantabria
C/ Galena, 13 - 2ª planta
47012 Valladolid
Tel.: +34 983 21 81 00 - Fax: +34 983 30 07 12
[email protected]
Catalonia
Paseo de Gracia, 59 - Principal 1ª
08007 Barcelona
Tel.: +34 93 487 61 60 - Fax: +34 93 487 68 14
[email protected]
Centre-Madrid
C/ Enrique Jardiel Poncela, 4 - 2ª planta
28016 Madrid
Tel.: +34 91 764 55 45 - Fax: +34 91 764 00 49
[email protected]
Galicia
C/ Madrid, 1 - bajo (Fontiñas)
15707 Santiago de Compostela (Corunna)
Tel.: +34 981 55 27 79 - Fax: +34 981 55 27 80
[email protected]
71
Murcia and Alicante
Avenida Primero de Mayo.
Edificio Torres Azules. Torre A-7ª pl.
30006 Murcia
Tel.: +34 96 823 98 52 - Fax: +34 96 823 99 92
[email protected]
Valencia and Castellón
Plaza Alquería de Culla, 4 - 7ª planta
46910 Alfafar (Valencia)
Tel.: +34 96 374 29 29 - Fax: +34 96 374 28 70
[email protected]
Pai Construccions
Gran Vía de Hospitalet, 16-20
08902 Hospitalet (Barcelona)
Tel.: +34 93 345 48 00 - Fax: +34 93 345 49 60
[email protected]
Civesa Ingeniería y Construcción
Av. Jorge Luis Borges, 15 - Portal 3, 5ºA
29010 Málaga
Tel.: +34 951 93 15 69 - Fax: +34 951 93 04 84
[email protected]
SUBSIDIARIES OFFICES
ACISA
Pasaje de la Plásmica, s/n. Nave 9
08940 Cornellá de Llobregat (Barcelona)
Tel.: +34 93 474 42 99 - Fax: +34 93 474 41 74
[email protected]
Coalvi
Plaza Nuestra Señora del Carmen, 8 - 2ª planta
50004 Saragossa
Tel.: +34 976 39 01 16 - Fax: +34 976 29 13 54
[email protected]
Grupo AMS
C/ Exposición, 34. Parque Pisa
41927 Mairena de Aljarafe (Seville)
Tel.: +34 95 560 21 12 - Fax: +34 95 560 13 08
[email protected]
Proacón
C/ Tajo, 24
41012 Seville
Tel.: +34 95 423 07 83 - Fax: +34 95 423 76 14
[email protected]
Electro Valencia
C/ Johannes Gutenberg, 8. Parque Tecnológico
46980 Paterna (Valencia)
Tel.: +34 963 85 11 14 - Fax: +34 963 85 26 01
[email protected]
Grupo Ingesa
C/ Valdetorres del Jarama, 31 - Escalera 1-1ºB
28043 Madrid
Tel.: +34 91 772 17 00 - Fax: +34 91 773 21 20
[email protected]
Meyvat y Suelin
C/ Montseny, 35. Polígono industrial
08120 La Llagosta (Barcelona)
Tel.: +34 93 574 32 35 - Fax: +34 93 574 35 36
ACEINSA
C/ Concha Espina, 64 - 4º
28016 Madrid
Tel.: +34 91 555 77 45 - Fax: +34 91 555 77 91
[email protected]
EDASA, Ingeniería y Montajes
Polígono Empresarial Plaza
C/ Bari, 33 - Edificio 2
50197 Saragossa
Tel.: +34 976 30 03 60 - Fax: +34 976 34 13 51
[email protected]
72
ALDESA GROUP
Galmet, S.A.
Polígono Industrial Bergondo.
Parroquia de Guisamo A-10
15165 Bergondo (Corunna)
Tel.: 981 78 49 43 - Fax: 981 78 49 92
[email protected]
Maquivías, S.A.
C/ Miguel Servet, 4. Polígono Industrial La
Garena
28806 Alcalá de Henares (Madrid)
Tel.: +34 91 802 61 40 - Fax: +34 91 802 61 52
[email protected]
Aldesa Energías Renovables
C/ Arquitectura nº 5, Planta 5ª, Módulo 3
41015 Seville
Tel.: +34 954 97 56 11 - Fax: +34 954 97 56 12
[email protected]
Aldesa Servicios y Mantenimiento
Avenida de la Industria, 51
Edificio Abeto, 1ª planta
28108 Alcobendas (Madrid)
Tel.: +34 91 358 61 30 - Fax: +34 91 358 94 43
[email protected]
Aldesa Home
28042 Madrid
Tel.: +34 91 381 92 20 - Fax: +34 91 381 78 03
[email protected]
Aldesa Polska
Wielopole, 18b
31-072 Krakow (Poland)
Tel.: +48 12 421 09 53 - Fax: +48 12 421 09 53
[email protected]
Aldesa Turismo
28042 Madrid
Tel.: +34 91 381 92 20 - Fax: +34 91 381 78 03
Aldesa México
Avenida Paseo de la Reforma, 404. Piso 15
Colonia Juárez 06600. Delegación Cuauhtémoc.
Mexico City
Tel.: 01 (55) 5207 9327
[email protected]
Técnicas de Administración y
Mantenimiento Inmobiliario (TMI)
Tel.: +34 91 358 61 30 - Fax: +34 91 358 94 43
[email protected]
SMM
Tel.: +34 91 358 61 30 - Fax: +34 91 358 94 43
[email protected]
73
74
ALDESA GROUP
Economic and Financial Report
75
76
ALDESA GROUP
AUDITOR´S REPORT
77
CONSOLIDATED ANNUAL ACCOUNTS
Translation of consolidated financial statements originally issued in Spanish and prepared in accordance with generally
accepted accounting principles in Spain (see Note 32). In the event of a discrepancy, the Spanish-language version prevails.
ALDESA CONSTRUCCIONES, S.A. AND SUBSIDIARIES
Consolidated balance sheets at 31 december 2007 and 2006
(Thousands of Euros)
ASSETS
DUE FROM SHAREHOLDERS FOR UNCALLED CAPITAL
2007
2006
10
7
451
22,626
30,018
(7,392)
223,910
153,651
35,954
7,278
7,218
158
17,128
20,396
(3,268)
31,211
18,880
16,279
4,740
5,402
41,993
(22,184)
10,025
2,374
643
1,341
1,372
4,043
657
(405)
-
1,664
(15,754)
11,152
3,542
257,012
64,649
152,968
47,404
152,968
47,404
5,088
1,702
141,509
448,767
419,141
2,243
3,014
255
41,250
(17,136)
113,947
28,165
74,582
10,655
1,206
(661)
117,666
4,518
113,462
356,276
329,457
1,432
10,980
51
16,763
(2,407)
119,285
2,394
109,381
6,789
721
83,799
2,495
826,407
675,317
1,241,485
789,079
NON-CURRENT ASSETS
Start-up costs (Note 9)
Intangible assets (Note 10)
Intangible assets and rights
Accumulated amortisation
Property, plant and equipment (Note 11)
Land and buildings
Plant and machinery
Other fixtures, tools and furniture
Other items of property, plant and equipment
Advances and property, plant and equipment
in the course of construction
Accumulated depreciation
Long-term investments (Note 12)
Investments accounted for using the equity method
Investments in related companies
Loans to associates
Long-term investment securities
Other loans
Deposits and guarantees
Allowances
Treasury shares
Total non-current assets
2,126
5,150
356
(22)
5,000
GOODWILL ON CONSOLIDATION
Fully consolidated companies (Note 8)
Companies accounted for using the equity method
Total goodwill on consolidation
DEFERRED CHARGES (Note 13)
CURRENT ASSETS
Inventories (Note 14)
Accounts receivable (Note 15)
Trade receivables for sales and services
Receivable from related companies
Sundry accounts receivable
Employee receivables
Tax receivables
Allowances
Short-term investments (Note 16)
Loans to Group companies and associates
Short-term investment securities
Other loans
Short-term deposits and guarantees given
Allowances
Cash (Note 17)
Accrual accounts
Total current assets
TOTAL ASSETS
78
ALDESA GROUP
SHAREHOLDERS' EQUITY AND LIABILITIES
2007
2006
SHAREHOLDERS' EQUITY (Note 18)
Share capital
10,100
Other reserves of the Parent
64,708
Restricted reserves
2,020
Unrestricted reserves
62,688
Reserves at fully consolidated companies
3,174
Reserves at companies accounted for using the equity method
480
Profit attributable to the Parent
25,912
Consolidated profit
26,002
Loss attributable to minority interests
(90)
Total shareholders' equity
10,100
44,708
2,020
42,688
(835)
403
29,130
29,496
(366)
104,374
83,506
30,312
7,156
33
1,309
1,658
74
Total deferred income
1,658
74
PROVISIONS FOR CONTINGENCIES AND CHARGES (Note 21
5,995
2,915
340,964
157,461
183,503
3,045
125
31,517
25,573
5,944
13,006
-
344,134
44,523
19,899
16,807
3,092
27,880
27,652
228
2,009
624,586
47,479
234,084
343,023
95,149
77,012
11,527
5,694
916
12,853
483
212
540,642
48,957
213,568
278,117
68,259
46,234
18,412
3,608
5
12,524
79
754,979
649,596
1,241,485
789,079
MINORITY INTERESTS (Note 19)
NEGATIVE GOODWILL ON FIRST-TIME CONSOLIDATION (Note 20)
DEFERRED INCOME
Grants related to asssets
Other deferred income
NON-CURRENT LIABILITIES (Note 22)
Bank borrowings
Bank borrowings
Bank borrowings for project financing
Other payables
Capital payments payable
Total non-current liabilities
CURRENT LIABILITIES (Note 23)
Bank borrowings
Bank borrowings
Bank borrowings for project financing
Payable to related companies
Trade payables
Advances received on orders
Accounts payable for purchases and services
Notes payable
Other non-trade payables
Tax payables
Other payables
Remuneration payable
Short-term guarantees and deposits received
Operating provisions
Accrual accounts
Total current liabilities
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES
The accompanying Notes 1 to 32 are an integral part of the consolidated balance sheet at 31 December 2007.
79
2007 AND 2006 CONSOLIDATED INCOME STATEMENTS
DEBIT
2007
2006
799,065
554,646
135,066
37,095
7,675
13,229
74,114
20,007
6,525
1,665
107,385
3,146
10,386
1,113,047
66,008
7,710
730,675
59,075
14,656
564
2,287
17,507
42,236
3,478
246
3,724
-
2,159
45
9,216
9,261
2,014
2,014
39,187
43,089
468
21
752
2,384
1,130
4,734
236
246
1,876
2,379
154
960
Consolidated profit before tax
Income tax
39,341
13,339
44,049
14,553
Consolidated profit (Note 27-d)
Profit attributable to minority interests (Notes 18 and 27-d)
26,002
90
29,496
366
25,912
29,130
EXPENSES
Cost of materials used and other external expenses (Note 27-a)
Staff costs (Note 27-b)
Wages, salaries and similar expenses
Employee benefit costs
Depreciation and amortisation charge (Notes 9, 10 and 11)
Change in operating provisions (Notes 27-e and 27-f)
Other operating expenses
Outside services
Other current operating expenses
Taxes other than income tax
Profit from operations
Finance costs
Exchange losses
Translation losses
Financial profit
Share in losses of companies accounted for using
the equity method (Note 12-a)
Amortisation of goodwill on consolidation (Note 8)
Profit from ordinary activities
Change in allowances for intangible assets, property,
plant and equipment and investments
Losses on intangible assets, property, plant and
equipment and investments
Extraordinary expenses (Note 27-j)
Prior years' expenses and losses (Note 27-j)
Extraordinary profit
Profit for the year attributable to the Parent
80
ALDESA GROUP
CREDIT
2007
2006
1,126,494
1,040,341
86,153
20,790
10,507
703,852
697,192
6,660
61,179
6,670
14,027
304
1,199
11
1,172,122
6,486
6
6,492
772,911
5,883
11,015
-
388
708
388
708
1,261
1,607
2,020
1,744
27
1,018
550
4,888
3,339
INCOME
Revenue (Note 27-c)
Sales
Services
Increase in finished goods and work in progress inventories
Group work on non-current assets
Other operating income
Non-core and other current operating income
Grants
Other finance income
Exchange gains
Financial loss
Share in the profits of companies accounted
for using the equity method (Note 12-a)
Gain on disposal of intangible assets, property,
plant and equipment and investments
Asset-related grants transferred to profit
Extraordinary income (Note 27-j)
Prior years' income and profits (Note 27-j)
5,883
The accompanying Notes 1 to 32 are an integral part of the consolidated income statement for the year ended 31 December 2007.
81
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS FOR 2007
1. Description of the parent
The Parent was incorporated on 12 November 1969, under the name of Alquileres, Destajos
y Saneamientos, S.A. by a public deed executed before the Notary Public Rafael Núñez
Lagos. The company name was changed to Aldesa Construcciones, S.A. on 29 December
1982.
Its registered office is at Calle Bahía de Pollensa, 13, in Madrid.
The Aldesa Construcciones Group companies engage in the following activities:
a) The acquisition and transfer of rural, urban and industrial building plots, land and
buildings.
b) All manner of construction work for the public and private sectors in Spain and abroad,
including building and industrial construction, property development and civil engineering
works, commissioned directly or through a tender, a tender-auction or an administrative or
other type of process.
c) The exploitation and operation of all manner of quarries and workshops related to the
construction business.
d) The production and manufacture of all supplementary elements required to completely fit out
the buildings.
e) The operation and lease of buildings, including those assigned for public entertainment.
f) The operation of any kind of public service.
g) The purchase, sale and exploitation of scrublands, woodlands and timberlands.
h) The purchase and sale of wood and construction materials, furniture manufacture and, in
general, any other activity directly related to the construction business.
i) The purchase, sale, lease and operation of any type of machinery and equipment related to the
construction activity.
j) The investment in other companies or in any type of corporate groupings, associations or joint
ventures whose company object is identical or similar to that of the Company, through the
acquisition of shares or equity interests upon formation of these companies by whatever
means and the provision of guarantees securing performance of their obligations to third
parties.
k) The ownership, development, purchase, sale and operation of rural and urban property, which
may be operated in any form and by any means, including its subsequent sale o rental to third
parties, as well as the provision of any type of property consulting services. Finance leases are,
in all cases, excluded.
l) The provision of air and land transportation services, of both goods and passengers, and the
provision of airport ground handling services; acting as an agent.
82
ALDESA GROUP
m) The design, projection, administration, management and operation of all types of industrial
installations, as well as the installation and maintenance thereof, and in particular of lighting,
illumination and runway lighting installations, high, medium and low voltage distribution,
telecommunications and radio-electrical installations, ventilation, heating and air-conditioning
installations, plumbing and sanitation installations and fire-prevention installations.
n) Use of explosives for the performance of civil engineering works, tunnels, quarries, trenchblasting, etc.
o) The provision of the following services:
– Ancillary services for administrative, archive and similar work; collection management and
meter-reading services; the organisation and marketing of conferences, trade fairs and
exhibitions; the performance of surveys, data compilation and similar services; and
concierge, access control and public information services.
– All kinds of specialised services including sanitation, disinfection and insect and rodent
control; security, safekeeping and protection services and the maintenance and handling of
security installations, hospitality and food services; forest fire prevention and services for the
protection of species.
– All kinds of qualified services, including medical and healthcare activities, the health
inspection of facilities; veterinary services; services for the sterilisation of medical equipment,
the restoration of artwork and the maintenance, preservation and restoration of cinema and
audiovisual material.
– Services relating to the conservation and maintenance of property, buildings, roads,
motorways, dual carriageways and other types of road, water and sewerage networks;
street furniture, mountains and gardens, monuments and singular buildings.
– Maintenance and repair services for all types of equipment and installations,
particularly electrical and electronic equipment and installations, plumbing, water and
gas piping, heating and air conditioning, electromedicine and fire safety and
prevention equipment and installations, office equipment and lifting and traverse
equipment and installations.
– Maintenance and repair services for machinery and motor vehicles, including vessels and
aircraft, weapon disassembly, destruction of ammunition and scrap yards.
– General transport services, including the transfer of patients using any means of
transport, cash courier and custody, transport of artwork; collection and transport of all
kinds of waste; air fumigation services and control, air surveillance and extinction of
fires, crane and ship towing services; and courier, correspondence and distribution
services.
– All kinds of waste treatment services, including the provision of urban waste treatment
and incineration services, sludge treatment, the treatment of radioactive and acid
waste, the treatment of hospital and veterinary clinic waste and the treatment of
odorous waste.
– Cleaning, laundry and dry-cleaning services; storage services; travel agency services; nursery
schools, and the collection of luggage trolleys at stations and airports.
83
– All kinds of information technology and communications services, including the
compilation of information using electronic computerised or telematic means;
software development and maintenance, repair and maintenance of IT and
telecommunications equipment and installations; telecommunications services; the
operation and control of IT systems and telematic infrastructure; electronic
certification services; technological evaluation and certification services, and any other
IT or telecommunications services.
In view of the Group companies' business activities, they do not have any environmental liability,
expenses, assets, provisions or contingencies that might be material with respect to their equity,
financial position and results of operations. The Group's environmental policy is described in
Note 30.
2. Subsidiaries
Following is a list of the subsidiaries included in the scope of consolidation and a brief
description of their business activities:
Carrying Amount
Dividends
Total
(Thousands of
received
Shareholders'
Euros)
Equity
Percentage
of Ownership
(%)
Company Name
Location
Line of
Business
Coalvi, S.A. (a)
Zaragoza
Construction
5,070
-
5,937
99.98
GTT Ingeniería y Tratamiento
de Aguas, S.A. (a)
Valencia
Construction
1,787
-
(1,078)
55.00
Alcalá de Henares
(Madrid)
Engineering
and services
1,559
-
1,335
100.00
Agrupación de Empresas,
Mairena de Aljarafe Engineering
Automatismos, Montajes
(Sevilla)
and services
y Servicios, S.L. (a)
18,700
-
35,620
55.00
AMS
Valencia
Engineering
and services
1,519
-
1,171
55.00
AMS
Sevilla
Engineering
and services
30
-
(693)
55.00
AMS
La Coruña
Engineering
and services
3,281
-
2,475
49.50
AMS
Seville
Engineering
and services
3
-
3
55.00
AMS
Meyvat, S.L. (a)
Barcelona
Engineering
and services
7,675
-
6,660
55.00
AMS
Suelin, S.L. (b)
Barcelona
Engineering
and services
1,882
-
1,715
55.00
AMS
EDASA Ingeniería
y Montajes, S.A. (a)
Zaragoza
Engineering
and services
6,270
-
4,402
49.50
AMS
Seville
Engineering
and services
3
-
3
55.00
AMS
Maquivías S.A. (b)
Electro Valencia, S.A. (a)
AMS Alta Tensión
Cataluña, S.L. (b)
Galmet, S.L. (a)
AMS Alta Tensión
Aragón, S.L. (b)
AMS Alta Tensión
Galicia, S.L. (b)
84
ALDESA GROUP
Subgroup
Carrying Amount
Dividends
Total
(Thousands of
received
Shareholders'
Euros)
Equity
Percentage
of Ownership
(%)
Subgroup
Location
Line of
Business
Aldegral, S.L. (b)
Madrid
Renewable
energies
3
-
(10,744)
99.97
Aldegral
Aldesa Energía, S.L.
and Subsidiaries (a)
Seville
Renewable
energies
102,044
-
5,644
99.97
Aldegral
Aldesa Suministros de
Instalaciones, S.L. (b)
Madrid
Construction
3
-
2
90.00
Aldesa Conservación y
Explotación de
Infraestructuras, S.A. (b)
Madrid
Construction
60
-
75
86.50
Urbanizadora Carretera
de Albalat, S.L. (b)
Valencia
Construction
301
-
(10)
100.00
Aldesa Marina Salinas de
Torrevieja, S.L. (b)
Madrid
Concessions
3
-
(94)
82.00
Barcelona
Renewable
energies
201
-
146
100.00
Aldesa Servicios y
Mantenimiento, S.L. (b)
Madrid
Engineering
and services
939
-
150
90.00
Servicios
Técnicas de Administración
y Mantenimientos
Inmobiliario, S.A. (a)
Madrid
Engineering
and services
1,855
-
296
90.00
Servicios
San Martín y Martínez, S.L. (a)
Alicante
Engineering
and services
20,352
-
11,703
90.00
Servicios
Aldesa Cimentaciones
Especiales, S.L. (b)
Madrid
Construction
3
-
3
90.00
Aldesa Energías
Alternativas, S.L. (b)
Madrid
Renewable
energies
54
-
(938)
90.00
Energías
Alternativas
Promociones Eólicas
Altiplano, S.L. (b)
Murcia
Renewable
energies
3,997
-
586
90.00
Energías
Alternativas
Ingeniería Geotécnica, S.A. (a)
Madrid
Construction
2,681
-
940
75.00
Investigaciones
Geotécnicas, S.L. (b)
Madrid
Construction
150
-
389
74.95
Aldesa Turismo, S.A. (b)
Madrid
Property
57
-
(257)
95.00
Aldesa Luz, S.L. (b)
Madrid
Engineering
and services
30
-
(1,075)
99.00
Luz
Aeronaval de Construcciones
e Instalaciones, S.A. (a)
Madrid
Engineering
and services
21,670
-
1,750
99.00
Luz
Barcelona
Engineering
and services
99
-
157
79.20
Luz
Barcelona
Engineering
and services
120
-
53
99.00
Luz
Pebian Inversiones, S.L. (b)
Barcelona
Construction
13,305
-
(5,032)
100.00
Pebian
Construcciones PAI, S.A. (a)
Barcelona
Construction
19,349
-
4,711
90.00
Pebian
Nou Martorell, S.L. (b)
Barcelona
Construction
51
-
-
85.00
Pebian
Company Name
Sistemas Energéticos Sierra
del Andévalo, S,A. (a)
Supertec Zona, S.L. (b)
Acisa Seguridad, S.L. (b)
85
Location
Line of
Business
Barcelona
Concessions
Aldesa Polska, Sp.z.z.z. (b)
Poland
Project Ariansk, Sp.z.o.o. (b)
Poland
Company Name
Aldepai Gestión, S.A. (b)
Carrying Amount
Dividends
Total
(Thousands of
received
Shareholders'
Euros)
Equity
Percentage
of Ownership
(%)
Subgroup
6,100
-
6,100
76.50
Pebian
Property
13
-
(90)
100.00
Polska
Property
13
-
13
100.00
Polska
Project Incognito, Sp.z.o.o. (b)
Poland
Property
13
-
13
100.00
Polska
Project Dekerta, Sp.z.o.o. (b)
Poland
Property
13
-
13
100.00
Polska
Aldesa Turismo México, S.L. (b) Madrid
Property
3
-
1
85.00
Aldeturismo de
México, S.A. de C.V. (b)
Mexico
Property
4
-
(5)
70.00
Aldeturismo
Promociones
La Esperanza, S.A. de C.V. (b)
Mexico
Property
3
-
3
70.14
Aldeturismo
Aldesa Hidrocarburos, S.L. (b)
Madrid
Others
30
-
(612)
99.00
Peces e Hijos, S.L. (b)
Madrid
Others
3,634
-
523
99.00
Civesa Ingeniería, S.A. (b)
Málaga
Construction
57
-
43
95.00
Alviesa Promociones
y Obras, S.A. (b)
Madrid
Construction
3
-
(49)
100.00
Construcciones
Aldesem, S.A. de C.V. (b)
Mexico
Construction
3
-
(155)
72.25
Constr.
Aldesem
Aldesa Servicios
Mexico
Administrativos, S.A. de C.V. (b)
Construction
3
-
(1)
72.39
Constr.
Aldesem
Constructora de Caminos
de Chiapas, S.A. de C.V. (b)
Mexico
Construction
2
-
2
54.19
Constr.
Aldesem
Promotora de Proyectos
ADM, S.A. de C.V. (b)
Mexico
Construction
3
-
3
72.25
Concesiones
Aldesem, S.A. de C.V. (b)
Mexico
Construction
3
-
(235)
72.25
Conces.
Aldesem
Operadora México
España, S.A. de C.V. (b)
Mexico
Construction
2
-
(6)
54.19
Conces.
Aldesem
Administradora de Personal
Carretero, S.A. de C.V. (b)
Mexico
Construction
2
-
-
54.19
Conces.
Aldesem
Mantenimiento México
Mexico
Construction
2
-
(20)
54.19
Conces.
Aldesem
Compañía de Actividades
Mexico
Carreteras del Sur, S.A. de C.V. (b)
Construction
7
-
8
72.25
Conces.
Aldesem
Consorcio Carretero
del Sureste, S.A. de C.V. (b)
Mexico
Concessions
13,563
-
13,008
100.00
Concesionaria México
Mexico
Concessions
42,162
-
54,307
75.00
GI Boj Castellana, S.L. (b)
Madrid
Property
2
-
(174)
50.00
Total Cost
300,746
(a) Data obtained from the financial statements at 31 December 2007, audited by Deloitte, S.L.
(b) Data obtained from the unaudited financial statements at 31 December 2007.
86
ALDESA GROUP
Hidrocarburos
3. Associates and multigroup companies
Following is a list of the associates and multigroup companies included in the scope of
consolidation and a brief description of their business activities:
Carrying
Amount
(Thousands
of Euros)
Dividends
Received
(Thousands
of Euros)
Total
Shareholders'
Equity
Percentage
of
Ownership
Location
Line of
Business
Inarenas Proyectos
Inmobiliarios, S.A. (b)
Madrid
Property
270
-
1,119
30.00
Águilas Residencial, S.A. (b)
Madrid
Property
360
-
5,585
20.00
Company Name
San Pedro Exterior, S.L. (c) Tres Cantos (Madrid)
Construcción
10
-
70
28.00
Perdigana San Pau, S.L. (c) Castellón de la Plana
Property
45
-
12
45.00
Sector Bétera, S.L. (c)
Valencia
Property
Ipar Acisa, S.L. (c)
Barcelona
Engineering and Services
Autopista de La Mancha
Madrid
Concesionaria Española, S.A. (a)
Torrepai, S.L. (c)
Barcelona
Centre d'Oci
Les Gavarres, S.L. (c)
Barcelona
2
-
2
50.00
147
-
320
49.00
Concessions
2,999
-
12,753
23.50
Construction
50
-
53
24.97
715
-
2,390
25.49
3
-
8
37.50
3
-
8
37.50
4,457
-
Construction
Mexico
de Guanajuato, S.A. de C.V. (c)
Construction
de Veracruz, S.A. de C.V. (c)
Construction
Mexico
Total Cost
(a) Data obtained from the financial statements at 31 December 2007, audited by Deloitte, S.L.
(b) Data obtained from the financial statements at 31 December 2007, audited by Mag Auditores,S.L.
(c) Data obtained from the unaudited financial statements at 31 December 2007.
All these companies are accounted for using the equity method, except for Perdigana de San
Pau, S.L., Sector Bétera, S.L. and Autopista de La Mancha Concesionaria Española, S.A., which
are proportionately consolidated.
4. Changes in the scope of consolidation
The main additions in 2007 relate to the following transactions:
– Agrupación de Empresas, Automatismos, Montajes y Servicios, S.L. carried out a capital
increase in which 1,100,000 shares valued at EUR 10 each were subscribed and paid for in
cash by the Parent. Also, Aldesa Construcciones, S.A. sold 60,000 shares to third parties
outside the Aldesa Group for a carrying amount of EUR 700 thousand, without generating any
gain or loss on the transfer. These transactions reduced the Parent's ownership interest in
Agrupación de Empresas, Automatismos, Montajes y Servicios, S.L. to 55%.
87
– On 31 October 2007 the subsidiary Agrupación de Empresas, Automatismos, Montajes y
Servicios, S.L. acquired a 90.74% ownership interest in Galmet, S.L. at a cost of EUR 3,281
thousand.
– On 19 July 2007 the subsidiary Agrupación de Empresas, Automatismos, Montajes y Servicios,
S.L. acquired a 90% ownership interest in EDASA Ingenierías y Montajes, S.A. at a cost of EUR
6,270 thousand.
– On 8 May 2007 the subsidiary Aldegral, S.L. acquired all the share capital of BECOSA
Desarrollo de Tecnologías Aplicadas, S.L., which subsequently changed its name to Aldesa
Energías, S.L., at a cost of EUR 102,044 thousand. For this transaction the Group recognised
EUR 97,417 thousand of goodwill on consolidation, which is being amortised over 20 years
(see Note 8).
– Aldesa Construcciones, S.A. subscribed to the capital increase at Aldesa Servicios y
Mantenimiento, S.L. by fully subscribing and paying for in cash 132,210 shares valued at EUR 1
each, maintaining the 2006 ownership percentage of 90%. The Company also contributed
EUR 804 thousand to offset this subsidiary's accumulated losses.
– On 30 March 2007 the subsidiary Aldesa Servicios y Mantenimiento, S.L. acquired all the share
capital of Técnicas de Administración y Mantenimientos Inmobiliario, S.A at a cost of EUR
1,855 thousand.
– On 25 April 2007 the subsidiary Aldesa Servicios y Mantenimiento, S.L. acquired all the share
capital of San Martín y Martinez, S.L. at a cost of EUR 20,352 thousand. For this transaction
the Group recognised EUR 10,110 thousand of goodwill on consolidation, which is being
amortised over 10 years (see Note 8).
– On 22 August 2007 Project Ariansk, Sp.z.o.o., Project Incognito, Sp.z.o.o. and Project Dekerta,
Sp.z.o.o. were formed, each with share capital of PLN 50,000, with a view to their carrying
out property development projects in Poland.
– Acquisition of 57,097 shares of EUR 1 each, on the incorporation of Civesa Ingeniería, S.A.,
whereby Aldesa Construcciones, S.A. obtained a 95% ownership interest in this company,
25% of the shares of which are fully subscribed and paid. This company's core activities
consist of civil engineering work and building construction in the region of Eastern Andalusia.
– Acquisition of 250 shares of Alviesa Promociones y Obras, S.A. of EUR 6 each, whereby
ownership was obtained of all the share capital of this company which, therefore, was fully
consolidated, having previously been proportionately consolidated.
– Acquisition, upon the incorporation of Consorcio Carretero del Sureste, S.A. de C.V. of 90
shares valued at MXN 500, obtaining a 37.5% ownership interest in this company. Its share
capital was fully subscribed but not fully paid. This company operates the ArriagaOcozocoautla and Tuxtla Gutiérrez-San Cristóbal toll motorways in Mexico. On 30 October
2007 Aldesa Construcciones, S.A. purchased 240 shares valued at MXN 500, each of which
was fully subscribed but not paid, this transaction being permitted under Mexican legislation,
and obtained an additional 62.08% ownership percentage. Additionally, on 30 October 2007,
the Company subscribed the capital increase of EUR 13,505 thousand carried out by Consorcio
Carretero del Sureste, S.A., equivalent to 416,006 shares of MXN 500 par value each, all of
which were fully subscribed and paid. These transactions took the total ownership interest of
Aldesa Construcciones to 99.9997%.
– Acquisition upon the incorporation of Concesionaria Mexico España, S.A. de C.V. of 255
shares of valued at MXN 100, obtaining a 51% ownership interest in this company. The share
capital of this company is fully subscribed but not paid, as permitted under Mexican legislation.
88
ALDESA GROUP
This company was created to fulfil one of the conditions of the tender specifications for the
operating concession for the Arriaga-Ocozocoautla and Tuxtla Gutiérrez-San Cristóbal toll
motorways in Mexico. On 30 October 2007, Aldesa Construcciones, S.A. contributed to the
capital increase at this company, by subscribing 4,420,074 shares valued at MXN 100, all of
which were fully subscribed and paid, maintaining its direct ownership interest at 51% and its
total at 75% through Consorcio Carretero del Sureste S.A. de C.V. The object of this company
is to operate the concession.
The main disposals in 2007 relate to the following transactions:
– On 24 December 2007 Aldesa Home, S.L. carried out a capital increase of EUR 21,139, which
was not subscribed by its then shareholders, Aldesa Construcciones S.A. and Grupo Aldesa,
S.L., which waived their pre-emption subscription rights. Consequently, Ferrurán Inversiones,
S.L., Mafares Inversiones, S.L. and Holding Inversiones Favifam, S.L. subscribed and paid this
increase (subsequently these three shareholders contributed this ownership interest in a capital
increase at Grupo Aldesa, S.L.). As a result of this transaction, the ownership interest and
hence Aldesa Construcciones, S.A.'s control of Aldesa Home, S.L. and consequently of Concisa
Construcciones Civiles, S.L. and Proacon, S.A. was diluted. These companies therefore ceased
to be subsidiaries of Aldesa Construcciones, S.A. and were excluded from its scope of
consolidation. At 31 December 2007, they were deemed to be related companies and were
consolidated in the Aldesa and subsidiaries Group.
In relation to the associates and multigroup companies, noteworthy in 2007 was the firsttime consolidation (proportionately consolidated) of Autopista de La Mancha Concesionaria
Española, S.A. This company was incorporated on 27 November 2007 with share capital of
EUR 12,763,200, 25% of which was fully subscribed and paid. The Parent has a 23.5%
ownership interest in this company and exercises joint control over it with the other
shareholders.
5. Basis of presentation of the consolidated financial statements
a) Fair presentation
The consolidated financial statements, which were prepared from the individual accounting
records of Aldesa Construcciones, S.A. and of each of the consolidated companies, are
presented, in general, in accordance with current Spanish corporate and commercial law, the
Spanish National Chart of Accounts and Royal Decree 1815/1991, of 20 December, approving
the rules for the preparation of consolidated financial statements. Additionally, since
construction is the companies' core business activity, the Group applied the accounting
standards contained in the Ministry of Economy and Finance Order dated 27 January 1993,
approving the rules for the adaptation of the Spanish National Chart of Accounts for
construction companies, and, in relation to property activity, the standards included in the
Ministry of Economy and Finance Order dated 28 December 1994, approving the rules for the
adaptation of the Spanish National Chart of Accounts for property companies, in order to
present fairly the Group's consolidated equity, consolidated financial position and consolidated
results of operations.
The financial statements of Aldesa Construcciones, S.A. and of its subsidiaries, which were
prepared by their respective directors, have not yet been approved by the shareholders at the
respective Annual General Meetings. However, they are expected to be approved without any
changes.
89
b) Grouping of items
For better understanding of the accompanying consolidated balance sheet and consolidated
income statement, certain items are grouped together and the required analyses are presented
in the corresponding notes to the accompanying consolidated financial statements.
c) Accounting policies
The consolidated financial statements are presented in accordance with Royal Decree
1815/1991, of 20 December 1991, approving the rules for the preparation of consolidated
financial statements, and with Royal Decree 1643/1990, of 20 December 1990, approving the
Spanish National Chart of Accounts.
The figures included in these notes to the financial statements are expressed in thousands of
euros.
d) Comparative information
The information relating to 2007 is comparable with that of 2006, there being no reason
preventing comparability between the two years.
e) Basis of consolidation
The consolidated financial statements at 31 December 2007 include the individual financial
statements of Aldesa Construcciones, S.A. and of the directly and indirectly owned subsidiaries
over which the Group exercises effective control or which constitute a single decision-making
unit as defined by Article 42 of the Spanish Commercial Code.
The basis of consolidation was as follows:
• Companies which are directly and/or indirectly more than 50% owned by Aldesa
Construcciones, S.A. or companies which are 50% owned and over which Aldesa
Construcciones, S.A. exercises effective control, holds a majority of the voting rights in their
representation bodies or which constitute a single decision-making unit as defined by Article
42 of the Spanish Commercial Code, were fully consolidated.
• Companies which are directly and/or indirectly 50% owned by Aldesa Construcciones, S.A. but
over which effective control is not exercised although they are jointly managed, and companies
which are less than 50% owned directly and indirectly and are jointly managed in conformity
with the articles of association or because agreements exist that entitle the shareholders to
exercise their right to veto corporate decisions (multi-group companies), were proportionately
consolidated.
• Companies in which there is significant influence but not ownership of a majority of the voting
rights, and over which effective control is not exercised, are accounted for using the equity
method, provided that they are not jointly managed and taking into account that the Group
does not hold ownership interests in listed companies.
The business and tax year of all the consolidated companies coincides with the calendar year.
The differences between the acquisition cost of the investments in consolidated companies and
their underlying carrying amount at the date of first-time consolidation or at the closest date on
which reasonably prepared financial statements were obtained, are reflected in the
accompanying consolidated balance sheet at 31 December 2007 under “Goodwill on
Consolidation” and “Negative Goodwill on Consolidation”.
90
ALDESA GROUP
Goodwill arising on consolidation is amortised on a straight-line basis from the date of first-time
consolidation, over the period in which it is estimated that it will contribute to the generation of
profit, not exceeding ten years; except in the case of goodwill relating to energy projects, for
which the limit is 20 years.
The share of minority interests of the equity and profit for the year of fully consolidated
subsidiaries is presented under "Minority Interests" on the liability side of the consolidated
balance sheet and under "Profit Attributable to Minority Interests" in the consolidated income
statement, respectively.
Intra-group balances and transactions were eliminated on consolidation. Transactions between
fully consolidated companies were eliminated in full and those between proportionately
consolidated companies were eliminated in proportion to Aldesa Construcciones, S.A.'s
ownership interest in their share capital.
In order to uniformly present the items included in the consolidated financial statements, the
accounting policies and measurement bases adopted by the Parent were applied to all the
consolidated companies. The financial statements of the subsidiaries and associates relate to the
same closing date and period as the consolidated financial statements. For the Mexican and
Polish companies, the financial statements at 31 December 2007 were used on consolidation,
translated at the year-end exchange rate, without taking into account, for consolidation
purposes, the adjustment for inflation required to be made at 31 December 2007, by companies
located in these countries in accordance with current local legislation.
f) New Spanish National Chart of Accounts
Royal Decree 1514/2007 was published on 20 November 2007. This Royal Decree approved the
new Spanish National Chart of Accounts that came into force on 1 January 2008, which must be
applied for all periods beginning on or after that date.
Under the aforementioned Royal Decree, the first financial statements prepared in accordance
with the rules contained therein will be considered to be initial financial statements and,
accordingly, they will not include comparative figures for the previous period; however,
comparative figures for the preceding period may be presented provided that they are adapted
to the new Chart of Accounts. Also, the Chart of Accounts contains several transitional
provisions which afford various options in the first-time application of the new accounting
standards and provide for the voluntary adoption of certain exceptions in the first-time
application process.
The Group is implementing a transition plan with a view to adapting to the new accounting
standards which includes, inter alia, analysing the differences in accounting rules and standards,
determining whether or not comparative figures adapted to the new standards will be presented
and, consequently, the date of the opening balance sheet, selecting the accounting rules and
standards to be applied in the transition and assessing the changes that have to be made to the
information systems and procedures.
At the date of formal preparation of these consolidated financial statements the aforementioned
plan was still at the implementation phase and it is not currently possible to estimate fully,
reliably and with all the relevant information the potential effects of the transition.
91
6. Distribution of profit
The proposed distribution of the profit for 2007 that the Parent's Board of Directors will submit
for approval by the shareholders at the Annual General Meeting is as follows:
Thousands of Euros
Distributable profit
Profit after tax
18,709
Distribution
Dividends
2,858
To voluntary reserves
15,851
7. Accounting policies and measurement bases
These consolidated financial statements were prepared in accordance with the accounting
policies and measurement bases contained in the Spanish National Chart of Accounts, in its
adaptations for the construction and property industries and in Royal Decree 1815/1991, of 20
December, approving the rules for the preparation of consolidated financial statements.
The principal measurement bases used by the Group in the preparation of its consolidated
financial statements for 2007 were as follows:
a) Start-up costs
Start-up costs, which comprise pre-opening and capital increase expenses, are stated at cost and
are amortised on a straight-line basis over five years.
The period amortisation of start-up costs recognised in 2007 amounted to EUR 103 thousand.
b) Intangible assets
The Group recognises its intangible assets as follows:
Research and development expenditure. Research and development expenditure is measured at
acquisition or production cost and is allocated to specific projects until they are completed,
provided that the financing required to complete them is reasonably assured and that there are
sound reasons to foresee the technical success of these projects.
Computer software. Computer software is stated at acquisition or production cost.
Finance leases. The rights under finance lease agreements, when there is no reasonable doubt
that the purchase option will be exercised, are recognised as intangible assets at the cost of the
related assets, and the total debt for lease payments plus the amount of the purchase option are
recognised as a liability. The difference between the two amounts, which represents the finance
costs on the transaction, is classified as a deferred expense and is allocated to profit or loss each
year on a time proportion basis. When the purchase option is exercised, the cost and
accumulated amortisation of these rights are transferred to “Property, Plant and Equipment”
and are included in the amount of the acquired assets.
92
ALDESA GROUP
Assets held under finance leases are amortised on the same basis as property, plant and
equipment items of a similar nature.
Description
Rate
Computer software
33%
Research and development expenditure
Rights on leased assets
33%
2% - 15%
The period amortisation of intangible assets recognised in 2007 amounted to EUR 3,477
thousand.
c) Property, plant and equipment
Property, plant and equipment are carried at acquisition or production cost, including any
additional expenses that might have been incurred until their entry into operation.
The production cost of the assets constructed by the Company is obtained by adding to the
acquisition cost of the raw materials and other consumables the costs directly allocable and the
portion that reasonably relates to the indirectly allocable costs.
The costs of renovation, expansion or improvement are capitalised on the basis of their
acquisition or production cost, insofar as they lead to increased capacity or productivity or to a
lengthening of the useful lives of the assets and provided that the carrying amount of the assets
replaced is known or can be reasonably estimated.
Upkeep and maintenance expenses which do not extend the useful lives of the assets are
expensed as incurred.
Except in the case of concessions, as a general rule, the Group does not capitalise as an addition
to the assets the finance costs incurred on external financing until the assets financed are ready
to come into service.
The items of property, plant and equipment are depreciated by the straight-line method from the
date they are ready to come into service or from the date of their acquisition, on the basis of the
years of estimated useful life of each asset or class of asset, as follows:
Description
Rate
Buildings
2% - 3%
Plant and machinery
5% - 30%
Transport equipment
8% - 40%
Other fixtures, tools and furniture
10% - 30%
Computer hardware
25%
The property, plant and equipment operated by the Group under concessions are depreciated on a
straight-line basis over the term of the concession to which they are assigned (see Note 11).
The period depreciation of property, plant and equipment recognised in 2007 amounted to EUR
4,095 thousand.
93
d) Long and short-term investments
Investments in associates are accounted for using the equity method and the other investments
are recognised as follows:
Loans and credit facilities. Short- and long-term loans granted by the Group are recognised in
the balance sheet at the principal amount. The interest included in the principal of the loans and
credit facilities maturing at over one year is recognised in the balance sheet as “Deferred
Income” and is taken to the income statement each year on a time proportion basis.
Security deposits and guarantees. These are recorded at the amount delivered.
Term deposits. These are recognised at acquisition cost and the related interest is recognised in
the income statement in the year in which it is earned.
Fixed income and similar securities. These include mainly the investments in fixed-income
financial assets stated at the lower of cost and market.
e) Inventories
Raw materials, consumables and merchandise are recognised at cost, which includes all the
expenses incurred until the assets reach the warehouse, calculated using the weighted average
cost method. Work in progress and finished goods are recognised at production cost, which
includes the cost of the materials used, the costs directly attributable to the product and the
reasonable portion of any indirectly attributable costs incurred during the production period.
Land and building plots included in "Inventories" are recognised at acquisition cost, increased by
the costs directly related to the purchase (transfer tax, registration expenses, etc.) and by the
land preparation costs.
The cost of developments in progress and completed developments includes the costs of
construction of property developments incurred to year-end. These costs include mainly:
development, planning, licences, construction, the specific finance costs relating to the
construction period and the land cost.
When the market value of an asset is lower than its acquisition or production cost, the related
allowance is recognised.
f) Trade and other receivables
Trade and other receivables are recognised at their face value. The related allowances are
recognised on the basis of the collectibility risk, taking into account the age of the past-due
amounts and the debtor's creditworthiness.
g) Provisions for contingencies and charges
These provisions are recognised to cover expenses, losses or possible debts incurred during the
year or in prior years, whose nature is clearly specified and which are probable or certain, but
whose exact amount cannot be determined or whose date of payment is uncertain at the
balance sheet date.
The additions to this account are recognised based on the best estimates of annual accrual or
when the liability or obligation giving rise to the indemnity or payment arises.
94
ALDESA GROUP
h) Operating provisions
These provisions are recognised to cover indemnity expenses on completion of the work, the
estimated amount of the expenses to be incurred in the period from completion of the work
through its final settlement, other expenses for site maintenance during the warranty period,
and expenses incurred in site clearance, removal of installations and settlement. If necessary,
these provisions also cover the estimated losses on uncompleted projects.
i) Termination benefits
Under current labour legislation, the Group is required to pay termination benefits to employees
terminated without just cause. The directors of the Parent and subsidiaries consider that no
unusual terminations of permanent employees are likely to arise in the future and, accordingly,
the financial statements do not include any provision in this connection.
“Operating Provisions” on the liability side of the accompanying balance sheet at 31 December
2007 includes provisions of an amount sufficient to cover the legally stipulated costs of
terminating temporary employment contracts.
j) Current/Non-current classification of debt
Debts are recognised at the repayment amount and the difference between this amount and the
amount received is recognised on the asset side of the balance sheet as deferred interest
expenses, which are charged to profit or loss on a time proportion basis.
Debts maturing in under 12 months from year-end are classified as current liabilities and those
maturing at over 12 months as non-current liabilities.
k) Foreign currency transactions
Foreign currency transactions are recognised at the exchange rate prevailing at the transaction
date. At year-end, the existing foreign currency balances are calculated at the exchange rates
then prevailing. Any resulting positive exchange differences are recognised as deferred income
and any negative exchange differences are charged to the income statement.
l) Revenue and expense recognition
In general, revenue and expenses are recognised on an accrual basis, i.e. when the actual flow of
the related goods and services occurs, regardless of when the resulting monetary or financial
flow arises.
For the construction activity, the Group recognises each year as the outcome of its construction
contracts the difference between production (valued at the sale price of the work completed in
the period, per the main contract entered into with the owners or per approved amendments or
addenda thereto, or at the sale price of completed projects which, although they have not yet
been approved, are reasonably certain to be billed) and the costs incurred in the year.
The difference between the amount of production from inception of each project and the
amount billed in each case to the reporting date is recognised in “Trade Receivables in respect of
Amounts to Be Billed for Work Performed" under “Accounts Receivable - Trade Receivables for
Sales and Services”, or in “Advanced Progress Billings on Uncompleted Contracts” under
“Advances Received on Orders”, as appropriate.
95
The costs incurred for work performed are recognised when incurred.
The Group recognises property development sales and the related cost when the property is
delivered. The amount collected or instrumented in notes of the contracts entered into until
year-end relating to property not yet delivered is recognised under “Advances Received On
Orders” on the liability side of the accompanying balance sheet.
m) Income tax
The expense for income tax is calculated individually on the profit of each company, based on its
own parameters, adjusted as appropriate by the differences between taxable profit and
accounting profit. The applicable tax relief and tax credits are treated as a reduction of tax
payable, at the amount actually applicable.
The difference between the income tax payable and the income tax expense is recognised as a
deferred tax asset or liability.
Unused tax loss carryforwards and deferred tax assets are recognised if they are expected to be
recovered in the future.
It is assumed that the future realisation of deferred tax assets is not sufficiently assured when
they are expected to be recovered over a period of more than ten years from the balance sheet
date, unless there are deferred tax liabilities of the same or a higher amount and their reversal
period is the same as that of the deferred tax assets.
n) Consolidation of joint ventures
The transactions carried out by joint ventures (UTEs) are consolidated and recognised in the
companies' balance sheet and income statement by including the portion of the balances
recognised in the joint venture's balance sheet that corresponds to the ownership interest,
after making the necessary timing and valuation adjustments in accordance with the criteria
adopted by the Group and after eliminating any unrealised gains or losses arising from
transactions between the companies and the joint ventures and reciprocal asset and liability
balances.
The income statement was consolidated using the same procedure as that described above.
o) Grants
Refundable grants related to assets are recognised at the amount received as non-current
liabilities if refundable at over 12 months, or as current liabilities if refundable within 12 months.
When a subsidy granted subject to certain conditions being met is no longer classified as
refundable, the balance is transferred to “Grants”. A grant ceases to be refundable when the
conditions established for its obtainment have been fulfilled or, where applicable, no reasonable
doubts exist as to their fulfilment in the future. A grant received which is not subject to any
condition and is therefore non-refundable is credited directly to “Grants Related to Assets” in
the accompanying consolidated income statement.
96
ALDESA GROUP
8. Goodwill on consolidation
The detail of the balance of goodwill on consolidation and of the changes therein in 2007 is as
follows:
Beginning
Balance
Additions to
the Scope of
Consolidation
(Note 4)
Thousands of Euros
Exclusions from
the Scope of
Consolidation
(Note 4)
Amortisation
Ending
Balance
Fully consolidated companies
Coalvi, S.A.
2,544
-
-
(374)
2,170
GTT Ingeniería y
Tratamiento de Aguas, S.A.
1,082
-
-
(143)
939
y Servicios, S.L.
1,070
-
(88)
(110)
872
28
-
(28)
-
-
20,377
-
-
(2,130)
18,247
3,394
-
-
(345)
3,049
1
-
-
(1)
-
2,962
-
-
(300)
2,662
982
-
-
(102)
880
Proacon, S.A.
Pebian Inversiones, S.L.
(Construcciones Pai, S.A.)
Promociones Eólicas
Altiplano, S.A.
Sistemas Energéticos
Sierra de Andévalo, S.A.
Peces e Hijos, S.L.
Electro Valencia, S.A.
Meyvat, S.L.
1,958
800
-
(286)
2,472
650
200
-
(88)
762
10,350
-
-
(1,043)
9.307
Suelin, S.L.
e Instalaciones, S.A.
Ingeniería Geotécnica, S.A.
2,006
-
-
(221)
1,785
-
105
-
(7)
98
Aldesa Energías, S.L.U.
-
97,417
-
(2,987)
94,430
Aldesa Energías Renovables, S.A.U.
-
293
-
(146)
147
Técnicas de Administración y
Mantenimiento Inmobiliario, S.A.
-
1,222
-
(92)
1,130
San Martín y Martínez, S.L.
-
10,110
-
(693)
9,417
Galmet, S.L.
-
1,918
-
(31)
1,887
Alviesa Promociones y Obras, S.A.
EDASA Ingeniería y Montaje, S.A.
Total
-
2,831
47,404
114,896
(116)
(117)
2,714
(9,216)
152,968
The increase in goodwill arose due to the Group's large investments in 2007, in connection with
which the Directors of the Parent do not anticipate any problems of recoverability.
97
9. Start-up costs
The changes in start-up costs were as follows:
Thousands of Euros
Changes in the Scope
of Consolidation
Increases
Beginning
Balance
Amortisation
Ending
Balance
Start-up costs
158
67
329
(103)
451
Total
158
67
329
(103)
451
The additions to the scope of consolidation relate mainly to the first-time consolidation of the
Aldesa Energía Subgroup in the Parent's consolidated accounts.
10. Intangible assets
The changes in 2007 in intangible assets and in the related accumulated amortisation were as
follows:
Beginning
Balance
of Consolidation
(Note 4)
Increases
Thousands of Euros
Transfers to
Property, Plan
and Equipment
(Note 11)
Disposals
Other
Ending
Balance
Cost
Research and development expenditure 744
Rights on leased assets
Computer software
Concessions, patents and trademarks
Merger goodwill
-
-
-
-
-
744
16,977
8,183
40
(551)
(674)
(13)
23,962
770
208
1,398
-
(112)
-
2,264
14
-
203
-
-
-
217
1,882
-
-
-
-
470
2,352
Leasehold assignment rights
9
-
20
-
(9)
-
20
CO2 emission rights
-
1,588
-
-
(1,129)
-
459
20,396
9,979
1,661
(551)
(1,924)
457
30,018
Accumulated amortisation
(3,268)
(5,029)
(3,477)
433
3,949
-
(7,392)
Net total
17,128
4,950
(1,816)
(118)
2,025
457
22,626
Total cost
At 31 December 2007, fully amortised assets amounted to EUR 591 thousand.
EUR 5 thousand of the net amount of intangible assets relate to joint ventures.
Most of the additions in 2007 are under “Rights on Leased Assets” and “Computer Software”
and relate mainly to the Aldesa Energía Subgroup's biomass plant and to the costs of
implementing SAP at Aldesa Construcciones, S.A., respectively.
“Merger Goodwill” includes the goodwill generated on the formation of Agrupación Empresas
Automatismos, Montajes y Servicios, S.L. on 2 December 2005 through the merger by
absorption of the six subsidiaries of which it was the sole shareholder, with the dissolution
without liquidation of the absorbed companies. The merger plan was filed at the Mercantile
Registry on 7 March 2006. This goodwill is being amortised over 5 years.
98
ALDESA GROUP
The detail of the contracts for the leased assets is as follows:
Thousands of Euros
Short-Term
Lease Payments
Outstanding
(Note 22.a)
Long-Term
Lease Payments
Outstanding
(Note 22.a)
534
589
5,849
77
29
29
13
22
16
16
10
Maturity
Number
of Lease
Payments
Original
cost
Company building
2019
180
8,264
3,429
Machinery
2009
60
138
Machinery
2009
48
60
Machinery
2007
36
10
7
3
0
0
Machinery
2010
60
1,425
406
316
336
382
Machinery
2010
60
256
68
56
55
62
Machinery
2011
60
57
10
13
13
15
Machinery
2009
36
25
6
9
9
10
Description
Lease Payments Paid
Prior Years
2007
Machinery
2009
36
19
4
7
7
7
Machinery
2009
36
181
36
68
85
67
Machinery
2009
36
130
22
45
61
72
Machinery
2010
60
2,413
937
570
577
657
Machinery
2009
85
361
276
55
53
21
Machinery
2009
61
120
72
26
26
6
Machinery
2009
61
333
193
72
72
24
Machinery
2010
61
382
145
86
85
111
Machinery
2010
61
194
72
42
43
57
Machinery
2008
37
48
27
17
7
0
Transport equipment
2008
37
18
10
6
3
0
Machinery
2009
37
127
40
44
44
7
Tools
2009
48
14
10
4
1
0
Computer hardware
2009
48
22
12
6
5
1
Computer hardware
2009
48
9
4
2
2
1
Computer hardware
2011
48
21
10
6
5
1
Tools
2011
60
35
8
8
8
16
Computer hardware
2011
60
12
2
3
3
6
Tools
2010
60
40
0
3
14
26
Machinery
2008
199
547
61
142
120
264
Buildings
2010
120
367
283
44
45
84
Transport equipment
2009
48
28
14
8
8
5
Transport equipment
2009
48
26
13
7
7
5
Transport equipment
2010
48
67
24
19
19
23
Transport equipment
2010
48
31
11
9
9
11
Machinery
2010
48
39
15
11
11
13
Machinery
2008
24
6
2
4
1
0
Machinery
2009
36
17
7
4
4
3
99
Thousands of Euros
Description
Maturity
Number
of Lease
Payments
Original
cost
Lease Payments Paid
Prior Years
2007
Short-Term
Lease Payments
Outstanding
(Note 22.a)
Long-Term
Lease Payments
Outstanding
(Note 22.a)
Transport equipment
2008
60
68
55
15
4
0
Machinery
2009
60
38
19
8
7
6
Transport equipment
2011
60
19
4
4
4
8
Transport equipment
2012
48
18
0
3
4
13
Transport equipment
2011
60
15
3
3
3
8
Transport equipment
2011
60
15
3
3
3
8
13
Transport equipment
2011
60
22
5
5
2
Machinery
2008
48
82
57
20
11
0
Plant
2019
180
7,845
580
954
985
10,043
23,962
7,061
3,308
3,395
17,929
Total
The most significant contract relates to the building housing the Parent's headquarters, located
at calle Bahía de Pollensa, 13 in Madrid. Also noteworthy is the biomass plant contract held by
the Aldesa Energía Subgroup amounting to EUR 7,845 thousand.
11. Property, plant and equipment
The changes in 2007 in property, plant and equipment and in the related accumulated
depreciation were as follows:
Changes in
Beginning the Scope of
Balance Consolidation
Additions
Thousands of Euros
Transfer from Transfer to
Intangible (from) Property, Transfer
Assets
Plant and
from
Disposals
(Note 10)
Equipment Inventories
Transfer
to
Inventories
Ending
Balance
Cost
Land and buildings
18,880
20,223
108,314
(11,191)
-
4,114
13,897
(586)
153,651
Plant and machinery
16,279
26,022
2,790
(18,861)
148
9,576
-
-
35,954
Other fixtures, tools
and furniture
4,740
1,353
2,141
(956)
-
-
-
-
7,278
Other items of property,
plant andequipment
5,402
590
1,412
(589)
403
-
-
-
7,218
Advances and property, plant
and equipment in the course 1,664
of construction
16,015
41,448
(722)
-
(13,690)
-
(2,722)
41,993
Total
46,965
64,203
156,105
(32,319)
551
-
13,897
(3,308)
246,094
Accumulated depreciation
(15,754)
(15,967)
(4,095)
14,065
(433)
-
-
-
(22,184)
Property, plant and
equipment, net
31,211
48,236
152,010
(18,254)
118
-
13,897
(3,308)
223,910
100
ALDESA GROUP
The changes in the scope of consolidation relate mainly to the exclusion of the Aldesa Home
Subgroup and to the inclusion of Técnicas de Administración y Mantenimientos Inmobiliarios,
S.A., San Martín y Martínez, S.L. and the Aldesa Energía Subgroup.
“Land and Buildings” includes the additions relating to Concesionaria México España, S.A. de
C.V. (in Mexico) which holds the 30-year concession for the operation of the Tuxtla Gutiérrez-San
Cristóbal and Arriaga-Ocozocoautla Mexican toll motorways.
At 31 December 2007 the balance under “Advances and Property, Plant and Equipment in the
Course of Construction” included the work performed for the construction of the Aldesa
Energía Subgroup's wind farms.
The transfers relate mainly to:
– Transfers from intangible assets relating to the terminated lease contracts on which the
purchase option was exercised.
– The reclassification of a total of EUR 11,000 thousand from “Inventories” to “Property, Plant
and Equipment - Buildings”, relating to 277 moorings and 29 shops located at the Torrevieja
Port, which will be operated by the Parent through a lease in the form of a concession over a
period of 35 years.
– The reclassification of EUR 586 thousand from “Property, Plant and Equipment - Land” to
“Inventories”, relating to a building plot in El Grao (Castellón) on which residential units will
ultimately be developed for subsequent sale.
– The reclassification of EUR 2,722 thousand from “Property, Plant and Equipment - Advances
and Property, Plant and Equipment in the Course of Construction” to “Inventories”, relating to
the Aldesa Energía Subgroup's photovoltaic panels.
The most significant disposals in 2007 relate to the machinery used in various construction
projects completed during the year. The gain of EUR 348 thousand obtained by the Company on
the disposal of various items of property plant and equipment is recognised under “Gain on
Disposal of Intangible Assets, Property, Plant and Equipment and Investments” in the
accompanying consolidated income statement.
At 31 December 2007, fully depreciated items of property, plant and equipment amounted to
EUR 5,483 thousand.
EUR 842 thousand of the net amount of property, plant and equipment relate to joint ventures
and EUR 109,343 thousand relate to property, plant and equipment located abroad.
The Group has taken out insurance policies to cover the possible risks to which certain of its
items of property, plant and equipment are subject.
101
12. Long-term investments
The changes in 2007 in “Long-Term Investments” were as follows:
Thousands of Euros
Investments accounted for using the equity method (Note 12-a)
Beginning
Balance
Changes in
the Scope of
Consolidation
and Other
Changes
3,542
(1,511)
-
-
643
-
2,126
(785)
-
Investments in related companies (Note 12-b)
Loans to related companies (Note 12-c)
Long-term fixed-income and similar securities
Additions
Profit for
2007
Ending
Balance
-
343
2,374
-
-
643
-
-
1,341
Disposals
-
697
675
-
-
1,372
5,150
(998)
-
(109)
-
4,043
356
113
288
(100)
-
657
Long-term investment securities valuation allowance
(22)
-
(383)
-
-
(405)
11,152
(1,841)
580
(209)
343
10,025
Other loans (Note 12-d)
Total
a) Investments in companies accounted for using the equity method
The changes in “Investments Accounted for Using the Equity Method” in 2007, by company,
were as follows:
Thousands of Euros
Beginning
Balance
San Pedro Exterior, S.L.
Águilas Residencial, S.A.
Changes in
the Scope of
Consolidation
Dividends
Other
Changes
Profit for
2007
Total
20
-
-
-
-
20
1,287
-
-
(524)
353
1,116
Inarenas Proyectos Inmobiliarios, S.A.
699
-
-
(361)
(2)
336
Can Brian 2, S.A.
686
(686)
-
-
-
-
Torrepai, S.L.
7
-
-
47
(41)
13
679
-
-
-
(2)
677
Cerconscat, S.L.
5
(5)
-
-
-
-
Gestora de Runes de la Construcción, S.A.
3
(3)
-
-
-
206
Centre d'Oci Les Gavarres, S.L.
Ipar Acisa, S.L.
156
-
-
15
35
Constructora de Caminos de Veracruz, S.A. de C.V.
-
3
-
-
-
3
Constructora de Caminos de Guanajuato, S.A. de C.V.
-
3
-
-
-
3
3,542
(688)
-
(823)
343
2,374
Total
102
ALDESA GROUP
b) Investments in related companies
The changes in “Investments in Related Companies” in 2007, by company, were as follows:
Thousands of Euros
Beginning
Balance
Changes in
the Scope of
Consolidation
Additions
Disposals
Transfers
Total
Aldesa Home, S.L.
-
3
-
-
-
3
Proacon, S.A.
-
120
-
-
-
120
CONCISA Construcciones Civiles, S.L.
-
520
-
-
-
520
Total
-
643
-
-
-
643
c) Loans to related companies
The balance of “Loans to Related Companies” includes the following loans granted to related
companies:
– EUR 396 thousand loan granted to Sector Betera, S.L. by the Parent for the acquisition of land.
This loan has an indefinite maturity and earns interest at the legal rate. No partial repayments
are to be made up to the maturity date. This company is proportionately consolidated, based
on the percentage of ownership, which is 50%.
– Loans totalling EUR 265 thousand granted to Perdigana San Pau, S.L. These loans have
indefinite maturity and earn calendar quarterly interest at a rate tied to three-month Euribor
plus 200 basis points as published by the European Central Bank. Aldesa Construcciones, S.A.
may cancel these loans and demand the immediate repayment of the amount outstanding
without any requirement other than mere notice. These loans are for the purchase of land by
Perdigana San Pau, S.L. This company is proportionately consolidated, based on the
percentage of ownership, which is 45%.
– EUR 998 thousand loan granted to Dicasa Diseños Canarios, S.L., maturing on 30 January
2009, for the acquisition of developable land in Pozuelo de Alarcón. This loan, which earns
interest at three-month Euribor plus a spread of 0.50%, can be repaid early at any time over
the term of the loan. This company is an investee of Grupo Aldesa, S.L.
d) Other loans
The balance of “Other Loans” in the consolidated balance sheet at 31 December 2007 is
composed mainly by the Parent's following loans:
– Accounts receivable from the Spanish Centre for the Development of Industrial Technology
(CDTI) amounting to EUR 639 thousand, collectible from 31 December 2007. This amount was
granted for the development of an industrial research project currently being developed by the
Company.
– EUR 1,090 thousand loan granted by Pebian Inversiones, S.L. to SNJ Invermonfinanzas, S.L.
This loan, which was granted on 26 December 2006 and will mature on 26 July 2025, bears
interest at three-month Euribor plus a spread.
103
13. Deferred charges
The balance of “Deferred Charges” in 2007 relates mainly to deferred interest costs arising from
finance leases which are recognised in the income statement over the term of the related lease
payments on a time proportion basis (see Note 10).
14. Inventories
The detail of “Inventories” in the balance sheet is as follows:
Thousands of Euros
Merchandise (Note 14-a)
46,219
Land and construction materials (Note 14-b)
60,716
Long-cycle developments in progress (Note 14-c)
Short-cycle developments in progress (Note 14-c)
Completed construction work (Note 14-d)
Ancillary work
Advances
8,455
24,400
731
1,161
Allowances
(173)
Total
141,509
a) Merchandise
At 31 December 2007 there was a significant increase in the volume of merchandise and the
balance related almost in full to the inclusion in the scope of consolidation of the Aldesa Energía
Subgroup and to the transfers from “Property, Plant and Equipment” (see Note 11). This heading
includes the photovoltaic project inventories.
b) Land and construction materials
The detail of the balance of “Land and Construction Materials” is as follows:
Thousands of Euros
Construction materials
24,784
Land for construction
35,932
Total
60,716
The ending balance under “Land” includes EUR 586 thousand transferred from property, plant
and equipment (see Note 11).
“Land” includes mainly the building plots owned by the Parent in the Cullera (Valencia),
Castellón, El Álamo (Madrid), Móstoles and Ciudad Real municipalities. The cost of this land was
increased by the costs incurred to date. The building plots, which are earmarked for residential
developments, have a buildable area (including joint ventures) of approximately 229,468 m2.
Two of these building plots (Móstoles Sur and Corredera (Ciudad Real) contain a buildable area
of 10,537 m 2, which is allocated to subsidised housing. This heading also includes the
developable land owned by G.I. Boj Castellana S.L. for construction in the extension of the
Castellana Avenue in Madrid.
104
ALDESA GROUP
c) Developments in progress
The changes in 2007 in the balance of “Developments in Progress” in the balance sheet were as
follows:
Thousands of Euros
Transfers to
Transfer to
Completed
Property, Plant
Construction
and Equipment
Work
(Note 11)
Beginning
Balance
Increases
Ending
Balance
Long-cycle developments
in progress
3,824
4,631
-
-
8,455
Short-cycle developments
in progress
38,731
33,444
(61,175)
(11,000)
-
Total
42,555
38,075
(61,175)
(11,000)
8,455
The balance of this heading in the consolidated balance sheet consists mainly of the costs
incurred to date by the Group's Parent. At 31 December 2007 this heading included the
recognition of residential units in Soto de Henares (Madrid) to be leased as subsidised housing
with a purchase option.
The balances recognised under “Short-Cycle Developments in Progress” were transferred to
“Completed Construction Work” and relate mainly to the Arroyomolinos and El Puerto de
Torrevieja developments.
d) Completed construction work
“Completed Construction Work” includes mainly the following construction projects and
products completed by the Parent:
– 67 high-rise residential units in the municipality of Arroyomolinos (Madrid). At 31 December
2007, the cost in “Inventories” of the units yet to be sold amounted to EUR 16,262 thousand
and the sale commitments on these units amounted to EUR 5,427 thousand (20 units). The
EUR 1,244 thousand of advances received to date in relation to these commitments are
recognised under “Advances Received on Orders” (see Note 23-b). A mortgage loan exists on
these residential units, as described in Note 22-a.
– Construction of an underground 250 car park lot and of commercial premises in Pamplona.
These projects were completed in 1995 and the cost of the inventories yet to be sold is EUR
1,062 thousand. At 31 December 2007, there were no sale commitments on these assets.
– 185 moorings at the Torrevieja Port earmarked for sale with an associated cost of EUR 6,619
thousand. At 31 December 2007, there were no sale commitments on these moorings.
105
15. Accounts receivable
The detail is as follows:
Thousands of Euros
Trade receivables for sales and services (Note 15-a)
419,141
Receivable from related companies (Note 15-b)
2,243
Sundry accounts receivable (Note 15-c)
3,014
Employee receivables
Tax receivables (Note 15-d)
255
41,250
Allowances (Note 15-e)
(17,136)
Total
448,767
a) Trade receivables for sales and services
The breakdown of the balance of “Trade Receivables for Sales and Services” at 31 December
2007 is as follows:
Thousands of Euros
Progress billings
253,890
Trade notes and bills receivable
87,074
Discounted trade notes and bills
2,226
Amount to be billed for work performed
58,815
Doubtful trade receivables
17,136
Subtotal
419,141
Advances received from customers (Note 23-b)
(47,479)
Total trade receivables, net
371,662
“Amount to Be Billed for Work Performed” includes the work performed during the year but not
yet billed to the customer, which is recognised as a period revenue in accordance with the
revenue recognition method described in Note 7-l.
At 31 December 2007 the balance of “Progress Billings” is net of EUR 196,739 thousand
corresponding to billings assigned under non-recourse factoring arrangements. The Group sells
trade receivables to financial institutions, without the possibility of recourse against the Group in
the event of non-payment. These transactions bear interest at an arm's length rate.
The Group has entered into several non-recourse factoring agreements for the transfer of
receivables with an overall limit of EUR 337,640 thousand, whereby certain receivables are sold
outright and the bad debt or default risk is borne by the factoring entity.
106
ALDESA GROUP
b) Receivable from related companies
Receivable from Related Companies
Aldesa Home, S.L.
CONCISA Construcciones Civiles, S.L.
Areinsa-Arquitectos e Ingenieros, S.A.
Proacon, S.A.
Habana Gestión, S.L.
Total related companies
Thousands of Euros
Receivables
Current Account
783
36
3
-
45
574
704
-
5
2
-
91
1,540
703
c) Sundry accounts receivables
The balance of “Sundry Accounts Receivable” at 31 December 2007 includes mainly debts for
services rendered other than those included in the Group's core business activity.
d) Tax receivables
The breakdown of “Tax Receivables” in the consolidated balance sheet at 31 December 2007 is
as follows:
Thousands of Euros
VAT receivable
Income tax refundable (Note 24-a)
33,154
1,012
Tax asset for offsettable losses (Note 24-a)
655
Tax withholdings receivable
740
Deferred income tax asset
5,683
Social security tax receivables
Total
6
41,250
“Deferred Income Tax Asset” reflects the timing differences that arose in the calculation of
income tax for the year (see Note 24). This deferred tax asset is recognised at the effective rate at
which it will be reversed, i.e. 30%.
e) Allowances
The balance of “Allowances” relates in full to the allowances recognised to cover doubtful trade
receivables included under “Trade Receivables for Sales and Services”. It should be noted that
GTT Ingeniería y Proyectos, S.A. provisioned the full amount of the balances held with Llanera
Urbanismo e Inmobiliaria, S. L. (see Note 27-e).
107
16. Short-term investments
The breakdown of this balance is as follows:
Thousands of Euros
Loans to related companies (Note 16-a)
28,165
Short-term fixed-income and similar securities (Note 16-b)
74,582
Other loans (Note 16-c)
10,655
1,206
Allowances
(661)
Total
113,947
a) Loans to related companies
The breakdown under this heading in the consolidated balance sheet is as follows:
Thousands of Euros
Loans to related companies
27,338
Interest payable by related companies
827
Total
28,165
The terms and conditions established for each of the loans to related companies are as
follows:
Thousands of Euros
Company Name
Balance
Purpose
of Loan
Term
Interest Rate
Aldesa Home, S.L.
19,409
Purchase
of land
1 year
Three-month Euribor+0.50%
1,784
Purchase
of land
1 year
Perdigana San Pau, S.L.
179
Purchase
of land
1 year
Sector Bétera, S.L.
163
Purchase
of land
1 year
Grupo Aldesa, S.L.
5,520
Purchase
of shares
1 year
222
Financing of
1 year
working caspital
61
Financiación
1 year
working caspital
DICASA Diseños Canarios, S.L.
Torrepai, S.L.
Eólico Alijar, S.A. y
Valdivia Energía Eólica, S.A.
Total loans to
related companies
27,338
The balance of this heading also includes interest earned on the loans amounting to EUR 827
thousand.
b) Short-term investment securities
This balance of this heading comprises mainly fixed-term deposits maturing within one year.
108
ALDESA GROUP
EUR 30,193 thousand of the balance of “Short-Term Investment Securities” relate to joint
ventures.
The breakdown, by company, is as follows:
Thousands of Euros
Aldesa Construcciones, S.A.
63,238
G.I. Boj Castellana, S.L.
276
Aeronaval de Construcciones e Instalaciones, S.A.
1
Construcciones PAI, S.A.
993
Agrupación Empresas Automatismos, Montajes y Servicios, S.L. Subgroup
3,286
Aldesa Energía, S.L. Subgroup
2,415
Concesionaria México España, S.A. de C.V.
4,088
Concesiones Aldesem, S.A. de C.V.
249
Construcciones Aldesem, S.A. de C.V.
21
Constructora de Caminos de Chiapas, S.A. de C.V.
Total
15
74,582
All the balances are unrestricted except for that relating to G.I. Boj Castellana, S.L. which has
been pledged.
c) Other loans
The detail, by company, is as follows:
Thousands of Euros
9,820
97
Aldesa Energía, S.L. Subgroup
Total
738
10,655
“Aldesa Construcciones, S.A.” includes, inter alia, loans granted to shareholders of the Group
companies. These loans have indefinite maturity and earn calendar quarterly interest at threemonth Euribor plus 0.50% as published by the European Central Bank. Aldesa Construcciones,
S.A. may cancel these loans and demand immediate repayment of the amount outstanding,
without any requirement other than mere notice.
17. Cash
Thousands of Euros
Cash on hand
382
Cash at banks
117,284
Total
117,666
All the balances are unrestricted.
109
18. Shareholders' equity
The changes in “Shareholders' Equity” in 2007 were as follows:
Thousands of Euros
Share
Capital
Balance at 31/12/06
Distribution of 2006 profit
Reserves of the Parent
Unrestricted
Restricted
Reserves
Reserves
Reserves at
Fully
Consolidated
Companies
Reserves at
Companies
Accounted
for Using the
Equity Method
Profit
for the
year
Total
10,100
42,688
2,020
(835)
403
29,130
83,506
-
20,000
-
4,284
89
(24,373)
-
Dividends paid
-
-
-
-
-
(4,757)
(4,757)
Change in the scope of consolidation
-
-
-
(275)
(12)
-
(287)
Profit for 2007
Total
-
-
-
-
-
25,912
25,912
10,100
62,688
2,020
3,174
480
25,912
104,374
The Parent's share capital at 31 December 2007 consisted of 500,000 fully subscribed and paid
registered shares of EUR 20.20 par value each, numbered from 1 to 500,000.
In 2007 the Parent's shareholder structure changed due to the merger and spin-off plan,
whereby Montearco, S.L. (absorbing company) absorbed Catalana de Construcciones Civiles,
S.L., Tilisos, S.L., Cincoserra, S.L. and Suministros Técnicos del Norte, S.A. (absorbed companies)
and, at the same time, the post-merger company Montearco, S.L. (spun-off company) was fully
spun off to Grupo Aldesa, S.L., Montearco, S.L. and Aldesa Home, S.L. (recipient companies).
Following these corporate transactions, at 31 December 2007 the shareholder structure of
Aldesa Construcciones, S.A. was as follows:
Shareholder
Grupo Aldesa , S.L.
Number of Shares
Percentage of Ownership
500,000
100
At the date of authorisation for issue of these consolidated financial statements the change in
status to sole-shareholder company had not been declared. This is because the corporate
reorganisation process that began with the aforementioned transactions is still under way and its
final outcome will be a structure which will no longer be owned by a single shareholder.
The purpose of this reorganisation, which will continue in 2008, is to ultimately create a holding
structure (future Aldesa S.A. Group) with as many subholdings as there are lines of business in
operation.
Legal reserve
Under the Consolidated Spanish Companies Law, 10% of the profit for each year must be
transferred to the legal reserve until the balance of this reserve reaches 20% of share capital.
Until the legal reserve reaches 20% of share capital, it can only be used to offset losses or to
increase capital provided that the remaining reserve balance does not fall below 10% of the
increased share capital amount.
110
ALDESA GROUP
Voluntary reserve
This reserve is unrestricted.
The breakdown, by consolidated company, of the reserves at consolidated companies is as
follows:
Thousands of Euros
Reserves
Company
Fully/proportionately consolidated:
(1,514)
GTT Ingeniería y Tratamiento de Aguas, S.A.
133
Maquivías, S.A.
(315)
Coalvi, S.A.
2,178
Urbanizadora Carretera Albalat, S.L.
(232)
Aldesa Conservación y Eplotación de Infraestructuras, S.A.
(549)
Agrupación de Empresas, Automatismos, Montajes y Servicios, S.L. Subgroup
723
Pebian Inversiones, S.L. Subgroup
3,367
Aldesa Luz, S.L. Subgroup
(60)
Aldesa Servicios, S.L. Subgroup
(174)
Aldesa Energías Alternativas, S.A. Subgroup
(62)
Aldesa Hidrocarburos, S.L. Subgroup
(221)
Sistemas Energéticos Sierra de Andévalo, S.A.
(141)
(1)
(49)
Sector Bétera, S.L.
(1)
Perdigana San Pau, S.L.
(5)
Investigaciones Geotécnicas, S.L.
92
Aldesa Marina Salinas de Torrevieja, S.L.
(7)
184
Aldesa Polska, S.p.z.o.o. Subgroup
(56)
Aldesa Turismo, S.A.
(93)
(23)
3,174
Accounted for using the equity method:
404
67
9
480
Total
3,654
111
The detail of other entities with ownership interests of 10% or more in the companies
accounted for using the equity method is as follows:
Investee
Percentage of
Ownership
Construcciones Sánchez Domínguez-Sando, S.A.
28.00
Construcciones Paraño, S.A.
28.00
Tableros y Puentes, S.A.
16.00
Owner
Administrador de Infraestructuras Ferroviarias
40.00
Proacon, S.A.
20.00
Dintrevila, S.A.
20.00
Red Nacional de Ferrocarriles Españoles
40.00
Areinsa Arquitectos e Ingenieros, S.A.
30.00
Comsa, S.A.
28.32
Comapa
21.87
Prima Inmobiliaria
21.50
Torrepai
24.96
Pedro Andrés Ibañez
Urbanizadora Tarabaus, S.L.
Torrepai
50.00
Ipar Acisa, S.L.
51.00
Agrupación de Compañías Constructoras
de Veracruz, S.A. de C.V.
de Guanajuato, S.A. de C.V.
62.50
Agrupación de Compañías Constructoras
62.50
Amintel, S.L.
19. Minority interests
The changes in “Minority Interests”, by subsidiary, in 2007 were as follows:
Thousands of Euros
Beginning
Balance
Coalvi, S.A.
Profit or Loss
Attributable
to Minority
Interests
(Note 27.d)
Adjustments
Changes
in the
Scope of
Consolidation
Ending
Balance
-
-
(1)
-
(1)
404
(887)
-
(2)
(485)
30
-
(30)
-
-
5,387
1,186
-
10,134
16,707
Aldesa Conservación y
Explotación de
Infraestructuras, S.A.
(66)
-
66
-
-
-
(39)
-
(48)
(87)
199
12
24
-
235
GTT Ingeniería y
Tratamientos de Agua, S.A.
Maquivías, S.A.
y Servicios, S.L. Subgroup
112
ALDESA GROUP
Thousands of Euros
Beginning
Balance
Profit or Loss
Attributable
to Minority
Interests
(Note 27.d)
Adjustments
Changes
in the
Scope of
Consolidation
Ending
Balance
Investigaciones
Geotécnicas, S.L.
92
6
-
-
98
Aldesa Marina Salinas
de Torrevieja, S.L.
(1)
-
-
-
(1)
Aldesa Servicios
y Mantenimiento, S.L. Subgroup
(3)
7
-
88
92
Aldesa Energías
Alternativas, S.A. Subgroup
(1)
(93)
-
-
(94)
Aldesa
Hidrocarburos, S.L. Subgroup
(1)
(4)
-
-
(5)
(2)
(12)
1
-
(13)
Pebian
Inversiones, S.L. Subgroup
97
-
(209)
-
(112)
-
(1)
16
-
15
Civesa Ingeniería, S.A.
-
(1)
-
(2)
(3)
Aldegral, S.L. Subgroup
-
(2)
(1)
-
(3)
Aldeturismo, S.A.
de C.V. Subgroup
-
(2)
-
1
(1)
Construcciones Aldesem, S.A.
de C.V. Subgroup
-
(43)
2
-
(41)
Concesiones Aldesem, S.A. de
de C.V. Subgroup
-
(73)
1
1
(71)
Concesionaria México
España, S.A. de C.V.
-
36
-
14,045
14,081
Promotora de Proyectos
ADM, S.A. de C.V.
-
-
-
1
1
(4)
-
-
4
-
(142)
-
-
142
-
Proacon, S.A.
CONCISA Construcciones
Civiles, S.L.
Supertec Zona, S.L.
(46)
-
-
46
-
Aldesa Home, S.L. Subgroup
1,213
-
-
(1,213)
-
Total
7,156
90
(131)
23,197
30,312
113
20. Negative goodwill on consolidation
The negative goodwill arose on the consolidation of the following investments:
Beginning
Balance
Thousands of Euros
of Consolidation
Ending
Balance
Fully consolidated companies
33
-
33
Construcciones Civiles, S.L.
1,276
(1,276)
-
Total
1,309
(1,276)
33
21. Provisions for contingencies and charges
The changes in this heading, which includes the provisions recognised by the Group to cover
possible liabilities arising from contractual claims, were as follows:
Provision for
Contractual
Claims
Thousands of Euros
Provisions for
Major
Repairs
Total
Balance at 31/12/06
2,777
138
2,915
Changes in the scope of consolidation
4,608
2,823
7,431
Period provision
1,834
-
1,834
Amount used of prior year's provision
(4,667)
(1,518)
(6,185)
Total
4,552
1,443
5,995
The period provision is included under “Other Operating Expenses” in the accompanying
consolidated income statement for 2007.
22. Non-current liabilities
Thousands of Euros
Bank borrowings (Note 22-a)
157,461
Bank borrowings for project financing (Note 22-b)
183,503
Other payables (Note 22-c)
Capital payments payable
Total
114
3,045
125
344,134
ALDESA GROUP
a) Bank borrowings
This heading relates to non-current bank borrowings, the detail of which, by maturity, is as
follows:
Thousands of Euros
Amount Drawn Down
Company
Account Type
Amount
Drawn Down
Due in
Subsequent
Due in 2008 Due in 2009 Due in 2010 Due in 2011
Years
Aldesa Conservación
e Infraestructuras, S.A.
Leases
337
105
61
59
60
52
e Instalaciones, S.A.
Various
1,766
1,565
148
52
-
-
Bilateral loans
60,000
-
1,000
3,700
10,500
44,800
Syndicated loans
53,000
-
-
10,600
10,600
31,800
Bank loans
19,856
4,955
5,220
5,498
2,124
2,059
Mortgage loan
15,772
256
273
292
312
14,640
Various
6,875
1,002
616
593
593
4,071
Agrupación Empresas, Automatismos
Montajes y Servicios, S.L.
Loans
3,948
625
578
492
524
1,709
AMS Alta Tensión Cataluña, S.L.
Loan
2.484
385
409
435
462
814
Coalvi, S.A.
Leases
2,416
1,032
966
414
-
-
Electrovalencia, S.A.
Various
189
49
49
49
40
-
Galmet, S.L.
Various
2,567
2,135
79
73
69
211
GTT Ingeniería y Tratamientos de Agua, S.A.
Leases
89
38
27
24
1
-
Lease
559
333
185
41
-
-
Meyvat, S.L.
Lease
7
4
3
-
-
-
124
42
24
25
26
7
San Martín y Martínez, S.L.
Total
Mortgage loan
Various
32
32
0
-
-
-
170,021
12,558
9,639
22,348
25,312
100,162
The balance under “Due in 2008” is included under “Current Liabilities - Bank Borrowings” (see
Note 23-a).
On 27 April 2006, the Parent arranged a syndicated loan of EUR 90,000 thousand to finance its
investments and meet its corporate financing needs. The interest on this loan, which matures on
27 April 2013, is tied to Euribor plus a spread associated with the ratio of net financial debt to
EBITDA, all at consolidated level. The agent bank for this syndicated loan, against which no
amount had been drawn down at 31 December 2007, is Banco Sabadell, S.A. The loan terms
and conditions include clauses concerning early repayment and changes to the loan terms and
conditions in the event of non-compliance with certain financial ratios tied to the consolidated
net financial debt and to consolidated EBITDA. These ratios had been met at 31 December 2007.
115
As indicated in the preceding paragraph, Banco Sabadell is the agent for the aforementioned
syndicated loan, the distribution by bank being as follows:
Thousands of Euros
Banco Sabadell
15,000
Caixa Cataluña
20,000
Bancaja
15,000
Banesto
10,000
Caja Madrid
10,000
BBVA
10,000
Banco Popular
10,000
Total
90,000
Additionally, on 14 September 2007, the Parent arranged a syndicated loan of EUR 90,000
thousand to finance its investments and meet its corporate financing needs. The interest on this
loan, which matures on 14 September 2014, is tied to Euribor plus a spread associated with the
ratio of net financial debt to EBITDA, all at consolidated level. The agent bank for this syndicated
loan, against which EUR 53,000 thousand had been drawn down at 31 December 2007, is
Banesto. The loan terms and conditions include clauses concerning early repayment and changes
to the loan terms and conditions in the event of non-compliance with certain financial ratios tied
to the consolidated net financial debt and to consolidated EBITDA. These ratios had been met at
31 December 2007.
As indicated in the preceding paragraph, Banesto is the agent for the aforementioned
syndicated loan, the distribution by bank being as follows:
Thousands of Euros
Banesto
30,000
Banco Sabadell
30,000
Caja Madrid
30,000
Total
90,000
The Parent has other long-term financing arrangements totalling EUR 112,503 thousand.
At 31 December 2007 the net cash position with recourse in accordance with the definitions of
the syndicated loans was EUR 13,570 thousand.
The net cash position with recourse is calculated as follows:
Thousands of Euros
Short-term investment securities (Note 16-b)
74,582
Cash (Note 17)
117,666
Long-term bank borrowings (Note 22-a)
(157,461)
Short-term bank borrowings (Note 23-a)
(16,807)
Deferred charges (Note 13)
5,088
Deferred charges financed without recourse
(3,210)
Financial bank guarantees (Note 25)
(6,288)
Net cash position with recourse
13,570
116
ALDESA GROUP
b) Bank borrowings for project financing
These are long-term debts without recourse arranged by the “project finance” methodology or
similar with financial institutions. The detail, by maturity, is as follows:
Thousands of Euros
Amount Drawn Down
Company
Account Type
Amount
Drawn Down
Aldesa Energía Subgroup
Financing without recourse 106,475
Aldepai Gestión
Financing without recourse
Concesionaria
México-España, S.A. de C.V.
Sistemas Energéticos Sierra
del Andévalo, S.A.
Total
Due in
Subsequent
Due in 2008 Due in 2009 Due in 2010 Due in 2011
Years
2,401
4,888
4,787
5,326
89,073
4,507
-
-
751
-
3,756
67,359
-
-
-
-
67,359
3,670
-
3.670
-
-
-
4,336
443
225
236
208
3,224
186,347
2,844
8,783
5,774
5,534
163,412
The balance under “Due in 2008” is included under “Current Liabilities - Bank Borrowings” (see
Note 23-a).
The most significant financing arrangements without recourse are as follows:
– On 16 November 2007 the Aldesa Energía Subgroup arranged project financing without
recourse for EUR 310,000 thousand to finance renewable energy projects (photovoltaic solar
plants and wind farms). These projects are at the construction phase and are scheduled to
come into operation in 2008. The agent bank is Banesto and for this financing a swap was
arranged to hedge the interest rate risk.
– The other financing arrangements without recourse of the Aldesa Energía Subgroup relate to
sludge drying, cogeneration and wind farm projects already in operation.
– On 29 November 2007 Concesionaria México-España, S.A. de C.V. arranged project financing
without recourse for MXN 2,250,000 thousand (equivalent to EUR 140,012 thousand). The
project consists of three sections, two of which are in operation and the third under
construction and scheduled to come into operation by 2009 year-end. The agent bank is
Santander and for this financing a swap was arranged to hedge the interest rate risk.
– On 19 December 2007 Aldepai Gestión, S.L. arranged project financing without recourse for
EUR 30,100 thousand. The project consists of the construction of two courts of justice in
Vendrell and Manresa. The company was awarded a 27-year Surface Right Concession for the
maintenance service, which is scheduled to start up in 2009. The agent bank is Santander and
for this financing a swap was arranged to hedge the interest rate risk.
117
c) Other payables
The breakdown of this heading is as follows:
Thousands of Euros
Long-term loans to multigroup companies
Long-term loans
Long-term guarantees received
Total
687
2,301
57
3,045
The debt recognised under “Long-Term Loans” includes the amount of EUR 658 thousand
granted by the CDTI, which is to be used to carry out an industrial research project on domotics.
The loan amount will be paid by the CDTI in the period from April 2009 to January 2014.
23. Current liabilities
Thousands of Euros
Bank borrowings (Notes 22-a and 23-a)
Bank borrowings for project financing (Notes 22-b and 23-a)
Payable to related companies
Advances received on orders (Note 23-b)
16,807
3,092
2,009
47,479
Accounts payable for purchases and services
234,084
Notes payable
343,023
Tax payables (Note 23-c)
77,012
Other payables
11,527
Remuneration payable (Note 23-d)
Guarantees and deposits received
Operating provisions (Note 23-e)
Accrual accounts
Total
5,694
916
12,853
483
754,979
a) Bank borrowings
The balance of EUR 19,899 thousand relates to the maturity in 2008 of the long-term bank
borrowings amounting to EUR 15,402 thousand (see Notes 22-a and 22-b) and to the credit
facilities against which EUR 4,146 thousand were drawn down plus unpaid accrued interest.
118
ALDESA GROUP
The breakdown, by company, of the short-term credit facilities is as follows:
Group Company
Amount
Drawn Down
Limit
Aldesa Conservación e Infraestructuras, S.A.
750
331
Aeronaval de Construcciones e Instalaciones, S.A.
100
96
Aldesa Energía Subgroup
1,000
998
44,900
-
Agrupación Empresas, Automatismos, Montajes y Servicios, S.L.
8,500
-
Edasa Ingeniería y Montajes, S.A.
2,800
478
Electrovalencia, S.A.
1,900
358
Galmet, S.L.
350
-
1,900
1,885
2,850
-
Técnicas de Administración y Mantenimiento Inmobiliario, S.A.
4,250
-
69,300
4,146
Total
b) Advances received on orders
These advances relate mainly to the amounts received in respect of progress billings on
uncompleted contracts, in accordance with the revenue recognition method described in Note 7-l.
Thousands of Euros
Advances received on orders - Parent
6,140
Advances received on orders - Subsidiaries
4,909
Subtotal advances received on orders
11,049
Advanced progress billings on uncompleted contracts - Parent
30,972
Advanced progress billings on uncompleted contracts - Subsidiaries
5,458
Subtotal advanced progress billings on uncompleted contracts
36,430
Total advances (Note 15-a)
47,479
c) Tax payables
The breakdown of “Tax Payables” is as follows:
Thousands of Euros
VAT payable
Unaccrued output VAT
8,651
48,071
Accrued social security taxes payable
4,070
Personal income tax withholdings payable
3,849
Deferred income tax liability
2,606
Income tax payable (Note 24-a)
Total
9,765
77,012
“Deferred Income Tax Liability” reflects the timing differences that arose in the calculation of the
income tax for the year (see Note 24). This deferred tax liability is recognised at the effective rate
at which it will be reversed, i.e. 30%.
119
d) Remuneration payable
This heading in the balance sheet includes the provision for incentives and other staff
remuneration accrued during the year, the payment of which was made in the following year.
e) Operating provisions
This heading includes the estimated amount required to cater for the site maintenance expenses
during the warranty period, site clearance and removal of installations, and settlement and
guarantee expenses until the date of their refund. The period provision is recognised with a
charge to “Change in Operating Provisions” in the accompanying consolidated income
statement for 2007 (see Note 27-e).
“Operating Provisions” also includes the provision for termination benefits payable to employees
on completion of the work. The period provision is recognised with a charge to “Change in
Operating Provisions” in the accompanying consolidated income statement for 2007 (see Note
27-f).
24. Tax matters
a) Accounting profit and taxable profit
The reconciliation of the accounting profit for the year to the estimated taxable profit for income
tax purposes is as follows:
Thousands of Euros
Accounting profit for the year before income tax expense
39,341
Tax loss carryforwards
(2,745)
Permanent differences at individual companies
Increases
5,029
Decreases
(960)
Timing differences at individual companies
Increases
19,535
Decreases
(461)
Timing differences due to consolidation adjustments
Increases
-
Decreases
(8,385)
Adjusted consolidated accounting profit
44,864
Adjusted gross tax payable (32.5%)
16,690
Tax credits and tax relief
(251)
Net tax payable
16,439
Income tax withholdings
(1,991)
Tax charge for the year
14,448
State income tax prepayments
(6,350)
Net tax charge
8,098
Income tax payable (Note 23-c)
9,765
Income tax receivable (Note 15-d)
1,012
Tax asset for offsettable losses (Note 15-d)
120
ALDESA GROUP
655
There are tax losses available for carryforward and unused tax credits totalling EUR 40,498
thousand.
Law 35/2006, of 28 November, on personal income tax and partially amending the Spanish
Corporation Tax, Non-Resident Income Tax and Wealth Tax Laws, provides, inter alia, for a
reduction over two years in the standard income tax rate, which until 31 December was 35%.
The tax rate is reduced as follows:
Tax Periods Beginning On or After
Tax Rate
1 January 2007
32.5%
1 January 2008
30 %
The effect of this change on the amount of deferred tax assets and liabilities in the balance sheet
is not material.
The income tax expense recognised in the consolidated income statement includes the 2007
income tax expense, the adjustments made to 2006 income tax, and the adjustments made
to the deferred tax assets and liabilities due to the application of the 30% rate in their
calculation.
b) Years open for review by the tax authorities
The Group has the last four years open for review by the tax authorities for all the taxes
applicable to it. The Parent's directors consider that the tax liability which might arise as a
result of a tax review would not materially affect the accompanying consolidated financial
statements.
25. Guarantee commitments to third parties
At 31 December 2007, the Group companies had provided EUR 420,639 thousand of provisional
and final bid and performance bonds to public and private agencies. The purpose of bonds is to
guarantee completion of the construction projects and most of them were provided by banks
and insurance companies. The Parent also provided EUR 6,288 thousand of financial bank
guarantees.
The directors of the Parent and of the subsidiaries do not expect any liability to arise in relation to
these guarantee commitments.
26. Transactions with companies accounted for using the equity method
The detail, by company, is as follows:
Thousands of Euros
Purchases and
Sales and
Services Received
Services Provided
43
6,201
Total
43
6,201
121
All the commercial transactions are carried out under the terms and conditions established by
both parties on an arm's length basis and relate to the construction activity.
27. Income and expenses
a) Cost of materials used and other external expenses
The detail of the materials used in 2007 is as follows:
Purchases
Thousands of Euros
Change in inventories Variation
Raw materials and other supplies
255,063
36,520
291,583
Other external expenses
507,482
-
507,482
Total materials used in operations
Total
799,065
Of the total balances, EUR 34,520 of “Raw Materials and Other Supplies”, EUR 102,004
thousand of “Other External Expenses” and EUR (229) thousand of “Change in Inventories”,
related to proportionately consolidated joint ventures.
b) Staff costs
The breakdown of staff costs is as follows:
Thousands of Euros
Wages and salaries
Termination benefits
132,626
2,440
Employer social security costs
35,387
Other employee benefit costs
1,708
Total
172,161
Wages and salaries and termination benefits relating to proportionately consolidated joint
ventures amounted to EUR 2,271 thousand and EUR 50 thousand, respectively.
The employer social security costs and other employee benefit costs relating to proportionately
consolidated joint ventures amounted to EUR 731 thousand and EUR 24 thousand, respectively.
There were no pension plan obligations to the employees.
c) Revenue
“Revenue” relates in full to sales made in Spain, except for EUR 3,561 thousand, which were
obtained mainly in Mexico.
122
ALDESA GROUP
The breakdown of revenue by line of business is as follows:
Thousands of Euros
Civil engineering work
540,717
Residential building construction
247,996
Non-residential building construction
80,940
Other
256,841
Total
1,126,494
Of these sales, EUR 192,947 thousand related to joint ventures (see Note 31).
The Group acted as the prime contractor in most of the construction projects.
The detail of the backlog at 31 December 2007 is as follows:
Thousands of Euros
Own Construction Joint Ventures
Construction
Civil engineering
Non-residential building construction
Residential building construction
Engineering and services
Total
Percentage
1,481,813
840,520
2,322,333
94%
1,150,331
655,034
1,805,365
73%
67,725
160,243
227,968
9%
263,757
25,242
288,999
12%
110,534
14,251
124,785
5%
Other
19,097
-
19,097
1%
Total
1,611,445
854,771
2,466,215
100%
The breakdown of sales by Autonomous Community is as follows:
Andalusia
Thousands of Euros
Percentage
306,070
27.18%
Aragón
55,516
4.93%
Asturias
31,080
2.76%
Balearic Islands
4,392
0.39%
Cantabria
1,802
0.16%
Catalonia
197,290
17.52%
Castilla y León
62,047
5.51%
Castilla La Mancha
85,019
7.55%
1,126
0.10%
Galicia
36,035
3.20%
La Rioja
5,743
0.51%
Madrid
188,845
16.77%
Murcia
18,468
1.64%
Navarre
11,824
1.05%
Extremadura
Basque Country
113
0.01%
117,563
10.44%
Total Spain
1,122,933
99.70%
Foreign sales
3,561
0.30%
1,126,494
100.00%
Valencia
Total
123
d) Contribution to profit by consolidated companies
The contribution by each consolidated company to consolidated profit is as follows:
Attributable
to the Parent
Company
Thousands of Euros
Attributable
to Minority
Interests
Total
Parent
29,392
-
29,392
Fully consolidated
Coalvi, S.A.
2,414
-
2,414
(1,989)
(887)
(2,876)
76
-
76
2,307
1,186
3,493
Aldesa Conservación y Explotación
de Infraestructuras, S.A.
563
-
563
Urbanizadora Carretera de Albalat, S.L.
(78)
-
(78)
55
-
55
208
(39)
169
47
12
59
23
6
29
Maquivías, S.A.
Agrupación de Empresas, Automatismos,
Montajes y Servicios, S.L. Subgroup
Aldesa Marina Salinas de Torrevieja, S.L.
(90)
-
(90)
Aldesa Servicios y Mantenimiento, S.L. Subgroup
190
7
197
Aldesa Energías Alternativas, S.A. Subgroup
(930)
(93)
(1,023)
Aldesa Hidrocarburos, S.L. Subgroup
(419)
(4)
(423)
(217)
(12)
(229)
Pebian Inversiones, S.L. Subgroup
(191)
-
(234)
103
(1)
137
Sistemas Energéticos Sierra del Andévalo, S.A.
(17)
-
(17)
(147)
-
(147)
(17)
(1)
(18)
(1)
-
(1)
(5,362)
(2)
(5,360)
(9)
(2)
(11)
Construcciones Aldesem, S.A. de C.V. Subgroup
(174)
(43)
(217)
Concesiones Aldesem, S.A. de C.V. Subgroup
(293)
(73)
(366)
146
36
182
(19)
-
(19)
(2)
-
(2)
Aldesa Polska, Sp.z.o.o. Subgroup
Aldesa Suministros de Instalaciones, S.L.
Aldegral, S.L. Subgroup
Aldeturismo, S.A. de C.V. Subgroup
Proportionately consolidated
Perdigana de San Pau, S.L.
Autopista de Castilla La Mancha
Concesionaria Española, S.A.
124
ALDESA GROUP
Company
Thousands of Euros
Attributable
to Minority
Interests
Attributable
to the Parent
Total
Accounted for using the equity method
(2)
-
(2)
(41)
-
-
Centre d´Óci Les Gavarres, S.L.
(2)
-
-
Ipar Acisa, S.L.
35
-
-
353
-
Torrepai, S.L.
353
343
Total
351
25,912
90
26,002
e) Bad debt allowances (Note 15-e)
The changes in 2007 in bad debt allowances were as follows:
Thousands of Euros
Balance at 31/12/06
2,407
742
Period provision
14,377
Amounts used
(390)
Balance at 31/12/07
17,136
It should be noted that GTT Ingeniería y Proyectos, S.A. recognised an allowance for the full
amount of the balances with Llanera Urbanismo e Inmobiliaria, S.L.
f) Other operating provisions (Note 23)
The changes in “Other Operating Provisions” were as follows:
Thousands of Euros
Balance at 31/12/06
12,524
1,087
Period provision
3,522
Amounts used
(4,280)
Balance at 31/12/07
12,853
g) Outside services
“Independent Professional Services” includes the fees for the audit of the financial statements of
the Parent and of its subsidiaries. The expenses incurred in this connection in 2007 amounted to
EUR 415 thousand.
h) Other current operating expenses
“Other Current Operating Expenses” includes the subcontracted work that forms part of the
Group's own production process.
125
i) Average headcount
The average number of employees at the Group companies in 2007 was as follows:
Number of
Men
Professional Category
Number of
Women
Total
University graduates
283
74
357
Further education college graduates
381
135
516
Site foremen and non graduate line personnel
610
72
682
92
161
253
Clerical staff
Manual workers
1,460
16
1,476
Total
2,826
458
3,284
j) Extraordinary expenses and income
Prior years' expenses include, inter alia, various adjustments to balances with the Group and to
the payment relating to the end of a lawsuit dating from 2005.
28. Other information
The detail of the remuneration earned by the Parent's directors in 2007 is as follows:
Thousands of Euros
Attendance and directors' fees
139
Wages and salaries
1,146
Total
1,285
No advances or loans were granted to the directors and there were no pension or life insurance
obligations to them.
Pursuant to Article 127 ter. 4 of the Spanish Companies Law, introduced by Law 26/2003 of
17 July, which amended Securities Market Law 24/1988 of 28 July, and the Consolidated
Companies Law, in order to reinforce the transparency of corporations, following is a detail of
the companies engaging in an activity that is identical, similar or complementary to the activity
that constitutes the company object of Aldesa Construcciones, S.A. in which the members of
the Board of Directors own equity interests, and of the functions, if any, that they discharge
thereat:
Name
Activity
Company through which the
Activity is Performed
Position Held
Construction
Alviesa
Sole Director
José Luis Naveira Naveira
Construction
Coalvi, S.A.
Chairman
Construction
Coalvi, S.A.
Secretary
Construction
Concisa de Const. Civiles, S.L.
Sole Director
Installations
Ag. Emp. Aut, Mjes. y Ser., S.L.
Director
Construction
Pebián Inversiones, S.L.
Sole Director
Installations
Aeronaval de Const. Civ., S.A.
Managing Director
Construction
Civesa Ingeniería S.A.
Managing Director
126
ALDESA GROUP
Name
Activity
Company through which the
Activity is Performed
Position Held
Construction
Aldesa Turismo S.A.
Director
Services
Aldesa Serv. y Mant., S.L.
Sole Director
Carlos Gasca Allué
Construction
Coalvi, S.A.
Director
Carlos Gasca Allué
Property
Urb. Carretera de Albalat S.L.
Director
Construction
Construcciones Pai, S.A.
Managing Director
Construction
Director
Construction
Proacon, S.A.
Director
Construction
Habana Gestión, S.L.
Chairwoman
Property
Aldesa Home, S.L.
Chairwoman
Property
Inarenas Proy. Inmob., S.A.
Director
Property
Dicasa Diseños Canarios S.L.
Managing Director
Property
Director
Property
G.I. Boj Castellana
Joint
Representative
Property
Director
Construction
Coalvi, S.A.
Deputy Chairman
Construction
Proacon, S.A.
Chairman
Construction
Coalvi, S.A.
Director
Property
Inarenas Proy. Inmob., S.A.
Director
Construction
Comsa, S.A.
Director
The members of the Board of Directors of the Parent may own equity interests in other Aldesa
Construcciones, S.A. Group companies and there is no evidence of any equity interests held by
them in non-Group companies engaging in an activity that is identical, similar or complementary
to the activity that constitutes the object of the Parent.
29. Events after the balance sheet date
There were no other events worthy of mention after the balance sheet date.
30. Information on the environment
For Aldesa Construcciones, S.A. and subsidiaries environmental management is a priority issue
within the organisation; they thus foster respect for the environment in the course of their
activities while using increasingly sophisticated techniques to protect the environment
adequately.
To this end, in 2000 the Parent obtained AENOR Environmental Certification in accordance with
the ISO 14001:2004 quality standard, which guarantees the identification and prevention of any
environmental risks that might arise and compliance with applicable environmental legislation
and regulations, through the use of processes aimed at avoiding, minimising and controlling
pollution, paying special attention to prevention and to the establishment of measures aimed at
continuously improving the Company's environmental performance.
In order to meet the requirements of this standard, Aldesa Construcciones, S.A. establishes an
Environmental Management Plan for each construction project which, in addition to identifying
127
and evaluating aspects of its activities that are of environmental concern (generation of waste,
air emissions, spills and noise), anticipates possible emergency situations, identifies
environmental legislation, monitors its own and its subcontractors' compliance with legislation
and targets environmental improvement.
The Company's guidelines for compliance with the international ISO 14001 standard are
enshrined in its environmental policy.
The Group's environmental policy is based on:
– Compliance with applicable environmental legislation and regulations and with the
requirements which the Company endorses for this purpose.
– The use of processes, practices or materials that avoid, minimise or control pollution in order to
fulfil the commitment to preventit.
– Increasingly rigorous environmental management, in order to improve the Company's
environmental performance.
– The establishment and regular review of environmental objectives and targets, in accordance
with the commitments assumed in this declaration.
– Educating and involving the employees concerned in the manner of developing and applying
the environmental management system.
The Group also defines environmental improvement measures specifically for each of its
construction projects, through the establishment of environmental objectives.
A large number of the construction contracts executed include environmental impact studies,
which in turn include the performance of environmental maintenance and restoration services.
The Group does not classify as environmental assets and expenses those included directly in the
provision of the service, although these are taken into account in the environmental
management of the execution of the activities.
The principal ordinary environmental expenses incurred in the year ended 31 December 2007
were mainly as follows:
Description
Thousands of Euros
Waste management expenses
Costs of company staff assigned to environmental matters
Environmental audit and certification expenses
Total
128
87
665
11
763
ALDESA GROUP
31. Joint ventures
The detail of the joint ventures in which the Company had ownership interests at 31 December
2007 is as follows:
Joint Venture
Ownership
Interest
Revenue
Joint Venture
Ownership
Interest
Revenue
Alvidea
50%
0
Vilaseca
50%
0
Teruel
50%
0
Ave Penedés
70%
0
Ceuta
50%
0
Arelsa
70%
123
Medina
50%
0
Canal
80%
40
El Puig
80%
0
Fayon
80%
0
Acacias
40%
0
Reh. Firme
50%
776
Rio Tinto
100%
0
Barbastro
50%
1,728
Fraga
50%
1,378
Pto. Real
50%
674
Anguera
33%
0
Bc. Albufert.
50%
389
Ave D'Anoia
60%
0
Urb. Expo
50%
2,404
Urb. Siles
80%
0
Daroca
80%
426
Villaveta
90%
337
Embalses
80%
9
Alboraia
50%
0
Mazaleón
80%
1,018
Portas
37%
4,256
Almonacid
80%
208
Almuzuera
40%
0
Comarca-1
80%
0
Estación Autobuses
Calamocha
70%
0
Llera
45%
1,037
Est. Miraflores
50%
304
Vandellós
33%
0
Sarriá del Ter
30%
0
30%
956
Pista 18
25%
0
Albolote - Maracena
Aldepron
80%
0
Ronda Sur
38%
9,210
Civyco (Metro Valencia)
30%
0
Boadilla
80%
0
Loteta
20%
1,078
Cocheras
20%
2,921
Ave Requena
20%
6,369
Vt. Olivo
25%
0
Barbastro
100%
3,456
Bombament Granollers
40%
0
Santa Perpetua
50%
0
Mazaleón
100%
1,272
S. Luis
50%
0
Fira 2000
40%
0
Jativa II
60%
0
Benjume-Pai
50%
0
Pruna
20%
0
Ersce-Riera-Pai
8%
0
Trubia
45%
-193
Apm-Pai-Llull
25%
0
Torija
40%
0
Apm-Pai- Torello
25%
0
Andorra
50%
0
Pai-Comsa
50%
0
Caminos
50%
0
Enor-Pai
50%
1,337
Jerez
50%
0
Can Brians-2
5%
1,418
Acceso Coruña
50%
486
Alcuba
50%
0
Pontearnelas
50%
732
Latores
33%
0
Colegios (Cs)
70%
Tes.Cádiz
80%
Amposta
50%
499
La Catalana
49%
313
Alforja
40%
981
Tossal Gros Alpicat
20%
2
0
Vullpalleres
35%
582
0
Ave Del Valles
30%
51
129
Ownership
Interest
Joint Venture
GTT Trn I (Plaza Elíptica)
50%
Revenue
Joint Venture
0
A Cañiza
Ownership
Interest
Revenue
50%
1,276
GTT Trn II (Vilaboa)
50%
0
Ronda Sur Ferroviaria
75%
17,108
GTT Trn III (Tarancón)
50%
0
Corredera
50%
0
GTT Trn IV
(Campomanes Pola Lena)
50%
0
Aibar- Caseda
60%
0
Villareal
20%
64
GTT Trn V (Osorno)
50%
85
Elche
20%
51
GTT Trn VI (Toledo)
50%
169
GTT Trn VII (Zaragoza)
50%
106
GTT Trn VIII
(Sauquillo Almazán)
50%
0
Ave Prados
60%
2,102
Caudete Villena
25%
0
Novellana
80%
8,173
Colegios (V)
70%
216
Inypsa Incosa
GTT
33%
21
Játiva
60%
0
Zuasti
60%
141
Pycsa Bureau
Veritas GTT (GIF Málaga)
34%
0
Pza. Dalí
80%
0
Chamartín
34%
42
Berenguer
50%
0
Gtt Intercontrol (Teruel)
50%
0
Pedelta GTT
30%
0
San Pedro
28%
12,456
Queixas
37%
585
Villatoro
60%
13,947
Úbeda Baeza
60%
0
Cemosa GTT
50%
0
50%
1
Ballota
45%
7,743
Eix 3
Meirama
60%
1,877
Mijas
50%
-358
Telvent Tráfico y
Transporte y Acisa Eix IV
50%
1,653
Nou Moles
60%
270
33%
0
Payuelos
50%
16
Balizamiento Plataforma
Sur-Soclesa Sampol Acisa
Trv. Orriols
50%
2,096
Sevic (Acisa-Telvent)
50%
10
Remolar
24%
8,223
Ipar-Acisa
50%
0
Tunels Oliana-Acisa
Telvent Electro 90
33%
0
Ipar-Acisa 06
50%
238
Gestio Del Transit
25%
325
Accesos Sur
(Acisa-Telvent)
50%
1,126
Ave Xátiva
43%
2,890
Casa (Se)
50%
0
Játiva III
60%
-12
Aldeman
50%
3,440
Requena
100%
6,783
Butarque
50%
5,871
Fayon
100%
0
Caspe
100%
26
Biurrun
60%
120
Villafranca
60%
1,716
Canal Aragón
100%
50
Vía Verde
100%
0
Da Vinci
50%
1,798
Paisanes
50%
1,110
Cocheras
100%
941
Cuenca Olalla
60%
3,754
Firme Zaragoza
100%
1,552
Fraga
100%
2,756
Daroca
100%
533
130
ALDESA GROUP
Zarautz Acisa-Amintel
50%
44
Burlada Acisa-Amenabar
50%
122
Sant Esteve D'En Bas
50%
731
Túnel Rovira
33%
482
C-32 Acisa-Sice
50%
0
Lleida Acisa-Sice
50%
0
Acisa-Expocom
2-Acisa y Expoxom
70%
0
70%
0
Acisa Supertec
50%
Lleida-Acisa y Supertec Zona
0
Acisa-Expocom
2005-Acisa y Expocom
Joint Venture
Acisa-Bonal Aeropuerto
Bcn-Acisa y Bonal
Ownership
Interest
70%
Revenue
0
Acisa-Bonal
Plataforma Corporativa
70%
0
Lleida -2006-Acisa-Sice
50%
4
Iparacisa-Leitzaran
50%
77
Gurutze-Txiki
33%
0
Acisa-Copcisa
30%
1,231
Indra Sistemas-Telvent
y Acisa (M-50)
33%
Ownership
Interest
Revenue
San Pedro Instalaciones
14%
5,978
Calamocha
100%
0
Porto Burela
50%
0
Yecla
70%
13
Vía Verde
80%
0
Caspe
50%
13
Joint Venture
Central Eléctrica
50%
0
Contrafic
50%
0
23
Acisa Doymo
63%
0
Acisa-Bonal
70%
0
Acisa y E.M.G.
50%
237
Acisa Indra
56%
0
Acisa-Sice
40%
0
33%
0
FFCC Acisa Auding
40%
0
Acisa-Cymi-Isolux
Despeñaperros
35%
0
Acisa Elecnor
50%
0
0
Etra Sainco Acisa
(Multiuso)
20%
0
Acisa Cobra Inst.
22%
y Servicios-Espelsa y Sampol
Pirineo Central
20%
0
Acisa Saima Seguridad
70%
0
Barajas
Iae-Imes-Acisa-Emg
27%
792
Acisa Fco. López
Romero-Electr. Ind.
80%
0
Isotro y Acisa
50%
0
Acisa y Facto Almeriense
de Const. y Obras Públicas
80%
0
Acisa Adasa Sistemas
70%
0
Acisa/Roig
80%
0
80%
0
Berriozar
60%
0
Soterramiento Alboraia
33%
959
Páramo V
50%
223
Milagro
60%
0
Queiles
75%
0
Almonacid
100%
260
Embalses
100%
11
Puerto Real
100%
1,322
Presas
80%
72
Ibi
65%
208
Campus de La Justicia
50%
4,833
Acisa/Roig
Fuentes-Granada-Acisa
y Roig Obras Serveis
Albolote-Maracena
70%
1,974
Stuc/Acisa Ley 18/1982
50%
0
Urb. Expo
100%
4,808
60%
0
Est. Miraflores
100%
512
Acisa-Stuc-Acisa y
Stuc Gestión de Obras
66.67%
-121
Cinpa y Meyvat
5%
0
100%
-300
Marcor-Nijar
20%
2,507
Marcor-Riberas
20%
570
Hospital Alicante
40%
180
21 de Marzo
51%
17
Cespa-Smm
72%
Ave Vilaboa
Ave Del Valles
Viviendas
Móstoles Sur
60%
0
Albox
50%
346
San Pedro Instalaciones
Tunel Este
28%
5,152
Total
0
192,947
32 Explanation added for translation to english
These consolidated financial statements are presented on the basis of accounting principles
generally accepted in Spain. Certain accounting practices applied by the Group that conform
with generally accepted accounting principles in Spain may not conform with generally accepted
accounting principles in other countries.
131
Translation of a report originally issued in Spanish. In the event of a discrepancy, the Spanish-language version prevails.
Directors' Report for the Year Ended 31 December 2007
Performance of Aldesa Construcciones, S.A. and Subsidiaries
In 2007 Aldesa Construcciones, S.A. and its subsidiaries reported consolidated revenue of EUR
1,126.5 million, up 60% on the EUR 703.9 million obtained in 2006.
The figure achieved in 2007 places Aldesa Construcciones, S.A. and its subsidiaries among the
ten largest construction groups in Spain, and confirms its top position in the ranking
established by ANCI (National Association of Independent Constructors), of which it is a
founder-member. At year-end the construction backlog amounted to EUR 2,466 million, a
figure that guarantees very competitive growth with respect to the industry average. By type
of project, 73% of the backlog relates to civil engineering, 12% to residential building
construction, 9% to non-residential building construction, 5% to engineering and services
and 1% to other activities.
EBITDA at EUR 79.9 million represented 7% of total revenue, a percentage similar to that of
prior years, which testifies to the Group's excellent management. This result is up 59% on the
figure of EUR 50.4 million obtained in 2006.
The significant growth of Aldesa Construcciones and its subsidiaries –well above that of the
Spanish construction industry as a whole– was due both to organic growth and to the
acquisition and integration of new companies in the Group. The process of diversification into
new lines of business was consolidated in 2007, as evidenced by the more than two-fold growth
in income to over EUR 277 million (pro forma figures), obtained from activities other than
construction.
In 2007 the Group's activities focused primarily on major civil engineering contracts, which
accounted for approximately 48.0% of the Group's total income, mainly with public agencies,
including most notably the railway construction work for the high-speed train lines; secondly, on
residential and non-residential building construction work performed for both public –and
private– sector customers, which accounted for 29.2% of the total; and last, but not least, on
the increasingly important presence of businesses other than construction in which the Group
has a presence, such as applied engineering, renewable energies, ancillary services and
infrastructure upkeep and operation, which accounted for the remaining 22.8%. Of particular
note is the Group's strong commitment to the Concessions division, which expanded
considerably in 2007 with the operation of transport infrastructures in Spain and Mexico.
Net profit stood at EUR 26 million, down EUR 3.5 million from 2006, due mainly to the increases
in the amortisation of goodwill on consolidation and in the operating provisions recognised and
to the decrease in financial profit. It should be noted that the amortisation of goodwill on
consolidation had no impact on cash flow. This goodwill arose as a result of the Group's ability
to generate value in the future from the investments made, mainly in renewable energy projects
financed under a Project Finance arrangement, which were at the construction phase in 2007
and will generate recurrent income from the date of start-up, scheduled to take place in the
second half of 2008. In connection with operating provisions, the trade receivables risk was
analysed rigorously, taking into account the current economic circumstances of the property
industry and also each customer's specific circumstances, with a view to avoiding the impact on
future years of risks known in 2007.
132
ALDESA GROUP
With these results, Aldesa Construcciones S.A. and its subsidiaries increased their shareholders'
equity to EUR 104.3 million, representing a 25% increase from the 2006 year-end figure of EUR
83.5 million.
Worthy of mention is that four years ago, the Aldesa Group implemented a growth strategy
through the inclusion of new companies in the Group and the diversification of its businesses
and investments towards non-construction and supplementary construction activities.
Consequently, the Group is in a position to successfully address the foreseeably changing trends
which will affect the structure of the demand for construction in Spain in the coming years.
As part of its investment strategy, therefore, the Aldesa Group invested over EUR 375 million in
2007, most of which was targeted at reinforcing the Renewable Energies, Engineering and
Services and Concessions business lines. Despite this measure, the net cash position with
recourse evolved favourably, ending the year at EUR 13.6 million, which means that the Group
has all its debt with recourse available, and a EUR 122 million decrease compared with 2006
year-end. This is the result of the generation of operating cash flows in all the businesses and of
adequately structured investment financing.
In 2007 the Group continued to demonstrate its firm commitment to the strategic renewable
energies business and purchased assets from the Detea Group valued at EUR 600 million. The
portfolio acquired of projects under development, representing a capacity of 200 MW, belonged
to Becosa, a renewable energy subsidiary of the Detea Group, and included five wind farms, one
biomass plant, four combined heat and power plants, two biomass drying facilities and nine
photovoltaic projects.
The Engineering area was boosted by the purchase, through the AMS Group, of a 91% stake in
Galmet, a company engaging in industrial installation work in the food and pharmaceutical
industries, and a 90% holding in EDASA Ingeniería y Montajes, S.A., which performs projects
and installation work related to process automation, mechanical engineering, combined heat
and power systems, complete industrial facilities, electricity distribution and networks and
communications. In the Services area, the Aldesa Group, through its subsidiary Concentra,
purchased all the share capital of San Martín y Martínez, S.L., a company specialised in the
technical cleaning of buildings and facilities, and all the share capital of Técnicas de
Administración y Mantenimiento Inmobiliario (TMI) from the property group Realia, whose core
business consists of the integral management and overall maintenance of buildings and
properties.
In 2007 the Concessions business line reported substantial growth in its volume of business due
to the operation of transport infrastructures in Spain and Mexico. In this regard, it should be
mentioned that Aldesa is the majority shareholder of Concesionaria de Autopistas del Sureste,
which holds the 30-year concession to operate the Mexican toll motorways Tuxtla Gutiérrez-San
Cristóbal and Arriaga-Ocozocoautla and to construct a new section in the latter. It is also a
shareholder of Autopista de La Mancha Concesionaria Española, S.A., a company incorporated
in 2007 to build, operate and maintain the Puerto Lápice-Venta de Cárdenas (Ciudad Real)
section of the A-4 motorway, its functional elements, ancillary services and service areas.
Additionally, Aldesa Marina Salinas is entrusted with the operation of the Torrevieja Marina
Salinas marina (construction of which was completed in 2007). Also noteworthy is the fact that
Aldesa and Pai Construccions continued with the construction of the El Vendrell (Tarragona) and
Manresa (Barcelona) courts, having been awarded the 27-year surface right concession for the
maintenance service.
Lastly, in 2007 Aldesa also incorporated Civesa Ingeniería y Construcción, S.A., for the purpose
of carrying out construction projects specifically in the region of Eastern Andalucía. It can thus
offer its customers new construction and development options that supplement its existing
range of products.
133
Main business risks
The Group attaches importance to risks that are likely to compromise the returns on its business
activity, its financial solvency and its employees' integrity. The most significant risks are:
– Risks relating to deficiencies or delays when performing construction projects or providing
services to customers and users.
– Environmental risks.
– Financial risks.
– Occupational health and safety risks.
Aldesa is equipped with control systems to evaluate, prevent and mitigate each of the risks
described. In this connection, it has been awarded the AENOR Quality Management Certificate
based on the ISO 9001:2000 standard which assures compliance with customer requirements in
terms of their level of satisfaction, in addition to the legal and regulatory requirements in order
to reduce errors and establish a framework of continuous improvement of company processes.
In 2000 Aldesa was awarded the AENOR Certificate for Environmental Management in
accordance with the ISO 14001:2004 standard, which assures compliance with applicable
environmental legislation and regulations, through the use of processes aimed at avoiding,
minimising and controlling pollution, paying special attention to prevention and to the
establishment of measures aimed at continuously improving the Company's environmental
performance. The Group also has supervisory systems and financial risk control mechanisms,
with Deloitte as the auditors of its financial statements. It also fosters accident prevention
measures in all its production areas, complying with and enforcing compliance with the related
legislation, and increasing the human resources and materials required for this purpose. As a
result, in 2007 Aldesa and Coalvi obtained AENOR certification for their Occupational Health
and Safety Management System, based on the OHSAS 18.001 standard. This certification
reaffirms Aldesa's occupational risk prevention commitments and guidelines. These
commitments are enshrined in its Health and Safety Policy, which is implemented through the
establishment of a Health and Safety Plan for each project as an essential procedure prior to
inaugurating a workplace.
Derivative financial instruments
Aldesa Construcciones, S.A. and its subsidiaries have arranged interest rate swaps to partially
hedge the interest rate risk of the financing obtained under Project Finance arrangements.
Future outlook for the Group
The Group's construction backlog in terms of both size and structure, its financing position
without debt with recourse which is backed by the trust of leading banks, its successful
diversification into businesses with foreseeable and recurrent income, its highly professional
organisation and the decision-making unit in its shareholder structure, all point to solid, steady
growth over the coming years and to the Group being able to successfully negotiate possible
changes in the economic cycle.
134
ALDESA GROUP
Significant events for the Group after the balance sheet date
There have not been any events worthy of mention since the balance sheet date.
Research and development
Aldesa aims to become a Group in which innovation can take place in all corporate areas:
business lines and support departments. Accordingly, in 2007 it worked on two parallel lines of
action: as part of the first, it made certain acquisitions –EDASA, Galmet– which contribute to the
Group skills that it had hitherto not possessed. These additions, together with those made in
2006 –principally ACISA– have endowed Aldesa with the capacity for innovation, the fruits of
which will be seen in the very near future. The second line consists of implementing a system of
innovation throughout the organisation so that innovation is not seen as the exclusive domain of
the employees of the companies' R&D&I departments, but rather as an asset of all the
departments. This new means of treating Innovation is being consolidated in 2008 and will
constitute yet another linchpin of the Aldesa Group's plans for profitable growth.
In the Construction business line, in 2007 the Group continued to work on information and
communications technologies for household use (application of domotics to the home) and for
use in the construction industry.
The Engineering and Services business line, through its main technological company ACISA,
focussed on implementing projects relating to its core business, which is traffic management.
The major milestones reached in 2007 were as follows: accreditation and first installations of
undetectable radar systems, development of an artificial vision system applied to traffic and
transport which is being marketed under the VisioWay® brand name, development of a
hazardous goods transport vehicle control system, and intelligent steering of vehicles in
company enclosures. Also noteworthy in this Division and in relation to EDASA –an AMS Group
company– is the integrated wine transport and storage automation project for wineries.
Acquisition of treasury shares
In 2007 the Parent did not acquire any treasury shares and no treasury shares were held at
year-end.
135
www.aldesa.es

Annual report 2007

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